Construction Partners, Inc. Announces Fiscal 2026 First Quarter Results

Rhea-AI Summary

Construction Partners (NASDAQ: ROAD) reported a strong start to fiscal 2026 with Q1 revenue of $809.5M, up 44% year-over-year, and Adjusted EBITDA of $112.2M, up 63%, yielding a record first-quarter Adjusted EBITDA margin of 13.9%. Project backlog reached a record $3.09B.

The company completed multiple strategic acquisitions during the quarter, raised FY26 guidance (revenue $3.48B–$3.56B; Adjusted EBITDA $534M–$550M), and noted acquisition-related one-time expenses adjusted in non-GAAP results.

Positive

• Revenue +44.1% to $809.5M in Q1 FY26
• Adjusted EBITDA +63.1% to $112.2M in Q1 FY26
• Record project backlog of $3.09B at Dec 31, 2025
• Raised FY26 guidance: revenue $3.48B–$3.56B and Adjusted EBITDA $534M–$550M
• Completed multiple strategic acquisitions expanding presence in Texas and Florida

Negative

• General and administrative expenses increased ~38.8% to $61.5M in Q1 FY26
• One-time acquisition-related expenses reduced GAAP net income in the quarter

Market Reaction

+6.88% $122.67

15m delay 15 alerts

+6.88% Since News

$122.67 Last Price

$110.49 $123.65 Day Range

+$446M Valuation Impact

$6.93B Market Cap

1.2x Rel. Volume

Following this news, ROAD has gained 6.88%, reflecting a notable positive market reaction. Our momentum scanner has triggered 15 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $122.67. This price movement has added approximately $446M to the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q1 FY2026 Revenue: $809.5M Q1 Adjusted EBITDA: $112.2M Adj. EBITDA Margin: 13.9% +5 more

8 metrics

Q1 FY2026 Revenue $809.5M Quarter ended Dec 31, 2025; up 44.1% vs $561.6M last year

Q1 Adjusted EBITDA $112.2M Up 63.1% vs $68.8M in prior-year quarter

Adj. EBITDA Margin 13.9% Highest first-quarter margin in company history

Q1 Net Income $17.2M Vs net loss of $3.1M in same quarter last year

Q1 Diluted EPS $0.31 Vs diluted loss per share of $0.06 last year

Q1 Adjusted Net Income $26.4M Implied adjusted diluted EPS of $0.47

Project Backlog $3.09B Record backlog at Dec 31, 2025; vs $2.66B a year earlier

FY2026 Revenue Outlook $3.480B–$3.560B Raised guidance for fiscal 2026 revenue

Market Reality Check

Price: $114.77 Vol: Volume 572,137 is 1.25x t...

normal vol

$114.77 Last Close

Volume Volume 572,137 is 1.25x the 20-day average of 458,374, indicating elevated trading interest ahead of the release. normal

Technical Price at $114.77 is trading above the 200-day MA of $109.63, reflecting a longer-term uptrend despite the recent pullback.

Peers on Argus

ROAD is down 2.37% while several peers like PRIM and DY show larger declines, an...

ROAD is down 2.37% while several peers like PRIM and DY show larger declines, and KBR is up 2.01%. Mixed peer moves and a negative reaction to upbeat earnings and raised guidance point to a stock-specific response rather than a broad sector shift.

Historical Context

5 past events · Latest: Feb 02 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 02	Acquisition completed	Positive	+3.9%	Closed Texas acquisition adding a Baytown asphalt plant and boosting Houston capacity.
Jan 08	Earnings call schedule	Neutral	+2.4%	Announced Q1 FY2026 earnings release date and conference call logistics.
Nov 06	Earnings call schedule	Neutral	-1.3%	Set timetable for Q4/FY2025 earnings release and investor conference call.
Oct 21	Prelim results/outlook	Positive	+3.7%	Released preliminary FY2025 results with strong growth and introduced FY2026 outlook.
Oct 20	Acquisition completed	Positive	+2.4%	Completed Florida acquisition adding plants and services, expanding east-coast footprint.

Pattern Detected

Recent history shows ROAD often trading higher on growth and acquisition news, with positive moves following preliminary results, outlook updates, and M&A announcements.

