Construction Partners (NASDAQ:ROAD) Posts Earnings Results, Beats Estimates By $0.16 EPS

Construction Partners (NASDAQ:ROAD) posted its quarterly earnings results on Thursday. The company reported $0.47 earnings per share (EPS) for the quarter, topping 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%.The business had revenue of $809.47 million for the quarter, compared to analyst estimates of $740.14 million. During the same period last year, the company earned $0.25 EPS. The firm’s revenue 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 Down 0.4%

Shares of ROAD stock traded down $0.48 on Friday, hitting $127.18. 61,074 shares of the stock were exchanged, compared to its average volume of 482,191. 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 firm has a market capitalization of $7.19 billion, a P/E ratio of 69.50, a price-to-earnings-growth ratio of 1.08 and a beta of 0.87. Construction Partners has a fifty-two week low of $64.79 and a fifty-two week high of $138.90. The business has a 50-day moving average of $111.31 and a 200 day moving average of $114.03.

Trending Headlines about Construction Partners

Here are the key news stories impacting Construction Partners this week:

• Positive Sentiment: Q1 results topped expectations — EPS $0.47 vs. $0.31 consensus and revenue $809.5M vs. $740.1M est; revenue grew ~44% year‑over‑year, signaling accelerating demand. Read More.
• Positive Sentiment: Company reported adjusted net income up 99% and adjusted EBITDA up 63% vs. prior year and highlighted a record backlog of $3.09B — metrics that support revenue visibility and near‑term growth. Read More.
• Positive Sentiment: Management raised FY‑2026 revenue outlook to roughly $3.5B–$3.6B, reinforcing guidance confidence and underpinning forward estimates (EPS guidance text was unclear in early releases). Read More.
• Neutral Sentiment: Earnings call and transcripts are available with management commentary on backlog, bidding environment and margin drivers — useful for details but no headline surprises reported in early coverage. Read More.
• Neutral Sentiment: Press and analyst previews highlighted the company as a Sunbelt infrastructure play ahead of results; coverage emphasized execution and backlog conversion as the key watch items. Read More.
• Negative Sentiment: Valuation and leverage could temper upside — ROAD trades at a high P/E (~70) and carries meaningful debt (debt/equity ~1.7), which raises sensitivity to margin or mix setbacks. A critical analysis piece flags valuation and relative risk. Read More.

Wall Street Analyst Weigh In

ROAD has been the topic of a number of recent analyst reports. Robert W. Baird reduced their target price on Construction Partners from $131.00 to $124.00 and set an “outperform” rating on the stock in a report on Friday, November 21st. Bank of America decreased their price objective on shares of Construction Partners from $120.00 to $115.00 and set a “buy” rating for the company in a report on Friday, November 21st. 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. Zacks Research upgraded shares of Construction Partners from a “strong sell” rating to a “strong-buy” rating in a research report on Thursday, January 29th. Finally, B. Riley initiated coverage on Construction Partners in a research note on Thursday, January 15th. They issued a “neutral” rating and a $117.00 target price for the company. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $122.20.

Hedge Funds Weigh In On Construction Partners

Several hedge funds have recently made changes to their positions in the business. Morse Asset Management Inc boosted its holdings in Construction Partners by 300.0% during the third quarter. Morse Asset Management Inc now owns 240 shares of the company’s stock worth $30,000 after purchasing an additional 180 shares during the last quarter. Danske Bank A S bought a new stake in Construction Partners during the 3rd quarter worth about $38,000. Quarry LP acquired a new position in shares of Construction Partners during the 3rd quarter worth about $42,000. NewEdge Advisors LLC grew its holdings in shares of 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. Finally, Strs Ohio bought a new position in shares of Construction Partners in the 1st quarter valued at about $165,000. 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.