Key Takeaways Orion has outperformed in 2026, supported by improving fundamentals and a growing backlog.Marine, defense, data center and industrial projects support Orion's long-term growth outlook.Orion offers stronger earnings growth and a lower forward P/E than its roadway-focused rival. Infrastructure investment remains one of the strongest long-term themes in the U.S. construction market, supported by federal transportation funding, defense-related spending, data center expansion and continued population growth across high-growth regions. Companies with specialized capabilities, disciplined execution and healthy project pipelines stand to benefit the most. Orion Group Holdings (ORN - Free Report) and Construction Partners (ROAD - Free Report) are two infrastructure-focused companies with distinct business models.
Orion specializes in marine infrastructure and commercial concrete construction, while Construction Partners is a vertically integrated roadway infrastructure contractor concentrated across the Sunbelt. Both operate in attractive niches with favorable long-term demand drivers, making them compelling stocks to compare today.
Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Orion StockOrion has continued to execute well in 2026, supported by strengthening demand across both its Marine and Concrete businesses. The company began the year with double-digit revenue growth, a return to GAAP profitability and positive operating cash flow while reaffirming its full-year outlook. Its growing backlog and massive $24 billion pursuit pipeline provide strong revenue visibility over the next several years.
The biggest attraction remains Orion's exposure to mission-critical marine infrastructure. Rising U.S. defense spending, shipyard modernization, port expansion and coastal resilience projects continue to expand bidding opportunities. Management also highlighted increasing opportunities in energy, petrochemical and export infrastructure, while the recently acquired J.E. McAmis broadens Orion's technical capabilities and geographic reach. The investor presentation further highlights multiple secular tailwinds, including the Infrastructure Investment and Jobs Act, U.S. Navy projects, LNG infrastructure, manufacturing reshoring and AI-driven data center construction.
Its Concrete business has become another important growth engine. Data centers accounted for roughly 40% of segment revenue during the first quarter, while opportunities are expanding into advanced manufacturing, transportation and cold-storage facilities. Strong bookings, broader service offerings and growing site-development capabilities continue supporting margin improvement.
Nevertheless, Orion still carries execution risks. Marine construction projects tend to be larger, longer duration and inherently more complex than conventional civil projects, making earnings more sensitive to project timing and execution. The J.E. McAmis acquisition also introduces integration risk, while the company continues to operate with relatively modest profitability compared with larger infrastructure peers.
The Case for Construction Partners StockConstruction Partners continues to benefit from one of the strongest operating environments in the U.S. road construction market. The company's vertically integrated model, decentralized operating structure and concentration across fast-growing Sunbelt states have consistently translated into robust execution and expanding profitability.
Fiscal second-quarter 2026 results reinforced this strength. Revenues increased 35%, adjusted EBITDA rose 35%, backlog reached another record of $3.14 billion and management raised full-year guidance across revenue, earnings and EBITDA. Organic revenue growth remained healthy despite substantial acquisition activity, demonstrating strong underlying demand.
Construction Partners also benefits from structural advantages that help protect margins. Vertical integration across asphalt plants, aggregates and liquid asphalt terminals limits commodity cost volatility, while pass-through pricing mechanisms reduce exposure to energy inflation. Management continues to execute a disciplined acquisition strategy, completing multiple acquisitions while expanding organically through new facilities across attractive regional markets. Long-term opportunities remain supported by state transportation spending, federal infrastructure programs and robust commercial activity tied to data centers, warehouses and manufacturing.
The primary challenge is valuation. Despite the recent pullback, ROAD still trades at a premium multiple relative to many construction peers. The company also continues to carry elevated leverage following its acquisition strategy, although management expects leverage to trend lower through strong operating cash generation. Furthermore, acquisition-driven growth requires consistent integration execution to sustain margins over time.
Market Performance Favors ORN StockOrion has significantly outperformed Construction Partners in 2026. ORN shares have gained 34.7% year to date, comfortably beating both the broader Zacks Construction sector, which has advanced 8%, and the S&P 500's 8.7% gain. ROAD, in contrast, has declined 5% during the same period.
ORN vs ROAD Price Performance (YTD)
Image Source: Zacks Investment Research
Among industry peers, Sterling Infrastructure (STRL - Free Report) has delivered even stronger gains, gaining 126.8% YTD, supported by robust demand from data centers and advanced manufacturing, while Granite Construction Incorporated (GVA - Free Report) has generated comparatively moderate returns (gaining 8.1% YTD) on the back of its stable public infrastructure business. Orion's impressive outperformance suggests that investors are increasingly recognizing the company's improving fundamentals, expanding backlog and diversified growth opportunities across marine, concrete and industrial infrastructure.
Valuation Reflects Balanced Risk-RewardBoth ORN and ROAD stocks trade at premium valuations relative to the Zacks Construction sector average forward 12-month P/E of 20.22X, reflecting investors' optimism about long-term infrastructure spending. ORN trades at 25.76X forward earnings, while ROAD commands a higher multiple of 29.15X.
ORN vs ROAD Valuation (P/E F12M)
Image Source: Zacks Investment Research
Compared with the same peers discussed above, STRL stock commands a richer valuation of roughly 30.39X, supported by its premium growth profile and higher-margin exposure to mission-critical infrastructure markets. Granite Construction, meanwhile, trades at a much lower forward P/E of 15.88X, reflecting its steadier but comparatively slower growth outlook. Orion's valuation sits between these two companies, suggesting investors are assigning a premium for its improving earnings trajectory while still leaving room for upside if management continues to execute on its growth strategy.
Earnings Outlook Remains Stronger for Orion StockThe Zacks Consensus Estimate continues to favor Orion. Over the past 60 days, Orion's 2026 earnings per share (EPS) estimate has remained stable at 40 cents, while the 2027 estimate has edged down to 62 cents. Even after the minor revision, analysts expect earnings to grow 60% in 2026 and another 55% in 2027, supported by projected revenue growth of roughly 10% in both years.
ORN EPS Estimate Revision Trend
Image Source: Zacks Investment Research
Construction Partners is also expected to post healthy growth, but estimate revisions have moved in the wrong direction. The consensus estimate for fiscal 2026 and fiscal 2027 EPS has both declined over the past 60 days to $2.91 and $3.69, respectively. Although earnings are still projected to increase more than 32% in fiscal 2026, the negative estimate revisions indicate moderating analyst sentiment.
ROAD EPS Estimate Revision Trend
Image Source: Zacks Investment Research
Which Stock Offers Better Upside?Both Orion and Construction Partners are well positioned to benefit from favorable infrastructure spending trends and possess healthy long-term growth drivers. Construction Partners offers a proven operating model, strong vertical integration and excellent exposure to transportation infrastructure. Orion, meanwhile, is emerging from a successful turnaround with expanding opportunities in marine construction, defense, industrial infrastructure and data centers.
Considering Orion's stronger share-price momentum, improving profitability, attractive project pipeline and relatively more favorable earnings outlook, the stock appears to offer the better risk-reward profile at current levels. ORN stock currently carries a Zacks Rank #3 (Hold) versus Construction Partners' Zacks Rank #4 (Sell). Overall, Orion has an edge over Construction Partners for investors seeking infrastructure exposure today.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Quanex Building Products (NX - Free Report) and Construction Partners (ROAD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Quanex Building Products is sporting a Zacks Rank of #2 (Buy), while Construction Partners has a Zacks Rank of #4 (Sell). This means that NX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
NX currently has a forward P/E ratio of 10.95, while ROAD has a forward P/E of 35.86. We also note that NX has a PEG ratio of 0.78. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ROAD currently has a PEG ratio of 0.88.
Another notable valuation metric for NX is its P/B ratio of 1.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ROAD has a P/B of 6.03.
These metrics, and several others, help NX earn a Value grade of A, while ROAD has been given a Value grade of C.
NX stands above ROAD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NX is the superior value option right now.
Construction Partners, Inc. (NASDAQ:ROAD – Get Free Report)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $102.41, but opened at $105.76. Construction Partners shares last traded at $107.2560, with a volume of 577,150 shares changing hands.
Analyst Upgrades and Downgrades ROAD has been the topic of a number of recent analyst reports. Raymond James Financial decreased their target price on shares of Construction Partners from $161.00 to $150.00 and set a “strong-buy” rating on the stock in a research note on Wednesday. Zacks Research cut Construction Partners from a “strong-buy” rating to a “hold” rating in a report on Thursday. Robert W. Baird reduced their price target on shares of Construction Partners from $169.00 to $145.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 1st. Truist Financial assumed coverage on Construction Partners in a research note on Wednesday, June 3rd. They issued a “hold” rating and a $130.00 price objective for the company. Finally, B. Riley Financial raised shares of Construction Partners from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $117.00 to $135.00 in a research note on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Construction Partners presently has a consensus rating of “Moderate Buy” and an average target price of $134.17.
Check Out Our Latest Report on Construction Partners
Construction Partners Price Performance The company has a market cap of $5.91 billion, a PE ratio of 45.82, a price-to-earnings-growth ratio of 0.88 and a beta of 0.88. The company has a quick ratio of 1.21, a current ratio of 1.53 and a debt-to-equity ratio of 1.75. The firm has a 50 day simple moving average of $113.53 and a 200-day simple moving average of $117.32.
Construction Partners (NASDAQ:ROAD – Get Free Report) last released its quarterly earnings results on Friday, May 8th. The company reported $0.18 EPS for the quarter, beating the consensus estimate of ($0.05) by $0.23. Construction Partners had a net margin of 3.90% and a return on equity of 15.22%. The business had revenue of $769.20 million during the quarter, compared to analyst estimates of $678.46 million. During the same period in the prior year, the firm posted $0.08 earnings per share. The company’s quarterly revenue was up 34.6% on a year-over-year basis. As a group, research analysts predict that Construction Partners, Inc. will post 2.91 earnings per share for the current fiscal year.
Hedge Funds Weigh In On Construction Partners Large investors have recently made changes to their positions in the business. Wasatch Advisors LP boosted its position in shares of Construction Partners by 20.6% in the 2nd quarter. Wasatch Advisors LP now owns 1,008,474 shares of the company’s stock worth $119,776,000 after purchasing an additional 172,034 shares in the last quarter. Handelsbanken Fonder AB boosted its holdings in Construction Partners by 9.5% in the second quarter. Handelsbanken Fonder AB now owns 16,100 shares of the company’s stock worth $1,912,000 after acquiring an additional 1,400 shares in the last quarter. Revolve Wealth Partners LLC acquired a new position in shares of Construction Partners during the second quarter valued at about $302,000. Thurston Springer Miller Herd & Titak Inc. raised its position in shares of Construction Partners by 30.7% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 3,391 shares of the company’s stock valued at $403,000 after purchasing an additional 797 shares during the last quarter. Finally, GAMMA Investing LLC boosted its stake in Construction Partners by 29.5% in the 2nd quarter. GAMMA Investing LLC now owns 3,824 shares of the company’s stock worth $454,000 after purchasing an additional 872 shares in the last quarter. 94.83% of the stock is owned by institutional investors and hedge funds.
About Construction Partners (Get Free Report)
Construction Partners, Inc (NASDAQ: ROAD) is a specialty contractor and infrastructure solutions provider focused on road building, paving, site development and aggregate production. The company delivers a comprehensive suite of civil construction services, including roadway paving and milling, site grading and preparation, stormwater and utility installation, and full-scale asphalt plant operations. By integrating materials production with contracting capabilities, the firm aims to streamline project delivery and maintain quality control across its contracting and materials businesses.
