Construction Partners, Inc.
- Open
- 109.58
- Day high
- 110.08
- Day low
- 107.81
- Prev close
- 108.49
- Volume
- 72K
- Mkt cap
- $6.2B
- P/E (TTM)
- 42.7
- EPS (TTM)
- $2.56
- P/B
- 6.0
- P/S
- 1.8
- Yield
- —
- Per share
- —
Construction Partners, Inc. (ROAD) is a Industrials company listed on NASDAQ. The stock is down 9% over the past year. Drillr has 1 published research article covering ROAD.
Construction Partners, Inc. (ROAD) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ROAD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 7, 2026 | $1.01 | $1.08 | +6.9% | $999M | +5.3% |
| May 8, 2026 | $-0.05 | $0.18 | +460.0% | $769M | +13.4% |
| Feb 5, 2026 | $0.31 | $0.47 | +51.6% | $809M | +18.6% |
| Nov 20, 2025 | $1.09 | $1.07 | -1.8% | $900M | +0.4% |
| Aug 7, 2025 | $0.87 | $0.81 | -6.9% | $779M | -11.6% |
| May 9, 2025 | $-0.07 | $0.08 | +217.1% | $572M | +1.8% |
| Feb 7, 2025 | $0.14 | $0.25 | +78.6% | $562M | +5.7% |
| Nov 21, 2024 | $0.57 | $0.58 | +2.1% | $538M | +0.0% |
| Aug 9, 2024 | $0.54 | $0.59 | +9.3% | $518M | -7.9% |
| May 10, 2024 | $-0.07 | $-0.02 | +71.4% | $371M | +2.3% |
| Feb 9, 2024 | $0.13 | $0.19 | +46.2% | $397M | +0.5% |
| Nov 29, 2023 | $0.52 | $0.59 | +13.5% | $475M | +2.2% |
ROAD insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 10, 2026 | Hoffman Gregory Aofficer: SVP, Chief Financial Officer | Grant | 50,000 | — |
| Aug 10, 2026 | Smith Fred Julius IIIdirector, officer, other: President and CEO | Grant | 50,000 | — |
| Aug 10, 2026 | Fleming Ned N. IVofficer, other: Senior VP - Strategy & Bus Dev | Grant | 50,000 | — |
| Aug 10, 2026 | Brooks Judson Ryanofficer: SVP and General Counsel | Grant | 40,000 | — |
| Aug 10, 2026 | Baugnon Robert Gofficer: Senior VP, Personnel and Admin | Grant | 40,000 | — |
| Jul 6, 2026 | Baugnon Robert Gofficer: Senior VP, Personnel and Admin | Grant | 53 | $95.97 |
| Apr 6, 2026 | Baugnon Robert Gofficer: Senior VP, Personnel and Admin | Grant | 55 | $92.27 |
| Dec 11, 2025 | Fleming Ned N IIIdirector, 10 percent owner: | Buy | 2,000 | — |
| Nov 20, 2025 | Hoffman Gregory Aofficer: SVP, Chief Financial Officer | Tax | 3,527 | $112.02 |
| Nov 20, 2025 | Baugnon Robert Gofficer: Senior VP, Personnel and Admin | Tax | 2,251 | $112.02 |
| Nov 20, 2025 | Smith Fred Julius IIIdirector, officer: President and CEO | Tax | 12,785 | $112.02 |
| Nov 20, 2025 | Brooks Judson Ryanofficer: SVP and General Counsel | Tax | 2,908 | $112.02 |
| Nov 20, 2025 | Fleming Ned N. IVother: Member of 10% owner group | Tax | 2,129 | $112.02 |
| Nov 6, 2025 | Fleming Ned N. IVother: Member of 10% owner group | Grant | 3,137 | — |
| Nov 6, 2025 | Brooks Judson Ryanofficer: Senior Vice President, Legal | Grant | 3,801 | — |
Source: ROAD SEC Form 4 filings, latest Aug 10, 2026. For informational purposes only — not investment advice.
