--- title: "Construction Partners, Inc. Announces Fiscal 2026 Third Quarter Results | ROAD Stock News" type: "News" locale: "en" url: "https://longbridge.com/en/news/295225756.md" description: "Construction Partners, Inc. (NASDAQ: ROAD) reported strong fiscal Q3 2026 results, with revenue up 28% to $999.4 million and adjusted net income rising 34%. The company achieved a record backlog of $3.36 billion and raised its full-year FY26 outlook for revenue, net income, and EBITDA. CEO Fred J. Smith III attributed growth to strategic execution and the recent acquisition of Ellsworth Construction, which expands their Sunbelt presence and data center capabilities." datetime: "2026-08-07T03:00:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295225756.md) - [en](https://longbridge.com/en/news/295225756.md) - [zh-HK](https://longbridge.com/zh-HK/news/295225756.md) --- # Construction Partners, Inc. Announces Fiscal 2026 Third Quarter Results | ROAD Stock News _Revenue Up 28% Compared to Q3 FY25_ _Adjusted Net Income Up 34% Compared to Q3 FY25_ _Adjusted EBITDA Up 24% Compared to Q3 FY25_ _Record Backlog of $3.36 Billion_ _Company Raises FY26 Outlook_ , /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 third quarter ended June 30, 2026. Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "Our strong third quarter results reflect the continued execution of our operating strategy and the dedication of our teams throughout the CPI family of companies. During the quarter, we delivered revenue growth of 28% and Adjusted EBITDA growth of 24%, despite the impact of energy cost inflation and extremely wet weather in May across many of our markets. These results underscore the resilience of our decentralized operating model, the strength of our local market strategy, and our ability to consistently execute across diverse market conditions. Demand for both public infrastructure and commercial construction projects remained healthy throughout our markets, driving backlog to a record $3.36 billion and providing continued visibility into future growth." Revenues were $999.4 million in the third quarter of fiscal 2026, an increase of 28.2% compared to $779.3 million in the same quarter last year. Gross profit was $168.4 million in the third quarter of fiscal 2026, compared to $131.8 million in the same quarter last year. General and administrative expenses were $63.1 million in the third quarter of fiscal 2026, compared to $51.0 million in the same quarter last year, and as a percentage of total revenues, decreased 20 basis points to 6.3%, compared to 6.5% in the same quarter last year. Net income was $59.6 million in the third quarter of fiscal 2026, compared to net income of $44.0 million in the same quarter last year. Adjusted net income(1) was $60.6 million in the third quarter of fiscal 2026, compared to Adjusted net income of $45.2 million in the same quarter last year. Using Adjusted net income, diluted earnings per share would have been $1.08 for the third quarter of fiscal 2026, compared to $0.81 in the same quarter last year. Adjusted EBITDA(1) in the third quarter of fiscal 2026 was $163.0 million, an increase of 23.8% compared to $131.7 million in the same quarter last year. Project backlog was a record $3.36 billion at June 30, 2026, compared to $2.94 billion at June 30, 2025 and $3.14 billion at March 31, 2026. Smith added, "Earlier this month, we were pleased to expand our Oklahoma footprint through the acquisition of Ellsworth Construction, which further strengthens our presence into two of the fastest-growing markets in the Sunbelt. Ellsworth adds experienced employees, strategically located facilities, and a strong reputation for execution, enhancing our ability to serve the rapidly growing Tulsa and Oklahoma City metropolitan areas. The acquisition also expands our capabilities in the fast-growing data center construction market, where Ellsworth has established a strong presence that complements Overland's extensive data center portfolio in North Texas. Based on our strong third quarter performance and the expected contribution from Ellsworth, we are raising our fiscal 2026 guidance. We remain on track to deliver sustained revenue growth, expanding profitability, and continued progress toward achieving our ROAD 2030 objectives." **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 $3.640 billion to $3.680 billion - Net income in the range of $165.0 million to $168.0 million - Adjusted net income(1) in the range $177.6 million to $181.4 million - Adjusted EBITDA(1) in the range of $559.0 million to $569.0 million - Adjusted EBITDA margin(1) in the range of 15.36% to 15.46% Ned N. Fleming, III, the Company's Executive Chairman, stated, "CPI continues to create long-term shareholder value through the disciplined execution of our proven growth strategy, combining strong organic growth with strategic acquisitions that expand our platforms across the Sunbelt, increase scale, and enhance operating efficiencies. Supported by a strong balance sheet, experienced leadership team, and healthy customer funding for both public and private construction projects, we believe CPI is well positioned to continue growing and compounding value. The Board and I remain highly confident in CPI's long-term strategy, competitive position, and our ability to capitalize on the significant 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 June 30, 2026. 