At the heart of Construction Partners’ operations are its network of asphalt plants, quarries and aggregate production facilities.
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Allspring Global Investments Holdings LLC increased its stake in Construction Partners, Inc. (NASDAQ:ROAD – Free Report) by 19.3% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 967,350 shares of the company’s stock after purchasing an additional 156,469 shares during the quarter. Allspring Global Investments Holdings LLC owned 1.71% of Construction Partners worth $109,214,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also made changes to their positions in the company. Morse Asset Management Inc grew its holdings in Construction Partners by 300.0% in the third quarter. Morse Asset Management Inc now owns 240 shares of the company’s stock valued at $30,000 after purchasing an additional 180 shares during the period. Danske Bank A S acquired a new position in Construction Partners during the 3rd quarter worth $38,000. Harbor Investment Advisory LLC acquired a new position in Construction Partners during the first quarter worth about $39,000. Quarry LP acquired a new position in shares of Construction Partners in the third quarter worth about $42,000. Finally, NewEdge Advisors LLC boosted its position in Construction Partners by 161.1% during the 2nd quarter. NewEdge Advisors LLC now owns 564 shares of the company’s stock worth $60,000 after acquiring an additional 348 shares during the period. 94.83% of the stock is currently owned by hedge funds and other institutional investors.
Construction Partners Trading Up 2.0% NASDAQ ROAD opened at $104.47 on Friday. The firm has a market capitalization of $5.91 billion, a PE ratio of 45.82, a P/E/G ratio of 0.86 and a beta of 0.88. The stock’s 50 day moving average is $113.53 and its 200 day moving average is $117.32. Construction Partners, Inc. has a twelve month low of $93.22 and a twelve month high of $151.00. The company has a quick ratio of 1.21, a current ratio of 1.53 and a debt-to-equity ratio of 1.75.
Construction Partners (NASDAQ:ROAD – Get Free Report) last posted its quarterly earnings results on Friday, May 8th. The company reported $0.18 earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.23. The company had revenue of $769.20 million for the quarter, compared to the consensus estimate of $678.46 million. Construction Partners had a return on equity of 15.22% and a net margin of 3.90%.The firm’s quarterly revenue was up 34.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.08 EPS. Research analysts forecast that Construction Partners, Inc. will post 2.91 earnings per share for the current fiscal year.
Wall Street Analysts Forecast Growth Several brokerages have commented on ROAD. Weiss Ratings downgraded Construction Partners from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. Truist Financial began coverage on Construction Partners in a report on Wednesday, June 3rd. They set a “hold” rating and a $130.00 price objective for the company. Zacks Research upgraded Construction Partners from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Robert W. Baird decreased their target price on shares of Construction Partners from $169.00 to $145.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 1st. Finally, Raymond James Financial cut their target price on shares of Construction Partners from $161.00 to $150.00 and set a “strong-buy” rating on the stock in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Construction Partners has a consensus rating of “Moderate Buy” and a consensus target price of $134.17.
View Our Latest Stock Analysis on ROAD
Construction Partners Profile (Free Report)
Construction Partners, Inc (NASDAQ: ROAD) is a specialty contractor and infrastructure solutions provider focused on road building, paving, site development and aggregate production. The company delivers a comprehensive suite of civil construction services, including roadway paving and milling, site grading and preparation, stormwater and utility installation, and full-scale asphalt plant operations. By integrating materials production with contracting capabilities, the firm aims to streamline project delivery and maintain quality control across its contracting and materials businesses.
At the heart of Construction Partners’ operations are its network of asphalt plants, quarries and aggregate production facilities.
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S&P Dow Jones Indices issued the announcement on Thursday. The inclusion will take effect before the opening of trading next Wednesday.
• Construction Partners shares are climbing with conviction. Why is ROAD stock surging?
Rearrangement Within S&P IndicesGeographic Expansion EffortsThe index inclusion follows the company’s recent operational growth. On Monday, Construction Partners announced the acquisition of Ellsworth Construction, an asphalt manufacturing and construction business based in Tulsa, Oklahoma.
Upcoming Financial Calendar MilestonesConstruction Partners is scheduled to report its fiscal third-quarter earnings before the market opens on Friday, Aug. 7, 2026. Wall Street analysts estimate earnings per share of $1.07 alongside quarterly revenue of $960.02 million.
Technical AnalysisFriday’s push is happening after a weak multi-month trend, with the stock still trading 2.9% below its 20-day SMA ($110.56) and 7.5% below its 200-day SMA ($116.13). That "below the big averages" setup keeps rallies vulnerable to supply, especially with the 20-day SMA sitting below the 50-day SMA and the death cross (50-day below 200-day) still in place from July.
Momentum is best described as neutral: RSI is 47.39.
Key Resistance: $122.50 — Nearby ceiling that lines up with a prior pivot-style area where rebounds can stall. Key Support: $103.50 — Nearby floor that sits close to the current price zone and a recent area where buyers previously stepped in. ROAD Stock Price Activity: Construction Partners shares were up 3.89% at $106.39 at the time of publication on Friday, according to Benzinga Pro data.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Construction Partners (ROAD) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Construction Partners, Inc. (NASDAQ: ROAD) ("CPI" or the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways in local markets across the Sunbelt, today announced that it will release its fiscal 2026 third quarter results on August 7, 2026, before the market opens. In addition, the Company has scheduled a conference call to discuss its results at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on that date. The conference call may be accessed by phone or webcast, as follows:
By Phone:
Dial (412) 902-0003 at least 10 minutes before the call. A replay will be available through August 14th by dialing (201) 612-7415 and using the conference ID: 13757735#
By Webcast:
Connect to the webcast via the "Events & Presentations" page of the Company's Investor Relations website at https://ir.constructionpartners.net. Please log in at least 10 minutes before the call to register and download any necessary software. A webcast replay will be available in the same location shortly after the call.
About Construction Partners, Inc.
Construction Partners, Inc. is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. Supported by its hot-mix asphalt plants, aggregate facilities and liquid asphalt terminals, the Company focuses on the construction, repair and maintenance of surface infrastructure. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The company also performs private sector projects that include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments. To learn more, visit www.constructionpartners.net.
Contact:
Rick Black
Investor Relations
[email protected]
(713) 529-6600
Transaction Expands Company's Presence into Tulsa and Oklahoma City Markets
, /PRNewswire/ -- Construction Partners, Inc. (NASDAQ: ROAD) ("CPI" or the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways in local markets across the Sunbelt, today announced that it has acquired Ellsworth Construction, LLC ("Ellsworth"), an asphalt manufacturing and construction business headquartered in Tulsa, Oklahoma. From its hot-mix asphalt plant in Broken Arrow and its permitted asphalt plant site in Greater Oklahoma City, Ellsworth provides paving, sitework and utility services for public and private infrastructure projects throughout the Tulsa and Oklahoma City metropolitan areas, including multiple significant data center projects. The acquired operations will continue to operate as a branded division of CPI's Oklahoma platform company, Overland Corporation.
Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "We are pleased to welcome the entire Ellsworth team to the CPI family of companies. This transaction expands our presence in Oklahoma by providing us with experienced crews and strategically located facilities from which to serve the Tulsa and Oklahoma City markets, the two fastest-growing metropolitan areas in the state. We are especially pleased that Nathan Ellsworth will continue to lead the business in these markets going forward. His deep knowledge of these markets, longstanding customer relationships and reputation for operational excellence will be invaluable as we continue to build upon Overland's success in Oklahoma. In addition to Ellsworth's strong public and private construction business, the company is a leader in the growing data center construction market in Tulsa and Oklahoma City, complementing Overland's robust existing data center project portfolio in north Texas. From our earliest discussions, we recognized a shared commitment to safety, quality, customer service and taking care of our people, and we believe this strong cultural alignment will support a seamless integration and continued success together."
About Construction Partners, Inc.
Construction Partners, Inc. is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. Supported by its hot-mix asphalt plants, aggregate facilities and liquid asphalt terminals, CPI focuses on the construction, repair and maintenance of surface infrastructure. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The company also performs private sector projects that include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments. To learn more, visit www.constructionpartners.net.
Certain statements contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "seek" "continue," "estimate," "predict," "potential," "targeting," "could," "might," "may," "will," "expect," "should," "anticipate," "intend," "project," "outlook," "believe," "plan" and similar expressions or their negative. The forward-looking statements contained in this press release include, without limitation, statements relating to the benefits of a business acquisition and the expected results of the acquired business. These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors that could cause actual results to differ materially from those expressed in the forward-looking statements are set forth in the Company's most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K and other reports the Company files with the SEC. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable law.
Contact:
Rick Black
Investor Relations
[email protected]
(713) 529-6600
For Immediate ReleaseChicago, IL – June 25, 2026 – Today, Zacks Equity Research United Rentals Inc. (URI - Free Report) , Argan, Inc. (AGX - Free Report) , Simpson Manufacturing Co., Inc. (SSD - Free Report) , Everus Construction Group, Inc. (ECG - Free Report) and Construction Partners, Inc. (ROAD - Free Report) .
The Zacks Building Products - Miscellaneous industry remains under pressure amid elevated input costs, tariff-related uncertainty and an unpredictable macroeconomic environment that continues to pressure margins, complicate sourcing decisions and weigh on customer spending. Meanwhile, high interest rates and housing affordability challenges are limiting new residential construction, keeping demand uneven across several product categories.
Nevertheless, these headwinds are partly offset by sustained investment in infrastructure, power, grid modernization, data centers and advanced manufacturing, which continues to support healthy project pipelines. In addition, resilient repair and remodeling activity, coupled with growing demand for premium, energy-efficient and innovative building products, is helping companies maintain pricing power and generate stable growth despite broader market uncertainties. Against this backdrop, United Rentals Inc., Argan, Inc., Simpson Manufacturing Co., Inc., Everus Construction Group, Inc. and Construction Partners, Inc. are well-positioned to capitalize on these positive trends.
Industry DescriptionThe Zacks Building Products - Miscellaneous industry primarily comprises manufacturers, designers and distributors of home improvement and building products like ceiling systems, doors, windows, flooring and metal products. Some industry players provide solutions to rehabilitate the aging infrastructure, primarily pipelines in the wastewater, water, energy, mining and refining industries.
The companies also manufacture expansion joints and structural bearings, ventilation products, ground-mounted solar racking and commercial greenhouses, as well as mail storage (solutions including mailboxes along with package delivery products). Companies in this industrial cohort also rent out equipment to a diverse customer base, including construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities.
4 Trends Shaping the Future of the Building Products IndustryCost Inflation, Tariffs and Macroeconomic Uncertainty Persist: The industry continues to face a challenging cost environment in 2026. Manufacturers are dealing with persistent inflation in raw materials, transportation, labor and procurement, while higher wages and ongoing investments in manufacturing capacity continue to pressure operating expenses.
At the same time, evolving U.S. tariff policies and uncertainty surrounding imported construction materials have complicated sourcing strategies and increased the risk of additional input-cost inflation. Companies are responding through selective price increases, supply-chain diversification, productivity initiatives and restructuring programs, but the ability to fully pass higher costs on to customers varies across end markets.
