Construction Partners (NASDAQ:ROAD) Posts Quarterly Earnings Results, Beats Expectations By $0.23 EPS

Key Points

• Construction Partners beat Q2 expectations with adjusted EPS of $0.18 versus an expected loss of $0.05, and revenue of $769.2 million also topped estimates. Revenue rose 34.6% year over year, signaling strong demand and execution.
• The company raised fiscal 2026 guidance, now expecting revenue of $3.59 billion to $3.65 billion and adjusted EBITDA of $552 million to $564 million. Management pointed to healthy backlog and continued project demand as support for the improved outlook.
• M&A remains a key growth driver, highlighted by the acquisition of Four Star Paving and a broader pipeline of targets. The company said it expects to fund the deal from cash flow without taking on new long-term debt.

Construction Partners (NASDAQ:ROAD - Get Free Report) released its quarterly earnings data on Friday. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of ($0.05) by $0.23, Zacks reports. Construction Partners had a return on equity of 15.26% and a net margin of 3.99%.The firm had revenue of $769.20 million during the quarter, compared to the consensus estimate of $678.46 million. During the same period in the previous year, the company posted $0.08 earnings per share. The firm's quarterly revenue was up 34.6% on a year-over-year basis.

Here are the key takeaways from Construction Partners' conference call:

• Construction Partners reported a strong Q2 with $769.2 million revenue (+35%), Adjusted EBITDA of $93.3 million (+35%), and raised FY2026 guidance (revenue $3.59B–$3.65B, Adjusted EBITDA $552M–$564M).
• M&A is a primary growth driver—completed Four Star Paving (4th acquisition in FY26, 17th since FY24), has a robust pipeline of targets, and expects to fund Four Star from Q3 cash flow without new long-term debt.
• Backlog and demand remain healthy with a $3.14 billion backlog (≈80–85% of next 12 months covered) and strong public and commercial pipelines, including data centers, warehouses, and DOT maintenance work across the Sun Belt.
• Energy/commodity exposure is largely mitigated—over 80% of revenue tied to liquid asphalt indexing, physical diesel hedging, and vertical integration supplying >50% of liquid AC, which limited Q2 margin impact.
• Financial and operational risks persist—leverage is 3.23x debt/TTM EBITDA (target ~2.5x), Q2 benefited from favorable weather (seasonality risk), and material upside from federal reauthorization is not assumed in current guidance.

Construction Partners Stock Up 6.9%

Shares of Construction Partners stock traded up $9.12 on Friday, reaching $140.48. The stock had a trading volume of 1,646,855 shares, compared to its average volume of 548,048. The company has a 50 day moving average price of $119.17 and a 200 day moving average price of $115.97. The company has a quick ratio of 1.26, a current ratio of 1.59 and a debt-to-equity ratio of 1.76. Construction Partners has a 1 year low of $91.72 and a 1 year high of $151.00. The stock has a market capitalization of $7.94 billion, a P/E ratio of 63.85, a P/E/G ratio of 1.20 and a beta of 0.92.

Key Construction Partners News

Here are the key news stories impacting Construction Partners this week:

• Positive Sentiment: The company beat expectations with adjusted EPS of $0.18 versus a loss estimate, while revenue of $769.2 million also topped forecasts; revenue rose 34.6% year over year, showing strong demand and execution. Earnings report and conference call
• Positive Sentiment: Construction Partners raised FY2026 revenue guidance to $3.6 billion-$3.7 billion, above the market’s $3.5 billion estimate, reinforcing expectations for continued growth. PR Newswire earnings release
• Positive Sentiment: The company cited record backlog of $3.14 billion, which suggests revenue visibility remains strong and supports the bullish reaction in the stock. PR Newswire earnings release
• Neutral Sentiment: Investors also reacted to the Q2 earnings call transcript, where management likely provided more detail on margins, backlog, and the updated fiscal 2026 outlook. Seeking Alpha transcript

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Raymond James Financial restated a "strong-buy" rating and issued a $140.00 price target on shares of Construction Partners in a report on Monday, April 27th. Weiss Ratings upgraded shares of Construction Partners from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, April 21st. Robert W. Baird set a $142.00 price objective on shares of Construction Partners in a report on Friday, February 6th. B. Riley Financial raised shares of Construction Partners from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $117.00 to $135.00 in a research note on Thursday, April 2nd. Finally, Zacks Research lowered Construction Partners from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $132.40.

Institutional Investors Weigh In On Construction Partners

A number of hedge funds and other institutional investors have recently bought and sold shares of ROAD. &PARTNERS grew its holdings in Construction Partners by 2.5% in the fourth quarter. &PARTNERS now owns 6,899 shares of the company's stock worth $749,000 after purchasing an additional 167 shares during the last quarter. Morse Asset Management Inc increased its position in shares of Construction Partners by 300.0% during the third quarter. Morse Asset Management Inc now owns 240 shares of the company's stock worth $30,000 after purchasing an additional 180 shares in the last quarter. Victory Capital Management Inc. lifted its holdings in shares of Construction Partners by 2.7% during the 3rd quarter. Victory Capital Management Inc. now owns 9,184 shares of the company's stock valued at $1,166,000 after purchasing an additional 243 shares during the last quarter. Steward Partners Investment Advisory LLC lifted its holdings in shares of Construction Partners by 7.9% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 3,888 shares of the company's stock valued at $422,000 after purchasing an additional 283 shares during the last quarter. Finally, Danske Bank A S acquired a new stake in shares of Construction Partners in the 3rd quarter worth $38,000. Hedge funds and other institutional investors own 94.83% of the company's stock.

About Construction Partners

Construction Partners, Inc NASDAQ: ROAD is a specialty contractor and infrastructure solutions provider focused on road building, paving, site development and aggregate production. The company delivers a comprehensive suite of civil construction services, including roadway paving and milling, site grading and preparation, stormwater and utility installation, and full-scale asphalt plant operations. By integrating materials production with contracting capabilities, the firm aims to streamline project delivery and maintain quality control across its contracting and materials businesses.

At the heart of Construction Partners' operations are its network of asphalt plants, quarries and aggregate production facilities.

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