Construction Partners (ROAD) AI Stock Analysis

• Market Cap: $6.42B
• Dividend Yield: N/A
• Average Volume (3M): 437.73K
• Price to Earnings (P/E): 62.3
• Beta (1Y): 1.64
• 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: 47,947,510
• 10 Day Avg. Volume: 367,296
• 30 Day Avg. Volume: 437,725
• PEG Ratio: 1.75
• Price to Book (P/B): 7.65
• Price to Sales (P/S): 2.48
• P/FCF Ratio: 45.50
• 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: $119.50
• Price Target Upside: 5.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $127.00 ▲(11.71% Upside)

Construction Partners' strong financial performance and positive earnings call insights are offset by technical indicators suggesting bearish momentum and a high valuation. The company's growth prospects are promising, but leverage concerns and overvaluation pose risks.

Positive Factors

Rapid Revenue Expansion

Sustained high revenue growth driven by both organic demand and sizable acquisitions shows the business model scales across Sunbelt markets. This dual growth reduces single-source risk and supports long-term market share gains and investment capacity for further strategic expansion.

Large, Visible Backlog

A $3 billion backlog provides multi-quarter revenue visibility and predictable utilization of plants and crews, underpinning steady cash generation. This structural pipeline supports underwriting of future capacity investments and de-risks near-term revenue volatility from project timing.

Improving Cash Generation

Material growth in free cash flow and a high operating-cash-to-income ratio indicate strong underlying cash conversion from operations. Durable cash generation strengthens the firm's ability to fund capex, service debt, and pursue accretive acquisitions without relying solely on external financing.

Negative Factors

Elevated Leverage

Leverage near 3.1x EBITDA raises refinancing and liquidity risk if margins compress or macro slows. Managing down to 2.5x will require sustained free cash generation or asset sales; until achieved, high leverage constrains strategic flexibility and increases interest-cost sensitivity.

Weak Free Cash Flow Conversion

Only roughly half of reported net income converts to free cash flow, indicating working capital, capex, or acquisition outflows materially reduce retained cash. Persistent subpar conversion can limit deleveraging, dividend/repurchase capacity, and funding for organic growth without new debt.

Low Net Profit Margin

A low single-digit net margin leaves limited buffer against input cost increases or project delays. Even with improving gross and EBIT metrics, weak net profitability reduces retained earnings and resilience, making returns more sensitive to cyclical downturns or elevated SG&A and interest costs.

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 products and services to public and private infrastructure projects, with a focus on highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; paving activities, including the construction of roadway base layers and application of asphalt pavement; site development, including the installation of utility and drainage systems; mining aggregates, such as sand and gravel that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was incorporated in 1999 and is headquartered in Dothan, Alabama.

How the Company Makes Money

Construction Partners generates revenue primarily through the sale of asphalt and concrete products, as well as services related to road construction and maintenance. The company's revenue model is built on contract-based projects where it partners with government agencies and private entities to fulfill their infrastructure needs. Key revenue streams include the direct sale of construction materials, project management fees, and service contracts for road maintenance. The company also benefits from strategic partnerships with local and state governments, as well as other construction firms, which help secure long-term contracts and ensure a steady flow of work. Additionally, favorable market conditions, such as increased public spending on infrastructure, significantly contribute to its earnings.

Construction Partners Financial Statement Overview

Summary

Construction Partners shows strong revenue growth and improving margins, with effective equity use. However, increased leverage and room for improvement in net profitability and free cash flow conversion are concerns.

Income Statement

Construction Partners has demonstrated strong revenue growth with a 14.76% increase in the latest year, supported by improving gross and EBIT margins. The gross profit margin has increased to 15.61%, reflecting efficient cost management. However, the net profit margin slightly decreased to 3.62%, indicating room for improvement in net profitability.

Balance Sheet

The company's debt-to-equity ratio has increased significantly to 1.85, indicating higher leverage, which could pose a risk if not managed carefully. Despite this, the return on equity remains solid at 11.16%, showcasing effective use of equity to generate profits. The equity ratio stands at 28.16%, suggesting a balanced approach to financing with equity.

Cash Flow

Free cash flow has grown by 36.8%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 2.86, indicating robust cash flow relative to net income. However, the free cash flow to net income ratio is 0.53, suggesting that while cash flow is positive, there is room for improvement in converting income into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.81B	2.81B	1.82B	1.56B	1.30B	910.74M
Gross Profit	439.09M	439.09M	258.50M	198.98M	137.12M	116.79M
EBITDA	379.09M	373.17M	214.72M	170.15M	102.61M	80.73M
Net Income	101.78M	101.77M	68.94M	49.00M	21.38M	20.18M
Balance Sheet
Total Assets	3.24B	3.24B	1.54B	1.22B	1.10B	806.62M
Cash, Cash Equivalents and Short-Term Investments	159.01M	156.06M	74.69M	48.24M	35.53M	57.25M
Total Debt	1.69B	1.69B	553.25M	390.73M	389.83M	222.87M
Total Liabilities	2.33B	2.33B	968.39M	703.09M	639.64M	397.72M
Stockholders Equity	911.96M	911.96M	573.74M	516.57M	455.88M	408.90M
Cash Flow
Free Cash Flow	153.37M	153.37M	121.15M	59.35M	-52.35M	-7.83M
Operating Cash Flow	291.30M	291.30M	209.08M	157.16M	16.50M	48.50M
Investing Cash Flow	-1.28B	-1.28B	-307.58M	-143.37M	-197.33M	-263.41M
Financing Cash Flow	1.07B	1.07B	126.11M	-264.00K	159.14M	123.85M

Construction Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 113.69
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROAD, the sentiment is Positive. The current price of 113.69 is above the 20-day moving average (MA) of 112.23, above the 50-day MA of 109.44, and above the 200-day MA of 107.01, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 75.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROAD.

Construction Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRIM	75 Outperform	$7.44B	27.22	18.56%	0.25%	21.45%	67.31%
KBR	73 Outperform	$5.59B	14.30	27.77%	1.65%	9.66%	29.01%
STRL	71 Outperform	$9.81B	31.31	35.73%	―	6.20%	72.81%
ROAD	71 Outperform	$6.42B	62.33	13.70%	―	54.20%	38.64%
GVA	70 Outperform	$5.31B	35.73	16.87%	0.45%	6.87%	64.56%
FLR	64 Neutral	$7.14B	2.25	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 Amends Executive Compensation Plan

On November 4, 2025, Construction Partners, Inc.’s Compensation Committee approved an amended award agreement for performance stock unit awards under the company’s 2018 Equity Incentive Plan. The amendment allows the committee to settle these awards by paying the cash-equivalent value of the shares, impacting executive compensation and potentially affecting shareholder value.

The most recent analyst rating on (ROAD) stock is a Buy with a $129.00 price target. To see the full list of analyst forecasts on Construction Partners stock, see the ROAD Stock Forecast page.

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.