Macroeconomic uncertainty adds another layer of risk. Elevated interest rates, cautious commercial investment and affordability challenges in residential construction have caused customers to delay purchasing decisions and adjust project timelines. Many contractors and distributors are also managing inventory conservatively, reducing order visibility for manufacturers. While infrastructure, power and data center investments remain supportive, uncertainty over trade policy, inflation and the pace of economic growth continues to weigh on business confidence, making demand forecasting and capital allocation more difficult across the industry.
Residential Construction Remains Under Pressure: The biggest challenge for the industry in 2026 continues to be the sluggish residential construction environment. Elevated mortgage rates, affordability constraints, higher home prices and cautious consumer spending have kept both new housing demand and discretionary renovation activity below historical levels.
Builders remain selective with new project launches, while customers continue delaying large purchases until financing conditions improve. Although repair and remodeling demand has been relatively resilient, weaker housing starts continue to pressure volumes across several residential-focused product categories, limiting broader industry growth.
Infrastructure, Power and Data Center Investments Support Demand: Large-scale investments in power generation, grid modernization, transportation infrastructure and AI-driven data centers remain the strongest demand drivers for the industry in 2026. Utilities continue expanding generation capacity while transmission, distribution and electrification projects are accelerating.
At the same time, hyperscale data centers, semiconductor facilities and advanced manufacturing projects require specialized building materials, engineered products and construction solutions. Public infrastructure spending, reshoring initiatives and long-duration industrial projects are also supporting healthy order pipelines and backlogs, providing companies with improved revenue visibility despite weakness in some traditional construction markets.
Repair & Remodeling and Product Innovation Remain Resilient: Although new residential construction remains uneven, repair and remodeling activity continues to provide a stable source of demand. Aging housing stock, ongoing maintenance requirements and consumers' focus on improving existing homes continue to support spending on roofing, insulation, plumbing fixtures, coatings, fastening systems and other building products.
Manufacturers are also benefiting from premium product offerings, energy-efficient solutions, sustainable materials and digital design tools that help expand market share and improve pricing. Innovation in commercial interiors, architectural products and building efficiency solutions is creating additional growth opportunities, while restructuring and productivity initiatives are supporting profitability.
Zacks Industry Rank Indicates Dull ProspectsThe Zacks Building Products – Miscellaneous industry is a 35-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #170, which places it in the bottom 31% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a lower earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Since March 2026, the industry’s earnings estimates for 2026 have decreased to $4.29 per share from $4.32.
Despite the industry’s blurred near-term view, we will present a few stocks that one may consider adding to their portfolio. Before that, it’s worth taking a look at the industry’s shareholder returns and current valuation.
Industry Lags S&P 500 & SectorThe Zacks Building Products – Miscellaneous industry has underperformed the Zacks S&P 500 Composite and the broader Zacks Construction sector over the past year.
Over this period, the industry has gained 11.6%, below the broader sector’s 23.8% increase. Meanwhile, the Zacks S&P 500 Composite has gained 26.1% over the same period.
Industry's Current ValuationOn the basis of the forward 12-month price-to-earnings, which is a commonly used multiple for valuing building products’ stocks, the industry is trading at 18.92X versus the S&P 500’s 21.32X and the sector’s 22.26X.
Over the past five years, the industry has traded as high as 19.36X, as low as 10.61X and at a median of 16.04X.
5 Building Product Stocks to Buy NowWe have selected five stocks from the Zacks universe of building products that have solid growth prospects.
Argan: Based in Arlington, VA, Argan provides EPC and related services for power and renewable energy projects, along with industrial construction and telecom infrastructure services. The company has been benefiting from a robust pipeline of energy infrastructure projects driven by rising electricity demand from data centers, electrification, EV adoption and domestic manufacturing.
Management expects to secure several new projects over the next 10-18 months while maintaining the capacity to execute 10-12 projects simultaneously. Strong demand for combined-cycle natural gas plants, continued opportunities in industrial fabrication for data centers, expansion of its North Carolina facility and selective pursuit of renewable energy projects provide additional long-term growth avenues. The company's debt-free balance sheet, disciplined project selection and proven execution further strengthen its ability to capitalize on favorable industry trends.
Argan, a Zacks Rank #1 (Strong Buy) stock, has gained 252.5% over the past year. AGX has seen an upward estimate revision for fiscal 2027 earnings to $12.60 per share from $11.44 over the past 30 days, depicting analysts’ optimism for the company’s prospects. The estimated figure indicates 29.4% year-over-year growth for fiscal 2027 on 38% growth in revenues. The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 40.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Everus: Based in Bismarck, ND, Everus delivers contracting services across the United States. Robust demand across data centers, high-tech, hospitality, utility transmission and undergrounding markets, which is driving record backlog growth, has been benefiting the company. Everus is also expanding into new geographies, securing anchor projects with major customers that should create additional award opportunities over time.
Its acquisition of SE&M broadens exposure to attractive end markets such as pharmaceuticals, healthcare and complex industrial projects while strengthening its presence in the fast-growing Southeast. Management also expects continued growth through disciplined acquisitions, organic expansion, strong customer relationships and consistent project execution, backed by a healthy acquisition pipeline and record backlog.
Everus, a Zacks Rank #1 stock, has gained 153.4% over the past year. ECG’s earnings estimates have increased for 2026 earnings to $4.39 per share from $4.13 over the past 60 days. The estimated figure indicates 11.1% year-over-year growth for 2026, on 17% growth in revenues. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 62%.
United Rentals: Headquartered in Stamford, CT, this company is the largest equipment rental company in the world. United Rentals' growth outlook remains supported by robust demand across large-scale construction and industrial projects, particularly in nonresidential construction, infrastructure, power, industrial manufacturing and data centers.
The company continues to expand its higher-growth specialty business through new branch openings and targeted fleet investments, while healthy demand for used equipment supports capital efficiency and strong free cash flow generation. Management also highlighted a multiyear pipeline of major projects, stable local markets, positive fleet productivity and disciplined capital allocation, prompting it to raise its 2026 revenues, EBITDA and capital expenditure guidance, reflecting confidence in another record year of profitable growth.
United Rentals, a Zacks Rank #2 (Buy) stock, has gained 44.4% over the past year. URI has seen an upward estimate revision for 2026 earnings to $47.26 from $47.07 per share over the past 30 days. The estimated figure indicates 12.4% year-over-year growth for 2026, on 7.1% revenue growth. The company’s earnings surpassed the Zacks Consensus Estimate in only one of the trailing four quarters and missed on the other three, with an average being negative 1.5%. It currently holds a VGM Score of B.
Simpson: Based in Pleasanton, CA, Simpson provides structural connection solutions for wood, concrete and steel globally. Despite a softer housing market, Simpson continues to see several long-term growth drivers. The company is gaining market share through new customer wins in its component manufacturing business, supported by cloud-based software, design tools and AI-enabled solutions that improve productivity.
Strong momentum in OEM products, including mass timber and prefabricated construction, also expands growth opportunities. In residential markets, cross-selling, new product launches and enhanced service offerings are helping increase content per home, while engineering expertise and code-compliant solutions position the commercial business for continued share gains. Management remains focused on delivering above-market growth through innovation and customer-centric execution.
Simpson, a Zacks Rank #2 stock, has gained 26% over the past year. SSD’s earnings estimates have increased for 2026 earnings to $9.17 per share from $8.98 over the past 60 days. The estimated figure indicates 11.3% year-over-year growth for 2026, on 4.1% growth in revenues. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.8%.
Construction Partners: Based in Dothan, AL, Construction Partners is a civil infrastructure firm focused on building and maintaining roadways across eight U.S. states. Strong demand across both public infrastructure and private construction markets is encouraging for Construction Partners.
The company continues to benefit from rising investments in data centers, manufacturing facilities, warehouses and transportation infrastructure across the Sunbelt, while maintaining a record backlog that covers most of the next 12 months of revenues. Its disciplined acquisition strategy, greenfield expansion, organic growth initiatives and robust pipeline of acquisition opportunities further strengthen long-term prospects. Management also expects continued benefits from federal and state infrastructure spending, reinforcing confidence in achieving its ROAD 2030 growth targets.
Construction Partners, a Zacks Rank #2 stock, has gained 16% over the past year. ROAD has seen an upward estimate revision for fiscal 2026 earnings to $2.95 from $2.89 per share over the past 60 days. The estimated figure indicates 34.1% year-over-year growth for fiscal 2026, on 27.1% revenue growth. The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed on the other two, with an average being 125.3%.
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The Zacks Building Products - Miscellaneous industry remains under pressure amid elevated input costs, tariff-related uncertainty and an unpredictable macroeconomic environment that continues to pressure margins, complicate sourcing decisions and weigh on customer spending. Meanwhile, high interest rates and housing affordability challenges are limiting new residential construction, keeping demand uneven across several product categories.
Nevertheless, these headwinds are partly offset by sustained investment in infrastructure, power, grid modernization, data centers and advanced manufacturing, which continues to support healthy project pipelines. In addition, resilient repair and remodeling activity, coupled with growing demand for premium, energy-efficient and innovative building products, is helping companies maintain pricing power and generate stable growth despite broader market uncertainties. Against this backdrop, United Rentals Inc. (URI - Free Report) , Argan, Inc. (AGX - Free Report) , Simpson Manufacturing Co., Inc. (SSD - Free Report) , Everus Construction Group, Inc. (ECG - Free Report) and Construction Partners, Inc. (ROAD - Free Report) are well-positioned to capitalize on these positive trends.
Industry Description The Zacks Building Products - Miscellaneous industry primarily comprises manufacturers, designers and distributors of home improvement and building products like ceiling systems, doors, windows, flooring and metal products. Some industry players provide solutions to rehabilitate the aging infrastructure, primarily pipelines in the wastewater, water, energy, mining and refining industries. The companies also manufacture expansion joints and structural bearings, ventilation products, ground-mounted solar racking and commercial greenhouses, as well as mail storage (solutions including mailboxes along with package delivery products). Companies in this industrial cohort also rent out equipment to a diverse customer base, including construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities.
4 Trends Shaping the Future of the Building Products Industry Cost Inflation, Tariffs and Macroeconomic Uncertainty Persist: The industry continues to face a challenging cost environment in 2026. Manufacturers are dealing with persistent inflation in raw materials, transportation, labor and procurement, while higher wages and ongoing investments in manufacturing capacity continue to pressure operating expenses. At the same time, evolving U.S. tariff policies and uncertainty surrounding imported construction materials have complicated sourcing strategies and increased the risk of additional input-cost inflation. Companies are responding through selective price increases, supply-chain diversification, productivity initiatives and restructuring programs, but the ability to fully pass higher costs on to customers varies across end markets.
Macroeconomic uncertainty adds another layer of risk. Elevated interest rates, cautious commercial investment and affordability challenges in residential construction have caused customers to delay purchasing decisions and adjust project timelines. Many contractors and distributors are also managing inventory conservatively, reducing order visibility for manufacturers. While infrastructure, power and data center investments remain supportive, uncertainty over trade policy, inflation and the pace of economic growth continues to weigh on business confidence, making demand forecasting and capital allocation more difficult across the industry.
