Want to see ROAD full AI Analyst Report?
Top Page
Construction Partners
(NASDAQ:ROAD)
Select Model
Select Model
Rating:66Neutral
Price Target:
$102.00
▼(-1.25% Downside)
Action:Downgraded
Date:07/14/26
ROAD scores well on financial performance and the latest earnings-call outlook (raised FY2026 guidance and strong backlog visibility), but the overall score is held back by weak technicals (price below major moving averages with bearish momentum) and a high P/E valuation that increases execution risk.
Positive Factors
Backlog & Revenue Visibility
A ~$3.14B backlog covering roughly 80%–85% of next‑12 months' revenue provides durable near-term revenue visibility, smoothing revenue forecasts and lowering bid/award execution risk. This high coverage supports predictable utilization and cash conversion over the coming 2–6 months.
Negative Factors
Leverage Volatility
Historic swings in capital structure mean the company can pivot between low and high leverage quickly, raising refinancing and interest-rate sensitivity risks. Elevated leverage periods constrain flexibility for bid bonds, equipment capex and M&A, increasing execution risk during downturns or commodity shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Revenue Visibility
A ~$3.14B backlog covering roughly 80%–85% of next‑12 months' revenue provides durable near-term revenue visibility, smoothing revenue forecasts and lowering bid/award execution risk. This high coverage supports predictable utilization and cash conversion over the coming 2–6 months.
Read all positive factors
Construction Partners Key Performance Indicators (KPIs)
Construction Partners (ROAD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.75B
Dividend YieldN/A
Average Volume (3M)1.12M
Price to Earnings (P/E)45.1
Beta (1Y)1.55
Revenue Growth48.81%
EPS Growth94.34%
CountryUS
Employees1,639
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.29
Shares Outstanding47,985,622
10 Day Avg. Volume1,891,448
30 Day Avg. Volume1,116,579
Financial Highlights & Ratios
PEG Ratio1.76
Price to Book (P/B)7.65
Price to Sales (P/S)2.48
P/FCF Ratio45.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$147.50Price Target Upside42.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.97
Revenue Forecast (FY)$3.61B
Construction Partners Business Overview & Revenue Model
Company Description
Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas. The company provides various products and services to publ...
How the Company Makes Money
Construction Partners makes money primarily by performing civil infrastructure construction services under contract, with revenue recognized from projects such as roadway construction, paving, and related maintenance and infrastructure improvement...
Construction Partners Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial story: strong top-line growth (+35% revenue), robust adjusted EBITDA growth (+35%), significant backlog ($3.14B) with high coverage (80%–85%), improving cash flow (+~17% year-over-year) and continued disciplined M&A and vertical-integration progress. Headwinds are manageable—leverage remains above target (3.23x), GAAP net income was modest for the quarter, and commodity/weather exposures persist but are mitigated through indexing, hedges and terminals. On balance, the positive drivers and raised guidance materially outweigh the noted challenges.Positive Updates
Strong Revenue Growth
Revenue for Q2 was $769.2 million, up 35% year-over-year, driven by 11% organic growth and 24% acquisitive growth.
Negative Updates
Leverage Above Target
Debt to trailing 12-month EBITDA was 3.23x at quarter end, above the company's targeted ~2.5x leverage ratio, though management expects to fund the recent acquisition from Q3 cash flow without additional long-term debt.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue for Q2 was $769.2 million, up 35% year-over-year, driven by 11% organic growth and 24% acquisitive growth.
