Revenue during the quarter grew 28.15 percent to $259.29 million from $202.33 million in the previous year period. Gross margin for the quarter expanded 7 basis points over the previous year period to 27.19 percent. Total expenses were 94.34 percent of quarterly revenues, up from 93.98 percent for the same period last year. That has resulted in a contraction of 36 basis points in operating margin to 5.66 percent.

Operating income for the quarter was $14.68 million, compared with $12.18 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $47.10 million compared with $29.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 378 basis points in the quarter to 18.16 percent from 14.38 percent in the last year period.

"Headwaters grew Adjusted EBITDA by $18 million or 62% in the quarter, a growth rate that exceeds the upper end of our 2017 guidance and brings our fiscal year-to-date Adjusted EBITDA growth rate up to 28%. Our strong performance allows us to confirm our Adjusted EBITDA guidance range of $235 to $250 million for 2017," said Kirk A. Benson, chairman and chief executive officer of Headwaters. "We are continuing to work toward the closing of our previously announced transaction with Boral Limited (BLD:ASX), and we are pleased that we are on track to deliver strong earnings potential to Boral."