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 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 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** **(unaudited in thousands, except share and per share data)** **For the Three Months Ended June 30,** **For the Nine Months Ended June 30,** **2026** **2025** **2026** **2025** Revenues $ 999,418 $ 779,277 $ 2,578,083 $ 1,912,507 Cost of revenues 831,030 647,467 2,189,342 1,632,776 **Gross profit** 168,388 131,810 388,741 279,731 General and administrative expenses (63,145) (51,026) (188,242) (141,954) Acquisition-related expenses (1,771) (1,816) (15,880) (22,174) Gain on sale of property, plant and equipment, net 5,912 3,975 12,557 8,437 **Operating income** 109,384 82,943 197,176 124,040 Interest expense, net (30,292) (25,239) (83,252) (64,961) Other income 44 246 67 508 **Income before provision for income taxes and earnings from investment in joint venture** 79,136 57,950 113,991 59,587 Provision for income taxes 19,581 13,903 28,050 14,364 Loss from investment in joint venture — — (1) (12) **Net income** 59,555 44,047 85,940 45,211 **Other comprehensive income (loss), net of tax** Unrealized (loss) on interest rate swap contract, net (431) (1,996) (1,583) (2,017) Unrealized gain (loss) on restricted investments, net (22) 102 (144) — **Other comprehensive loss** (453) (1,894) (1,727) (2,017) **Comprehensive income** $ 59,102 $ 42,153 $ 84,213 $ 43,194 **Net income per share attributable to common stockholders:** Basic $ 1.07 $ 0.80 $ 1.54 $ 0.82 Diluted $ 1.06 $ 0.79 $ 1.53 $ 0.82 **Weighted average number of common shares outstanding:** Basic 55,906,306 55,164,260 55,876,027 54,853,715 Diluted 56,269,949 55,654,653 56,187,735 55,302,958 **Construction Partners, Inc.** **Consolidated Balance Sheets** **(in thousands, except share and per share data)** **June 30,** **September 30,** **2026** **2025** **ASSETS** **(unaudited)** Current assets: Cash and cash equivalents $ 94,547 $ 156,062 Restricted cash 112 2,953 Contracts receivable including retainage, net 593,468 549,884 Costs and estimated earnings in excess of billings on uncompleted contracts 60,849 45,340 Inventories 185,273 155,133 Prepaid expenses and other current assets 27,024 25,459 Total current assets 961,273 934,831 Property, plant and equipment, net 1,295,692 1,153,070 Operating lease right-of-use assets 104,845 76,355 Goodwill 1,139,332 943,309 Intangible assets, net 74,368 79,230 Investment in joint venture — 72 Restricted investments 10,870 23,176 Other assets 25,628 28,813 Total assets $ 3,612,008 $ 3,238,856 **LIABILITIES AND STOCKHOLDERS' EQUITY** Current liabilities: Accounts payable $ 319,886 $ 284,218 Billings in excess of costs and estimated earnings on uncompleted contracts 149,337 129,300 Current portion of operating lease liabilities 30,340 19,867 Current maturities of long-term debt 41,500 38,500 Accrued expenses and other current liabilities 72,950 110,163 Total current liabilities 614,013 582,048 Long-term liabilities: Long-term debt, net of current maturities and deferred debt issuance costs 1,744,666 1,573,614 Operating lease liabilities, net of current portion 75,078 57,201 Deferred income taxes, net 102,279 80,079 Other long-term liabilities 35,236 33,951 Total long-term liabilities 1,957,259 1,744,845 Total liabilities 2,571,272 2,326,893 Stockholders' equity: Preferred stock, par value $0.001; 10,000,000 shares authorized and no shares issued and outstanding at June 30, 2026 and September 30, 2025 — — Class A common stock, par value $0.001; 400,000,000 shares authorized, 48,732,839 shares issued and 47,924,747 shares outstanding at June 30, 2026 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 June 30, 2026 and 11,463,770 shares issued and 8,538,165 shares outstanding at September 30, 2025 12 12 Additional paid-in capital 615,510 541,179 Treasury stock, Class A common stock, par value $0.001, at cost, 808,092 shares at June 30, 2026 and 557,119 shares at September 30, 2025 (63,574) (34,589) Treasury stock, Class B common stock, par value $0.001, at cost, 2,932,450 shares at June 30, 2026 and 2,925,605 shares at September 30, 2025 (16,833) (16,046) Accumulated other comprehensive income, net 2,642 4,369 Retained earnings 502,931 416,991 Total stockholders' equity 1,040,736 911,963 Total liabilities and stockholders' equity $ 3,612,008 $ 3,238,856 **Construction Partners, Inc.