Construction Partners (ROAD) AI Stock Analysis

• Market Cap: $5.84B
• Dividend Yield: N/A
• Average Volume (3M): 407.26K
• Price to Earnings (P/E): 76.2
• Beta (1Y): 1.65
• Revenue Growth: 54.20%
• EPS Growth: 38.64%
• Country: US
• Employees: 1,325
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.06
• Shares Outstanding: 47,551,945
• 10 Day Avg. Volume: 349,976
• 30 Day Avg. Volume: 407,261
• PEG Ratio: 1.31
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 29.89
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $129.00 ▲(15.83% Upside)

Construction Partners' strong financial performance and positive earnings call are the primary strengths, supporting a solid overall score. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

The significant revenue growth, driven by both organic and acquisition activities, indicates strong market demand and effective business expansion strategies, which are crucial for long-term sustainability.

Successful Acquisition Strategy

The strategic acquisition expands the company's geographic footprint and enhances its competitive position, providing a foundation for sustained growth and increased market share.

Strong Cash Flow

Robust cash flow generation supports the company's ability to invest in growth opportunities, reduce debt, and enhance financial stability, ensuring long-term operational resilience.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk during economic downturns, potentially impacting the company's ability to invest in future growth and manage operational costs.

Weather-Related Delays

Weather-related disruptions can affect project timelines and cost recoveries, posing challenges to operational efficiency and profitability, especially in regions prone to adverse weather conditions.

Debt Levels

High debt levels can strain cash flow and limit the company's ability to invest in growth initiatives, posing a risk to long-term financial health and operational flexibility.

Construction Partners Business Overview & Revenue Model

Company Description

Construction Partners (ROAD) is a leading asphalt paving and construction company specializing in the production and placement of asphalt for highways, roads, and various infrastructure projects. Operating primarily in the southeastern United States, the company provides services that include asphalt production, paving, and road construction, catering to both public and private sector clients. With a strong commitment to quality and sustainability, Construction Partners leverages advanced technology and skilled labor to deliver high-performance solutions in the construction industry.

How the Company Makes Money

Construction Partners generates revenue primarily through contracts for asphalt paving and road construction projects. The company earns money by bidding on and securing contracts with governmental agencies, municipalities, and private developers for the construction and maintenance of roads and infrastructure. Key revenue streams include the sale of asphalt products produced at its plants and the execution of construction services. Additionally, strategic partnerships with local governments and other construction firms enhance their project opportunities and expand their service offerings. Factors contributing to its earnings include the demand for infrastructure development, government funding for transportation projects, and the company's operational efficiency in managing costs and resources.

Construction Partners Financial Statement Overview

Summary

Construction Partners shows strong financial performance with impressive revenue growth and profitability. Operational efficiency is evident, but high leverage poses potential risks. Cash flow generation is robust, supporting future growth and stability.

Income Statement

Construction Partners has demonstrated strong revenue growth with an 11.94% increase in the TTM period, supported by a healthy gross profit margin of 14.85%. The net profit margin is stable at 3.04%, indicating effective cost management. EBIT and EBITDA margins have improved, reflecting operational efficiency. Overall, the company shows robust growth and profitability trends.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.76, indicating significant leverage, which could pose risks in volatile markets. However, the return on equity remains reasonable at 9.79%, suggesting effective use of equity. The equity ratio is moderate, showing a balanced asset structure.

Cash Flow

The cash flow statement highlights a strong free cash flow growth of 21.10% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is below 1, suggesting potential cash flow constraints, but the free cash flow to net income ratio of 0.56 shows a positive cash conversion cycle.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.45B	1.82B	1.56B	1.30B	910.74M	785.68M
Gross Profit	363.81M	258.50M	198.98M	137.12M	116.79M	122.21M
EBITDA	309.31M	214.72M	170.15M	102.61M	80.73M	94.87M
Net Income	74.52M	68.94M	49.00M	21.38M	20.18M	40.30M
Balance Sheet
Total Assets	2.93B	1.54B	1.22B	1.10B	806.62M	628.11M
Cash, Cash Equivalents and Short-Term Investments	114.34M	74.69M	48.24M	35.53M	57.25M	148.32M
Total Debt	1.50B	553.25M	390.73M	389.83M	222.87M	99.65M
Total Liabilities	2.07B	968.39M	703.09M	639.64M	397.72M	242.92M
Stockholders Equity	853.33M	573.74M	516.57M	455.88M	408.90M	385.19M
Cash Flow
Free Cash Flow	152.81M	121.15M	59.35M	-52.35M	-7.83M	52.60M
Operating Cash Flow	275.22M	209.08M	157.16M	16.50M	48.50M	105.17M
Investing Cash Flow	-1.14B	-307.58M	-143.37M	-197.33M	-263.41M	-79.36M
Financing Cash Flow	924.26M	126.11M	-264.00K	159.14M	123.85M	41.89M

Construction Partners Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 111.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROAD, the sentiment is Neutral. The current price of 111.37 is above the 20-day moving average (MA) of 108.22, below the 50-day MA of 116.62, and above the 200-day MA of 101.39, indicating a neutral trend. The MACD of -2.77 indicates Negative momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 92.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ROAD.