Residential Construction Remains Under Pressure: The biggest challenge for the industry in 2026 continues to be the sluggish residential construction environment. Elevated mortgage rates, affordability constraints, higher home prices and cautious consumer spending have kept both new housing demand and discretionary renovation activity below historical levels. Builders remain selective with new project launches, while customers continue delaying large purchases until financing conditions improve. Although repair and remodeling demand has been relatively resilient, weaker housing starts continue to pressure volumes across several residential-focused product categories, limiting broader industry growth.
Infrastructure, Power and Data Center Investments Support Demand: Large-scale investments in power generation, grid modernization, transportation infrastructure and AI-driven data centers remain the strongest demand drivers for the industry in 2026. Utilities continue expanding generation capacity while transmission, distribution and electrification projects are accelerating. At the same time, hyperscale data centers, semiconductor facilities and advanced manufacturing projects require specialized building materials, engineered products and construction solutions. Public infrastructure spending, reshoring initiatives and long-duration industrial projects are also supporting healthy order pipelines and backlogs, providing companies with improved revenue visibility despite weakness in some traditional construction markets.
Repair & Remodeling and Product Innovation Remain Resilient: Although new residential construction remains uneven, repair and remodeling activity continues to provide a stable source of demand. Aging housing stock, ongoing maintenance requirements and consumers' focus on improving existing homes continue to support spending on roofing, insulation, plumbing fixtures, coatings, fastening systems and other building products. Manufacturers are also benefiting from premium product offerings, energy-efficient solutions, sustainable materials and digital design tools that help expand market share and improve pricing. Innovation in commercial interiors, architectural products and building efficiency solutions is creating additional growth opportunities, while restructuring and productivity initiatives are supporting profitability.
Zacks Industry Rank Indicates Dull Prospects The Zacks Building Products – Miscellaneous industry is a 35-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #170, which places it in the bottom 31% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a lower earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Since March 2026, the industry’s earnings estimates for 2026 have decreased to $4.29 per share from $4.32.
Despite the industry’s blurred near-term view, we will present a few stocks that one may consider adding to their portfolio. Before that, it’s worth taking a look at the industry’s shareholder returns and current valuation.
Industry Lags S&P 500 & Sector The Zacks Building Products – Miscellaneous industry has underperformed the Zacks S&P 500 Composite and the broader Zacks Construction sector over the past year.
Over this period, the industry has gained 11.6%, below the broader sector’s 23.8% increase. Meanwhile, the Zacks S&P 500 Composite has gained 26.1% over the same period.
One-Year Price Performance
Industry's Current Valuation On the basis of the forward 12-month price-to-earnings, which is a commonly used multiple for valuing building products’ stocks, the industry is trading at 18.92X versus the S&P 500’s 21.32X and the sector’s 22.26X.
Over the past five years, the industry has traded as high as 19.36X, as low as 10.61X and at a median of 16.04X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
Industry’s P/E Ratio (Forward 12-Month) Versus Sector
5 Building Product Stocks to Buy Now We have selected five stocks from the Zacks universe of building products that have solid growth prospects.
Argan: Based in Arlington, VA, Argan provides EPC and related services for power and renewable energy projects, along with industrial construction and telecom infrastructure services. The company has been benefiting from a robust pipeline of energy infrastructure projects driven by rising electricity demand from data centers, electrification, EV adoption and domestic manufacturing. Management expects to secure several new projects over the next 10-18 months while maintaining the capacity to execute 10-12 projects simultaneously. Strong demand for combined-cycle natural gas plants, continued opportunities in industrial fabrication for data centers, expansion of its North Carolina facility and selective pursuit of renewable energy projects provide additional long-term growth avenues. The company's debt-free balance sheet, disciplined project selection and proven execution further strengthen its ability to capitalize on favorable industry trends.
Argan, a Zacks Rank #1 (Strong Buy) stock, has gained 252.5% over the past year. AGX has seen an upward estimate revision for fiscal 2027 earnings to $12.60 per share from $11.44 over the past 30 days, depicting analysts’ optimism for the company’s prospects. The estimated figure indicates 29.4% year-over-year growth for fiscal 2027 on 38% growth in revenues. The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 40.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: AGX
Everus: Based in Bismarck, ND, Everus delivers contracting services across the United States. Robust demand across data centers, high-tech, hospitality, utility transmission and undergrounding markets, which is driving record backlog growth, has been benefiting the company. Everus is also expanding into new geographies, securing anchor projects with major customers that should create additional award opportunities over time. Its acquisition of SE&M broadens exposure to attractive end markets such as pharmaceuticals, healthcare and complex industrial projects while strengthening its presence in the fast-growing Southeast. Management also expects continued growth through disciplined acquisitions, organic expansion, strong customer relationships and consistent project execution, backed by a healthy acquisition pipeline and record backlog.
Everus, a Zacks Rank #1 stock, has gained 153.4% over the past year. ECG’s earnings estimates have increased for 2026 earnings to $4.39 per share from $4.13 over the past 60 days. The estimated figure indicates 11.1% year-over-year growth for 2026, on 17% growth in revenues. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 62%.
Price and Consensus: ECG
United Rentals: Headquartered in Stamford, CT, this company is the largest equipment rental company in the world. United Rentals' growth outlook remains supported by robust demand across large-scale construction and industrial projects, particularly in nonresidential construction, infrastructure, power, industrial manufacturing and data centers. The company continues to expand its higher-growth specialty business through new branch openings and targeted fleet investments, while healthy demand for used equipment supports capital efficiency and strong free cash flow generation. Management also highlighted a multiyear pipeline of major projects, stable local markets, positive fleet productivity and disciplined capital allocation, prompting it to raise its 2026 revenues, EBITDA and capital expenditure guidance, reflecting confidence in another record year of profitable growth.
United Rentals, a Zacks Rank #2 (Buy) stock, has gained 44.4% over the past year. URI has seen an upward estimate revision for 2026 earnings to $47.26 from $47.07 per share over the past 30 days. The estimated figure indicates 12.4% year-over-year growth for 2026, on 7.1% revenue growth. The company’s earnings surpassed the Zacks Consensus Estimate in only one of the trailing four quarters and missed on the other three, with an average being negative 1.5%. It currently holds a VGM Score of B.
Price and Consensus: URI
Simpson: Based in Pleasanton, CA, Simpson provides structural connection solutions for wood, concrete and steel globally. Despite a softer housing market, Simpson continues to see several long-term growth drivers. The company is gaining market share through new customer wins in its component manufacturing business, supported by cloud-based software, design tools and AI-enabled solutions that improve productivity. Strong momentum in OEM products, including mass timber and prefabricated construction, also expands growth opportunities. In residential markets, cross-selling, new product launches and enhanced service offerings are helping increase content per home, while engineering expertise and code-compliant solutions position the commercial business for continued share gains. Management remains focused on delivering above-market growth through innovation and customer-centric execution.
Simpson, a Zacks Rank #2 stock, has gained 26% over the past year. SSD’s earnings estimates have increased for 2026 earnings to $9.17 per share from $8.98 over the past 60 days. The estimated figure indicates 11.3% year-over-year growth for 2026, on 4.1% growth in revenues. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.8%.
Price and Consensus: SSD
Construction Partners: Based in Dothan, AL, Construction Partners is a civil infrastructure firm focused on building and maintaining roadways across eight U.S. states. Strong demand across both public infrastructure and private construction markets is encouraging for Construction Partners. The company continues to benefit from rising investments in data centers, manufacturing facilities, warehouses and transportation infrastructure across the Sunbelt, while maintaining a record backlog that covers most of the next 12 months of revenues. Its disciplined acquisition strategy, greenfield expansion, organic growth initiatives and robust pipeline of acquisition opportunities further strengthen long-term prospects. Management also expects continued benefits from federal and state infrastructure spending, reinforcing confidence in achieving its ROAD 2030 growth targets.
Construction Partners, a Zacks Rank #2 stock, has gained 16% over the past year. ROAD has seen an upward estimate revision for fiscal 2026 earnings to $2.95 from $2.89 per share over the past 60 days. The estimated figure indicates 34.1% year-over-year growth for fiscal 2026, on 27.1% revenue growth. The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed on the other two, with an average being 125.3%.
On June 22, 2026, Construction Partners Inc ROAD shares rose 3.4% to a current price of $126.96. This price movement comes amidst a strong performance over the past year, with the stock up 24.1% and trading within a 52-week range of $93.22 to $151.00.
GF Value™ verdict: Currently priced at $126.96, which is 5.3% above the GF Value™ estimate of $120.57.GF Score™ of 91/100 indicates a strong overall performance compared to peers.No insider transactions have occurred in the last 3 months, suggesting a period of stability in management activity. Is ROAD Overvalued or Undervalued? Construction Partners Inc's current share price of $126.96 exceeds the GF Value™ estimate of $120.57, indicating a 5.3% overvaluation. The GF Valuation label categorizes the stock as fairly valued, which suggests that while the stock's price is above its intrinsic value, it is not excessively so. The margin of safety appears limited, meaning that there could be a risk of price correction if market conditions shift or if the company fails to meet growth expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Given the current valuation, investors might consider the implications of this overvaluation. If the market corrects towards the GF Value™, shareholders could face a decline in price. Alternatively, should the company continue to deliver strong growth and performance, it may justify its current price, though caution is warranted given the current valuation metrics.
How Does ROAD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 55.7x 65.1x (5-Year Median) Forward P/E 33.3x N/A The current P/E ratio of 55.7x is below the 5-year median of 65.1x, suggesting that the stock is trading at a relatively lower valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, as it shows that while the stock is currently overvalued based on GF Value™, it is less expensive compared to its historical trading multiples, which could indicate potential for future growth or correction.
What Does ROAD's GF Score™ Tell Us? Metric Rating GF Score™ 91 Financial Strength 5/10 Profitability 8/10 Growth 10/10 Valuation 7/10 Momentum 8/10 The GF Score™ of 91/100 indicates a strong overall performance, particularly in the Growth category, where it scored 10/10. This suggests that Construction Partners Inc is experiencing robust growth prospects. However, its Financial Strength score of 5/10 indicates that there may be some concerns regarding its balance sheet and financial stability. The combination of high profitability and momentum scores reflects a positive outlook for the company, but the average financial strength score could be a point of concern for potential investors.
What Are Insiders Doing with ROAD Stock? In the last three months, there have been no insider transactions reported for Construction Partners Inc. This lack of activity could suggest a sense of stability or confidence among management in the company's current trajectory. Typically, insider buying can be seen as a positive signal, while selling may raise questions about future performance. However, in this case, the absence of transactions means there are no immediate indicators of insider sentiment regarding the stock.
What This Means for Investors Based on the GF Value™ assessment, Construction Partners Inc is currently overvalued with a price of $126.96 compared to a GF Value™ of $120.57. While the company has a strong GF Score™ of 91/100, indicating solid growth and profitability, caution is warranted due to the overvaluation in relation to its intrinsic value.
For the complete analysis, visit the Construction Partners Inc ROAD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ROAD's GF Score™?
ROAD's GF Score™ is 91/100, indicating a strong overall performance that is likely to yield higher long-term returns compared to its peers.
Is ROAD overvalued or undervalued?
ROAD is currently overvalued, with a price of $126.96 being 5.3% above its GF Value™ estimate of $120.57.
What is ROAD's P/E ratio?
