Construction Partners (ROAD) Q3 2026 earnings summary

Executive summary

• Q3 FY26 revenue grew 28.2% year-over-year to $999.4 million, driven by both organic and acquisitive growth in public and private markets, despite energy cost inflation and wet weather.

• Net income for Q3 FY26 rose 35.2% to $59.6 million, with adjusted net income up 34% to $60.6 million and adjusted EBITDA up 24% to $163.0 million (16.3% margin).

• Record project backlog reached $3.36 billion as of June 30, 2026, providing strong visibility into future growth.

• Strategic acquisitions, including Ellsworth Construction, expanded presence in Oklahoma and enhanced data center construction capabilities.

• Maintained resilience through a cost pass-through model and disciplined operating strategy, supporting profitable growth.

Financial highlights

• Q3 FY26 revenue was $999.4 million, up 28.2% year-over-year; gross profit was $168.4 million (16.8% margin); net income $59.6 million; adjusted net income $60.6 million; adjusted EBITDA $163.0 million (16.3% margin).

• For the nine months ended June 30, 2026, revenue was $2.58 billion, gross profit $388.7 million, net income $85.9 million, and adjusted EBITDA $368.5 million (14.3% margin).

• Cash flow from operations was $93.1 million for Q3 and $240.9 million for the nine months.

• Capital expenditures for the nine months were $144.2 million, with full-year guidance of $185–$205 million.

• General and administrative expenses decreased to 6.3% of revenue from 6.5% in Q3 FY25.

Outlook and guidance

• FY26 guidance raised: revenue $3.64–$3.68 billion, net income $165–$168 million, adjusted net income $177.6–$181.4 million, adjusted EBITDA $559–$569 million, adjusted EBITDA margin 15.35%–15.46%.

• Over 30% growth expected in both revenue and bottom-line margins for FY26.

• Approximately $140 million of acquisitive revenue to carry over into FY27.

• Capital expenditures for FY26 projected at $185–$205 million.

• Management anticipates continued strong demand in both public and private markets, supported by recent acquisitions and expanded geographic presence.