Construction Partners, Inc. Reports Strong Q1 2026 Earnings and Raises Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy ROAD?
Source: seekingalpha
- Strong Financial Performance: Construction Partners, Inc. reported Q1 2026 revenue of $809.5 million, a 44% increase year-over-year, with adjusted EBITDA rising 63% to $112.2 million and an EBITDA margin of 13.9%, marking the highest first-quarter margin in the company's history, indicating robust market performance and profitability.
- Robust Project Demand: The company is involved in approximately 1,000 commercial projects across eight states, benefiting from population migration and AI infrastructure development, with total federal, state, and local contract awards expected to increase by 10% to 15% in FY 2026 compared to FY 2025, reflecting sustained strong market demand.
- Strengthened Acquisition Strategy: The completion of two large acquisitions in Houston and Daytona Beach, along with the acquisition of GMJ Paving Company, further solidifies the company's market position and expands its team, demonstrating its acquisition capabilities and market consolidation strategy within the industry.
- Optimistic Future Outlook: The company raised its FY 2026 revenue guidance to a range of $3.48 billion to $3.56 billion, with net income projected between $154 million and $158 million, and adjusted EBITDA expected between $534 million and $550 million, showcasing management's confidence in future growth and a positive market outlook.
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Analyst Views on ROAD
Wall Street analysts forecast ROAD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ROAD is 119.50 USD with a low forecast of 115.00 USD and a high forecast of 124.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 127.650
Low
115.00
Averages
119.50
High
124.00
Current: 127.650
Low
115.00
Averages
119.50
High
124.00
About ROAD
Construction Partners, Inc. is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. It provides a variety of products and services to both public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments. Its primary operations consist of manufacturing and distributing hot mix asphalt (HMA) for both internal use and sales to third parties in connection with construction projects, paving activities, including the construction of roadway base layers and application of asphalt pavement, site development, including the installation of utility and drainage systems, mining aggregates, such as sand, gravel and construction stone, that are used as raw materials, and distributing liquid asphalt cement for both internal use and sales to third parties in connection with HMA production.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Construction Partners, Inc. Reports Strong Q1 2026 Earnings and Raises Guidance
- Strong Financial Performance: Construction Partners, Inc. reported Q1 2026 revenue of $809.5 million, a 44% increase year-over-year, with adjusted EBITDA rising 63% to $112.2 million and an EBITDA margin of 13.9%, marking the highest first-quarter margin in the company's history, indicating robust market performance and profitability.
- Robust Project Demand: The company is involved in approximately 1,000 commercial projects across eight states, benefiting from population migration and AI infrastructure development, with total federal, state, and local contract awards expected to increase by 10% to 15% in FY 2026 compared to FY 2025, reflecting sustained strong market demand.
- Strengthened Acquisition Strategy: The completion of two large acquisitions in Houston and Daytona Beach, along with the acquisition of GMJ Paving Company, further solidifies the company's market position and expands its team, demonstrating its acquisition capabilities and market consolidation strategy within the industry.
- Optimistic Future Outlook: The company raised its FY 2026 revenue guidance to a range of $3.48 billion to $3.56 billion, with net income projected between $154 million and $158 million, and adjusted EBITDA expected between $534 million and $550 million, showcasing management's confidence in future growth and a positive market outlook.
See More
Construction Partners Q1 Earnings Exceed Expectations
- Earnings Beat: Construction Partners reported a Q1 Non-GAAP EPS of $0.47, exceeding expectations by $0.16, which highlights the company's improved profitability and boosts market confidence in its future performance.
- Significant Revenue Growth: The company achieved Q1 revenue of $809.5 million, a 44.1% year-over-year increase, surpassing market expectations by $66.38 million, indicating rapid growth amid strong market demand and solidifying its market position.
- Optimistic FY 2026 Outlook: Construction Partners forecasts FY 2026 revenue between $3.480 billion and $3.560 billion, exceeding the consensus of $3.45 billion, reflecting management's confidence in future growth and potentially attracting more investor interest.
- Strong Adjusted EBITDA: The expected adjusted EBITDA ranges from $534.0 million to $550.0 million, with an adjusted EBITDA margin between 15.34% and 15.45%, demonstrating the company's success in cost control and operational efficiency, thereby enhancing its long-term profitability.
See More
Construction Partners Reports 44% Revenue Growth in Q1 FY26
- Significant Revenue Growth: Construction Partners reported Q1 revenue of $809.5 million, a 44.1% increase year-over-year, indicating strong demand in the infrastructure sector and an increase in market share, which is expected to further enhance future profitability.
- Doubled Adjusted Net Income: The adjusted net income for Q1 reached $26.4 million, up 99% from $13.3 million in the same quarter last year, showcasing the company's success in acquisition integration and operational efficiency, thereby boosting investor confidence.
