Construction Partners Inc
NASDAQ:ROAD
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Construction Partners Inc
Construction Partners Inc. may not always garner the spotlight, but its story is intrinsically tied to the infrastructure that underpins the American Southeast. Founded with a vision of improving essential infrastructure, the company has established itself as a significant player in the asphalt paving and construction sector. With a strategic focus on public projects, Construction Partners taps into government funding dedicated to maintaining and constructing highways, roads, and bridges. The company’s operational strategy emphasizes vertical integration, controlling the entire supply chain from materials to services. This allows Construction Partners to exercise greater control over costs and quality while staying competitive.
At the heart of Construction Partners’ business model lies its expertise in asphalt production and contract services. By operating a diverse network of hot-mix asphalt plants, the company ensures a steady supply of one of the most crucial materials for infrastructure projects. Additionally, the company offers a plethora of related services, including road construction, site development, and paving operations. Its ability to fulfill both small municipal needs and larger state-funded projects allows for diversified revenue streams and enhances its adaptability to changing economic and regulatory environments. Construction Partners’ growth is underpinned by strategic acquisitions that broaden its geographic reach and service capabilities, continually reinforcing its role as a cornerstone in region’s development.
Construction Partners Inc. may not always garner the spotlight, but its story is intrinsically tied to the infrastructure that underpins the American Southeast. Founded with a vision of improving essential infrastructure, the company has established itself as a significant player in the asphalt paving and construction sector. With a strategic focus on public projects, Construction Partners taps into government funding dedicated to maintaining and constructing highways, roads, and bridges. The company’s operational strategy emphasizes vertical integration, controlling the entire supply chain from materials to services. This allows Construction Partners to exercise greater control over costs and quality while staying competitive.
At the heart of Construction Partners’ business model lies its expertise in asphalt production and contract services. By operating a diverse network of hot-mix asphalt plants, the company ensures a steady supply of one of the most crucial materials for infrastructure projects. Additionally, the company offers a plethora of related services, including road construction, site development, and paving operations. Its ability to fulfill both small municipal needs and larger state-funded projects allows for diversified revenue streams and enhances its adaptability to changing economic and regulatory environments. Construction Partners’ growth is underpinned by strategic acquisitions that broaden its geographic reach and service capabilities, continually reinforcing its role as a cornerstone in region’s development.
Revenue Growth: Construction Partners delivered 54% total revenue growth for fiscal 2025, including 8.4% organic growth, reaching $2.812 billion.
Margin Expansion: EBITDA margin improved to a record 15% for the year, and Q4 adjusted EBITDA margin hit 17.1%, reflecting strong execution and acquisitions.
Record Backlog: The company ended fiscal 2025 with a record $3 billion project backlog, covering 80% to 85% of next year’s targeted contract revenue.
Transformational M&A: Five major acquisitions, including entry into Texas, Oklahoma, and Tennessee, fueled growth. Additional expansion in Houston and Florida was highlighted.
2026 Guidance: Management projects 2026 revenue of $3.4–$3.5 billion, net income of $150–$155 million, and EBITDA of $520–$540 million, targeting further revenue and margin growth.
Cost Environment: 2025 saw benign input cost inflation, with stable material and energy prices, and manageable labor cost increases.
Strong Market Outlook: Management cited robust demand from Sunbelt migration, reshoring trends, and government infrastructure funding as key growth drivers.
