Construction Partners (NASDAQ:ROAD) Announces Quarterly Earnings Results

Construction Partners (NASDAQ:ROAD) issued its quarterly earnings data on Thursday. The company reported $0.47 EPS for the quarter, beating the consensus estimate of $0.31 by $0.16, Briefing.com reports. Construction Partners had a return on equity of 14.42% and a net margin of 3.62%.During the same quarter last year, the firm posted $0.25 earnings per share. The business’s revenue for the quarter was up 44.1% on a year-over-year basis.

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

• Q1 results — Revenue rose 44% to $809.5M, adjusted EBITDA increased 63% to $112.2M and adjusted EBITDA margin hit a first-quarter record of 13.9%, prompting management to raise its fiscal 2026 outlook.
• Backlog strength — Project backlog was $3.09 billion at Dec. 31, 2025, covering roughly 80%–85% of the next 12 months’ contract revenue, signaling robust near-term demand across markets.
• M&A expansion in Houston — Management closed the GMJ Paving acquisition (adding to a dozen hot?mix plants in Houston), fully integrated recent platform deals, and says the acquisition pipeline across the Sun Belt remains very active.
• Cash flow & deleveraging — Operating cash flow was $82.6M in Q1 (up vs. prior year), the company expects to fund recent deals (including GMJ) largely from cash, and targets reducing net leverage to about 2.5x by late 2026.
• Organic & long?term growth goals — Management reaffirmed a ~7%–8% organic growth target for FY26 (Q1 organic was 3.5% due to timing) and reiterated the Road 2030 plan to grow revenue to >$6B and push EBITDA margin toward ~17% by 2030.

Construction Partners Trading Up 16.2%

Construction Partners stock traded up $18.65 during midday trading on Thursday, hitting $133.42. 813,744 shares of the stock were exchanged, compared to its average volume of 461,612. The company has a current ratio of 1.61, a quick ratio of 1.34 and a debt-to-equity ratio of 1.73. The stock’s 50-day simple moving average is $110.93 and its 200 day simple moving average is $113.93. Construction Partners has a fifty-two week low of $64.79 and a fifty-two week high of $138.90. The stock has a market capitalization of $7.54 billion, a price-to-earnings ratio of 72.66, a PEG ratio of 1.11 and a beta of 0.87.

Analyst Ratings Changes

ROAD has been the subject of a number of research reports. Zacks Research raised Construction Partners from a “strong sell” rating to a “strong-buy” rating in a research report on Thursday, January 29th. Robert W. Baird decreased their target price on Construction Partners from $131.00 to $124.00 and set an “outperform” rating for the company in a report on Friday, November 21st. Bank of America cut their price target on shares of Construction Partners from $120.00 to $115.00 and set a “buy” rating on the stock in a report on Friday, November 21st. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Construction Partners in a report on Monday, December 29th. Finally, Raymond James Financial reissued a “strong-buy” rating and set a $135.00 target price (up previously from $120.00) on shares of Construction Partners in a report on Tuesday, October 21st. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $122.20.

Institutional Trading of Construction Partners

Institutional investors have recently made changes to their positions in the company. State Street Corp lifted its holdings in Construction Partners by 4.7% in the second quarter. State Street Corp now owns 1,112,231 shares of the company’s stock valued at $118,208,000 after acquiring an additional 49,898 shares during the last quarter. Ameriprise Financial Inc. lifted its stake in shares of Construction Partners by 6.2% in the 2nd quarter. Ameriprise Financial Inc. now owns 842,535 shares of the company’s stock valued at $89,545,000 after purchasing an additional 49,542 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of Construction Partners by 41.9% in the 3rd quarter. Bank of America Corp DE now owns 757,172 shares of the company’s stock valued at $96,161,000 after purchasing an additional 223,549 shares during the last quarter. Franklin Resources Inc. grew its holdings in shares of Construction Partners by 9.1% during the 3rd quarter. Franklin Resources Inc. now owns 511,603 shares of the company’s stock worth $64,974,000 after purchasing an additional 42,677 shares during the period. Finally, Raymond James Financial Inc. increased its position in shares of Construction Partners by 0.9% during the 3rd quarter. Raymond James Financial Inc. now owns 347,632 shares of the company’s stock worth $44,149,000 after purchasing an additional 3,270 shares during the last quarter. 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.