Construction Partners (ROAD) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY26 increased 44% year-over-year to $809.5 million, driven by acquisitions, organic growth, and favorable weather.

• Net income was $17.2 million, reversing a prior year net loss of $3.1 million.

• Adjusted EBITDA rose 63% to $112.2 million, with a record Q1 margin of 13.9%.

• Project backlog reached a record $3.09 billion, reflecting strong demand in both commercial and public sectors.

• Growth strategy includes significant acquisitions in Houston, Daytona Beach, and Texas, with integration progressing well and further expansion planned.

Financial highlights

• Gross profit increased 58% to $121.5 million, with gross margin rising to 15% from 13.6% last year.

• General and administrative expenses rose to $61.5 million but decreased as a percentage of revenue to 7.7%.

• Adjusted net income nearly doubled to $26.4 million, or $0.47 per diluted share.

• Cash flow from operations was $82.6 million, up from $40.7 million in Q1 FY25.

• Interest expense increased 51% to $27.4 million, reflecting higher borrowings for acquisitions.

Outlook and guidance

• FY26 revenue guidance raised to $3.48–$3.56 billion, with organic growth expected at 7–8%.

• Net income guidance set at $154–$158 million; adjusted net income at $163.5–$168.7 million.

• Adjusted EBITDA guidance increased to $534–$550 million, with margin expected at 15.34%–15.45%.

• Capital expenditures for FY26 projected at $165–185 million, focused on maintenance and growth.

• Sufficient liquidity anticipated from operating cash flow and available credit to fund operations and investments.