Recent Company History

Over the last few months, ROAD has highlighted aggressive expansion and strong growth metrics. An Oct 21, 2025 update outlined sharp FY2025 revenue and EBITDA gains plus a FY2026 outlook. Multiple Florida and Texas acquisitions on Oct 20, 2025 and Feb 2, 2026 reinforced a roll-up strategy, each followed by positive price reactions. Earnings-date scheduling releases in November 2025 and January 2026 had smaller moves. Today’s detailed FY2026 Q1 results and raised outlook extend this growth-focused narrative.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-08-15

The company has an effective Form S-3ASR shelf registration dated Aug 15, 2025 with no recorded usage to date, providing pre-cleared access to capital markets if management chooses to issue securities in the future.

Market Pulse Summary

The stock is up +6.9% following this news. A strong positive reaction aligns with ROAD’s pattern of ...

Analysis

The stock is up +6.9% following this news. A strong positive reaction aligns with ROAD’s pattern of moving higher on growth and acquisition updates, as seen after prior backlog and outlook announcements with moves of 2–4%. The Q1 report combined 44.1% revenue growth, margin expansion, and a record $3.09B backlog with a raised FY2026 outlook. Investors would also weigh the effective S-3ASR shelf and prior debt financing when assessing how future capital raises might influence sustainability.

Key Terms

adjusted ebitda, adjusted net income, diluted earnings per share, backlog

4 terms

adjusted ebitda financial

"Adjusted EBITDA(1) in the first quarter of fiscal 2026 was $112.2 million..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted net income financial

"Adjusted net income(1) was $26.4 million in the first quarter of fiscal 2026."

Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.

diluted earnings per share financial

"Net income was $17.2 million... and diluted earnings per share were $0.31..."

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

backlog financial

"Project backlog was a record $3.09 billion at December 31, 2025..."

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

AI-generated analysis. Not financial advice.

Revenue Up 44% Compared to Q1 FY25
Adjusted Net Income Up 99% Compared to Q1 FY25
Adjusted EBITDA Up 63% Compared to Q1 FY25
Record Backlog of $3.09 Billion
Company Raises FY26 Outlook

DOTHAN, Ala., Feb. 5, 2026 /PRNewswire/ -- Construction Partners, Inc. (NASDAQ: ROAD) ("CPI" or the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways in local markets throughout the Sunbelt, today reported financial and operating results for the fiscal quarter ended December 31, 2025.

Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "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.

"During the quarter, we completed two strategic acquisitions in Daytona Beach, Florida and Houston, Texas, and earlier this week we announced an additional acquisition in the Houston market. These high-growth regions feature robust public and private project activity and provide attractive opportunities for CPI to expand market share and take advantage of our scale. Our continued growth is driven by our people, who are at the core of everything we do. We are proud of our employees' hard work and dedication, which fuel our success. Our culture of operational excellence, disciplined project execution, and an unwavering commitment to safety continues to unite and strengthen our family of companies, driving performance and positioning CPI as an acquirer of choice across our eight states."

Revenues were $809.5 million in the first quarter of fiscal 2026, an increase of 44.1% compared to $561.6 million in the same quarter last year.

Gross profit was $121.5 million in the first quarter of fiscal 2026, compared to $76.6 million in the same quarter last year.

General and administrative expenses were $61.5 million in the first quarter of fiscal 2026, compared to $44.3 million in the same quarter last year, and as a percentage of total revenues, decreased to 7.7% compared to 7.9% in the same quarter last year.

Net income was $17.2 million in the first quarter of fiscal 2026 and diluted earnings per share were $0.31, compared to net loss of $3.1 million and diluted losses per share of $0.06 in the same quarter last year.

Adjusted net income⁽¹⁾ was $26.4 million in the first quarter of fiscal 2026. This measure adjusts for the impact of certain one-time expenses related to transformative acquisitions. Using Adjusted net income, diluted earnings per share for the first quarter would have been $0.47.

Adjusted EBITDA⁽¹⁾ in the first quarter of fiscal 2026 was $112.2 million, an increase of 63.1% compared to $68.8 million in the same quarter last year.

