What were the key takeaways from Construction's earnings call?

What is the market's earnings forecast for Construction next quarter?

What is the revenue and EPS growth rate for Construction year over year?

What factors drove the changes in Construction's revenue and profit?

What guidance did Construction's management provide for the next earnings period?

What is Construction's latest dividend and current dividend yield?

What is Construction's gross profit margin?

Did Construction beat or miss consensus estimates last quarter?

- **Record Q1 Performance**: 44% revenue growth, 63% EBITDA rise, and $3.09B backlog highlight strong execution.
- **Houston Expansion**: 3 acquisitions in 6 months position for organic growth and market share gains.
- **Road 2030 Ambitions**: Target $6B revenue by 2030 with 17% EBITDA margin, fueled by M&A and Sunbelt trends.
- **Financial Strength**: 75-85% EBITDA-to-cash conversion supports 2.5x leverage target; FY26 outlook raised across all metrics.
- **Public Sector Momentum**: 10-15% contract award growth expected, supported by federal infrastructure reauthorization.

**【Management Opening Remarks】**
- Q1 2026 revenue increased 44% YoY to $809.5 million, driven by 40.6% acquisitive growth and 3.5% organic growth.
- Adjusted EBITDA rose 63% YoY to $112.2 million, with a record 13.9% margin.
- Project backlog reached $3.09 billion, reflecting strong demand across commercial and public sectors.
- Acquired GMJ Paving in Houston, expanding asphalt paving capabilities and market share.

**【CEO Commentary】**
- Highlighted macro trends: Sunbelt migration, reshoring, and AI infrastructure driving commercial projects (e.g., data centers, distribution facilities).
- 2026 organic growth target: 7-8%, with $19 million of Q1 underperformance due to delayed projects and competitive shifts.
- Road 2030 plan aims to double revenue to $6 billion by 2030, targeting 17% EBITDA margin.
- Houston expansion: 3 acquisitions in 6 months, integrating management teams for organic growth opportunities.

**【CFO Financial Commentary】**
- Raised FY26 outlook: Revenue $3.48-3.56B (vs. prior $3.3-3.4B), adjusted EBITDA $534-550M (15.34-15.45% margin).
- Cash flow from operations $82.6M in Q1, with 75-85% EBITDA-to-cash conversion expected for FY26.
- Debt-to-EBITDA ratio 3.18x, targeting 2.5x by end-2026 via cash flow from operations.
- Q2 guidance aligns with seasonal trends, with 42% of annual revenue and 34% of EBITDA expected in first half.

**【Q&A Highlights】**
- **Acquisition Pipeline**: 7 deals since August 2025, focusing on platform deals (e.g., Houston) and tuck-ins. GMJ adds 12th Houston asphalt plant, enhancing throughput.
- **Public Sector Growth**: Expect 10-15% increase in federal/state/local contract awards, driven by infrastructure reauthorization.
- **Leverage Reduction**: $215M purchase price for 2025 deals funded with $140M debt; GMJ to be cash-funded, supporting deleveraging.
- **Weather Impact**: Q1 benefited from favorable weather; 2026 outlook assumes normal seasonal patterns despite recent winter storms.


Construction Partners, Inc. (ROAD) Q1 2026 Earnings Call Transcript

- **Record Growth**: FY25 revenue up 54% to $2.812B, EBITDA surging 92% to $423.7M. FY26 targets $3.4B-$3.5B revenue and $520M-$540M EBITDA.
- **Strategic Vision**: ROAD 2030 aims for $6B+ revenue by 2030 with 17% EBITDA margin, fueled by Sunbelt growth and 23% FY26 revenue growth.
- **Financial Health**: 17.1% Q4 EBITDA margin, $291M cash flow from ops, 3.1x debt/EBITDA, targeting 2.5x by late 2026.
- **Market Momentum**: $3B backlog, 80%+ FY26 coverage, stable cost environment, and resilient private/public construction demand.

**【CEO Summary Section】**
- Fiscal 2025 was transformative with 54% revenue growth ($2.812B) and 92% EBITDA increase ($423.7M), driven by 8.4% organic growth and 45.6% acquisitive growth. Acquisitions included Lone Star Paving (Texas), Durwood Greene (Houston), and P&S Paving (Florida). 
- Introduced ROAD 2030 strategic plan targeting $6B+ revenue by 2030 (18% CAGR) and 17% EBITDA margin. FY26 goals: $3.4B-$3.5B revenue, $520M-$540M EBITDA, 15.3%-15.4% margin.
- Four macro trends: Sunbelt migration, reshoring, infrastructure funding, and generational industry transition. FY25 backlog reached $3B, 80%-85% covered for next 12 months.

**【CFO Financial Commentary】**
- Q4 2025: $900M revenue (+67% YoY), $154M EBITDA (+100% YoY), 17.1% margin. FY25: $439.1M gross profit (+70%), 7.1% G&A as % of revenue. Cash flow from ops: $291M (+39% YoY). FY26 capex: $165M-$185M (3.25% maintenance + growth).
- Debt: 3.1x EBITDA at FY25 end, targeting 2.5x by late 2026. FY26 outlook: 40%-42% revenue/30%-34% EBITDA in H1, 58%-60% revenue/66%-68% EBITDA in H2.

