Construction Partners unveils ROAD 2030 strategy to increase revenue to $6B and achieve a 17% EBITDA margin by 2030, while enhancing Sunbelt growth.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Should l Buy ROAD?
Source: SeekingAlpha
Management Overview: Construction Partners, Inc. (CPI) experienced a transformational year in 2025, achieving 54% revenue growth and a 92% increase in EBITDA, driven by strategic acquisitions in Texas, Oklahoma, and Tennessee, along with organic growth. The company ended the year with a record project backlog of $3 billion.
Fiscal 2026 Outlook: For fiscal year 2026, CPI projects revenue between $3.4 billion and $3.5 billion, with an adjusted EBITDA target of $520 million to $540 million. The company aims to expand EBITDA margins to 17% by 2030 as part of its ROAD 2030 strategic plan.
Financial Performance: In Q4 2025, CPI reported revenue of $900 million, a 67% year-over-year increase, and an adjusted EBITDA margin of 17.1%. The company also highlighted a gross profit of $439.1 million for the year, reflecting a 70% increase from the previous year.
Analyst Sentiment and Challenges: Analysts expressed cautious optimism regarding CPI's integration strategy and cash flow, while management acknowledged challenges in workforce retention and inflation. The company remains focused on reducing leverage to approximately 2.5x by late 2026.
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Analyst Views on ROAD
Wall Street analysts forecast ROAD stock price to fall
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 134.770
Low
115.00
Averages
119.50
High
124.00
Current: 134.770
Low
115.00
Averages
119.50
High
124.00
About ROAD
Construction Partners, Inc. is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. It provides a variety of products and services to both public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments. Its primary operations consist of manufacturing and distributing hot mix asphalt (HMA) for both 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, gravel and construction stone, that are used as raw materials, and distributing liquid asphalt cement for both internal use and sales to third parties in connection with HMA production.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Geneva Capital Sells Shares of Ollie's Bargain Outlet
- Share Sale Details: Geneva Capital Management sold 95,151 shares of Ollie's Bargain Outlet in Q4 2026, with an estimated transaction value of $11.47 million, demonstrating the firm's adaptability amid market fluctuations.
- Ownership Percentage Change: Following the sale, Geneva's stake in Ollie's decreased from 2.34% to 2.13%, indicating a cautious approach towards the stock while still retaining a degree of investment confidence.
- Market Performance Analysis: As of February 11, 2026, Ollie's shares were priced at $113.75, reflecting a 10% increase over the year, yet underperforming the S&P 500 by 4.39 percentage points, suggesting mixed market expectations for future growth.
- Expansion Plans: Ollie's opened 86 new stores and acquired Big Lots in fiscal 2025, showcasing its commitment to expansion in an uncertain economic environment, potentially laying the groundwork for future revenue growth.
See More
Construction Partners to Attend Investor Conferences
- Investor Conference Participation: Construction Partners will attend the Barclays 43rd Annual Industrial Select Conference on February 17-18, 2026, showcasing its expertise in roadway construction, which is expected to attract potential investor interest.
- Fireside Chat Broadcast: The company will hold a fireside chat at the Raymond James 47th Annual Institutional Investors Conference on March 2, 2026, starting at 2:50 PM Eastern Time, aimed at enhancing transparency and building investor trust.
- Business Model Overview: Construction Partners focuses on roadway construction and maintenance in Southern markets, primarily relying on public projects that include interstate highways, airport runways, and bridges, demonstrating its strong market position in infrastructure.
- Regional Market Coverage: The company operates across multiple states including Alabama, Florida, and Georgia, leveraging its hot-mix asphalt plants and aggregate facilities to ensure efficient project delivery and service quality, further solidifying its competitive edge.
See More
Construction Partners, Inc. Reports Strong Q1 2026 Earnings and Raises Guidance
- Strong Financial Performance: Construction Partners, Inc. reported Q1 2026 revenue of $809.5 million, a 44% increase year-over-year, with adjusted EBITDA rising 63% to $112.2 million and an EBITDA margin of 13.9%, marking the highest first-quarter margin in the company's history, indicating robust market performance and profitability.
- Robust Project Demand: The company is involved in approximately 1,000 commercial projects across eight states, benefiting from population migration and AI infrastructure development, with total federal, state, and local contract awards expected to increase by 10% to 15% in FY 2026 compared to FY 2025, reflecting sustained strong market demand.
- Strengthened Acquisition Strategy: The completion of two large acquisitions in Houston and Daytona Beach, along with the acquisition of GMJ Paving Company, further solidifies the company's market position and expands its team, demonstrating its acquisition capabilities and market consolidation strategy within the industry.