Project backlog was a record $3.09 billion at December 31, 2025, compared to $2.66 billion at December 31, 2024 and $3.0 billion at September 30, 2025.

Smith added, "We are raising our fiscal 2026 outlook ranges to reflect better-than-expected first quarter results and the anticipated contribution from our recently closed Houston acquisition. Our revenue outlook for fiscal 2026 continues to anticipate organic growth of approximately 7% to 8%. Strong industry tailwinds persist throughout our local markets across eight Sunbelt states, which are benefiting from growing infrastructure funding for both public and private project work. We remain confident in CPI's growth trajectory and expanding profitability and are focused on delivering long-term value for our investors and other stakeholders."

Fiscal 2026 Outlook

The Company is raising its outlook for fiscal year 2026 with regard to revenue, net income, Adjusted net income, Adjusted EBITDA and Adjusted EBITDA margin as follows:

• Revenue in the range of $3.480 billion to $3.560 billion
• Net income in the range of $154.0 million to $158.0 million
• Adjusted net income⁽¹⁾ in the range $163.5 million to $168.7 million
• Adjusted EBITDA⁽¹⁾ in the range of $534.0 million to $550.0 million
• Adjusted EBITDA margin⁽¹⁾ in the range of 15.34% to 15.45%

Ned N. Fleming, III, the Company's Executive Chairman, stated, "We are proud of our team's exceptional execution this quarter as we continue to advance CPI's proven growth strategy. In less than fifteen months, CPI has completed eight strategic acquisitions, including four in Texas and three platform companies, underscoring the scalability and repeatability of our model and culture of expanding our family of companies. This strategy centers on partnering with outstanding local operators and empowering them with the scale, resources, and support of a broader platform, enabling us to expand capabilities, strengthen market leadership, and drive sustainable profitability.

"Supported by a strong balance sheet, disciplined leadership, and an expanding footprint across the Sunbelt, CPI is well positioned to compound value as we extend our geographic reach and increase the scale of our operations. The nation's infrastructure repair and maintenance needs continue to grow alongside population migration, economic expansion, and increasing roadway capacity throughout the Sunbelt. Against this powerful backdrop, the Board and I are confident in CPI's long-term trajectory and the opportunities ahead."

Conference Call

The Company will conduct a conference call today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss financial and operating results for the fiscal quarter ended December 31, 2025. To access the call live by phone, dial (412) 902-0003 and ask for the Construction Partners call at least 10 minutes prior to the start time.  A telephonic replay will be available through February 12, 2026 by calling (201) 612-7415 and using passcode ID: 13757724#. A webcast of the call will also be available live and for later replay on the Company's Investor Relations website at www.constructionpartners.net.

About Construction Partners, Inc.

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. Supported by its hot-mix asphalt plants, aggregate facilities and liquid asphalt terminals, the Company focuses on the construction, repair and maintenance of surface infrastructure. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The company also performs private sector projects that include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments. To learn more, visit www.constructionpartners.net.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "project," "outlook," "believe" and "plan." The forward-looking statements contained in this press release include, without limitation, statements related to financial projections, future events, business strategy, future performance, future operations, backlog, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management. These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, among others: our ability to successfully manage and integrate acquisitions; failure to realize the expected economic benefits of acquisitions, including future levels of revenues being lower than expected and costs being higher than expected; failure or inability to implement growth strategies in a timely manner; declines in public infrastructure construction and reductions in government funding, including the funding by transportation authorities and other state and local agencies; risks related to our operating strategy; competition for projects in our local markets; risks associated with our capital-intensive business; government requirements and initiatives, including those related to funding for public or infrastructure construction, land usage and environmental, health and safety matters; unfavorable economic conditions and restrictive financing markets; our ability to obtain sufficient bonding capacity to undertake certain projects; our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us; the cancellation of a significant number of contracts or our disqualification from bidding for new contracts; risks related to adverse weather conditions; our substantial indebtedness and the restrictions imposed on us by the terms thereof; our ability to maintain favorable relationships with third parties that supply us with equipment and essential supplies; our ability to retain key personnel and maintain satisfactory labor relations; property damage, results of litigation and other claims and insurance coverage issues; risks related to our information technology systems and infrastructure; our ability to maintain effective internal control over financial reporting; and the risks, uncertainties and factors set forth under "Risk Factors" in the Company's most recent Annual Report on Form 10-K and its subsequently filed Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable law.

