Construction Partners (NASDAQ:ROAD) Issues Earnings Results, Beats Expectations By $0.07 EPS

Construction Partners (NASDAQ:ROAD) issued its quarterly earnings data on Friday. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07, Briefing.com reports. Construction Partners had a net margin of 3.90% and a return on equity of 15.22%. The firm had revenue of $999.42 million for the quarter, compared to analysts’ expectations of $948.77 million. During the same period in the prior year, the company earned $0.81 EPS. The firm’s revenue was up 28.2% on a year-over-year basis.

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

• Strong third-quarter performance included revenue of $999.4 million, up 28.2% year over year, adjusted EBITDA growth of 24% to $163 million, and adjusted EPS of $1.08.
• Construction Partners raised fiscal 2026 guidance to revenue of $3.64 billion–$3.68 billion, adjusted EBITDA of $559 million–$569 million, and adjusted EBITDA margins of 15.35%–15.46%, representing roughly 30% growth.
• Record backlog reached $3.36 billion, covering approximately 80%–85% of the next 12 months of contract revenue; management also cited robust public infrastructure demand and expanding data-center opportunities.
• The Ellsworth Construction acquisition expands CPI’s Oklahoma footprint and data-center exposure, while management reported an active pipeline of additional platform and tuck-in acquisition candidates and approximately $140 million of acquired revenue carrying into fiscal 2027.
• Management expects no meaningful business disruption from a potential continuing resolution for federal transportation funding, though it acknowledged that short-term projects could receive preference until a new multi-year highway bill is enacted.

Construction Partners Trading Up 19.5%

Shares of NASDAQ ROAD traded up $19.58 during midday trading on Friday, reaching $119.74. 1,970,894 shares of the stock were exchanged, compared to its average volume of 1,355,087. The stock has a 50 day moving average price of $109.58 and a 200-day moving average price of $116.53. The company has a current ratio of 1.53, a quick ratio of 1.21 and a debt-to-equity ratio of 1.75. The company has a market capitalization of $6.77 billion, a P/E ratio of 52.52, a P/E/G ratio of 0.85 and a beta of 0.89. Construction Partners has a 52-week low of $93.42 and a 52-week high of $151.00.

Wall Street Analysts Forecast Growth

ROAD has been the subject of a number of research reports. Robert W. Baird cut their target price on shares of Construction Partners from $169.00 to $145.00 and set an “outperform” rating for the company in a research report on Wednesday, July 1st. Zacks Research cut shares of Construction Partners from a “strong-buy” rating to a “hold” rating in a research note on Thursday, July 16th. Weiss Ratings cut shares of Construction Partners from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. Raymond James Financial cut their price objective on Construction Partners from $161.00 to $150.00 and set a “strong-buy” rating for the company in a research report on Wednesday, July 15th. Finally, Truist Financial initiated coverage on Construction Partners in a research note on Wednesday, June 3rd. They issued a “hold” rating and a $130.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $134.17.

Institutional Trading of Construction Partners

A number of hedge funds have recently bought and sold shares of the company. PharVision Advisers LLC purchased a new stake in Construction Partners in the third quarter valued at approximately $253,000. Brown Brothers Harriman & Co. increased its position in Construction Partners by 156.5% during the third quarter. Brown Brothers Harriman & Co. now owns 1,939 shares of the company’s stock worth $246,000 after purchasing an additional 1,183 shares during the last quarter. Voya Financial Advisors Inc. purchased a new position in Construction Partners during the second quarter worth approximately $245,000. Tidal Investments LLC purchased a new position in Construction Partners during the second quarter worth approximately $244,000. Finally, Great Valley Advisor Group Inc. acquired a new position in shares of Construction Partners in the 2nd quarter valued at $213,000. Institutional investors and hedge funds 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.