Construction Partners Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.43%.
Did ROAD Beat Earnings? Q4 2025 Results
Construction Partners (ROAD) posted a mixed fiscal fourth quarter, with robust revenue growth undercut by a profit shortfall that sent shares lower. The civil construction company reported Q4 revenue of $899.85 million, essentially in line with the $899.65 million consensus and up 67.2% from the year-ago period, but earnings per share of $1.02 fell short of the $1.08 analyst estimate by 5.20%, reflecting the weight of $90.36 million in full-year interest expense tied to the aggressive acquisition strategy that helped fuel that revenue surge. Five acquisitions completed during fiscal 2025 expanded Construction Partners into Texas and Oklahoma while deepening its Sunbelt footprint, driving adjusted EBITDA margins to 15.1% from 12.1% a year earlier. A record backlog of $3.03 billion at quarter-end underscores the demand visibility management is counting on as it guides fiscal 2026 revenue of $3.40 billion to $3.50 billion, with adjusted EBITDA of $520 million to $540 million and margins of 15.3% to 15.4%.
- Organic revenue growth of 8.4% year-over-year
- Five strategic acquisitions expanding into Texas and Oklahoma, strengthening Tennessee and Alabama presence
- Strong infrastructure demand and increasing need for new lane capacity throughout Sunbelt markets
- Expanding addressable markets for roadway repair and maintenance
- Operational excellence and increased vertical integration of materials and services
- Adjusted EBITDA margin expanded from 12.1% to 15.1%
“We delivered a strong fourth quarter that capped a year of significant growth and margin expansion, in line with the preliminary financial ranges we announced in October. Our disciplined execution across our Sunbelt operations, powered by more than 6,800 employees, continues to drive record results through safe, efficient project construction and strong market demand.”
Construction Partners CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026 (ending September 30, 2026), CPI reiterated guidance: revenue of $3.400 billion to $3.500 billion, net income of $150.0 million to $155.0 million, Adjusted Net Income of $158.1 million to $164.2 million, Adjusted EBITDA of $520.0 million to $540.0 million, and Adjusted EBITDA Margin of 15.3% to 15.4%. The outlook is supported by strong Sunbelt economic fundamentals, continued public infrastructure investment, population growth, and ongoing organic and acquisitive growth opportunities.
ROAD YoY Financials
Figures from SEC filings and company reports. Not investment advice.