See the full ROAD insider & 13F page →Construction Partners, Inc. company profile
Overview
Construction Partners, Inc. (NASDAQ:ROAD) is a civil infrastructure company founded in 1999 and headquartered in Dothan, Alabama. The company went public in May 2018 and has grown significantly through both organic expansion and strategic acquisitions across the Southeastern United States. Construction Partners specializes in the construction and maintenance of roadways, operating primarily in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, Oklahoma, and Texas. The company has established itself as a leading regional player in the infrastructure construction sector, focusing on the high-growth Sunbelt region where population growth and economic development drive consistent demand for road construction and maintenance services.
Business
Construction Partners operates in the civil infrastructure construction industry, which encompasses the building and maintenance of essential public works including roads, highways, bridges, airports, and related transportation infrastructure. The company's business is built around several interconnected service offerings that create a vertically integrated operation. The company's primary business segments include paving and construction services, which represents the largest portion of revenue at approximately 60-65%. This involves the actual construction of roadway base layers, application of asphalt pavement, site development including utility and drainage system installation, and general road construction projects for both public and private clients. Hot Mix Asphalt (HMA) production and sales accounts for roughly 25-30% of revenue. Construction Partners operates numerous asphalt plants that manufacture hot mix asphalt, which is the primary material used in road paving. The company sells HMA both for its own construction projects and to third-party contractors, creating a steady revenue stream independent of construction activity levels. Aggregate mining and distribution represents about 8-12% of revenue. The company mines sand, gravel, and other aggregates that serve as raw materials in HMA production. This vertical integration helps control costs and ensures material availability for projects. Liquid asphalt cement distribution comprises the remaining revenue, roughly 3-5%. The company distributes liquid asphalt cement, which is a key binding agent in HMA production, both for internal use and sales to external customers. This vertically integrated model allows Construction Partners to control the entire value chain from raw material extraction through final road construction, providing cost advantages and supply chain reliability that many competitors lack.
Revenue model
Construction Partners generates revenue through multiple complementary business models that leverage its vertically integrated operations. The company's primary revenue source is project-based construction contracts, where it bids on and executes infrastructure projects for state departments of transportation, municipalities, and private developers. These contracts typically range from several hundred thousand dollars to tens of millions of dollars and are priced based on project specifications, materials required, and competitive bidding processes. The company also generates substantial revenue through product sales, particularly hot mix asphalt and aggregates sold to third-party contractors and other construction companies. This creates a more stable revenue stream that is less dependent on winning specific construction contracts. Additionally, Construction Partners earns revenue from liquid asphalt cement distribution, serving as a supplier to the broader construction industry in its operating regions. The company's customers are primarily public sector entities (approximately 58-63% of revenue) including state departments of transportation, counties, and municipalities that fund projects through federal infrastructure programs, state gas taxes, and local bond issues. Private sector clients (37-42% of revenue) include commercial developers, residential developers, and industrial companies requiring site development and paving services. Several factors significantly impact Construction Partners' profitability margins. Favorable factors include strong federal infrastructure funding through programs like the Infrastructure Investment and Jobs Act (IIJA), which provides multi-year funding visibility; population growth in Sunbelt states driving increased infrastructure needs; the company's vertical integration reducing reliance on external suppliers; and economies of scale from strategic acquisitions. Challenging factors include volatile input costs, particularly diesel fuel and liquid asphalt cement prices which can fluctuate with oil prices; weather dependency that can delay projects and reduce equipment utilization; competitive bidding pressure that can compress margins; and inflationary pressures on labor and equipment costs that may not be immediately recoverable through pricing.