Contact:

Rick Black
Dennard Lascar Investor Relations
ROAD@DennardLascar.com
(713) 529-6600

(1) Adjusted net income, Adjusted EBITDA and Adjusted EBITDA margin are financial measures not presented in accordance with generally accepted accounting principles ("GAAP"). Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this press release.

- Financial Statements Follow -

 

Construction Partners, Inc. Consolidated Statements of Comprehensive Income (Loss) (unaudited in thousands, except share and per share data)
		For the Three Months Ended December 31,
		2025		2024
Revenues		$        809,469		$          561,580
Cost of revenues		687,969		485,009
Gross profit		121,500		76,571
General and administrative expenses		(61,501)		(44,266)
Acquisition-related expenses		(11,629)		(19,552)
Gain on sale of property, plant and equipment, net		2,039		1,055
Operating income		50,409		13,808
Interest expense, net		(27,370)		(18,130)
Other (expense) income		(253)		421
Income (loss) before provision for income taxes		22,786		(3,901)
Provision (benefit) for income taxes		5,580		(849)
(Loss) earnings from investment in joint venture		(1)		1
Net income (loss)		17,205		(3,051)
Other comprehensive income (loss), net of tax
Unrealized (loss) gain on interest rate swap contract, net		(1,210)		2,869
Unrealized gain (loss) on restricted investments, net		36		(333)
Other comprehensive (loss) income		(1,174)		2,536
Comprehensive income (loss)		$          16,031		$               (515)
Net income (loss) per share attributable to common stockholders:
Basic		$               0.31		$              (0.06)
Diluted		$               0.31		$              (0.06)
Weighted average number of common shares outstanding:
Basic		55,805,173		54,160,317
Diluted		56,045,949		54,160,317

 

Construction Partners, Inc. Consolidated Balance Sheets (in thousands, except share and per share data)
	December 31,		September 30,
	2025		2025
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$          104,093		$          156,062
Restricted cash	97		2,953
Contracts receivable including retainage, net	437,963		549,884
Costs and estimated earnings in excess of billings on uncompleted contracts	56,900		45,340
Inventories	170,019		155,133
Prepaid expenses and other current assets	40,045		25,459
Total current assets	809,117		934,831
Property, plant and equipment, net	1,253,035		1,153,070
Operating lease right-of-use assets	94,313		76,355
Goodwill	1,077,372		943,309
Intangible assets, net	78,438		79,230
Investment in joint venture	—		72
Restricted investments	21,108		23,176
Other assets	25,204		28,813
Total assets	$       3,358,587		$       3,238,856
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$          221,202		$          284,218
Billings in excess of costs and estimated earnings on uncompleted contracts	146,435		129,300
Current portion of operating lease liabilities	24,909		19,867
Current maturities of long-term debt	38,500		38,500
Accrued expenses and other current liabilities	77,185		110,163
Total current liabilities	508,231		582,048
Long-term liabilities:
Long-term debt, net of current maturities and deferred debt issuance costs	1,704,656		1,573,614
Operating lease liabilities, net of current portion	70,215		57,201
Deferred income taxes, net	78,934		80,079
Other long-term liabilities	27,404		33,951
Total long-term liabilities	1,881,209		1,744,845
Total liabilities	2,389,440		2,326,893
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.001; 10,000,000 shares authorized and no shares issued and outstanding at December 31, 2025 and September 30, 2025	—		—
Class A common stock, par value $0.001; 400,000,000 shares authorized, 48,700,906 shares issued and 47,977,529 shares outstanding at December 31, 2025, and 47,963,617 shares issued and 47,406,498 shares outstanding at September 30, 2025	48		47
Class B common stock, par value $0.001; 100,000,000 shares authorized, 11,481,568 shares issued and 8,549,118 shares outstanding at December 31, 2025 and 11,463,770 shares issued and 8,538,165 shares outstanding at September 30, 2025	12		12
Additional paid-in capital	604,755		541,179
Treasury stock, Class A common stock, par value $0.001, at cost, 723,377 shares of Class A common stock at December 31, 2025 and 557,119 shares of Class A common stock at September 30, 2025	(56,226)		(34,589)
Treasury stock, Class B common stock, par value $0.001, at cost, 2,932,450 shares at December 31, 2025 and 2,925,605 shares at September 30, 2025	(16,833)		(16,046)
Accumulated other comprehensive income, net	3,195		4,369
Retained earnings	434,196		416,991
Total stockholders' equity	969,147		911,963
Total liabilities and stockholders' equity	$       3,358,587		$       3,238,856