ROAD's P/E (TTM) is 55.7x, which is lower than its 5-year median of 65.1x, suggesting it is trading at a more attractive valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Vancouver, British Columbia--(Newsfile Corp. - June 15, 2026) - Mineral Road Discovery Inc. (CSE: ROAD) (the "Company" or "ROAD") is pleased to announce that, further to its recent news releases, it has closed the third tranche of its non-brokered private placement. The Company has issued an additional 1,000,000 units at a price of $0.06 per unit for proceeds of $60,000 (the "Private Placement"). Each unit consists of one common share and one warrant, with each warrant entitling the holder to purchase one common share at a price of $0.08 for a period of three years expiring June 12, 2029. Proceeds will be used for general working capital. All securities issued will be subject to a four month hold period expiring October 13, 2026.
The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements. "United States" and "U.S. person" have the respective meanings assigned in Regulation S under the U.S Securities Act.
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Not for distribution to United States Newswire Services or for dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301586
Vancouver, British Columbia--(Newsfile Corp. - May 1, 2026) - Mineral Road Discovery Inc. (CSE: ROAD) (the "Company" or "ROAD") is pleased to announce that it has closed the first tranche of its non-brokered private placement previously announced on April 8, 2026. The Company has issued 3,000,000 units at a price of $0.06 per unit for proceeds of $180,000 (the "Private Placement"). Each unit consists of one common share and one warrant, each warrant entitling the holder to purchase one common share at a price of $0.08 for a period of three years expiring May 1, 2029. Proceeds will be used for general working capital. All securities issued will be subject to a four month hold period expiring September 2, 2026.
Mineral Road Partners Inc. ("MR Partners"), a company controlled by Damien Reynolds, the Company's Chairman, interim CEO and Director, acquired 3,000,000 units of the Company. As a result, MR Partners now owns, directly and indirectly, 70% of the outstanding shares of the Company or 75.55% assuming exercise of all warrants held by MR Partners and is a "control person" as that term is defined under securities legislation.
MR Partners purchased the units for investment purposes. The Private Placement and the acceptance of the subscription by MR Partners was approved by unanimous resolution of the board of directors of the Company. There was no formal valuation of the Company done in connection with the Private Placement nor has there been such a formal valuation in the past 24 months. The Company relied upon the exemptions contained in Section 5.5(b) and 5.7(b) of Multilateral Instrument 61-101 ("MI 61-101") to avoid the formal valuation and shareholder approval requirements of MI 61-101. For the purposes of Section 5.5(b), the Company does not have any securities listed on any of the stock exchanges set out in Section 5.5(b) and for the purposes of Section 5.7(b) the exemption was available as the consideration paid for the units subscribed for by MR Partners was less than $2,500,000.
The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements. "United States" and "U.S. person" have the respective meanings assigned in Regulation S under the U.S Securities Act.
The Company also announces the resignation of Jason Cubitt as a Director of the Company effective May 1, 2026. The Company wishes to thank Mr. Cubitt for his significant contributions to the Company and wishes him success on his new endeavours.
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Not for distribution to United States Newswire Services or for dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295559
Source: Mineral Road Discovery Inc.
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Key Takeaways Construction Partners expects Q2 revenue to be up 20.2% YoY on strong infrastructure demand.ROAD projects a loss of five cents per share, down from earnings of eight cents a year ago.Higher costs, labor issues and acquisition expenses may pressure margins despite growth. Construction Partners, Inc. (ROAD - Free Report) is scheduled to report its second-quarter fiscal 2026 results on May 8, before the opening bell.
In the last reported quarter, the company’s adjusted earnings and revenues topped the Zacks Consensus Estimate by 51.6% and 7%, respectively. Also, the bottom and the top lines grew 88% and 44.1% year over year, respectively.
Construction Partners’ earnings topped the consensus mark in two of the trailing four quarters and missed on the remaining two occasions, the average surprise being 85.3%.
How are Estimates Placed for ROAD Stock?The Zacks Consensus Estimate for the company's fiscal second-quarter earnings indicates a loss per share of five cents, which has widened over the past 30 days from four cents per share. The estimated figure indicates a 162.5% year-over-year plunge from earnings per share (EPS) of eight cents.
The consensus mark for revenues is pegged at $687 million, suggesting growth of 20.2% from the year-ago reported figure of $571.7 million.
Factors to Note Ahead of Construction Partners’ Q2 ResultsConstruction Partners’ top-line performance in the fiscal second quarter is expected to have been boosted by the robust public infrastructure spending trends, resulting in increased project activity. Besides, non-residential private construction activity is also likely to have witnessed modest growth trends, supporting the company’s revenue growth. Moreover, its recent acquisitions in Texas and Florida expanded its geographical reach in high-growth regions that feature robust public and private project activity. This provides attractive opportunities for ROAD to expand market share and likely take advantage of its scale.
However, despite strong operational performance and increased market demand, the company’s bottom line is likely to have witnessed a significant downturn during the fiscal second quarter. The tepid scenario is expected to have mainly stemmed from the ongoing economic and geopolitical challenges, like the Iran conflict and labor shortages.
Also, an increase in general and administrative expenses and acquisition-related costs is likely to have taken a toll on the margin growth during the quarter.
Nonetheless, Construction Partners’ profitable business initiatives, including a local market dynamic approach, along with its focus on short-duration and low-risk projects, are likely to enable it to continue its growth momentum in this uncertain market.
What the Zacks Model Unveils for ROADOur proven model conclusively predicts an earnings beat for Construction Partners this time around. The company possesses the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — which increases the odds of an earnings beat.
ROAD’s Earnings ESP: The company has an Earnings ESP of +57.14%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
ROAD’s Zacks Rank: The stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Construction ReleasesCRH plc (CRH - Free Report) posted an adjusted loss in the first quarter of 2026, which came in wider than the Zacks Consensus Estimate and the value reported a year ago. On the other hand, total revenues topped the consensus mark and grew year over year.
CRH’s top-line growth was driven by positive underlying demand and contributions from recent tuck-in acquisitions, with the company highlighting momentum across infrastructure-led end markets. Cost pressures, along with heavier non-cash charges tied to portfolio actions, created a tougher bridge from revenue growth to per-share results. For 2026, CRH reaffirmed guidance calling for net income of $3.9-$4.1 billion and EPS of $5.60-$6.05.
Quanta Services, Inc. (PWR - Free Report) reported a strong first-quarter 2026 performance, driven by solid execution across both of its operating segments. Management said revenue growth and margin performance exceeded its expectations across the business, supported by the company’s solutions-based model and “execution certainty” from its craft-skilled workforce.
Total backlog was $48.5 billion at March 31, 2026, reflecting continued demand across Quanta’s end markets. For 2026, Quanta now forecasts consolidated revenues of $34.7-$35.2 billion and adjusted EPS of $13.55-$14.25. Adjusted EBITDA is projected to be in the range of $3.49-$3.65 billion, up from the earlier expectation of $3.34–$3.50 billion.
Weyerhaeuser Company (WY - Free Report) reported mixed first-quarter 2026 results with adjusted EPS topping the Zacks Consensus Estimate, while the revenues marginally missed the same. Year over year, the bottom line remained flat while the top line declined. Weyerhaeuser’s first quarter was shaped by a sharp sequential recovery in profitability, with adjusted EBITDA jumping to $308 million, helped by a sizeable conservation easement transaction and improved results across operating segments.
For second-quarter 2026, Timberlands earnings (before special items) and adjusted EBITDA are expected to be comparable with first-quarter 2026 levels. Strategic Land Solutions is expected to step down materially, with earnings about down $80 million and adjusted EBITDA about $70 million lower than the first quarter of 2026.
Revenue Up 35% Compared to Q2 FY25
Adjusted Net Income Up 136% Compared to Q2 FY25
Adjusted EBITDA Up 35% Compared to Q2 FY25
Record Backlog of $3.14 Billion
Company Raises FY26 Outlook
, /PRNewswire/ -- Construction Partners, Inc. (NASDAQ: ROAD) ("CPI" or the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways in local markets throughout the Sunbelt, today reported financial and operating results for the fiscal quarter ended March 31, 2026.
Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "We delivered a strong quarter, driven by exceptional execution across the business. Our teams throughout our family of companies performed at a high level, consistently outperforming on project delivery, productivity, and safety. Favorable weather conditions further supported our ability to advance work efficiently and exceed expectations. Additionally, energy cost volatility had a limited impact on results due to the pass-through nature of our project contracts, as well as the physical hedge inherent to our vertical integration. Strong financial performance in the quarter led to 35 percent growth in both revenue and Adjusted EBITDA, including 11 percent organic revenue growth. Our local teams across our Sunbelt footprint continued to capture meaningful project wins, driving our backlog to a record $3.14 billion. With the peak construction season ahead in the second half of our fiscal year, we are raising our FY 2026 outlook, and we are well-positioned to execute against this record backlog and sustain our growth momentum."
Revenues were $769.2 million in the second quarter of fiscal 2026, an increase of 34.5% compared to $571.7 million in the same quarter last year.
Gross profit was $98.9 million in the second quarter of fiscal 2026, compared to $71.4 million in the same quarter last year.
General and administrative expenses were $63.6 million in the second quarter of fiscal 2026, compared to $46.7 million in the same quarter last year, and as a percentage of total revenues, was 8.3%, compared to 8.2% in the same quarter last year.
Net income was $9.2 million in the second quarter of fiscal 2026 and diluted earnings per share were $0.16, compared to net income of $4.2 million and diluted earnings per share of $0.08 in the same quarter last year.
Adjusted net income(1) was $10.4 million in the second quarter of fiscal 2026, compared to Adjusted net income of $4.4 million in the same quarter last year. Using Adjusted net income, diluted earnings per share would have been $0.18 for the second quarter of fiscal 2026, compared to $0.08 in the same quarter last year.
Adjusted EBITDA(1) in the second quarter of fiscal 2026 was $93.3 million, an increase of 34.6% compared to $69.3 million in the same quarter last year.
Project backlog was a record $3.14 billion at March 31, 2026, compared to $2.84 billion at March 31, 2025 and $3.09 billion at December 31, 2025.
Smith added, "Our performance is a testament to the hard work and dedication of our people. A deeply embedded culture of operational excellence, disciplined project execution, and an unwavering commitment to safety continues to unite our family of companies, driving results and reinforcing CPI's reputation as an acquirer of choice across our eight-state footprint. We were pleased to have completed our latest strategic acquisition in April with the purchase of Four Star Paving by our Tennessee platform company, Pavement Restorations, Inc. ("PRI"). This transaction strengthens our vertical integration of services and enhances our capabilities and scale across the middle Tennessee region. As the Nashville metro area continues to rapidly grow, we are now better positioned than ever to participate in the resulting construction projects and opportunities. Reflecting our strong second quarter results and incorporating the expected contribution of Four Star Paving, we are raising our fiscal 2026 outlook ranges. We remain confident in CPI's growth trajectory and expanding profitability and are focused on delivering long-term value for our investors and other stakeholders."