- Optimistic Future Outlook: The company raised its FY 2026 revenue guidance to a range of $3.48 billion to $3.56 billion, with net income projected between $154 million and $158 million, and adjusted EBITDA expected between $534 million and $550 million, showcasing management's confidence in future growth and a positive market outlook.
See More
Construction Partners Q1 Earnings Exceed Expectations
- Earnings Beat: Construction Partners reported a Q1 Non-GAAP EPS of $0.47, exceeding expectations by $0.16, which highlights the company's improved profitability and boosts market confidence in its future performance.
- Significant Revenue Growth: The company achieved Q1 revenue of $809.5 million, a 44.1% year-over-year increase, surpassing market expectations by $66.38 million, indicating rapid growth amid strong market demand and solidifying its market position.
- Optimistic FY 2026 Outlook: Construction Partners forecasts FY 2026 revenue between $3.480 billion and $3.560 billion, exceeding the consensus of $3.45 billion, reflecting management's confidence in future growth and potentially attracting more investor interest.
- Strong Adjusted EBITDA: The expected adjusted EBITDA ranges from $534.0 million to $550.0 million, with an adjusted EBITDA margin between 15.34% and 15.45%, demonstrating the company's success in cost control and operational efficiency, thereby enhancing its long-term profitability.
See More
Construction Partners Reports 44% Revenue Growth in Q1 FY26
- Significant Revenue Growth: Construction Partners reported Q1 revenue of $809.5 million, a 44.1% increase year-over-year, indicating strong demand in the infrastructure sector and an increase in market share, which is expected to further enhance future profitability.
- Doubled Adjusted Net Income: The adjusted net income for Q1 reached $26.4 million, up 99% from $13.3 million in the same quarter last year, showcasing the company's success in acquisition integration and operational efficiency, thereby boosting investor confidence.
- Record Project Backlog: As of December 31, 2025, the company’s project backlog hit $3.09 billion, up from $2.66 billion a year earlier, reflecting a strong position in a rapidly growing market that will support sustained revenue growth in the future.
- Optimistic Outlook: The company raised its FY26 revenue and adjusted EBITDA outlook, anticipating organic growth of 7% to 8%, indicating confidence in future market conditions and strategic positioning amid increasing infrastructure investments.
See More
Construction Partners Set to Announce Q1 Earnings with Strong Estimates
- Earnings Announcement Date: Construction Partners (ROAD) is set to release its Q1 earnings on February 5th before market open, with a consensus EPS estimate of $0.31, reflecting a 24% year-over-year growth, indicating ongoing improvements in profitability.
- Revenue Growth Expectations: The anticipated Q1 revenue of $743.12 million represents a 32.3% year-over-year increase, showcasing significant sales growth amid strong market demand, which further solidifies the company's market position.
- Historical Performance Review: Over the past two years, ROAD has exceeded EPS and revenue estimates 75% of the time, enhancing investor confidence in the company's future financial performance and demonstrating its stable profitability.
- Future Outlook: ROAD aims to double its revenue to $6 billion by 2030 while achieving a 17% EBITDA margin, indicating the company's strategic commitment to expanding in the Sunbelt market and positioning itself to capture future growth opportunities.
See More
Geneva Capital Sells Shares of Ollie's Bargain Outlet
- Share Sale Details: Geneva Capital Management sold 95,151 shares of Ollie's Bargain Outlet in Q4 2026, with an estimated transaction value of $11.47 million, demonstrating the firm's adaptability amid market fluctuations.
- Ownership Percentage Change: Following the sale, Geneva's stake in Ollie's decreased from 2.34% to 2.13%, indicating a cautious approach towards the stock while still retaining a degree of investment confidence.
- Market Performance Analysis: As of February 11, 2026, Ollie's shares were priced at $113.75, reflecting a 10% increase over the year, yet underperforming the S&P 500 by 4.39 percentage points, suggesting mixed market expectations for future growth.
- Expansion Plans: Ollie's opened 86 new stores and acquired Big Lots in fiscal 2025, showcasing its commitment to expansion in an uncertain economic environment, potentially laying the groundwork for future revenue growth.
See More
Construction Partners to Attend Investor Conferences
- Investor Conference Participation: Construction Partners will attend the Barclays 43rd Annual Industrial Select Conference on February 17-18, 2026, showcasing its expertise in roadway construction, which is expected to attract potential investor interest.
- Fireside Chat Broadcast: The company will hold a fireside chat at the Raymond James 47th Annual Institutional Investors Conference on March 2, 2026, starting at 2:50 PM Eastern Time, aimed at enhancing transparency and building investor trust.