Competitive moat
Construction Partners possesses a moderate but meaningful competitive moat built primarily around its regional market position and vertical integration, though the moat is not exceptionally deep or wide compared to businesses with stronger network effects or switching costs. The company's primary competitive advantages stem from its vertical integration strategy, which allows it to control costs and supply chain reliability better than many competitors who must purchase materials from third parties. By owning aggregate mines, asphalt plants, and liquid asphalt terminals, Construction Partners can often bid more competitively while maintaining better margins. This integration also provides geographic density advantages in its core Southeastern markets, where the company has built clusters of complementary assets that create operational efficiencies and reduce transportation costs. Regulatory and relationship barriers provide some protection, as the company has established relationships with state departments of transportation and local governments that value reliable, experienced contractors. The permitting and bonding requirements for infrastructure projects also create modest barriers to entry for smaller competitors. Additionally, Construction Partners' scale and financial capacity allow it to bid on larger projects that smaller regional competitors cannot handle. However, the company's moat faces several vulnerabilities. The construction industry is inherently cyclical and commodity-like, with limited ability to differentiate services or create customer lock-in. Large national competitors like Vulcan Materials or Martin Marietta have greater scale and resources, while numerous regional and local competitors can compete effectively on smaller projects. The company's competitive position is also geographically concentrated, making it vulnerable to regional economic downturns or changes in state funding priorities. Furthermore, the industry's reliance on competitive bidding means that pricing power is limited, and margins can be compressed during periods of intense competition or economic uncertainty. Overall, Construction Partners has built a solid regional franchise with meaningful competitive advantages, but these advantages are not insurmountable and require continuous investment and execution to maintain.
Risks & safety
Construction Partners demonstrates a moderate margin of safety with generally solid fundamentals but some areas of concern around valuation and leverage. Financial Health and Liquidity: 1. Cash position of $102 million provides adequate liquidity buffer 2. Current ratio of 1.42 indicates sufficient short-term liquidity coverage 3. Debt-to-equity ratio of 0.12 shows conservative leverage at the operating level 4. Positive free cash flow of $14 million in recent quarter demonstrates cash generation capability 5. However, total debt-to-equity including all liabilities is much higher at 1.56, indicating significant non-debt obligations Valuation Concerns: 1. EV/EBITDA ratio of 36.3x appears extremely elevated for a cyclical construction business 2. Price-to-book ratio of 4.9x suggests significant premium to tangible assets 3. Current price of $95.75 well above Graham number of $5.01, indicating potential overvaluation 4. Trading at substantial premium to historical infrastructure construction multiples Other Considerations: 1. Strong revenue growth of 54% year-over-year provides growth momentum 2. Improving EBITDA margins suggest operational leverage benefits 3. Record backlog of $2.84 billion provides revenue visibility 4. Exposure to cyclical infrastructure spending and commodity price volatility creates earnings uncertainty
Recent development
Over the past few years, Construction Partners has executed an aggressive growth strategy centered on strategic acquisitions and geographic expansion. The company has completed numerous acquisitions, including eight in fiscal 2024 alone, with notable platform acquisitions like Lone Star Paving in Texas, which significantly expanded its geographic footprint and accelerated progress toward its "Road Map 2027" strategic goals. The company has been particularly focused on vertical integration initiatives, acquiring liquid asphalt terminals and expanding its hot mix asphalt production capacity to control more of the value chain. Recent acquisitions include PRI in Tennessee, Oberlin Corporation in Oklahoma, and Mobile Asphalt Company in Alabama, each bringing specialized capabilities and market access. Operational improvements and margin expansion have been a key focus, with the company achieving significant EBITDA margin improvements from 7.9% to 12.1% year-over-year in the most recent quarter. Management has implemented better project execution processes, improved fixed cost recovery, and leveraged the benefits of scale from recent acquisitions. The company has also been strengthening its balance sheet while maintaining growth momentum, with management committed to reducing leverage ratios to 2.5x within four quarters and ultimately targeting 2.0x leverage. This deleveraging effort is being balanced with continued strategic acquisition opportunities, particularly focusing on platform companies with strong management teams in attractive Sunbelt markets. Infrastructure funding optimization has become increasingly important, with Construction Partners positioning itself to capitalize on federal Infrastructure Investment and Jobs Act (IIJA) funding, which is expected to provide sustained project opportunities over the next several years. The company has maintained a record backlog exceeding $2.8 billion, providing strong revenue visibility and supporting its growth trajectory.
ROAD company profile · for informational purposes only — not investment advice.
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