Construction Partners (NASDAQ:ROAD) Issues Earnings Results, Beats Estimates By $0.07 EPS

Construction Partners (NASDAQ:ROAD) announced its quarterly earnings data on Friday. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07, Briefing.com reports. Construction Partners had a return on equity of 15.22% and a net margin of 3.90%.The business had revenue of $999.42 million during the quarter, compared to analysts’ expectations of $948.77 million. During the same quarter in the previous year, the business earned $0.81 earnings per share. The firm’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 Stock Performance

Shares of Construction Partners stock traded up $19.58 during trading hours on Friday, reaching $119.74. 1,970,894 shares of the stock traded hands, compared to its average volume of 1,355,087. Construction Partners has a one year low of $93.42 and a one year high of $151.00. The firm has a market capitalization of $6.77 billion, a price-to-earnings ratio of 52.52, a P/E/G ratio of 0.85 and a beta of 0.89. The company has a quick ratio of 1.21, a current ratio of 1.53 and a debt-to-equity ratio of 1.75. The company has a 50 day moving average price of $109.58 and a 200 day moving average price of $116.53.

More Construction Partners News

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

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes 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 raised its stake in shares of Construction Partners by 300.0% during the 3rd quarter. Morse Asset Management Inc now owns 240 shares of the company’s stock valued at $30,000 after buying an additional 180 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in shares of Construction Partners by 2.7% in the 3rd quarter. Victory Capital Management Inc. now owns 9,184 shares of the company’s stock valued at $1,166,000 after buying an additional 243 shares during the period. Steward Partners Investment Advisory LLC boosted its stake in shares of Construction Partners by 7.9% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 3,888 shares of the company’s stock worth $422,000 after buying an additional 283 shares during the last quarter. Finally, Danske Bank A S purchased a new stake in shares of Construction Partners in the third quarter worth about $38,000. 94.83% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

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

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.