Construction Partners (NASDAQ:ROAD) Announces Quarterly Earnings Results

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

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

Shares of NASDAQ:ROAD opened at $119.74 on Friday. The firm has a 50 day moving average of $109.58 and a 200-day moving average of $116.53. Construction Partners has a 12 month low of $93.42 and a 12 month high of $151.00. 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 stock has a market capitalization of $6.77 billion, a PE ratio of 46.96, a PEG ratio of 1.01 and a beta of 0.89.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ROAD. AQR Capital Management LLC increased its stake in shares of Construction Partners by 14.4% in the 1st quarter. AQR Capital Management LLC now owns 10,333 shares of the company’s stock valued at $743,000 after purchasing an additional 1,302 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Construction Partners by 11.2% during the 1st 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 during the last quarter. Intech Investment Management LLC boosted its stake in Construction Partners by 11.4% in the first quarter. Intech Investment Management LLC now owns 24,292 shares of the company’s stock valued at $1,746,000 after buying an additional 2,482 shares in the last quarter. Strs Ohio acquired a new stake in Construction Partners in the first quarter valued at about $165,000. Finally, Hsbc Holdings PLC acquired a new stake in Construction Partners in the second quarter valued at about $552,000. 94.83% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages have recently commented on ROAD. Truist Financial started coverage on shares of Construction Partners in a report on Wednesday, June 3rd. They set a “hold” rating and a $130.00 target price on the stock. Robert W. Baird cut their price target on Construction Partners from $169.00 to $145.00 and set an “outperform” rating for the company in a research note on Wednesday, July 1st. Raymond James Financial reduced their price target on Construction Partners from $161.00 to $150.00 and set a “strong-buy” rating on the stock in a research report on Wednesday, July 15th. Zacks Research downgraded Construction Partners from a “strong-buy” rating to a “hold” rating in a research report on Thursday, July 16th. Finally, Weiss Ratings lowered Construction Partners from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. One 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 company. Based on data from MarketBeat.com, Construction Partners has an average rating of “Moderate Buy” and a consensus target price of $134.17.

Construction Partners News Summary

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

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Fiscal Q3 EPS was $1.08, above analyst estimates ranging from $1.01 to $1.06 and up from $0.81 a year earlier. Revenue reached $999.4 million, surpassing expectations of approximately $948.8 million and increasing 28.2% year over year. Construction Partners Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Profitability improved materially. Adjusted net income rose 34% from the prior-year quarter, while adjusted EBITDA increased 24%, suggesting that revenue growth is translating into stronger operating performance. Construction Partners Fiscal 2026 Third Quarter Results
• Positive Sentiment: Backlog reached a record $3.36 billion. The backlog provides visibility into future work and supports the investment case for continued growth in upcoming quarters. Construction Partners Fiscal 2026 Third Quarter Results
• Positive Sentiment: Management raised fiscal 2026 revenue guidance to $3.6 billion-$3.7 billion, with the range slightly above the roughly $3.6 billion analyst consensus. Construction Partners Q3 2026 Earnings
• Neutral Sentiment: Management discussed the quarterly performance and updated outlook during the earnings call, giving investors additional context on execution and future growth. Construction Partners Q3 2026 Earnings Call 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.