Construction Partners Inc - Class A
Q3 2026 Earnings
Adjusted net income excludes $1.373 million in transformative acquisition expenses, net of $336 thousand tax impact
Market Reaction
Did ROAD Beat Earnings? Q3 2026 Results
Construction Partners, Inc. delivered a strong fiscal third quarter, posting adjusted diluted EPS of $1.08 against a consensus estimate of $1.01, a beat of 6.75%, while revenue of $999.42 million cleared expectations by 5.34% and surged 28.3% year over year, fueled by robust demand for public infrastructure and commercial construction across its Sunbelt markets. The results were anchored by a record project backlog of $3.36 billion, up from $2.94 billion a year ago, offering clear visibility into sustained activity levels. Adjusted EBITDA climbed to $163.02 million, though margin slipped 60 basis points to 16.3%, partly reflecting energy cost inflation and unusually wet weather in May that weighed on productivity. Strategically, the company announced the acquisition of Ellsworth Construction, deepening its Oklahoma presence and adding data center construction capabilities. Management raised its full-year fiscal 2026 revenue guidance to a range of $3.64 billion to $3.68 billion, with Adjusted EBITDA expected between $559.00 million and $569.00 million, reflecting both underlying momentum and contributions from the Ellsworth deal.
- 28.2% revenue growth year over year
- Strong demand for public infrastructure and commercial construction projects across Sunbelt markets
- Decentralized operating model providing resilience across diverse market conditions
- Adjusted EBITDA growth of 23.8% year over year
- Record project backlog of $3.36 billion providing visibility into future growth
- G&A expenses as a percentage of revenue declined 20 basis points to 6.3%
“Our strong third quarter results reflect the continued execution of our operating strategy and the dedication of our teams throughout the CPI family of companies. During the quarter, we delivered revenue growth of 28% and Adjusted EBITDA growth of 24%, despite the impact of energy cost inflation and extremely wet weather in May across many of our markets. These results underscore the resilience of our decentralized operating model, the strength of our local market strategy, and our ability to consistently execute across diverse market conditions. Demand for both public infrastructure and commercial construction projects remained healthy throughout our markets, driving backlog to a record $3.36 billion and providing continued visibility into future growth.”
Construction Partners CEO, on the earnings call
Forward Guidance & Outlook
The company raised its fiscal year 2026 outlook: Revenue in the range of $3.640 billion to $3.680 billion; Net income of $165.0 million to $168.0 million; Adjusted net income of $177.6 million to $181.4 million; Adjusted EBITDA of $559.0 million to $569.0 million; Adjusted EBITDA margin of 15.36% to 15.46%. The raised guidance reflects strong Q3 performance and the expected contribution from the Ellsworth Construction acquisition.
ROAD YoY Financials
Figures from SEC filings and company reports. Not investment advice.