Fiscal 2026 Outlook
The Company is raising its outlook for fiscal year 2026 with regard to revenue, net income, Adjusted net income, Adjusted EBITDA and Adjusted EBITDA margin as follows:
Revenue in the range of $3.590 billion to $3.650 billion Net income in the range of $159.0 million to $162.0 million Adjusted net income(1) in the range $170.4 million to $174.2 million Adjusted EBITDA(1) in the range of $552.0 million to $564.0 million Adjusted EBITDA margin(1) in the range of 15.38% to 15.45% Ned N. Fleming, III, the Company's Executive Chairman, stated, "We are pleased with our team's strong execution this quarter as we continue to advance CPI's proven growth strategy. Our differentiated business model, built on cost pass-through, vertical integration, and a decentralized partnership approach, remains a powerful and often underappreciated driver of sustainable results. Supported by a strong balance sheet, disciplined leadership, and an expanding Sunbelt footprint, CPI is well-positioned to compound shareholder value through both geographic expansion and increasing operational scale. The long-term demand environment remains compelling. Growing infrastructure repair and maintenance needs, sustained population migration, economic expansion, and rising roadway capacity demands across the Sunbelt continue to create a durable and growing addressable market for our services. Against this powerful backdrop, the Board and I remain highly confident in CPI's long-term trajectory and the significant opportunities ahead."
Conference Call
The Company will conduct a conference call today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss financial and operating results for the fiscal quarter ended March 31, 2026. To access the call live by phone, dial (412) 902-0003 and ask for the Construction Partners call at least 10 minutes prior to the start time. A webcast of the call will also be available live and for later replay on the Company's Investor Relations website at www.constructionpartners.net.
About Construction Partners, Inc.
Construction Partners, Inc. is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. Supported by its hot-mix asphalt plants, aggregate facilities and liquid asphalt terminals, the Company focuses on the construction, repair and maintenance of surface infrastructure. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The company also performs private sector projects that include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments. To learn more, visit www.constructionpartners.net.
Certain statements contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "project," "outlook," "believe" and "plan." The forward-looking statements contained in this press release include, without limitation, statements related to financial projections, future events, business strategy, future performance, future operations, backlog, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management. These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, among others: our ability to successfully manage and integrate acquisitions; failure to realize the expected economic benefits of acquisitions, including future levels of revenues being lower than expected and costs being higher than expected; failure or inability to implement growth strategies in a timely manner; declines in public infrastructure construction and reductions in government funding, including the funding by transportation authorities and other state and local agencies; risks related to our operating strategy; competition for projects in our local markets; risks associated with our capital-intensive business; government requirements and initiatives, including those related to funding for public or infrastructure construction, land usage and environmental, health and safety matters; unfavorable economic conditions and restrictive financing markets; our ability to obtain sufficient bonding capacity to undertake certain projects; our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us; the cancellation of a significant number of contracts or our disqualification from bidding for new contracts; risks related to adverse weather conditions; our substantial indebtedness and the restrictions imposed on us by the terms thereof; our ability to maintain favorable relationships with third parties that supply us with equipment and essential supplies; our ability to retain key personnel and maintain satisfactory labor relations; property damage, results of litigation and other claims and insurance coverage issues; risks related to our information technology systems and infrastructure; our ability to maintain effective internal control over financial reporting; and the risks, uncertainties and factors set forth under "Risk Factors" in the Company's most recent Annual Report on Form 10-K and its subsequently filed Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable law.
Contact:
Rick Black
Dennard Lascar Investor Relations
[email protected]
(713) 529-6600
(1) Adjusted net income, Adjusted EBITDA and Adjusted EBITDA margin are financial measures not presented in accordance with generally accepted accounting principles ("GAAP"). Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this press release.
- Financial Statements Follow -
Construction Partners, Inc.
Consolidated Statements of Comprehensive Income
(unaudited in thousands, except share and per share data)
For the Three Months
Ended March 31,
For the Six Months
Ended March 31,
2026
2025
2026
2025
Revenues
$ 769,196
$ 571,650
$ 1,578,665
$ 1,133,230
Cost of revenues
670,343
500,300
1,358,312
985,309
Gross profit
98,853
71,350
220,353
147,921
General and administrative expenses
(63,596)
(46,662)
(125,097)
(90,928)
Acquisition-related expenses
(2,480)
(806)
(14,109)
(20,358)
Gain on sale of property, plant and equipment, net
4,606
3,407
6,645
4,462
Operating income
37,383
27,289
87,792
41,097
Interest expense, net
(25,590)
(21,592)
(52,960)
(39,722)
Other income (expense)
276
(159)
23
262
Income before provision for income taxes and earnings from
investment in joint venture
12,069
5,538
34,855
1,637
Provision for income taxes
2,889
1,310
8,469
461
Loss from investment in joint venture
—
(13)
(1)
(12)
Net income
9,180
4,215
26,385
1,164
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on interest rate swap contract, net
58
(2,890)
(1,152)
(21)
Unrealized gain (loss) on restricted investments, net
(158)
231
(122)
(102)
Other comprehensive (loss)
(100)
(2,659)
(1,274)
(123)
Comprehensive income
$ 9,080
$ 1,556
$ 25,111
$ 1,041
Net income per share attributable to common stockholders:
Basic
$ 0.16
$ 0.08
$ 0.47
$ 0.02
Diluted
$ 0.16
$ 0.08
$ 0.47
$ 0.02
Weighted average number of common shares outstanding:
Basic
55,917,842
55,248,526
55,860,888
54,698,442
Diluted
56,256,531
55,669,646
56,150,804
55,141,358
Construction Partners, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
March 31,
September 30,
2026
2025
ASSETS
(unaudited)
Current assets:
Cash and cash equivalents
$ 76,860
$ 156,062
Restricted cash
120
2,953
Contracts receivable including retainage, net
515,650
549,884
Costs and estimated earnings in excess of billings on uncompleted contracts
64,539
45,340
Inventories
176,802
155,133
Prepaid expenses and other current assets
28,424
25,459
Total current assets
862,395
934,831
Property, plant and equipment, net
1,265,112
1,153,070
Operating lease right-of-use assets
95,724
76,355
Goodwill
1,097,535
943,309
Intangible assets, net
76,391
79,230
Investment in joint venture
—
72
Restricted investments
16,150
23,176
Other assets
25,450
28,813
Total assets
$ 3,438,757
$ 3,238,856
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 290,346
$ 284,218
Billings in excess of costs and estimated earnings on uncompleted contracts
142,185
129,300
Current portion of operating lease liabilities
26,807
19,867
Current maturities of long-term debt
38,500
38,500
Accrued expenses and other current liabilities
66,472
110,163
Total current liabilities
564,310
582,048
Long-term liabilities:
Long-term debt, net of current maturities and deferred debt issuance costs
1,710,699
1,573,614
Operating lease liabilities, net of current portion
69,461
57,201
Deferred income taxes, net
83,543
80,079
Other long-term liabilities
31,359
33,951
Total long-term liabilities
1,895,062
1,744,845
Total liabilities
2,459,372
2,326,893
Stockholders' equity:
Preferred stock, par value $0.001; 10,000,000 shares authorized and no shares issued
and outstanding at March 31, 2026 and September 30, 2025
—
—
Class A common stock, par value $0.001; 400,000,000 shares authorized, 48,710,906 shares
issued and 47,965,450 shares outstanding at March 31, 2026 and 47,963,617 shares issued
and 47,406,498 shares outstanding at September 30, 2025
48
47
Class B common stock, par value $0.001; 100,000,000 shares authorized, 11,481,568 shares
issued and 8,549,118 shares outstanding at March 31, 2026 and 11,463,770 shares issued
and 8,538,165 shares outstanding at September 30, 2025
12
12
Additional paid-in capital
609,457
541,179
Treasury stock, Class A common stock, par value $0.001, at cost, 745,456 shares at March
31, 2026 and 557,119 shares at September 30, 2025
(59,770)
(34,589)
Treasury stock, Class B common stock, par value $0.001, at cost, 2,932,450 shares at
March 31, 2026 and 2,925,605 shares at September 30, 2025
(16,833)
(16,046)
Accumulated other comprehensive income, net
3,095
4,369
Retained earnings
443,376
416,991
Total stockholders' equity
979,385
911,963
Total liabilities and stockholders' equity
$ 3,438,757
$ 3,238,856
Construction Partners, Inc.
Consolidated Statements of Cash Flows
(in thousands)
For the Six Months Ended
March 31,
2026
2025
Cash flows from operating activities:
Net income
$ 26,385
$ 1,164
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by
operating activities:
Depreciation, depletion, accretion and amortization
91,299
68,447
Amortization of deferred debt issuance costs
1,335
2,211
Provision for bad debt
282
172
Gain on sale of property, plant and equipment
(6,645)
(4,462)
Realized loss on sales, calls and maturities of restricted investments
(12)
44
Share-based compensation expense
22,410
18,883
Distribution of earnings from investment in joint venture
71
—
Loss from investment in joint venture
1
12
Deferred income tax benefit
3,808
(1,480)
Other non-cash adjustments
(495)
(488)
Changes in operating assets and liabilities, net of business acquisitions:
Contracts receivable including retainage
58,752
49,336
Costs and estimated earnings in excess of billings on uncompleted contracts
(16,105)
(15,007)
Inventories
(9,780)
(4,387)
Prepaid expenses and other current assets
(1,428)
5,248
Other assets
2,108
(824)
Accounts payable
(11,082)
(27,606)
Billings in excess of costs and estimated earnings on uncompleted contracts
1,717
5,294
Accrued expenses and other current liabilities
(9,124)
567
Other long-term liabilities
(5,724)
(827)
Net cash provided by operating activities, net of business acquisitions
147,773
96,297
Cash flows from investing activities:
Purchases of property, plant and equipment
(81,728)
(68,226)
Proceeds from sale of property, plant and equipment
13,502
5,991
Proceeds from sales, calls and maturities of restricted investments
9,449
3,940
Business acquisitions, net of cash acquired
(275,875)
(828,736)
Purchase of restricted investments
(2,448)
(6,202)
Net cash used in investing activities
(337,100)
(893,233)
Cash flows from financing activities:
Proceeds from revolving credit facility
185,000
145,000
Proceeds from issuance of long-term debt, net of debt issuance costs
—
834,566
Settlement of stock awards
(2,490)
—
Repayments of long-term debt
(49,250)
(135,601)
Purchase of treasury stock
(25,968)
(20,129)
Net cash provided by financing activities
107,292
823,836
Net change in cash, cash equivalents and restricted cash
(82,035)
26,900
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period
159,015
76,684
Cash, cash equivalents and restricted cash, end of period
$ 76,980
$ 103,584
Supplemental cash flow information:
Cash paid for interest
$ 51,341
$ 35,788
Cash paid for income taxes
$ 4,030
$ 1,888
Cash paid for operating lease liabilities
$ 14,705
$ 7,191
Non-cash items:
Operating lease right-of-use assets obtained in exchange for operating lease liabilities
$ 30,910
$ 20,613
Property, plant and equipment financed with accounts payable
$ 9,694
$ 6,783
Amounts (receivable) payable to sellers in business combinations, net
$ (2,064)
$ 84,119
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) depreciation, depletion, accretion and amortization, (iv) share-based compensation expense, (v) loss on the extinguishment of debt, and (vi) nonrecurring expenses related to transformative acquisitions, which management considers to include transactions of a size that would require clearance under federal antitrust laws. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenues for each period. Adjusted net income represents net income before (i) nonrecurring expenses related to transformative acquisitions, which management considers to include transactions of a size that would require clearance under federal antitrust laws, and (ii) nonrecurring fees associated with financing arrangements incurred in connection with transformative acquisitions. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as an alternative to net income or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. We present Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income because management uses these measures as key performance indicators, and we believe that securities analysts, investors and others use these measures to evaluate companies in our industry. Our calculation of Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income may not be comparable to similarly named measures reported by other companies. Potential differences may include differences in capital structures, tax positions and the age and book depreciation of intangible and tangible assets.
