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
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 rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ROAD is 119.50 USD with a low forecast of 115.00 USD and a high forecast of 124.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 113.350
Low
115.00
Averages
119.50
High
124.00
Current: 113.350
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.
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Construction Partners (ROAD) Schedules Q1 2026 Earnings Release for February 5
- Earnings Release Schedule: Construction Partners is set to announce its Q1 2026 results on February 5, 2026, before market opening, which is expected to provide investors with insights into the company's financial health and market performance.
- Conference Call Details: The company has scheduled a conference call for the same day at 10:00 AM ET, where investors can join by dialing (412) 902-0003, ensuring to call at least 10 minutes prior to the start for smooth access.
- Webcast Access: Investors can access the webcast via the 'Events & Presentations' section of the company's Investor Relations website, with a recommendation to log in at least 10 minutes early to register and download any necessary software for a seamless experience.
- Business Background: Construction Partners focuses on civil infrastructure construction and maintenance in the Sunbelt markets, primarily undertaking public projects such as interstate highways and airport runways, highlighting its significant role and demand in the industry.
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