Construction Partners Inc (ROAD)
NASDAQ:ROAD
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Construction Partners
(NASDAQ:ROAD)
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Rating:64Neutral
Price Target:
$119.00
▲(3.50% Upside)
Action:ReiteratedDate:04/02/26
The score is supported by improved fundamentals (higher margins, stronger recent operating/FCF generation) and an earnings call with raised FY2026 guidance plus strong backlog coverage. Offsetting this, technical signals remain weak (below major moving averages with negative MACD) and valuation is stretched (P/E ~88), while leverage variability/elevated leverage adds execution risk despite positive M&A-driven growth.
Positive Factors
Vertical integration (materials & plants)
Owning and operating hot-mix asphalt plants and aggregate operations provides durable operational control: it secures input supply, improves scheduling and logistics, and captures margin that would flow to third parties. This structural vertical integration supports steadier gross margins and local market share over time.
Negative Factors
Elevated and inconsistent leverage
Material swings in reported leverage and a current EBITDA multiple above 3x create execution risk: deleveraging to targets depends on sustained cash conversion and smooth integration of acquisitions. Variability complicates comparability and increases sensitivity to revenue or margin setbacks during integration cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration (materials & plants)
Owning and operating hot-mix asphalt plants and aggregate operations provides durable operational control: it secures input supply, improves scheduling and logistics, and captures margin that would flow to third parties. This structural vertical integration supports steadier gross margins and local market share over time.
Read all positive factors
Construction Partners (ROAD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.50B
Dividend YieldN/A
Average Volume (3M)536.55K
Price to Earnings (P/E)88.0
Beta (1Y)1.59
Revenue Growth54.20%
EPS Growth38.64%
CountryUS
Employees1,325
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.47
Shares Outstanding47,966,260
10 Day Avg. Volume484,234
30 Day Avg. Volume536,547
Financial Highlights & Ratios
PEG Ratio1.75
Price to Book (P/B)7.65
Price to Sales (P/S)2.48
P/FCF Ratio45.50
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue2.71
Enterprise Value/Gross Profit17.15
Enterprise Value/Ebitda19.46
Forecast
1Y Price Target
$141.33Price Target Upside22.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.84
Revenue Forecast (FY)$3.53B
Construction Partners Business Overview & Revenue Model
Company Description
Construction Partners, Inc., a civil infrastructure company, engages in the construction and maintenance of roadways across Alabama, Florida, Georgia, North Carolina, and South Carolina. The company, through its subsidiaries, provides various prod...
How the Company Makes Money
Construction Partners makes money primarily by performing civil construction projects and by producing/selling construction materials that support those projects. (1) Construction contracting revenue: The company bids for and executes roadway and ...
Construction Partners Key Performance Indicators (KPIs)
Construction Partners Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial results: substantial top-line growth (+44%), a large increase in adjusted EBITDA (+63%) with a record first-quarter margin (13.9%), an expanded backlog ($3.09B), improved cash flow, and an active M&A pipeline and integrations. Management raised full-year guidance and reiterated ambitious long-term targets. Near-term weaknesses included a Q1 organic growth shortfall (3.5% vs. 7%–8% target), elevated leverage (3.18x), localized competitive pricing pressure, and normal seasonality/weather uncertainty. On balance, the positive financial momentum, upgraded guidance, successful acquisitions/integrations, and strong backlog and cash generation outweigh the isolated near-term headwinds.Positive Updates
Strong Revenue Growth
Revenue of $809.5 million in Q1, up 44% year-over-year (3.5% organic growth, 40.6% acquisitive growth).
Negative Updates
Q1 Organic Growth Below Full-Year Target
Organic growth in Q1 was 3.5%, below the company’s stated FY26 organic growth target of ~7%–8%. Management attributed roughly $19 million of the shortfall to late project starts and redeployment of crews (some revenue counted as acquisitive).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue of $809.5 million in Q1, up 44% year-over-year (3.5% organic growth, 40.6% acquisitive growth).
