Construction Partners, Inc.

Greetings and welcome to the Construction Partners Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Rick Black, Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. We appreciate you joining us for the Construction Partners Conference Call to review third quarter results for fiscal 2025. This call is also being webcast and can be accessed through the audio link on the events and presentations page of the Investor Relations section of constructionpartners.net. Information recorded on this call speaks only as of today, August 7th, 2025. Please be advised that any time-sensitive information may no longer be accurate as of the date of any replay listening or transcript or reading. I would also like to remind you that statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance are forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's call, that by their nature are uncertain and outside of the company's control. Actual results may differ materially. Please refer to our earnings press release for our disclosure on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission. Management will also refer to non-GAAP measures, including adjusted net income, adjusted EBITDA, and adjusted EBITDA margin. Reconciliation to the nearest GAAP measures can be found at the end of our earnings release. Construction Partners assumes no obligation to publicly update or revise any forward-looking statements. And with that, I would now like to turn the call over to Construction Partners CEO, Jule Smith. Jule?

Thank you, Rick, and good morning, everyone. We appreciate you all being on the call today. With me this morning are Greg Hoffman, our Chief Financial Officer, and Ned Fleming, our Executive Chairman. I'd like to begin today by welcoming the 200 employees of Durwood Green Construction in the Houston area that joined our family of companies earlier this week. As a third-generation family business that will continue to be led by Brad, Jonathan, and Daniel Green, the company has earned its reputation as a well-respected market leader in Houston, the fifth largest and one of the fastest-growing metro areas in the nation. Led by an entire team of knowledgeable and experienced industry veterans, the company operates three hot-mix asphalt plants and a rail-serviced aggregates terminal. Durwood Green provides construction and paving services for a variety of public and private projects throughout the Houston metro area. We expect Durwood Green to continue its legacy of operational excellence and to benefit from vertical integration opportunities as a subsidiary to our Texas platform company, Lone Star Paving. In Texas, our first year has been exactly as we had hoped, and I want to thank the Lone Star team for their outstanding leadership and dedication as we begin expanding to new markets. We continue to see strong economic growth, favorable demographic trends, and a well-funded transportation program, as well as additional opportunities for acquisitive and organic growth. The Durwood Green acquisition is a great example of our continued execution of the CPI strategy of seeking out growing markets and partnering with an experienced and talented local management team. Turning now to the third quarter, our results demonstrate the strength of our people, where despite persistent weather-related delays in the quarter, our teams executed with discipline and delivered robust operational results, driving a record-adjusted EBITDA margin of 16.9%. In the Southeast alone, May marked the second wettest month on record, leading to project delays and impacting fixed asset cost recoveries. While we can't control the weather, our team's resilience and operational excellence enabled us to still gain margin on many of our projects, generate strong operational cashflow, and build backlog to $2.94 billion. Now let's take a closer look at the current market conditions that are driving our ability to build backlog even during our busy construction work season. On the public side of our business, we see strong public contract bidding throughout our eight states and over 100 local markets. Supporting this strong environment are healthy state infrastructure budgets, including many supplementary state programs, as well as local city and county infrastructure programs and the IIJA federal program, funds that all add up to significant -over-year increases in contract awards. As we begin looking to fiscal year 2026, beginning October 1st, public spending on roads and bridges, particularly for maintenance and lane expansions, is forecasted to once again grow substantially as state and local governments strive to build and maintain the infrastructure necessary to keep up with the migration of both residents and businesses to our Sunbelt footprint. On Capitol Hill, both houses of Congress continue to work with Secretary Duffy on the five-year reauthorization of the IIJA and surface transportation program, and this administration continues to prioritize hard infrastructure investments and decrease permitting delays necessary to support a growing economy. In the commercial markets, we continue to have a steady amount of bidding opportunities with developers and general contractors in our local markets. The makeup of our backlog and percentage of public work continues to stay remarkably steady over the last several quarters, which indicates that our Sunbelt markets continue to have healthy private economic growth and activity. Our bidding activity remains focused on the non-residential type projects, such as warehouses, industrial parks, schools, and manufacturing facilities. We expect economic growth to continue in our current markets, driven by migration to the Sunbelt states by both families and businesses. Finally, we expect the benefit from significant new investments in American manufacturing in our business-friendly states, as new tariffs begin to incentivize and accelerate the reshoring trend to begin after the pandemic several years ago. Fiscal year 2025 has been a dynamic year of growth for CPI as we've increased the size of our business over 50% through both organic growth and acquisitions. We understand the benefits of and remain laser-focused on organic growth. We also continue to focus on the best strategic acquisitions in growing markets, and we are having numerous conversations with potential sellers who would like for their employees to experience the culture and opportunities provided by joining the CPI family of companies. In closing, we are now in the heart of our busy work season, and all of our local markets are at full capacity and utilization. Having a record backlog to build, adding the Derwood Green Organization, and now knowing that our July volumes were strong, gives us the confidence to maintain our FY25 guidance. As we head toward a new fiscal year in the next 60 days, we're excited about the tailwinds at our back, including strong public funding, a growing private economy, and a long strategic growth runway ahead. I'd now like to turn the call over to Greg. Greg?