- Record Project Backlog: As of December 31, 2025, the company’s project backlog hit $3.09 billion, up from $2.66 billion a year earlier, reflecting a strong position in a rapidly growing market that will support sustained revenue growth in the future.
- Optimistic Outlook: The company raised its FY26 revenue and adjusted EBITDA outlook, anticipating organic growth of 7% to 8%, indicating confidence in future market conditions and strategic positioning amid increasing infrastructure investments.
See More
Construction Partners Set to Announce Q1 Earnings with Strong Estimates
- Earnings Announcement Date: Construction Partners (ROAD) is set to release its Q1 earnings on February 5th before market open, with a consensus EPS estimate of $0.31, reflecting a 24% year-over-year growth, indicating ongoing improvements in profitability.
- Revenue Growth Expectations: The anticipated Q1 revenue of $743.12 million represents a 32.3% year-over-year increase, showcasing significant sales growth amid strong market demand, which further solidifies the company's market position.
- Historical Performance Review: Over the past two years, ROAD has exceeded EPS and revenue estimates 75% of the time, enhancing investor confidence in the company's future financial performance and demonstrating its stable profitability.
- Future Outlook: ROAD aims to double its revenue to $6 billion by 2030 while achieving a 17% EBITDA margin, indicating the company's strategic commitment to expanding in the Sunbelt market and positioning itself to capture future growth opportunities.
See More
Construction Partners Acquires Hot-Mix Asphalt Plant in Houston Area
- Market Expansion: Construction Partners, Inc. (CPI) has acquired GMJ Paving Company, enhancing its market share in Texas, particularly in the rapidly growing infrastructure project sector.
- Increased Capacity: GMJ's hot-mix asphalt plant located in Baytown, east of Houston, represents CPI's twelfth facility in the area, significantly boosting the company's production capabilities at its liquid asphalt terminal.
- Strategic Partnership: CEO Fred J. Smith emphasized that entering the right markets with suitable partners is central to their growth strategy, and this acquisition will strengthen their operational capacity and customer relationships in Houston.
- Business Diversification: Through this acquisition, CPI not only expands its involvement in public infrastructure projects but also enhances its competitiveness in private sector projects, further solidifying its position in the Southern market.
See More
Analysts Initiate Coverage on Vulcan Materials with $345 Price Target
- Vulcan Materials Rating: B. Riley Securities analyst Rohit Seth initiated coverage on Vulcan Materials Company (NYSE:VMC) with a Buy rating and a price target of $345, indicating a potential upside of approximately 14% from Thursday's closing price of $301.71, reflecting confidence in the company's future growth prospects.
- Unity Software Rating: Freedom Capital Markets analyst Nick McKay initiated coverage on Unity Software Inc. (NYSE:U) with a Buy rating and a price target of $52, suggesting an upside of about 18% from Thursday's closing price of $43.98, indicating optimism regarding its market position in gaming and real-time 3D content creation.
- Martin Marietta Rating: B. Riley Securities analyst Rohit Seth initiated coverage on Martin Marietta Materials, Inc. (NYSE:MLM) with a Neutral rating and a price target of $700, which implies a potential increase of around 9% from its Thursday closing price of $640.94, reflecting recognition of the company's stable performance.
- Construction Partners Rating: B. Riley Securities analyst Rohit Seth initiated coverage on Construction Partners, Inc. (NASDAQ:ROAD) with a Neutral rating and a price target of $117, indicating a modest upside of about 4% from Thursday's closing price of $112.13, demonstrating a cautious outlook on its future growth potential.
See More
Construction Partners, Inc. Reports Strong Q1 2026 Earnings and Raises Guidance
- Strong Financial Performance: Construction Partners, Inc. reported Q1 2026 revenue of $809.5 million, a 44% increase year-over-year, with adjusted EBITDA rising 63% to $112.2 million and an EBITDA margin of 13.9%, marking the highest first-quarter margin in the company's history, indicating robust market performance and profitability.
- Robust Project Demand: The company is involved in approximately 1,000 commercial projects across eight states, benefiting from population migration and AI infrastructure development, with total federal, state, and local contract awards expected to increase by 10% to 15% in FY 2026 compared to FY 2025, reflecting sustained strong market demand.
- Strengthened Acquisition Strategy: The completion of two large acquisitions in Houston and Daytona Beach, along with the acquisition of GMJ Paving Company, further solidifies the company's market position and expands its team, demonstrating its acquisition capabilities and market consolidation strategy within the industry.
- Optimistic Future Outlook: The company raised its FY 2026 revenue guidance to a range of $3.48 billion to $3.56 billion, with net income projected between $154 million and $158 million, and adjusted EBITDA expected between $534 million and $550 million, showcasing management's confidence in future growth and a positive market outlook.
See More
Construction Partners Q1 Earnings Exceed Expectations
- Earnings Beat: Construction Partners reported a Q1 Non-GAAP EPS of $0.47, exceeding expectations by $0.16, which highlights the company's improved profitability and boosts market confidence in its future performance.
