Construction Partners . Class A Stock Earnings Reports

Construction Partners (CPI) reported a strong start to fiscal 2026, driven largely by acquisitions and favorable weather. Q1 revenue was $809.5 million, up 44% year-over-year (3.5% organic, 40.6% acquisitive). Adjusted EBITDA rose 63% to $112.2 million, producing a record first-quarter adjusted EBITDA margin of 13.9%. GAAP net income was $17.2 million and adjusted net income was $26.4 million (adjusted EPS $0.47). Backlog finished the quarter at $3.09 billion with roughly 80%–85% of the next 12 months covered. The company closed multiple acquisitions and announced a new Houston acquisition (GMJ Paving), expanding hot-mix asphalt capacity and market share in Houston. Management raised FY26 guidance across revenue ($3.48B–$3.56B), adjusted EBITDA ($534M–$550M), adjusted net income, and margin (15.34%–15.45%), and reiterated organic growth guidance of ~7%–8% for the year. Cash and liquidity remain solid ($104M cash, $163M available on credit) and operating cash flow was $82.6M in Q1. Leverage stood at 3.18x trailing EBITDA with a plan to reduce toward ~2.5x by late 2026; management expects to fund near-term tuck-ins (including GMJ) primarily from cash flow rather than additional long-term debt. Longer-term growth framework remains the Road 2030 plan targeting >$6B revenue and ~17% EBITDA margin by 2030. Public sector bidding is expected to be up ~10%–15% vs FY25, and commercial project demand (distribution, manufacturing, data centers) remains steady to strengthening across CPI’s Sunbelt footprint.