Construction Partners Inc - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did ROAD Beat Earnings? Q1 2026 Results
Construction Partners (ROAD) kicked off fiscal 2026 with a quarter that exceeded expectations on both the top and bottom lines, as the Sunbelt-focused infrastructure contractor reported revenue of $809.47 million, an 8.93% beat against the $743.12 million consensus and a 44.1% jump from the year-ago period. Diluted EPS of $0.31 edged past the $0.31 estimate, while the company swung to GAAP net income of $17.20 million from a loss of $3.05 million a year earlier, reflecting the operational leverage of a vertically integrated model that spans asphalt plants, aggregate facilities, and liquid asphalt terminals. Adjusted EBITDA climbed 63% to $112.20 million, yielding a 13.9% margin that management described as a record for the company's fiscal first quarter. A backlog of $3.09 billion, up from $2.66 billion a year ago, underscores the durability of demand across eight Sunbelt states. Encouraged by the momentum, management raised its full-year FY2026 revenue outlook to a range of $3.48 billion to $3.56 billion, with Adjusted EBITDA guided between $534.00 million and $550.00 million, sending shares up roughly 15% in the aftermath.
- Outstanding operational execution across the family of companies
- Favorable first-quarter weather conditions
- Strategic acquisitions in Daytona Beach, Florida and Houston, Texas
- Record project backlog of $3.09 billion
- Adjusted EBITDA margin of 13.9%, highest first-quarter margin in company history
- G&A expenses as a percentage of revenue improved to 7.7% from 7.9%
“We are pleased to report a strong start to fiscal 2026, driven by outstanding operational execution across our family of companies and supported by favorable first-quarter weather. Revenue increased 44% and Adjusted EBITDA increased 63% in the quarter, resulting in an Adjusted EBITDA margin of 13.9%, the highest first-quarter margin in our history. We also ended the quarter with a record project backlog of $3.09 billion, underscoring the strength of demand across our markets.”
Construction Partners CEO, on the earnings call
Forward Guidance & Outlook
CPI raised its FY2026 outlook: Revenue of $3.480 billion to $3.560 billion; Net income of $154.0 million to $158.0 million; Adjusted net income of $163.5 million to $168.7 million; Adjusted EBITDA of $534.0 million to $550.0 million; Adjusted EBITDA margin of 15.34% to 15.45%. Organic revenue growth is anticipated at approximately 7% to 8%. The raised guidance reflects better-than-expected Q1 results and the anticipated contribution from a recently closed Houston acquisition.
ROAD YoY Financials
Figures from SEC filings and company reports. Not investment advice.