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

Construction Partners (NASDAQ:ROAD) issued its quarterly earnings results on Friday. The company reported $0.18 EPS for the quarter, topping the consensus estimate of ($0.05) by $0.23, Zacks reports. The company had revenue of $769.20 million during the quarter, compared to analyst estimates of $678.46 million. Construction Partners had a net margin of 3.99% and a return on equity of 15.26%. The firm’s revenue was up 34.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.08 EPS.

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 Price Performance

Shares of NASDAQ:ROAD traded up $9.12 during midday trading on Friday, hitting $140.48. The company’s stock had a trading volume of 1,646,855 shares, compared to its average volume of 472,876. The business’s 50 day simple moving average is $119.17 and its 200 day simple moving average is $115.97. The company has a debt-to-equity ratio of 1.76, a quick ratio of 1.26 and a current ratio of 1.59. The company has a market cap of $7.94 billion, a P/E ratio of 63.85, a price-to-earnings-growth ratio of 1.17 and a beta of 0.92. Construction Partners has a 12-month low of $91.72 and a 12-month high of $151.00.

More 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

Institutional Trading of Construction Partners

Large investors have recently bought and sold shares of the business. Morse Asset Management Inc lifted its stake in Construction Partners by 300.0% in the 3rd 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. Danske Bank A S purchased a new position in shares of Construction Partners during the 3rd quarter worth approximately $38,000. Quarry LP purchased a new position in shares of Construction Partners during the third quarter worth $42,000. Summit Securities Group LLC purchased a new position in Construction Partners during the 4th quarter valued at about $61,000. Finally, NewEdge Advisors LLC grew its position in Construction Partners by 161.1% in the 2nd quarter. NewEdge Advisors LLC now owns 564 shares of the company’s stock valued at $60,000 after acquiring an additional 348 shares in the last quarter. Hedge funds and other institutional investors own 94.83% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have recently commented on ROAD. Weiss Ratings raised shares of Construction Partners from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, April 21st. B. Riley Financial raised shares of Construction Partners from a “neutral” rating to a “buy” rating and raised their price target for the company from $117.00 to $135.00 in a research note on Thursday, April 2nd. DA Davidson boosted their price objective on Construction Partners from $120.00 to $130.00 and gave the stock a “neutral” rating in a research note on Friday, February 6th. Robert W. Baird set a $142.00 target price on Construction Partners in a research report on Friday, February 6th. Finally, Zacks Research downgraded Construction Partners from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $132.40.

Construction Partners Company Profile

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.