Update shared on04 Sep 2025
Recent higher-margin acquisitions, increased financial estimates, and improved confidence in above-consensus performance—alongside potential long-term targets—support a bullish outlook for Construction Partners, though the consensus analyst price target remains unchanged at $120.17.
Analyst Commentary
- Recent large acquisitions in Texas and Tennessee are considered to be higher margin than previously believed.
- Materially increased financial estimates suggest shares are attractively valued.
- Anticipation of the company announcing long-term financial targets is viewed as a potential catalyst.
- Bullish analysts expect further upside potential given the strengthened growth outlook.
- Improved confidence in the company’s ability to deliver above-consensus financial performance.
What's in the News
- Company to hold Analyst/Investor Day to discuss strategic initiatives, growth priorities, organizational achievements, and business outlook.
- Completed buyback of 293,111 shares (0.54%) for $18.52 million, including 7,393 shares repurchased in the latest tranche.
- Actively seeking further acquisitions, emphasizing both organic and inorganic growth, amid expectations to benefit from increased investment and reshoring trends.
- Maintained fiscal 2025 guidance: projected revenue between $2.77–$2.83 billion and net income between $106–$117 million.
Valuation Changes
Summary of Valuation Changes for Construction Partners
- The Consensus Analyst Price Target remained effectively unchanged, at $120.17.
- The Net Profit Margin for Construction Partners remained effectively unchanged, at 7.06%.
- The Consensus Revenue Growth forecasts for Construction Partners remained effectively unchanged, at 18.3% per annum.
Disclaimer
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