 

Construction Partners, Inc. Consolidated Statements of Cash Flows (in thousands)
	For the Three Months Ended December 31,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$           17,205		$            (3,051)
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities:
Depreciation, depletion, accretion and amortization	45,030		31,184
Amortization of deferred debt issuance costs	667		495
Provision for bad debt	141		92
Gain on sale of property, plant and equipment	(2,039)		(1,055)
Realized loss on restricted investments	9		19
Share-based compensation expense	14,882		14,403
Distribution of earnings from investment in joint venture	71		—
Loss (earnings) from investment in joint venture	1		(1)
Deferred income tax benefit	(789)		(1,411)
Other non-cash adjustments	(74)		(229)
Changes in operating assets and liabilities:
Contracts receivable including retainage, net	127,022		62,560
Costs and estimated earnings in excess of billings on uncompleted contracts	(10,675)		(5,767)
Inventories	(3,334)		(10,434)
Prepaid expenses and other current assets	(14,134)		(143)
Other assets	2,137		410
Accounts payable	(74,938)		(47,490)
Billings in excess of costs and estimated earnings on uncompleted contracts	6,926		6,302
Accrued expenses and other current liabilities	(18,704)		(6,554)
Other long-term liabilities	(6,837)		1,333
Net cash provided by operating activities, net of acquisitions	82,567		40,663
Cash flows from investing activities:
Purchases of property, plant and equipment	(35,470)		(26,832)
Proceeds from sale of property, plant and equipment	5,546		1,843
Proceeds from sale of restricted investments	3,713		2,417
Purchases of restricted investments	(1,540)		(2,258)
Business acquisitions, net of cash acquired	(215,102)		(654,200)
Net cash used in investing activities	(242,853)		(679,030)
Cash flows from financing activities:
Proceeds from revolving credit facility	140,000		—
Proceeds from issuance of long-term debt, net of debt issuance costs and discount	—		834,995
Repayments of long-term debt	(9,625)		(128,163)
Settlement of stock awards	(2,490)		—
Purchase of treasury stock	(22,424)		(12,081)
Net cash provided by financing activities	105,461		694,751
Net change in cash, cash equivalents and restricted cash	(54,825)		56,384
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	159,015		76,684
Cash, cash equivalents and restricted cash, end of period	$         104,190		$         133,068
Supplemental cash flow information:
Cash paid for interest	$           26,365		$           15,051
Cash paid for operating lease liabilities	$              6,805		$              3,233
Non-cash items:
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$           21,742		$              3,961
Property, plant and equipment financed with accounts payable	$           12,178		$              3,964
Issuance of stock for business acquisition	$           51,500		$         236,250
Amounts payable to sellers in business combination	$              3,596		$           86,000

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) depreciation, depletion, accretion and amortization, (iv) share-based compensation expense, (v) loss on the extinguishment of debt, and (vi) nonrecurring expenses related to transformative acquisitions, which management considers to include transactions of a size that would require clearance under federal antitrust laws. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenues for each period. Adjusted net income represents net income before (i) nonrecurring expenses related to transformative acquisitions, which management considers to include transactions of a size that would require clearance under federal antitrust laws, and (ii) nonrecurring fees associated with financing arrangements incurred in connection with transformative acquisitions. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as an alternative to net income or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. We present Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income because management uses these measures as key performance indicators, and we believe that securities analysts, investors and others use these measures to evaluate companies in our industry. Our calculation of Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income may not be comparable to similarly named measures reported by other companies. Potential differences may include differences in capital structures, tax positions and the age and book depreciation of intangible and tangible assets.

