Construction Partners (ROAD) Is Down 5.4% After Posting Strong Revenue and Profit Growth – Has the Bull Case Changed?

• Construction Partners, Inc. recently announced its fourth quarter and full-year earnings, reporting sales of US$899.85 million for the quarter and US$2.81 billion for the year ended September 30, 2025, both significantly higher than the prior year.
• Strong revenue and net income growth, with quarterly net income rising to US$56.57 million and diluted earnings per share nearly doubling year-over-year, highlight the company's recent operating momentum.
• We’ll explore how this very large year-over-year revenue growth influences the outlook and risks in Construction Partners’ investment narrative.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

Construction Partners Investment Narrative Recap

For shareholders of Construction Partners, the key investment thesis revolves around the company’s ability to capture a multi-year opportunity from public infrastructure funding and ongoing expansion in high-growth Sunbelt regions. The latest quarterly report’s large revenue and earnings surge reinforces confidence in this narrative, but does not meaningfully reduce the short-term risk of dependence on government budgets, nor does it overshadow ongoing margin sensitivities to weather and input costs.

Of all recent announcements, the October 2025 acquisition of eight Houston hot-mix asphalt plants stands out as most closely tied to this quarter’s results. This move expanded capacity and market share in Texas, directly supporting the sales momentum reflected in this earnings report, and aligns with continued execution on market expansion and backlog growth as core catalysts for the stock.

By contrast, investors should pay close attention to how a sudden shift in public infrastructure spending could quickly undermine current growth expectations…

Read the full narrative on Construction Partners (it's free!)

Construction Partners' narrative projects $4.1 billion revenue and $286.4 million earnings by 2028. This requires 18.3% yearly revenue growth and an increase of $211.9 million in earnings from the current $74.5 million.

Uncover how Construction Partners' forecasts yield a $131.17 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Private investors in the Simply Wall St Community placed Construction Partners’ fair value between US$71.87 and US$167.14, drawing on only three individual valuations. While backers point to sustained infrastructure funding as a multi-year driver of backlog, these valuations remind you that market opinions can differ dramatically, explore several viewpoints before deciding where you stand.

Explore 3 other fair value estimates on Construction Partners - why the stock might be worth as much as 66% more than the current price!

Build Your Own Construction Partners Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Construction Partners research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Construction Partners research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Construction Partners' overall financial health at a glance.

Ready To Venture Into Other Investment Styles?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

• Rare earth metals are the new gold rush. Find out which 38 stocks are leading the charge.
• AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com