The following tables present a reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to (i) Adjusted net income and (ii) Adjusted EBITDA (with the resulting calculation of Adjusted EBITDA margin) for the applicable periods.
Construction Partners, Inc.
Net Income to Adjusted EBITDA Reconciliation
Three Months Ended March 31, 2026 and 2025
(in thousands, except percentages)
For the Three Months
Ended March 31,
2026
2025
Net income
$ 9,180
$ 4,215
Interest expense, net
25,590
21,592
Provision for income taxes
2,889
1,310
Depreciation, depletion, accretion and amortization
46,269
37,263
Share-based compensation expense
7,818
4,672
Transformative acquisition expenses
1,573
221
Adjusted EBITDA
$ 93,319
$ 69,273
Revenues
$ 769,196
$ 571,650
Adjusted EBITDA margin
12.13 %
12.12 %
Construction Partners, Inc.
Net Income to Adjusted Net Income Reconciliation
Three Months Ended March 31, 2026 and 2025
(in thousands)
For the Three Months
Ended March 31,
2026
2025
Net income
$ 9,180
$ 4,215
Transformative acquisition expenses
1,573
221
Financing fees related to transformative acquisition
—
—
Tax impact due to above reconciling items
(385)
(53)
Adjusted net income
$ 10,368
$ 4,383
Construction Partners, Inc.
Net Income to Adjusted EBITDA Reconciliation
Fiscal Year 2026 Updated Outlook
(unaudited, in thousands, except percentages)
For the Fiscal Year Ending
September 30, 2026
Low
High
Net income
$ 159,000
$ 162,000
Interest expense, net
111,000
113,000
Provision for income taxes
51,500
52,500
Depreciation, depletion, accretion and amortization
188,500
192,500
Share-based compensation expense
28,000
29,000
Transformative acquisition expenses
14,000
15,000
Adjusted EBITDA
$ 552,000
$ 564,000
Revenues
$ 3,590,000
$ 3,650,000
Adjusted EBITDA margin
15.38 %
15.45 %
Construction Partners, Inc.
Net Income to Adjusted Net Income Reconciliation
Fiscal Year 2026 Updated Outlook
(unaudited, in thousands)
For the Fiscal Year Ending
September 30, 2026
Low
High
Net income
$ 159,000
$ 162,000
Transformative acquisition expenses
14,000
15,000
Financing fees related to transformative acquisition
Construction Partners (ROAD - Free Report) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of a loss of $0.05 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +485.44%. A quarter ago, it was expected that this road and highway construction company would post earnings of $0.31 per share when it actually produced earnings of $0.47, delivering a surprise of +51.61%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Construction Partners, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $769.2 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 11.96%. This compares to year-ago revenues of $571.65 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Construction Partners shares have added about 21% since the beginning of the year versus the S&P 500's gain of 7.2%.
What's Next for Construction Partners?While Construction Partners has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Construction Partners was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.10 on $983 million in revenues for the coming quarter and $2.87 on $3.55 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Advanced Drainage Systems (WMS - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 21.
This maker of water drainage systems and pipes is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has been revised 1.8% lower over the last 30 days to the current level.
Advanced Drainage Systems' revenues are expected to be $660.38 million, up 7.3% from the year-ago quarter.
Key Takeaways BLS Jobs Numbers Hit 115K, More than Double the Expected 55KUnemployment Rate Remained Steady at 4.3%WEN, BAM, ROAD Beat Q1 Estimates, MSGS Misses Friday, May 8th, 2026
Much as we saw in Wednesday’s private-sector payrolls from ADP (ADP), this morning’s Employment Situation report from the U.S. Bureau of Labor Statistics (BLS) was better than expected: +115K new jobs were filled in April, more than double the +55K consensus estimate. The Unemployment Rate remained steady at +4.3%.
This makes three of the past four months with positive jobs growth. Not only that, but all three of those months — +160K in January, and upwardly revised +185K for March and now +115K — were up by triple digits. (February was revised -23K lower, to -156K — the deepest month of negative jobs growth since the Covid pandemic.) Four of the previous eight months showed negative jobs growth on BLS; for ADP it was four straight months in early 2025. We’re clearly off the lows in the U.S. labor market.
Also as we saw in ADP’s report, Healthcare led the way in jobs growth by industry: +37K. This is followed by Transportation/Warehousing jobs at +30K and Retail Trade, +22K. Information jobs shed -13K (negative for the 16th straight week: is this AI related, or is it too early to tell?), the Federal government -9K and Manufacturing -2K. In general, it’s lower-paying jobs leading the way currently; we see this change when Professional/Business Services and Financials are among the sector leaders.
Wage growth tamed somewhat last month: +0.2% from the expected +0.3% and in-line with the prior month. Year over year, +3.6% missed estimates by 20 basis points (bps), but was up 10 bps month over month. The Average Workweek ticked up slightly to 34.3 hours, but Labor Force Participation languished down near 50-year lows to 61.8%. U-6 (aka “real unemployment”) ratcheted up +20 bps to +8.2%, and half a point higher than the +7.7% we saw last July.
In all, we’re seeing what outgoing Fed Chair Jerome Powell has been seeing: the domestic labor market has been holding its own. Perhaps we could stand a little higher quality within that jobs growth, but compared to where we had been — and where many feared we were headed — the market has to feel placated overall.
Pre-market futures, which had already been in the green ahead of this report, boosted further on the news. We shortly thereafter retreated from early highs, but the Dow is +119 points at this hour, the S&P 500 +32 points, the Nasdaq +210 and the small-cap Russell +13 points.
Earnings Results at a Glance
By sheer volume of the number of companies reporting, this is the busiest week of Q1 earnings season (so far — next week will bring over a thousand quarterly posts, as well). We’ve exhausted most of the marquee names, with NVIDIA (NVDA - Free Report) the final “Mag 7” company to report in a couple weeks, but we have plenty of stories being told ahead of today’s opening bell:
Wendy’s (WEN - Free Report) beat bottom-line estimates by +20% to +$0.12 per share (though still well below the +$0.20 per share reported in the year-ago quarter). This was good enough to se the stock gain nearly +4% at this hour, still digging out from its -16.5% hole, year to date. For more on WEN’s earnings, click here.
Brookfield Asset Management (BAM - Free Report) outpaced estimates by a solid penny to +$0.43 per share this morning, and pre-market shares swung to a positive +1% as a result. The alt-energy infrastructure investment company is still down more than -5% year to date.
Construction Partners (ROAD - Free Report) swung to a big positive earnings surprise this morning: +$0.18 per share from an expected negative print of -$0.05, for an impressive +460% earnings surprise. The infrastructure company also raised guidance, and shares are up +6.5% so far this morning.
Madison Square Garden (MSGS - Free Report) , however, despite the New York Knicks’ success in the NBA so far this year, posted a big miss: -$0.78 per share versus a positive +$0.66 anticipated. Shares are flat on the news, but the -218% negative surprise is something to be improved upon. The stock is +28.5% year to date.
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Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.
On May 12, 2026, Construction Partners Inc ROAD shares fell 3.8% to a current price of $135.45. This decline comes amidst a 52-week price range of $91.72 to $151.00, showcasing notable volatility. Despite today's drop, ROAD has experienced a strong performance over the past year, gaining 41.5%.
GF Value™ verdict: The current price of $135.45 is 23.9% above the GF Value™ estimate of $109.30, indicating the stock is overvalued.GF Score™: With a score of 93/100, ROAD is rated as strong, suggesting robust potential in its fundamentals.Most notable signal: The company has seen no insider transactions in the last three months, which may indicate a lack of confidence or activity from insiders. Is ROAD Overvalued or Undervalued? Currently, Construction Partners Inc ROAD is trading at $135.45, which is 23.9% above the GF Value™ of $109.30. This suggests that the stock is overvalued, presenting a risk for potential investors. The GF Valuation label identifies ROAD as modestly overvalued, implying that while the company has strong operational performance, its current market price does not reflect its intrinsic value accurately. Investors may want to consider this discrepancy when assessing their positions.
The margin of safety for investors is minimal at this stage, as the stock is trading significantly above its estimated fair value. Such a scenario may lead to price corrections in the future, particularly if market conditions shift or if the company's performance does not meet high expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does ROAD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 59.4x 65.1x Forward P/E 48.4x The current P/E (TTM) of 59.4x is 9% below its 5-year median of 65.1x, suggesting that the stock is trading at a lower valuation compared to its historical average. However, the forward P/E of 48.4x indicates potential future growth, though it is essential to consider that the P/E analysis aligns with the GF Value™ verdict of being overvalued. The lower P/E ratio could imply that the market may be pricing in a slowdown in growth, which investors should keep in mind.
What Does ROAD's GF Score™ Tell Us? Metric Rating GF Score™ 93/100 Financial Strength 5/10 Profitability 9/10 Growth 10/10 Valuation 5/10 Momentum 8/10 The GF Score™ of 93/100 indicates that Construction Partners Inc ROAD has strong potential based on its fundamentals. The strongest aspect of the score is its Growth rank of 10/10, reflecting impressive growth metrics. Conversely, the Financial Strength rank of 5/10 suggests that the company may not be as robust in terms of its balance sheet and financial stability, which investors should consider when evaluating the overall investment potential.
What Are Insiders Doing with ROAD Stock? In the last three months, there have been no insider transactions reported for Construction Partners Inc ROAD . This lack of activity could indicate that insiders are either confident in the company’s performance or that they are waiting for a more opportune moment to buy or sell shares. The absence of insider buying may raise concerns regarding potential future performance, as insider transactions often provide insights into management's confidence in the company's direction.
What This Means for Investors Based on the GF Value™ assessment, Construction Partners Inc ROAD is currently overvalued at a price of $135.45 compared to its GF Value™ of $109.30. Investors might want to exercise caution when considering positions, given the potential for a price correction due to the current overvaluation.
For the complete analysis, visit the Construction Partners Inc ROAD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ROAD's GF Score™?
ROAD has a GF Score™ of 93/100, indicating strong potential based on its fundamentals and historical performance.
Is ROAD overvalued or undervalued?
According to the GF Value™ assessment, ROAD is overvalued at a current price of $135.45 compared to its GF Value™ of $109.30.
What is ROAD's P/E ratio?
ROAD's P/E (TTM) is 59.4x, which is 9% below its 5-year median of 65.1x, indicating that it is trading at a lower valuation compared to its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways Construction Partners' Q2 revenues and adjusted EBITDA both jumped 35% year over year.ROAD backlog hit a record $3.14B, with most next-12-month revenue already secured.Data center demand and acquisitions are fueling growth across key Sunbelt markets. Construction Partners, Inc. (ROAD - Free Report) appears to be moving faster than expected toward its ambitious ROAD 2030 targets, thanks to booming infrastructure demand, aggressive acquisitions and rising commercial opportunities across the Sunbelt.
The company delivered an impressive second-quarter fiscal 2026 performance, with revenues jumping 35% year over year to $769.2 million. Adjusted EBITDA also climbed 35% to $93.3 million, while backlog hit a record $3.14 billion. Management noted that nearly 80-85% of the next 12 months’ revenues are already secured in backlog, providing strong visibility heading into the busy construction season.