The following tables present a reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to (i) Adjusted net income and (ii) Adjusted EBITDA (with the resulting calculation of Adjusted EBITDA margin) for the applicable periods.

Construction Partners, Inc. Net Income (Loss) to Adjusted EBITDA Reconciliation Three Months Ended December 31, 2025 and 2024 (in thousands, except percentages)
	For the Three Months Ended December 31,
	2025		2024
Net income (loss)	$         17,205		$         (3,051)
Interest expense, net	27,370		18,130
Provision (benefit) for income taxes	5,580		(849)
Depreciation, depletion, accretion and amortization	45,030		31,184
Share-based compensation expense	5,729		4,920
Transformative acquisition expenses	11,287		18,463
Adjusted EBITDA	$       112,201		$         68,797
Revenues	$       809,469		$       561,580
Adjusted EBITDA margin	13.9 %		12.3 %

 

Construction Partners, Inc. Net Income (Loss) to Adjusted Net Income Reconciliation Three Months Ended December 31, 2025 and 2024 (in thousands)
	For the Three Months Ended December 31,
	2025		2024
Net income (loss)	$            17,205		$             (3,051)
Transformative acquisition expenses	11,287		18,463
Financing fees related to transformative acquisition	901		3,057
Tax impact due to above reconciling items	(2,984)		(5,199)
Adjusted net income	$            26,409		$             13,270

 

Construction Partners, Inc. Net Income to Adjusted EBITDA Reconciliation Fiscal Year 2026 Outlook (unaudited, in thousands, except percentages)
	For the Fiscal Year Ending September 30, 2026
	Low		High
Net income	$       154,000		$       158,000
Interest expense, net	107,500		110,000
Provision for income taxes	50,000		51,000
Depreciation, depletion, accretion and amortization	184,000		189,000
Share-based compensation expense	27,000		29,000
Transformative acquisition expenses	11,500		13,000
Adjusted EBITDA	$       534,000		$       550,000
Revenues	$    3,480,000		$    3,560,000
Adjusted EBITDA margin	15.34 %		15.45 %

 

Construction Partners, Inc. Net Income to Adjusted Net Income Reconciliation Fiscal Year 2026 Outlook (unaudited, in thousands)
	For the Fiscal Year Ending September 30, 2026
	Low		High
Net income	$           154,000		$           158,000
Transformative acquisition expenses	11,500		13,000
Financing fees related to transformative acquisition	1,200		1,200
Tax impact due to above reconciling items	(3,200)		(3,500)
Adjusted net income	$           163,500		$           168,700

 

View original content:https://www.prnewswire.com/news-releases/construction-partners-inc-announces-fiscal-2026-first-quarter-results-302679636.html

SOURCE Construction Partners, Inc.

FAQ

What were Construction Partners (ROAD) Q1 FY26 results for revenue and Adjusted EBITDA?

Construction Partners reported Q1 FY26 revenue of $809.5M and Adjusted EBITDA of $112.2M. According to the company, revenue rose 44% and Adjusted EBITDA increased 63% versus Q1 FY25, producing the highest first-quarter Adjusted EBITDA margin in company history.

How large is Construction Partners' backlog and what does it mean for ROAD investors?

Backlog was a record $3.09 billion at December 31, 2025. According to the company, the larger backlog signals sustained demand across Sunbelt markets and supports near-term revenue visibility for ROAD.

What FY26 guidance did Construction Partners (ROAD) raise on February 5, 2026?

The company raised FY26 guidance to revenue $3.48B–$3.56B and Adjusted EBITDA $534M–$550M. According to the company, the update reflects stronger-than-expected Q1 performance and contributions from recent acquisitions.

How did acquisitions affect Construction Partners' Q1 FY26 results and adjusted metrics?

Recent acquisitions expanded the company's footprint and contributed to growth but introduced one-time expenses. According to the company, Adjusted net income and Adjusted EBITDA exclude certain transformative acquisition costs to reflect underlying performance.

What changed in Construction Partners' profitability in Q1 FY26 compared to Q1 FY25?

Net income moved to $17.2M in Q1 FY26 from a net loss of $3.1M in Q1 FY25, and adjusted net income nearly doubled. According to the company, operational execution and favorable weather supported higher margins and profitability.