Construction Partners (NASDAQ:ROAD) Posts Earnings Results

Construction Partners (NASDAQ:ROAD) announced its earnings results on Friday. The company reported $0.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.23, Zacks reports. Construction Partners had a net margin of 3.99% and a return on equity of 15.26%. The firm had revenue of $769.20 million for the quarter, compared to analyst estimates of $678.46 million. During the same quarter in the prior year, the business posted $0.08 EPS. The business’s revenue was up 34.6% compared to the same quarter last year.

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

NASDAQ ROAD opened at $140.48 on Friday. The company has a current ratio of 1.59, a quick ratio of 1.26 and a debt-to-equity ratio of 1.76. The firm has a market capitalization of $7.94 billion, a price-to-earnings ratio of 61.61, a P/E/G ratio of 1.25 and a beta of 0.92. The firm’s 50 day simple moving average is $119.17 and its 200 day simple moving average is $115.97. Construction Partners has a 1 year low of $91.72 and a 1 year high of $151.00.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on ROAD. Raymond James Financial restated a “strong-buy” rating and set a $140.00 target price on shares of Construction Partners in a research report on Monday, April 27th. Zacks Research lowered shares of Construction Partners from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. DA Davidson increased their target price on shares of Construction Partners from $120.00 to $130.00 and gave the stock a “neutral” rating in a research report on Friday, February 6th. B. Riley Financial upgraded shares of Construction Partners from a “neutral” rating to a “buy” rating and increased their target price for the stock from $117.00 to $135.00 in a research report on Thursday, April 2nd. Finally, Robert W. Baird set a $142.00 target price on shares of Construction Partners in a research report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $132.40.

Institutional Trading of Construction Partners

Several large investors have recently made changes to their positions in ROAD. AQR Capital Management LLC boosted its position in shares of Construction Partners by 14.4% during the 1st quarter. AQR Capital Management LLC now owns 10,333 shares of the company’s stock worth $743,000 after acquiring an additional 1,302 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Construction Partners by 11.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 96,191 shares of the company’s stock worth $6,913,000 after buying an additional 9,656 shares in the last quarter. Intech Investment Management LLC increased its holdings in shares of Construction Partners by 11.4% during the first quarter. Intech Investment Management LLC now owns 24,292 shares of the company’s stock worth $1,746,000 after buying an additional 2,482 shares in the last quarter. Strs Ohio bought a new position in shares of Construction Partners in the 1st quarter valued at $165,000. Finally, Hsbc Holdings PLC bought a new position in shares of Construction Partners in the 2nd quarter valued at $552,000. Institutional investors and hedge funds own 94.83% of the company’s stock.

Construction Partners News Summary

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

Construction Partners Company Profile

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.