Construction Partners (NASDAQ:ROAD) Releases Earnings Results, Beats Expectations By $0.16 EPS

Construction Partners (NASDAQ:ROAD) announced its earnings results on Thursday. The company reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.16, Briefing.com reports. Construction Partners had a net margin of 3.62% and a return on equity of 14.42%. During the same period in the previous year, the firm earned $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 Stock Up 16.2%

Shares of ROAD stock traded up $18.65 during midday trading on Thursday, reaching $133.42. 813,744 shares of the stock were exchanged, compared to its average volume of 461,612. The firm has a market cap of $7.54 billion, a PE ratio of 72.66, a price-to-earnings-growth ratio of 1.11 and a beta of 0.87. The company’s 50 day moving average is $110.93 and its two-hundred day moving average is $113.93. Construction Partners has a 1 year low of $64.79 and a 1 year high of $138.90. The company has a current ratio of 1.61, a quick ratio of 1.34 and a debt-to-equity ratio of 1.73.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Robert W. Baird lowered their price objective on Construction Partners from $131.00 to $124.00 and set an “outperform” rating for the company in a research report on Friday, November 21st. Weiss Ratings reissued a “hold (c+)” rating on shares of Construction Partners in a research report on Monday, December 29th. B. Riley started coverage on shares of Construction Partners in a report on Thursday, January 15th. They set a “neutral” rating and a $117.00 price objective on the stock. Bank of America reduced their target price on shares of Construction Partners from $120.00 to $115.00 and set a “buy” rating for the company in a research note on Friday, November 21st. Finally, Raymond James Financial reissued a “strong-buy” rating and set a $135.00 price target (up from $120.00) on shares of Construction Partners in a research report on Tuesday, October 21st. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $122.20.

Institutional Investors Weigh In On Construction Partners

Institutional investors and hedge funds have recently bought and sold shares of the company. Brown Brothers Harriman & Co. boosted its stake in shares of Construction Partners by 156.5% during the third quarter. Brown Brothers Harriman & Co. now owns 1,939 shares of the company’s stock valued at $246,000 after purchasing an additional 1,183 shares in the last quarter. FORA Capital LLC purchased a new stake in Construction Partners during the second quarter worth $282,000. Voya Financial Advisors Inc. bought a new stake in Construction Partners during the 2nd quarter valued at $245,000. Tidal Investments LLC purchased a new position in shares of Construction Partners in the 2nd quarter valued at $244,000. Finally, Great Valley Advisor Group Inc. bought a new position in shares of Construction Partners in the 2nd quarter worth $213,000. 94.83% of the stock is owned by institutional investors.

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.