**【Q&A Key Highlights】**
- **Acquisition Integration**: Smooth process due to strategic partner selection, cultural fit, and cross-functional team involvement. 2025 acquisitions contributed $240M-$250M in FY26 revenue, neutral to margin.
- **Government Shutdown Impact**: No revenue impact as Highway Trust Fund funding continued. FY26 public contracts expected +15% YoY.
- **Cost Environment**: Stable liquid asphalt, diesel, and labor costs (3%-4% growth). Pricing trends support margin expansion.
- **Data Center Demand**: Participating in site infrastructure for large projects in Sunbelt markets, similar to industrial facilities.
- **Infrastructure Reauthorization**: Bipartisan momentum for Surface Transportation Program reauthorization, expected spring 2026 vote.

Construction Partners, Inc. (ROAD) Q4 2025 Earnings Call Transcript

- **Record Margins Despite Weather**: Q3 EBITDA margin 16.9% vs 14.1% prior year, driven by operational resilience and vertical integration.
- **Acquisition Growth**: $270-280M M&A contribution in Q4 2025, with $240-250M rolling into FY26.
- **Strong Backlog**: $2.94B backlog (80-85% covered for next 12 months), supported by 14%+ public contract growth.
- **Debt Reduction Path**: Target 2.5x leverage by end-2026, enabling continued strategic M&A.
- **Sunbelt Tailwinds**: Migration, manufacturing reshoring, and infrastructure funding driving 8-10% organic growth.

**【CEO Opening Remarks】**
- Announced the acquisition of Durwood Greene Construction in Houston, adding 3 asphalt plants and rail service aggregates terminal, enhancing vertical integration in Texas.
- Q3 results: Record adjusted EBITDA margin of 16.9% despite weather delays in Southeast, with $2.94 billion backlog (80-85% covered for next 12 months).
- Market trends: Strong public funding (state infrastructure budgets + IIJA federal funds), healthy private growth (warehouses, schools), and reshoring manufacturing driving demand.

**【CFO Financial Commentary】**
- Q3 2025 Revenue: $779.3M (+51% YoY), with 5% organic growth and 46% from acquisitions.
- Adjusted EBITDA: $131.7M (+80% YoY), margin 16.9% vs 14.1% prior year.
- Balance sheet: $114.3M cash, $493.5M available on $1.1B credit facility (maturity extended to 2030).
- FY25 Guidance: Revenue $2.77-2.83B, Adjusted EBITDA $410-430M, targeting 2.5x leverage by end-2026.

**【Q&A Highlights】**
- **Weather Impact**: Wet May delayed projects, but teams maintained margins through operational excellence; July volumes rebounded strongly.
- **M&A Contribution**: Q4 2025 M&A revenue ~$270-280M, FY26 rollover ~$240-250M.
- **Leverage & Growth**: Target 2.5x debt/EBITDA by late 2026; will balance acquisitions with deleveraging.
- **Labor Strategy**: Focus on Culture, Compensation, Career (3Cs) to retain aging workforce amid industry shortages.
- **2026 Outlook**: Organic growth 8-10%, total revenue growth 15-20%+ driven by acquisitions and backlog conversion.

Construction Partners (ROAD)-7 Aug 25-2025 Q3 Earnings call transcript

- **Revenue Surge**: 54% YoY growth to $571.7M, driven by 47% acquisitions and 7% organic expansion.
- **Profit Milestone**: Record 12.1% EBITDA margin, up 135% YoY to $69.3M.
- **Market Expansion**: Entered Tennessee, Texas, and Oklahoma; now operating in 100+ market areas.
- **Backlog Record**: $2.84B backlog, up 32% YoY, signals strong future demand.
- **Debt Management**: Target 2.5x Debt/EBITDA ratio, down from 3.23x, supporting growth.
- **Guidance Uptick**: FY25 EBITDA raised to $410-430M (prev $380-400M), margin 14.8-15.2%.


**【CEO Key Highlights】**
- **Revenue Growth**: Q2 2025 revenue reached $571.7M, up 54% YoY, driven by 7% organic growth and 47% from acquisitions.
- **Profitability**: Adjusted EBITDA of $69.3M (+135% YoY), with record Q2 margin of 12.1%.
- **Market Expansion**: Acquired PRI in Tennessee, expanding to 100+ market areas across 8 states. Entered Texas, Oklahoma, and Tennessee in past year.
- **Backlog Strength**: Record $2.84B backlog, up 32% YoY, reflecting steady demand.
- **Strategic Goals**: Target 15-20% annual revenue growth and 50bps EBITDA margin expansion by 2027 through vertical integration, scale, and market expansion.

**【CFO Financial Breakdown】**
- **Net Income**: $4.2M (EPS $0.08) vs. $1.1M loss YoY.
- **Cash Flow**: $55.6M from operations, on track for 80-85% EBITDA conversion.
- **Debt Metrics**: Debt/EBITDA 3.23x, targeting 2.5x within 4Q.
- **CapEx**: $41.4M Q2, full-year $130-140M guided.
- **Updated Guidance**: FY25 revenue $2.77-2.83B, EBITDA $410-430M, margin 14.8-15.2%.

