Why Construction Partners (ROAD) Is Up 7.8% After Strong FY25 Earnings and Bullish 2026 Outlook

• Construction Partners, Inc. recently reported strong earnings results for the fourth quarter and full year ended September 30, 2025, with quarterly sales rising to US$899.85 million and net income reaching US$56.57 million.
• The company also reaffirmed its guidance for fiscal year 2026, projecting revenue between US$3.4 billion and US$3.5 billion and net income of US$150 million to US$155 million, reflecting management’s confidence in continued growth.
• We’ll explore how these robust financial results and the reaffirmed outlook could influence Construction Partners’ future growth prospects and investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Construction Partners Investment Narrative Recap

To be a shareholder in Construction Partners, you need to believe in the durability of infrastructure spending across the Southeast and the company’s ability to execute amid shifting budgets and regional factors. The latest strong quarterly earnings reinforced management’s outlook and suggest positive momentum, but the biggest near-term catalyst, federal and state infrastructure funding, remains unchanged, as does the ongoing risk from region-specific economic or political swings. For now, the news does not materially alter these key factors.

Among recent announcements, Construction Partners’ reaffirmed earnings guidance for fiscal 2026 stands out as most relevant. By projecting revenue in the US$3.4 billion–US$3.5 billion range and net income of US$150 million–US$155 million, management underscored their confidence in existing contract backlogs and future bid opportunities, a critical consideration given how much public spending shapes near-term results.

Yet, in contrast to the positive guidance, investors should also be aware that Construction Partners relies heavily on public infrastructure funding, which…

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 a $211.9 million earnings increase from $74.5 million today.

Uncover how Construction Partners' forecasts yield a $122.50 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members range from US$84.86 to US$167.14, showing a wide spectrum. This diversity of opinion sits against a backdrop where government budget changes may create meaningful risk for future revenue and earnings, take the opportunity to compare several alternative viewpoints.

Explore 3 other fair value estimates on Construction Partners - why the stock might be worth as much as 53% 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 2 key rewards and 2 important warning signs 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.

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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.

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