Construction Partners (NASDAQ:ROAD) Issues Quarterly Earnings Results

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

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 Stock Performance

ROAD traded up $9.12 during trading on Friday, reaching $140.48. 1,646,855 shares of the company’s stock were exchanged, compared to its average volume of 548,048. Construction Partners has a 1 year low of $91.72 and a 1 year high of $151.00. The company has a debt-to-equity ratio of 1.76, a current ratio of 1.59 and a quick ratio of 1.26. The stock has a market capitalization of $7.94 billion, a P/E ratio of 63.85, a price-to-earnings-growth ratio of 1.20 and a beta of 0.92. The company’s fifty day simple moving average is $119.17 and its 200-day simple moving average is $115.97.

Construction Partners News Roundup

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

Wall Street Analysts Forecast Growth

ROAD has been the subject of several research analyst reports. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $140.00 price objective on shares of Construction Partners in a research report on Monday, April 27th. Robert W. Baird set a $142.00 price target on shares of Construction Partners in a research note on Friday, February 6th. Weiss Ratings upgraded shares of Construction Partners from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, April 21st. DA Davidson raised their price target on shares of Construction Partners from $120.00 to $130.00 and gave the stock a “neutral” rating in a report on Friday, February 6th. Finally, Zacks Research downgraded shares of Construction Partners from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $132.40.

Institutional Trading of Construction Partners

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. &PARTNERS increased its stake in shares of Construction Partners by 2.5% in the fourth quarter. &PARTNERS now owns 6,899 shares of the company’s stock worth $749,000 after acquiring an additional 167 shares during the period. Morse Asset Management Inc lifted its position in Construction Partners by 300.0% during the third quarter. Morse Asset Management Inc now owns 240 shares of the company’s stock valued at $30,000 after purchasing an additional 180 shares during the period. Victory Capital Management Inc. boosted its holdings in Construction Partners by 2.7% in the third quarter. Victory Capital Management Inc. now owns 9,184 shares of the company’s stock valued at $1,166,000 after purchasing an additional 243 shares during the last quarter. Steward Partners Investment Advisory LLC boosted its holdings in Construction Partners by 7.9% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 3,888 shares of the company’s stock valued at $422,000 after purchasing an additional 283 shares during the last quarter. Finally, Danske Bank A S acquired a new stake in Construction Partners during the 3rd quarter worth about $38,000. 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.