**【Key Q&A Insights】**
- **Macro Resilience**: No project delays seen; commercial bid sheet remains healthy.
- **Acquisition Strategy**: Focus on platforms with strong management teams, e.g., PRI's mid-teens margins and pavement preservation expertise.
- **Capital Allocation**: Prioritize debt reduction while maintaining acquisition pipeline.
- **Tennessee Growth**: PRI's state-wide coverage positions for organic and acquisitive expansion.


Construction Partners (ROAD)-9 May 25-2025 Q2 Earnings call transcript

- **Revenue Surges 42% YoY**: Driven by 11% organic growth and 30% M&A, Q1 hits $561.6M.\n- **Margin Leap**: EBITDA margin jumps 200bps to 12.3%, backed by vertical integration.\n- **Backlog Soars to $2.66B**: 16% YoY growth in public lettings, Florida funding up 50%.\n- **Acquisition Pipeline**: 2025 M&A to add $730M, with $120-130M from Q1 deals.\n- **Debt Target**: 2.5x by Q4 2025, down from 2.88x.\n- **Inflation Control**: 4-5% cost increases fully passed through.\n- **Growth Engine**: 14.1-14.6% EBITDA margin guidance reflects sustained margin expansion.\n

**【CEO Opening Remarks】**
- **Record Q1 Revenue Growth**: $561.6M (+42% YoY), driven by 11% organic growth and 30% from recent acquisitions (Overland & Mobile Asphalt).\n- **Margin Expansion**: EBITDA margin improved 200bps to 12.3%, fueled by strong project execution and vertical integration.\n- **Backlog Record**: $2.66B, up sequentially, with 16% YoY growth in public infrastructure lettings across 8-state footprint.\n- **Strategic Acquisitions**: Added 5 hot mix asphalt plants in Alabama and Oklahoma, expanding market share in high-growth Sunbelt states.\n- **Long-Term Outlook**: Committed to 4-5x debt-to-EBITDA target, with focus on organic growth and disciplined M&A.\n
**【CFO Financial Highlights】**
- **Adjusted Net Income**: $13.3M (+35% YoY), vs. GAAP net loss of $3.1M due to one-time acquisition costs.\n- **EBITDA Performance**: $68.8M (+68% YoY), with margin rising to 12.3% from 10.3%.\n- **Balance Sheet**: $132.5M cash, $393.4M available on credit facility, supporting $130-140M capex for growth.\n- **2025 Guidance**:\n  - Revenue: $2.66-2.74B\n  - Adjusted EBITDA: $375-400M (14.1-14.6% margin)\n  - Organic Growth: 11%+\n
**【Q&A Key Takeaways】**\n- **Acquisition Contribution**: 2025 M&A revenue ~$730M, with $120-130M from Q1 acquisitions (Overland & Mobile Asphalt).\n- **Leverage Management**: Target 2.5x debt-to-EBITDA by Q4 2025, up from 2.88x at Q1.\n- **Inflation Outlook**: 4-5% cost increases, fully passed through to contracts.\n- **Market Demand**: Florida public funding +50% YoY, IIJA mid-single-digit growth expected.\n- **Competitive Position**: Record backlog allows patient bidding, maintaining 200bps margin expansion trend.\n

Actual									0.03	0.3	0.34	0.15	-0.0439	0.1826	0.173	0.11	-0.18	0.23	0.25	0.04	-0.11	0.41	0.59	0.19	-0.02	0.59	0.56	0.25	0.084	0.8116	1.0582	0.47
Forecast									0.0586	0.2457	0.2986	0.13	0.0867	0.3283	0.3817	0.0833	-0.055	0.1117	0.2183	0.028	-0.1814	0.3461	0.5163	0.1306	-0.0441	0.541	0.5683	0.1483	-0.0683	0.8217	1.0883	0.3171
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-48.81%	+22.10%	+13.86%	+15.38%	-150.63%	-44.38%	-54.68%	+32.05%	-227.27%	+105.91%	+14.52%	+42.86%	+39.36%	+18.46%	+14.27%	+45.48%	+54.65%	+9.06%	-1.46%	+68.58%	+222.99%	-1.23%	-2.77%	+48.22%

ROAD

ROAD fundamentals

ROAD Q1 2026 Earnings

Earnings Call

You can ask Aime

ROAD

ROAD fundamentals

ROAD Q1 2026 Earnings

Earnings Call

ROAD Earnings Call Summary for Q1/202610:00 AM on Feb 5, 2026

ROAD Earnings Call Summary for Q4/202510:00 AM on Nov 20, 2025

ROAD Earnings Call Summary for Q3/202510:00 AM on Aug 7, 2025

ROAD Earnings Call Summary for Q2/202510:00 AM on May 9, 2025

ROAD Earnings Call Summary for Q1/202510:00 AM on Feb 7, 2025

You can ask Aime