- Significant Revenue Growth: The company achieved Q1 revenue of $809.5 million, a 44.1% year-over-year increase, surpassing market expectations by $66.38 million, indicating rapid growth amid strong market demand and solidifying its market position.
- Optimistic FY 2026 Outlook: Construction Partners forecasts FY 2026 revenue between $3.480 billion and $3.560 billion, exceeding the consensus of $3.45 billion, reflecting management's confidence in future growth and potentially attracting more investor interest.
- Strong Adjusted EBITDA: The expected adjusted EBITDA ranges from $534.0 million to $550.0 million, with an adjusted EBITDA margin between 15.34% and 15.45%, demonstrating the company's success in cost control and operational efficiency, thereby enhancing its long-term profitability.
See More
Construction Partners Reports 44% Revenue Growth in Q1 FY26
- Significant Revenue Growth: Construction Partners reported Q1 revenue of $809.5 million, a 44.1% increase year-over-year, indicating strong demand in the infrastructure sector and an increase in market share, which is expected to further enhance future profitability.
- Doubled Adjusted Net Income: The adjusted net income for Q1 reached $26.4 million, up 99% from $13.3 million in the same quarter last year, showcasing the company's success in acquisition integration and operational efficiency, thereby boosting investor confidence.
- Record Project Backlog: As of December 31, 2025, the company’s project backlog hit $3.09 billion, up from $2.66 billion a year earlier, reflecting a strong position in a rapidly growing market that will support sustained revenue growth in the future.
- Optimistic Outlook: The company raised its FY26 revenue and adjusted EBITDA outlook, anticipating organic growth of 7% to 8%, indicating confidence in future market conditions and strategic positioning amid increasing infrastructure investments.
See More
Construction Partners Set to Announce Q1 Earnings with Strong Estimates
- Earnings Announcement Date: Construction Partners (ROAD) is set to release its Q1 earnings on February 5th before market open, with a consensus EPS estimate of $0.31, reflecting a 24% year-over-year growth, indicating ongoing improvements in profitability.
- Revenue Growth Expectations: The anticipated Q1 revenue of $743.12 million represents a 32.3% year-over-year increase, showcasing significant sales growth amid strong market demand, which further solidifies the company's market position.
- Historical Performance Review: Over the past two years, ROAD has exceeded EPS and revenue estimates 75% of the time, enhancing investor confidence in the company's future financial performance and demonstrating its stable profitability.
- Future Outlook: ROAD aims to double its revenue to $6 billion by 2030 while achieving a 17% EBITDA margin, indicating the company's strategic commitment to expanding in the Sunbelt market and positioning itself to capture future growth opportunities.
See More
Construction Partners Acquires Hot-Mix Asphalt Plant in Houston Area
- Market Expansion: Construction Partners, Inc. (CPI) has acquired GMJ Paving Company, enhancing its market share in Texas, particularly in the rapidly growing infrastructure project sector.
- Increased Capacity: GMJ's hot-mix asphalt plant located in Baytown, east of Houston, represents CPI's twelfth facility in the area, significantly boosting the company's production capabilities at its liquid asphalt terminal.
- Strategic Partnership: CEO Fred J. Smith emphasized that entering the right markets with suitable partners is central to their growth strategy, and this acquisition will strengthen their operational capacity and customer relationships in Houston.
- Business Diversification: Through this acquisition, CPI not only expands its involvement in public infrastructure projects but also enhances its competitiveness in private sector projects, further solidifying its position in the Southern market.
See More
Analysts Initiate Coverage on Vulcan Materials with $345 Price Target
- Vulcan Materials Rating: B. Riley Securities analyst Rohit Seth initiated coverage on Vulcan Materials Company (NYSE:VMC) with a Buy rating and a price target of $345, indicating a potential upside of approximately 14% from Thursday's closing price of $301.71, reflecting confidence in the company's future growth prospects.
- Unity Software Rating: Freedom Capital Markets analyst Nick McKay initiated coverage on Unity Software Inc. (NYSE:U) with a Buy rating and a price target of $52, suggesting an upside of about 18% from Thursday's closing price of $43.98, indicating optimism regarding its market position in gaming and real-time 3D content creation.
- Martin Marietta Rating: B. Riley Securities analyst Rohit Seth initiated coverage on Martin Marietta Materials, Inc. (NYSE:MLM) with a Neutral rating and a price target of $700, which implies a potential increase of around 9% from its Thursday closing price of $640.94, reflecting recognition of the company's stable performance.
- Construction Partners Rating: B. Riley Securities analyst Rohit Seth initiated coverage on Construction Partners, Inc. (NASDAQ:ROAD) with a Neutral rating and a price target of $117, indicating a modest upside of about 4% from Thursday's closing price of $112.13, demonstrating a cautious outlook on its future growth potential.
See More
