Highlights

  • Fiscal third quarter revenue rose 28.2% to $999.4 million, and net income increased 35.2% to $59.6 million.
  • Diluted earnings per share were $1.06 versus $0.79, while non-GAAP Adjusted EBITDA margin eased to 16.3% from 16.9%.
  • Contract backlog stood at $3.4 billion at June 30, 2026, including $0.7 billion of low bid projects without contracts.
  • The company raised its revolver to $700 million, added $300 million of term loans and bought Ellsworth Construction in July.

Construction Partners (NASDAQ:ROAD) shares were trading near their 52-week low at USD 86.10 on October 21, 2026, up 2.04%. The civil infrastructure company amended its credit agreements in June, bought Ellsworth Construction in Oklahoma on July 10 and reported fiscal 2026 third quarter results in a Form 10-Q filed August 7.

Based in Dothan, Alabama, Construction Partners is a Delaware corporation that was formed in 2007 by SunTx Capital Partners as a holding company for an acquisition strategy in hot mix asphalt paving. It describes itself as a civil infrastructure company that builds and maintains transportation networks, with highways, roads, bridges, airports and commercial and residential sites across Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. Its fiscal year ends September 30.

What the Third Quarter Shows on Revenue and Margins

Revenue for the quarter ended June 30, 2026 was $999.4 million, up from $779.3 million. Acquisitions completed during or after the year-earlier quarter contributed $151.0 million, while existing markets added $69.1 million, an 8.9% increase that management attributed to strong public and private demand. Gross profit rose 27.8% to $168.4 million, with gross margin at 16.8% compared with 16.9%.

General and administrative expenses climbed 23.8% to $63.1 million, mainly from acquired businesses, and net interest expense rose 20.0% to $30.3 million on added borrowings and amendment fees. Operating income was $109.4 million. At an effective tax rate of 24.7%, net income was $59.6 million, or $1.06 per diluted share, against $44.0 million, or $0.79. Non-GAAP Adjusted EBITDA was $163.0 million, and non-GAAP Adjusted net income was $60.6 million.

For the nine months, revenue was $2.58 billion versus $1.91 billion, net income was $85.9 million versus $45.2 million, and diluted EPS was $1.53 versus $0.82. Non-GAAP Adjusted EBITDA reached $368.5 million, a 14.3% margin. Operating cash flow was $240.9 million.

Backlog, Acquisitions and Financing

Contract backlog was $3.4 billion, of which $2.7 billion was uncompleted work on executed contracts and $0.7 billion was low bid projects awaiting a contract.

The company has kept adding businesses. It bought eight asphalt plants and related operations near Houston from affiliates of Vulcan Materials on October 3, 2025, then acquired P&S Paving in Florida on October 20, GMJ Paving in Texas on January 30, 2026, and Four Star Paving in Tennessee on April 1. Ellsworth, based in Tulsa, followed on July 10 for $77.2 million in cash and $24.8 million in Class A stock, plus an earn-out of up to $10.0 million tied to Adjusted EBITDA targets through September 30, 2031. Consideration remains subject to post-closing adjustments. Acquisitions used $337.4 million of cash in the nine months, within total investing outflows of $445.0 million.

In June, the revolving credit facility increased to $700.0 million from $500.0 million with adjusted financial covenants, and the Term Loan B was refinanced at lower margins with $300.0 million of incremental term loans. At June 30, principal outstanding was $1.1 billion on the Term Loan B, $570.0 million on Term Loan A and $96.0 million on the revolver, with $599.2 million of revolver availability. Cash and equivalents were $94.5 million, down from $156.1 million at September 30, 2025. A new repurchase program of up to $50.0 million runs through September 30, 2028, and the company bought 79,257 shares for about $9.0 million in the nine months.

Capital Spending Plans and Cost Sensitivities

The filing contains no revenue or earnings guidance. For fiscal 2026, management expects capital expenditures of about $185.0 million to $205.0 million, after $144.2 million in the first nine months. It believes operating cash flow and available borrowings will fund operations, planned capital spending and opportunistic share repurchases for at least the next 12 months, while noting that more capital may be needed for large acquisitions.

The company also flagged that fuel and liquid asphalt costs could affect profitability if price adjustment clauses or pricing actions do not offset them, and that weather and seasonality influence its outdoor operations.