** **Consolidated Statements of Cash Flows** **(unaudited, in thousands)** **For the Nine Months Ended June 30,** **2026** **2025** **Cash flows from operating activities:** Net income $ 85,940 $ 45,211 Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities: Depreciation, depletion, accretion and amortization 135,278 107,741 Amortization of deferred debt issuance costs 2,004 3,379 Provision for bad debt 556 260 Gain on sale of property, plant and equipment (12,557) (8,437) Realized loss on sales, calls and maturities of restricted investments 18 81 Share-based compensation expense 31,195 27,961 Distribution of earnings from investment in joint venture 71 — Loss from investment in joint venture 1 12 Deferred income tax expense (benefit) 22,658 (300) Other non-cash adjustments (617) (665) Changes in operating assets and liabilities, net of business acquisitions: Contracts receivable including retainage (13,859) 6,159 Costs and estimated earnings in excess of billings on uncompleted contracts (11,298) (22,577) Inventories (18,279) (4,880) Prepaid expenses and other current assets (1,905) 5,422 Other assets 1,496 (3,119) Accounts payable 16,028 15,975 Billings in excess of costs and estimated earnings on uncompleted contracts 8,510 (9,481) Accrued expenses and other current liabilities (578) 17,543 Other long-term liabilities (3,803) (967) Net cash provided by operating activities, net of business acquisitions 240,859 179,318 **Cash flows from investing activities:** Purchases of property, plant and equipment (144,239) (104,886) Proceeds from sale of property, plant and equipment 24,398 11,250 Proceeds from sales, calls and maturities of restricted investments 16,022 8,351 Business acquisitions, net of cash acquired (337,429) (935,663) Purchase of restricted investments (3,753) (12,182) Net cash used in investing activities (445,001) (1,033,130) **Cash flows from financing activities:** Proceeds from revolving credit facility 263,500 218,438 Proceeds from issuance of long-term debt, net of debt issuance costs 294,923 833,524 Settlement of stock awards (2,490) — Repayments of long-term debt (386,375) (137,726) Purchase of treasury stock (29,772) (20,803) Net cash provided by financing activities 139,786 893,433 Net change in cash, cash equivalents and restricted cash (64,356) 39,621 **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 $ 94,659 $ 116,305 **Supplemental cash flow information:** Cash paid for interest $ 80,230 $ 58,151 Cash paid for income taxes $ 5,204 $ 3,576 Cash paid for operating lease liabilities $ 23,315 $ 11,699 Non-cash items: Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 47,180 $ 17,620 Property, plant and equipment financed with accounts payable $ 9,849 $ 5,693 Amounts payable to sellers in business combinations, net $ 673 $ 64,938 **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 to Adjusted EBITDA Reconciliation** **Three Months Ended June 30, 2026 and 2025** **(in thousands, except percentages)** **For the Three Months Ended June 30,** **2026** **2025** Net income $ 59,555 $ 44,047 Interest expense, net 30,292 25,239 Provision for income taxes 19,581 13,903 Depreciation, depletion, accretion and amortization 43,979 39,294 Share-based compensation expense 8,242 8,564 Transformative acquisition expenses 1,373 663 Adjusted EBITDA $ 163,022 $ 131,710 Revenues $ 999,418 $ 779,277 Adjusted EBITDA margin 16.3 % 16.9 % **Construction Partners, Inc.** **Net Income to Adjusted Net Income Reconciliation** **Three Months Ended June 30, 2026 and 2025** **(in thousands)** **For the Three Months Ended June 30,** **2026** **2025** Net income $ 59,555 $ 44,047 Transformative acquisition expenses 1,373 663 Financing fees related to transformative acquisition — 920 Tax impact due to above reconciling items (336) (382) Adjusted net income $ 60,592 $ 45,248 **Construction Partners, Inc.** **Net Income to Adjusted EBITDA Reconciliation** **Fiscal Year 2026 Updated Outlook** **(unaudited, in thousands, except percentages)** **For the Fiscal Year Ending** **September** **30, 2026** **Low** **High** Net income $ 165,000 $ 168,000 Interest expense, net 112,500 113,500 Provision for income taxes 53,500 54,500 Depreciation, depletion, accretion and amortization 181,000 184,000 Share-based compensation expense 31,500 32,500 Transformative acquisition expenses 15,500 16,500 Adjusted EBITDA $ 559,000 $ 569,000 Revenues $ 3,640,000 $ 3,680,000 Adjusted EBITDA margin 15.36 % 15.46 % **Construction Partners, Inc.** **Net Income to Adjusted Net Income Reconciliation** **Fiscal Year 2026 Updated Outlook** **(unaudited, in thousands)** **For the Fiscal Year Ending** **September** **30, 2026** **Low** **High** Net income $ 165,000 $ 168,000 Transformative acquisition expenses 15,500 16,500 Financing fees related to transformative acquisition 1,200 1,200 Tax impact due to above reconciling items (4,100) (4,300) Adjusted net income $ 177,600 $ 181,400 SOURCE Construction Partners, Inc. ### Related Stocks - [ROAD.US](https://longbridge.com/en/quote/ROAD.US.md) ## Related News & Research - [Construction Partners director Michael McKay dies in accident](https://longbridge.com/en/news/295447632.md) - [Construction Partners Addresses Nasdaq Compliance After Director’s Passing](https://longbridge.com/en/news/295458893.md) - [Can Gold Make a New High in 2026?](https://longbridge.com/en/news/295569739.md) - [Illinois Tool Works declares Q3 2026 dividend of R$ 1.48 per unit](https://longbridge.com/en/news/295435249.md) - [Alerian MLP ETF Declares Third Quarter Distribution of $1.03 | AMLP Stock News](https://longbridge.com/en/news/295672494.md)