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

Construction Partners (NASDAQ:ROAD) issued its earnings results on Friday. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $999.42 million for the quarter, compared to the consensus estimate of $948.77 million. During the same quarter in the previous year, the firm earned $0.81 earnings per share. The business’s quarterly revenue was up 28.2% compared to the same quarter last year.

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 Price Performance

ROAD stock traded up $19.58 during trading on Friday, reaching $119.74. 1,970,894 shares of the company were exchanged, compared to its average volume of 1,355,087. The company has a market cap of $6.77 billion, a P/E ratio of 52.52, a PEG 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. The stock’s 50 day moving average price is $109.58 and its 200 day moving average price is $116.53. The company has a debt-to-equity ratio of 1.75, a quick ratio of 1.21 and a current ratio of 1.53.

Analyst Upgrades and Downgrades

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

Institutional Investors Weigh In On Construction Partners

Hedge funds and other institutional investors have recently modified their holdings of the stock. Morse Asset Management Inc grew its holdings in shares of Construction Partners by 300.0% in the 3rd quarter. Morse Asset Management Inc now owns 240 shares of the company’s stock worth $30,000 after acquiring an additional 180 shares during the period. Danske Bank A S acquired a new position in Construction Partners during the third quarter worth $38,000. Quarry LP purchased a new stake in Construction Partners during the third quarter worth $42,000. NewEdge Advisors LLC boosted its position in Construction Partners by 161.1% during the second quarter. NewEdge Advisors LLC now owns 564 shares of the company’s stock worth $60,000 after purchasing an additional 348 shares in the last quarter. Finally, Summit Securities Group LLC purchased a new stake in Construction Partners during the fourth quarter worth $61,000. 94.83% of the stock is currently owned by institutional investors and hedge funds.

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.