Read all positive updates
Company Guidance
Construction Partners raised FY‑2026 guidance to revenue of $3.59–$3.65 billion, net income of $159–$162 million, adjusted net income of $170.4–$174.2 million, adjusted EBITDA of $552–$564 million and an adjusted EBITDA margin of 15.38%–15.45%; management expects ~7%–8% organic growth for the year. In Q2 the company reported revenue of $769.2 million (+35% YoY: 11% organic, 24% acquisitive), gross profit of $98.9 million (12.9% of revenue), adjusted EBITDA $93.3 million (12.1% margin), adjusted net income $10.4 million (adjusted diluted EPS $0.18) and net income $9.2 million; backlog was $3.14 billion covering ~80%–85% of next‑12‑month contract revenue. Liquidity and balance‑sheet metrics include $77 million cash, $150 million available under the credit facility (net of letters of credit), trailing‑12‑month debt/EBITDA of 3.23x (targeting ~2.5x), Q2 operating cash flow of $65.2 million (vs. $55.6M LY), and an expected FY‑26 conversion of 75%–85% of EBITDA to operating cash; longer‑term ROAD 2030 targets remain $1 billion of annual EBITDA and ~17% EBITDA margin.Construction Partners Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.26B | 2.81B | 1.82B | 1.56B | 1.30B | 910.74M |
| Gross Profit | 512.90M | 439.09M | 258.50M | 198.98M | 137.12M | 116.79M |
| EBITDA | 393.17M | 373.17M | 214.72M | 170.15M | 102.61M | 80.73M |
| Net Income | 127.00M | 101.77M | 68.94M | 49.00M | 21.38M | 20.18M |
Balance Sheet | ||||||
| Total Assets | 3.44B | 3.24B | 1.54B | 1.22B | 1.10B | 806.62M |
| Cash, Cash Equivalents and Short-Term Investments | 76.98M | 156.06M | 74.69M | 48.24M | 35.53M | 57.25M |
| Total Debt | 1.85B | 1.69B | 553.25M | 390.73M | 389.83M | 222.87M |
| Total Liabilities | 2.46B | 2.33B | 968.39M | 703.09M | 639.64M | 397.72M |
| Stockholders Equity | 979.38M | 911.96M | 573.74M | 516.57M | 455.88M | 408.90M |
Cash Flow | ||||||
| Free Cash Flow | 191.35M | 153.37M | 121.15M | 59.35M | -52.35M | -7.83M |
| Operating Cash Flow | 342.78M | 291.30M | 209.08M | 157.16M | 16.50M | 48.50M |
| Investing Cash Flow | -724.05M | -1.28B | -307.58M | -143.37M | -197.33M | -263.41M |
| Financing Cash Flow | 354.67M | 1.07B | 126.11M | -264.00K | 159.14M | 123.85M |
Construction Partners Technical Analysis
Negative
103.29
Price Trends
110.41
Negative
114.54
Negative
115.19
Negative
Market Momentum
-3.17
Negative
44.05
Neutral
64.58
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 103.29 is above the 20-day moving average (MA) of 102.41, below the 50-day MA of 110.41, and below the 200-day MA of 115.19, indicating a bearish trend. The MACD of -3.17 indicates Negative momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 64.58 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 51 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $17.82B | 52.67 | 32.77% | ― | 36.96% | 31.00% | |
70 Outperform | $4.36B | 11.03 | 26.57% | 1.79% | -4.37% | 13.37% | |
66 Neutral | $5.75B | 45.13 | 13.68% | ― | 48.81% | 94.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $4.65B | 18.39 | 15.21% | 0.37% | 13.40% | 19.67% | |
58 Neutral | $5.03B | -32.00 | -16.01% | 0.42% | 21.80% | -204.13% | |
50 Neutral | $6.99B | 24.35 | 8.12% | ― | -8.32% | -87.53% |
* Industrials Sector Average
ROAD
Construction Partners
103.35
8.39
8.84%
FLR
Fluor
50.17
8.75
21.13%
GVA
Granite Construction
120.97
29.08
31.65%
KBR
KBR
36.61
-9.13
-19.96%
PRIM
Primoris Services
84.41
-6.49
-7.14%
STRL
Sterling Infrastructure
596.77
333.72
126.87%
Construction Partners Corporate Events
Business Operations and StrategyM&A Transactions
Construction Partners Expands Oklahoma Footprint with Ellsworth Acquisition
Positive
Jul 13, 2026
On July 13, 2026, Construction Partners, Inc. announced it had completed the acquisition of Ellsworth Construction, LLC, an asphalt manufacturing and construction firm based in Tulsa, Oklahoma. Ellsworth operates a hot-mix asphalt plant in Broken ...
Business Operations and StrategyPrivate Placements and Financing
Construction Partners Amends Term Loan, Adds Incremental Financing
Positive
Jun 18, 2026
On June 18, 2026, Construction Partners, Inc. and its lending syndicate amended the company’s Term Loan B Credit Agreement, refinancing all outstanding term loans to lower interest rate margins and adding $300 million of incremental term loa...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Construction Partners Expands Credit Facility and Financial Flexibility
Positive
Jun 8, 2026
On June 3, 2026, Construction Partners and its lending group executed a sixth amendment to the company’s Third Amended and Restated Credit Agreement, boosting the revolving credit facility from $500 million to $700 million and revising key f...
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.