ROAD · Construction Partners, Inc.

Construction Partners, Inc. (NASDAQ: ROAD) reported strong fiscal second quarter 2026 results for the period ended March 31, 2026. Revenue increased 34.5% to $769.2 million from $571.7 million in the same quarter last year, driven by organic growth of 11% and contributions from acquisitions. Gross profit rose to $98.9 million from $71.4 million, with gross margin improving to 12.9% from 12.5%. General and administrative expenses increased to $63.6 million but remained relatively stable as a percentage of revenue at 8.3% versus 8.2% in the prior year. Operating income grew to $37.4 million from $27.3 million. Net income more than doubled to $9.2 million ($0.16 diluted EPS) from $4.2 million ($0.08 diluted EPS). On a non-GAAP basis, adjusted net income was $10.4 million ($0.18 diluted EPS) versus $4.4 million ($0.08), and adjusted EBITDA increased 34.6% to $93.3 million from $69.3 million. The company's project backlog reached a record $3.14 billion, up from $2.84 billion a year ago and $3.09 billion at December 31, 2025. Management attributed the strong performance to exceptional execution, favorable weather, and the pass-through nature of energy costs. The company also completed the acquisition of Four Star Paving in April 2026 to enhance its vertical integration in Tennessee. Reflecting the strong quarter and the expected contribution from the acquisition, the company raised its fiscal 2026 outlook: revenue now expected between $3.590 billion and $3.650 billion, net income between $159.0 million and $162.0 million, adjusted net income between $170.4 million and $174.2 million, adjusted EBITDA between $552.0 million and $564.0 million, and adjusted EBITDA margin between 15.38% and 15.45%. The balance sheet remains solid with $76.9 million in cash and $1.75 billion in total debt, supporting ongoing growth initiatives.