Read all positive updates
Company Guidance
Management raised FY2026 guidance, calling for revenue of $3.48–$3.56 billion, net income of $154–$158 million, adjusted net income of $163.5–$168.7 million, adjusted EBITDA of $534–$550 million and an adjusted EBITDA margin of 15.34%–15.45%, with organic revenue growth targeted at ~7%–8%; they expect the first half to contribute ~42% of revenue and ~34% of adjusted EBITDA (second half ~58% revenue, ~66% adjusted EBITDA), plan to convert roughly 75%–85% of EBITDA to cash from operations, and said backlog stood at $3.09 billion covering ~80%–85% of the next 12 months’ contract revenue.Construction Partners Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.06B | 2.81B | 1.82B | 1.56B | 1.30B | 910.74M |
| Gross Profit | 484.02M | 439.09M | 258.50M | 198.98M | 137.12M | 116.79M |
| EBITDA | 426.68M | 373.17M | 214.72M | 170.15M | 102.61M | 80.73M |
| Net Income | 122.04M | 101.77M | 68.94M | 49.00M | 21.38M | 20.18M |
Balance Sheet | ||||||
| Total Assets | 3.36B | 3.24B | 1.54B | 1.22B | 1.10B | 806.62M |
| Cash, Cash Equivalents and Short-Term Investments | 104.09M | 156.06M | 74.69M | 48.24M | 35.53M | 57.25M |
| Total Debt | 1.91B | 1.69B | 553.25M | 390.73M | 389.83M | 222.87M |
| Total Liabilities | 2.39B | 2.33B | 968.39M | 703.09M | 639.64M | 397.72M |
| Stockholders Equity | 969.15M | 911.96M | 573.74M | 516.57M | 455.88M | 408.90M |
Cash Flow | ||||||
| Free Cash Flow | 186.64M | 153.37M | 121.15M | 59.35M | -52.35M | -7.83M |
| Operating Cash Flow | 333.21M | 291.30M | 209.08M | 157.16M | 16.50M | 48.50M |
| Investing Cash Flow | -844.01M | -1.28B | -307.58M | -143.37M | -197.33M | -263.41M |
| Financing Cash Flow | 481.93M | 1.07B | 126.11M | -264.00K | 159.14M | 123.85M |
Construction Partners Technical Analysis
Negative
114.98
Price Trends
120.97
Negative
115.14
Negative
115.02
Negative
Market Momentum
-4.18
Positive
40.74
Neutral
23.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROAD, the sentiment is Negative. The current price of 114.98 is above the 20-day moving average (MA) of 112.53, below the 50-day MA of 120.97, and below the 200-day MA of 115.02, indicating a bearish trend. The MACD of -4.18 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ROAD.
Construction Partners Risk Analysis
Construction Partners disclosed 50 risk factors in its most recent earnings report. Construction Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Construction Partners Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.46B | 24.39 | 17.49% | 0.25% | 21.45% | 67.31% | |
72 Outperform | $12.97B | 32.23 | 30.17% | ― | 6.20% | 72.81% | |
70 Outperform | $5.48B | 26.09 | 17.58% | 0.45% | 6.87% | 64.56% | |
69 Neutral | $4.84B | 12.59 | 28.27% | 1.65% | 9.66% | 29.01% | |
64 Neutral | $6.50B | 88.02 | 13.78% | ― | 54.20% | 38.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $7.06B | -131.50 | -1.14% | ― | -1.81% | 1228.51% |
* Industrials Sector Average
ROAD
Construction Partners
114.98
35.86
45.32%
FLR
Fluor
49.15
14.42
41.52%
GVA
Granite Construction
125.94
48.71
63.08%
KBR
KBR
38.30
-11.48
-23.06%
PRIM
Primoris Services
156.59
98.18
168.07%
STRL
Sterling Infrastructure
423.35
288.82
214.69%
Construction Partners Corporate Events
Business Operations and StrategyM&A Transactions
Construction Partners Expands Nashville Footprint With Four Star Acquisition
Positive
Apr 1, 2026
On April 1, 2026, Construction Partners, Inc. announced that it completed the acquisition of Four Star Paving, LLC, a long-established commercial paving contractor serving the Nashville, Tennessee metro area for more than two decades. Four Star, k...
Executive/Board ChangesDelistings and Listing ChangesShareholder Meetings
Construction Partners Announces Dual Listing on Nasdaq Texas
Positive
Mar 27, 2026
At its March 24, 2026 annual meeting, Construction Partners, Inc. reported that holders of 129,770,507 votes, or 97.2% of total voting power as of January 23, 2026, were present or represented by proxy. Stockholders reelected Craig Jennings and Ma...
Business Operations and StrategyM&A Transactions
Construction Partners Expands Houston Footprint With GMJ Acquisition
Positive
Feb 2, 2026
On February 2, 2026, Construction Partners, Inc. announced it had completed the acquisition of GMJ Paving Company, LLC, a leading asphalt paving contractor for public infrastructure projects in the Houston, Texas metro area, along with GMJ’s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.