Construction Partners surges on record earnings backlog
Civil infrastructure contractor beats Q1 estimates by 53% and raises fiscal 2026 outlook
Construction Partners Inc. shares climbed 2.8% on Wednesday after the civil infrastructure contractor reported first-quarter results that blew past analyst expectations and raised its full-year outlook on a record order book.
The Dothan, Alabama-based company earned $0.47 per share in the fiscal first quarter ended December, crushing the $0.31 average estimate from Wall Street analysts, representing a 53% upside surprise. Revenue of $809.5 million exceeded expectations by 8.9% and surged 44.1% from the same period last year, according to the SEC filing.
Perhaps most significantly for investors, adjusted EBITDA jumped 63.1% to $112.2 million, delivering a record margin of 13.9%—a substantial improvement from the year-ago period. The strong performance enabled management to lift guidance across all key metrics for fiscal 2026, with revenue now projected at $3.48 billion to $3.56 billion and adjusted EBITDA of $534 million to $550 million.
The company's backlog reached $3.09 billion, a record level that provides substantial visibility into future revenue streams. Construction Partners specializes in highway construction and maintenance across the Southeastern United States, with operations concentrated in Alabama, Florida, Georgia, North Carolina and South Carolina—states that have been beneficiaries of increased public infrastructure spending in recent years.
"We delivered exceptional first quarter results, exceeding our expectations across all key financial metrics," the company stated in the regulatory filing, attributing the performance to strong execution across its project portfolio and favorable market conditions in its core geographies.
The earnings beat has caught the attention of institutional investors, who already own 99.1% of Construction Partners' outstanding shares. Analysts remain broadly positive on the stock, with four buy ratings and two hold ratings among covering firms. The average analyst target price stands at $127.43, roughly 8% above Wednesday's trading level of $117.94, according to market data.
The company's growth trajectory has accelerated sharply in recent quarters. Quarterly earnings growth reached 80.9% year-over-year, while revenue growth checked in at 67.2%, according to the most recent financial statements. Construction Partners now commands a market valuation of approximately $6.6 billion.
The infrastructure sector has been a bright spot in the industrials landscape, driven by increased government spending on transportation networks and aging infrastructure requiring rehabilitation. The bipartisan infrastructure law passed in 2021 has begun funneling hundreds of billions of dollars into highway, bridge and road projects, benefiting contractors with established positions in high-growth states.
Construction Partners' strong showing comes as investors increasingly favor companies with visible revenue pipelines in uncertain economic environments. The company's record backlog suggests that momentum may continue into subsequent quarters, though the relatively elevated valuation—trading at 39.5 times forward earnings—leaves little room for execution missteps.
Looking ahead, investors will be watching whether the company can maintain the expanded EBITDA margins achieved in the first quarter, as margin expansion has been a key driver of the earnings outperformance. With 80.9% quarterly earnings growth already on the books, the bar has been raised heading into the remainder of fiscal 2026.