Construction Partners (ROAD) Q1 2026 earnings summary

Executive summary

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

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

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

• Adjusted net income nearly doubled to $26.4 million, reflecting improved profitability and one-time acquisition expenses.

• Project backlog reached a record $3.09 billion at quarter-end, reflecting robust demand across commercial and public sectors.

Financial highlights

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

• General & administrative expenses were $61.5 million, 7.7% of revenue, down as a percentage year-over-year.

• Adjusted EBITDA margin reached 13.9%, up from 12.2%–12.3% a year ago.

• Adjusted net income: $26.4 million; adjusted EPS: $0.47.

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

Outlook and guidance

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

• Net income guidance increased to $154–$158 million; adjusted EBITDA expected at $534–$550 million, margin 15.34%–15.45%.

• 80%–85% of next 12 months’ contract revenue covered by backlog.

• Capital expenditures for FY26 projected at $165–185 million.

• Seasonality: 42% of annual revenue and 34% of adjusted EBITDA in H1; 58% and 66% in H2.