Construction Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRIM	71 Outperform	$6.67B	24.39	18.56%	0.25%	21.45%	67.31%
STRL	71 Outperform	$10.07B	32.14	35.73%	―	6.20%	72.81%
ROAD	70 Outperform	$5.84B	76.16	13.70%	―	54.20%	38.64%
GVA	70 Outperform	$4.30B	28.95	16.87%	0.49%	6.87%	64.56%
KBR	65 Neutral	$5.55B	14.19	27.77%	1.54%	9.66%	29.01%
FLR	64 Neutral	$6.87B	2.17	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Construction Partners Corporate Events

Construction Partners Reports Record Revenue and Profitability

On October 21, 2025, Construction Partners, Inc. announced its preliminary financial results for fiscal year 2025, highlighting a strong fourth quarter performance that led to record revenue and profitability. The company reported an expected revenue range of $2.800 billion to $2.820 billion, an increase from $1.824 billion in 2024, and a net income range of $101.0 million to $101.8 million, up from $68.9 million in 2024. Looking forward to fiscal year 2026, Construction Partners anticipates continued growth with revenue projected between $3.400 billion and $3.500 billion, driven by economic growth in the Sunbelt and strategic acquisitions. The company remains optimistic about expanding margins and leveraging transportation funding programs to build value for stakeholders.

The most recent analyst rating on (ROAD) stock is a Buy with a $137.00 price target. To see the full list of analyst forecasts on Construction Partners stock, see the ROAD Stock Forecast page.

Construction Partners Acquires P&S Paving for Expansion

On October 20, 2025, Construction Partners, Inc. announced the acquisition of P&S Paving, Inc., a move that expands its operations into Daytona Beach and Florida’s East Coast. This acquisition enhances the company’s ability to deliver asphalt and infrastructure services in the high-growth Interstate 95 corridor, aligning with its strategy for future growth and strengthening its market position in Florida.

The most recent analyst rating on (ROAD) stock is a Buy with a $128.00 price target. To see the full list of analyst forecasts on Construction Partners stock, see the ROAD Stock Forecast page.

Construction Partners Completes Acquisition of Asphalt Plants

On October 6, 2025, Construction Partners, Inc. announced the completion of its acquisition of eight hot-mix asphalt plants in the Houston, Texas metro area from affiliates of Vulcan Materials Company. This acquisition, integrated into Durwood Greene Construction Co., strengthens CPI’s presence in the Houston market, aligning with its strategy to expand its geographic footprint in Texas. The acquisition not only enhances CPI’s production capabilities but also brings in skilled personnel committed to safety and quality, thereby improving service to customers and communities in the rapidly growing Houston area.

The most recent analyst rating on (ROAD) stock is a Buy with a $137.00 price target. To see the full list of analyst forecasts on Construction Partners stock, see the ROAD Stock Forecast page.

Construction Partners’ Earnings Call Highlights Robust Growth

The recent earnings call of Construction Partners exuded a positive sentiment, highlighting the company’s robust revenue growth, record EBITDA margins, and successful strategic acquisitions. Despite facing challenges such as weather-related delays and a high leverage ratio, the company showcased resilience and a clear path for strategic growth.

Construction Partners Reports Strong Q3 2025 Growth

Construction Partners, Inc. is a vertically integrated civil infrastructure company that focuses on the construction and maintenance of roadways in the Sunbelt region of the United States. The company operates hot-mix asphalt plants and aggregate facilities, primarily serving publicly funded projects such as roadways and bridges.

Construction Partners Acquires Two Companies in Houston Expansion

On August 4, 2025, Construction Partners, Inc. announced the acquisition of Durwood Greene Construction Co. and G&S Asphalt, Inc., expanding its operations in the Houston metro area with three new hot-mix asphalt plants. This acquisition, led by experienced management, is expected to enhance operational excellence and provide vertical integration opportunities, aligning with the company’s strategy to capitalize on Texas’s economic growth and infrastructure development.

The most recent analyst rating on (ROAD) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Construction Partners stock, see the ROAD Stock Forecast page.