- Business Model Overview: Construction Partners focuses on roadway construction and maintenance in Southern markets, primarily relying on public projects that include interstate highways, airport runways, and bridges, demonstrating its strong market position in infrastructure.
- Regional Market Coverage: The company operates across multiple states including Alabama, Florida, and Georgia, leveraging its hot-mix asphalt plants and aggregate facilities to ensure efficient project delivery and service quality, further solidifying its competitive edge.
See More
Construction Partners, Inc. Reports Strong Q1 2026 Earnings and Raises Guidance
- Strong Financial Performance: Construction Partners, Inc. reported Q1 2026 revenue of $809.5 million, a 44% increase year-over-year, with adjusted EBITDA rising 63% to $112.2 million and an EBITDA margin of 13.9%, marking the highest first-quarter margin in the company's history, indicating robust market performance and profitability.
- Robust Project Demand: The company is involved in approximately 1,000 commercial projects across eight states, benefiting from population migration and AI infrastructure development, with total federal, state, and local contract awards expected to increase by 10% to 15% in FY 2026 compared to FY 2025, reflecting sustained strong market demand.
- Strengthened Acquisition Strategy: The completion of two large acquisitions in Houston and Daytona Beach, along with the acquisition of GMJ Paving Company, further solidifies the company's market position and expands its team, demonstrating its acquisition capabilities and market consolidation strategy within the industry.
- Optimistic Future Outlook: The company raised its FY 2026 revenue guidance to a range of $3.48 billion to $3.56 billion, with net income projected between $154 million and $158 million, and adjusted EBITDA expected between $534 million and $550 million, showcasing management's confidence in future growth and a positive market outlook.
See More
Construction Partners Q1 Earnings Exceed Expectations
- Earnings Beat: Construction Partners reported a Q1 Non-GAAP EPS of $0.47, exceeding expectations by $0.16, which highlights the company's improved profitability and boosts market confidence in its future performance.
- Significant Revenue Growth: The company achieved Q1 revenue of $809.5 million, a 44.1% year-over-year increase, surpassing market expectations by $66.38 million, indicating rapid growth amid strong market demand and solidifying its market position.
- Optimistic FY 2026 Outlook: Construction Partners forecasts FY 2026 revenue between $3.480 billion and $3.560 billion, exceeding the consensus of $3.45 billion, reflecting management's confidence in future growth and potentially attracting more investor interest.
- Strong Adjusted EBITDA: The expected adjusted EBITDA ranges from $534.0 million to $550.0 million, with an adjusted EBITDA margin between 15.34% and 15.45%, demonstrating the company's success in cost control and operational efficiency, thereby enhancing its long-term profitability.
See More
Construction Partners Reports 44% Revenue Growth in Q1 FY26
- Significant Revenue Growth: Construction Partners reported Q1 revenue of $809.5 million, a 44.1% increase year-over-year, indicating strong demand in the infrastructure sector and an increase in market share, which is expected to further enhance future profitability.
- Doubled Adjusted Net Income: The adjusted net income for Q1 reached $26.4 million, up 99% from $13.3 million in the same quarter last year, showcasing the company's success in acquisition integration and operational efficiency, thereby boosting investor confidence.
- Record Project Backlog: As of December 31, 2025, the company’s project backlog hit $3.09 billion, up from $2.66 billion a year earlier, reflecting a strong position in a rapidly growing market that will support sustained revenue growth in the future.
- Optimistic Outlook: The company raised its FY26 revenue and adjusted EBITDA outlook, anticipating organic growth of 7% to 8%, indicating confidence in future market conditions and strategic positioning amid increasing infrastructure investments.
See More
Construction Partners Set to Announce Q1 Earnings with Strong Estimates
- Earnings Announcement Date: Construction Partners (ROAD) is set to release its Q1 earnings on February 5th before market open, with a consensus EPS estimate of $0.31, reflecting a 24% year-over-year growth, indicating ongoing improvements in profitability.
- Revenue Growth Expectations: The anticipated Q1 revenue of $743.12 million represents a 32.3% year-over-year increase, showcasing significant sales growth amid strong market demand, which further solidifies the company's market position.
- Historical Performance Review: Over the past two years, ROAD has exceeded EPS and revenue estimates 75% of the time, enhancing investor confidence in the company's future financial performance and demonstrating its stable profitability.
- Future Outlook: ROAD aims to double its revenue to $6 billion by 2030 while achieving a 17% EBITDA margin, indicating the company's strategic commitment to expanding in the Sunbelt market and positioning itself to capture future growth opportunities.
See More
