Construction Partners Sets New Growth Record: Revenue Up 54% and Backlog Tops $3 Billion

Strong Revenue Growth and Record Backlog Signal Robust Demand

Construction Partners, Inc. (NASDAQ: ROAD) reported standout financial results for fiscal 2025, posting a 54% year-over-year surge in revenue to $2.81 billion and pushing its project backlog to an all-time high of $3.03 billion as of September 30, 2025. The company’s disciplined execution and strategic geographic expansion, including five acquisitions this year alone, are fueling sustained momentum across Sunbelt markets. Management also reaffirmed an optimistic outlook for fiscal 2026, supported by a strong pipeline and expanding opportunities in both public and private infrastructure projects.

Margin Expansion Driven by Operational Scale and Acquisitions

The company’s operational scale-up delivered margin gains, with adjusted EBITDA up 92% to $423.7 million and adjusted EBITDA margin improving to 15.1%, up from 12.1% the prior year. These gains reflect both the impact of integrating new acquisitions—spanning Texas, Oklahoma, Tennessee, and Alabama—and robust 8.4% organic growth as core Sunbelt regions continue to benefit from healthy infrastructure investment and strong commercial demand. Net income reached $101.8 million, up 48% year-over-year, with adjusted net income rising 73% to $122 million.

Fiscal 2026 Outlook: Revenue Guidance and Continued Expansion

For fiscal 2026, Construction Partners expects revenue to grow further, projecting between $3.40 billion and $3.50 billion. The company forecasts net income in the range of $150 million to $155 million, and adjusted EBITDA between $520 million and $540 million. Margins are also set to inch higher, with an anticipated adjusted EBITDA margin of 15.3% to 15.4%.

Strategic Growth, Acquisitions, and a Strong Sunbelt Platform

Construction Partners continues to execute on its strategic vision, with five major acquisitions this year strengthening its position in the high-growth Sunbelt region. Recent entries into the Texas and Oklahoma markets, along with expansion in Florida and Houston, support long-term growth opportunities amid a wave of generational infrastructure investment. Management notes a scalable business model rooted in local expertise and operational integration as key to profitability and resilience.

Key Takeaway: Momentum, Margin Expansion, and Tailwinds for 2026

With strong economic fundamentals, public infrastructure tailwinds, and ongoing acquisition opportunities, Construction Partners appears well positioned to sustain its trajectory into fiscal 2026. Investors may want to monitor CPI’s execution on backlog, integration of new businesses, and delivery on projected margin gains in the coming quarters. As infrastructure needs grow across the Sunbelt, CPI’s disciplined approach could offer valuable insight into broader sector trends in the year ahead.

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