ROAD continues to benefit from robust public infrastructure spending and surging private-sector activity tied to data centers, warehouses and manufacturing projects. The company highlighted multiple data center contracts across Texas and Alabama, reinforcing how AI-driven infrastructure investment is becoming a meaningful tailwind. Acquisitions are also playing a major role. The company completed its fourth acquisition of fiscal 2026 with Four Star Paving in Tennessee, extending its commercial paving reach in the fast-growing Nashville market. Management emphasized that the fragmented nature of the paving industry continues to create attractive consolidation opportunities.
Importantly, margins remain resilient despite energy volatility. Construction Partners’ vertically integrated liquid asphalt operations, fuel hedging strategy and indexed contracts helped cushion commodity swings during the second quarter of fiscal 2026. Encouraged by strong execution and favorable demand trends, management raised fiscal 2026 guidance and reaffirmed confidence in achieving its ROAD 2030 plan, which targets doubling its size, generating $1 billion in annual EBITDA and expanding EBITDA margins to roughly 17%.
Construction Partners vs. Sterling vs. AECOM: Who Leads Now?Construction Partners is capitalizing on booming Sunbelt infrastructure demand through asphalt paving and road construction. Market competitors like Sterling Infrastructure, Inc. (STRL - Free Report) and AECOM (ACM - Free Report) are pursuing broader engineering and construction management opportunities tied to mega infrastructure and mission-critical projects.
Sterling Infrastructure has been leveraging rapid growth in e-infrastructure, data centers and manufacturing projects to complement its transportation business. Its strategy increasingly emphasizes higher-margin specialty construction services and large private-sector opportunities tied to U.S. reindustrialization trends. Conversely, AECOM operates from a different angle, focusing more on engineering, consulting and program management than direct construction execution. The company is benefiting from long-duration infrastructure modernization, environmental projects, transit systems and global urban development initiatives. Its asset-light model and exposure to large public-sector design contracts provide stability, though execution cycles can be longer.
Overall, Construction Partners stands out for its asphalt-driven local market dominance and acquisitive growth model, while Sterling Infrastructure and AECOM offer broader exposure to diversified infrastructure and engineering megatrends.
ROAD Stock’s Price Performance & Valuation TrendShares of this Alabama-based civil infrastructure company have gained 13.5% year to date, outperforming the Zacks Building Products - Miscellaneous industry and the S&P 500 Index, but underperforming the broader Construction sector.
Image Source: Zacks Investment Research
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.92, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors ROADROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have moved upward in the past seven days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.
Image Source: Zacks Investment Research
Construction Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Construction Partners (ROAD - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this road and highway construction company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Construction Partners is 57.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 34.2% this year, crushing the industry average, which calls for EPS growth of 11%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Construction Partners is 67.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of 11.7%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 28% over the past 3-5 years versus the industry average of 9.9%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Construction Partners have been revising upward. The Zacks Consensus Estimate for the current year has surged 2.3% over the past month.
Bottom LineConstruction Partners has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Construction Partners well for outperformance, so growth investors may want to bet on it.
Construction Partners, Inc. ROAD has gained 13.5% in the past month, outperforming the Zacks Building Products - Miscellaneous industry, the broader Construction sector and the S&P 500 index. Recently, on May 8, 2026, the company reported its second-quarter fiscal 2026 earnings, which reflected strong momentum owing to the robust public infrastructure spending and surging private-sector activity tied to data centers, warehouses and manufacturing projects.
Key Takeaways ROAD's $3.14B backlog covers about 80%-85% of the next 12 months' contract revenues.ROAD raised FY26 revenue and adjusted EBITDA guidance after a strong Q2.ROAD is gaining from Sunbelt infrastructure demand, data centers, warehouses and acquisitions. Construction Partners, Inc.’s (ROAD - Free Report) record $3.14 billion backlog as of the second quarter of fiscal 2026 suggests solid revenue visibility and potential upside for the fiscal year. The backlog increased 10.6% year over year to $2.84 billion, reflecting continued project wins and strong demand across its markets. Management said this backlog covers roughly 80% to 85% of the next 12 months’ contract revenues, giving the company a strong foundation heading into peak construction season.
The upside case is supported by strong demand across both public and private markets. On the public side, Sunbelt infrastructure spending remains healthy, with state and local DOT awards expected to rise 10% to 15% in 2026. On the private side, Construction Partners is benefiting from commercial projects tied to data centers, warehouses and reindustrialization, including approximately $100 million of data center work in Texas and $28 million of warehouse projects in Tennessee.
The expanding backlog is also supporting stronger guidance. Following solid second-quarter fiscal 2026 results, ROAD raised its fiscal 2026 outlook, projecting revenues of $3.59-$3.65 billion versus the prior range of $3.48-$3.56 billion. Adjusted EBITDA guidance was also increased to $552-$564 million from the earlier $534-$550 million range, reflecting confidence in project execution and contributions from recent acquisitions, including Four Star Paving.
Overall, Construction Partners’ backlog is not just increasing but diversified, given it is backed by broad-based demand, Sunbelt exposure, acquisitive growth and strong project visibility. While management noted that backlog can decline sequentially during the busy construction season as work is executed, the company still expects to keep bidding selectively and continue building backlog over time. This supports the view that ROAD’s $3.14 billion backlog could signal further upside ahead.
ROAD Faces Stiff Competition From Sterling & AECOMConstruction Partners is benefiting from strong Sunbelt infrastructure demand, supported by its asphalt-focused model, and exposure to public roadwork, commercial projects, data centers and warehouses. Market competitors like Sterling Infrastructure, Inc. (STRL - Free Report) and AECOM (ACM - Free Report) are also capitalizing on infrastructure modernization, mission-critical construction and long-term public spending trends.
Sterling has recently delivered exceptional momentum in mission-critical site development. In the first quarter of 2026, revenues surged 92% year over year, adjusted EBITDA more than doubled and margins reached a record 20%. Growth was driven by the E-Infrastructure segment, where revenues climbed 174% on strong hyperscale data center demand, semiconductor-related awards and expanding multi-year customer programs. Sterling’s backlog reached $5.2 billion, including more than $5 billion of visibility within E-Infrastructure alone.
AECOM is a leading solutions provider, offering professional, technical and management services across diverse industries and end markets. The company is benefiting from long-duration infrastructure modernization, environmental projects, transit systems and global urban development initiatives. As of March 31, 2026, the total backlog increased 8% year over year to $26.2 billion. AECOM’s design business delivered a solid 1.2x book-to-burn ratio. This marks the 22nd consecutive quarter with a book-to-burn ratio above 1.0, reflecting sustained demand.
ROAD Stock’s Price Performance & Valuation TrendShares of this Alabama-based civil infrastructure company have gained 2.8% year to date, outperforming the Zacks Building Products - Miscellaneous industry, but underperforming the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 33.45, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors ROADROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have moved upward in the past 30 days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.
Image Source: Zacks Investment Research
Construction Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vancouver, British Columbia--(Newsfile Corp. - May 21, 2026) - Mineral Road Discovery Inc. (CSE: ROAD) (the "Company" or "ROAD") announces that, further to its news releases of April 8th and May 1st, 2026, the Canadian Securities Exchange has granted an extension to the deadline for filing final documentation for the private placement to July 6, 2026. Proceeds will be used for general working capital.
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Not for distribution to United States Newswire Services or for dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298486
Construction Partners (ROAD - Free Report) closed the last trading session at $116.29, gaining 0.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $155.25 indicates a 33.5% upside potential.
The average comprises four short-term price targets ranging from a low of $135.00 to a high of $169.00, with a standard deviation of $14.52. While the lowest estimate indicates an increase of 16.1% from the current price level, the most optimistic estimate points to a 45.3% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for ROAD, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in ROADThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, two estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 3%.
Moreover, ROAD currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much ROAD could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways Construction Partners highlights Texas and Alabama data center projects tied to AI infrastructure growth.ROAD reported a record $3.14B backlog, with 80-85% of the next 12 months' revenue secured.Construction Partners sees commercial demand rising alongside strong public infrastructure spending. Construction Partners, Inc. (ROAD - Free Report) is increasingly emerging as an indirect beneficiary of America’s booming data center expansion, as hyperscale technology investments fuel demand for road, paving and site development work across the Sunbelt.
The company highlighted several data center-related projects during its fiscal second-quarter 2026 earnings call, underscoring how AI-driven infrastructure growth is becoming a meaningful tailwind. In Texas, Four Star Paving is currently involved in a portfolio of eight data center projects valued at nearly $100 million. Meanwhile, Wiregrass Construction in Alabama is participating in a Mag 7 data center project, signaling growing exposure to large-scale technology infrastructure development.
Management emphasized that data center opportunities are steadily becoming a larger part of its commercial project mix as developers expand aggressively across high-growth Sunbelt markets. The ongoing reindustrialization trend, coupled with rising AI computing demand, continues driving investments in manufacturing hubs, warehouses and digital infrastructure facilities in states where Construction Partners operates. Importantly, ROAD’s strong local-market presence and decentralized operating model position it well to capture recurring commercial opportunities tied to these developments. At the same time, public infrastructure spending remains healthy, creating a favorable dual-demand environment.
Construction Partners is also benefiting from a record $3.14 billion backlog, supported by both public and private-sector projects. Management noted that approximately 80-85% of the next 12 months’ expected revenues are already secured in backlog, providing strong visibility. While roadway maintenance remains its core business, the accelerating data center boom is clearly opening a promising new growth avenue for Construction Partners.
Construction Partners vs. Primoris vs. Quanta: Who Taps on the Megatrends?Riding the meaningful market tailwinds surrounding data center demand growth, Construction Partners faces notable competition from key market players like Primoris Services Corporation (PRIM - Free Report) and Quanta Services, Inc. (PWR - Free Report) .
Primoris Services capitalizes on the rising demand for power, utilities and renewable infrastructure linked to data centers and industrial expansion. PRIM’s engineering and specialty contracting expertise position it well to benefit from grid modernization, energy transition projects and large industrial construction opportunities emerging from AI-related electricity demand growth.
Meanwhile, Quanta remains one of the strongest beneficiaries of AI infrastructure spending, as hyperscale data centers require massive transmission, substation and power-grid investments. Quanta’s record backlog reflects surging utility spending, electrification trends and long-term demand for resilient energy infrastructure. Together, all three companies are benefiting from the intersection of AI growth, reindustrialization and expanding U.S. infrastructure investment cycles.
ROAD Stock’s Price Performance & Valuation TrendShares of this Alabama-based civil infrastructure company have gained 7.2% year to date, outperforming the Zacks Building Products - Miscellaneous industry, but underperforming the broader Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 33.66, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of ROADROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have trended upward in the past 30 days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.
Image Source: Zacks Investment Research
Construction Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Construction Partners (ROAD - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this road and highway construction company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Construction Partners is 57.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 34.2% this year, crushing the industry average, which calls for EPS growth of 9.6%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Construction Partners is 67.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of 12.8%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 28% over the past 3-5 years versus the industry average of 9.9%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Construction Partners. The Zacks Consensus Estimate for the current year has surged 3% over the past month.
Bottom LineConstruction Partners has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Construction Partners well for outperformance, so growth investors may want to bet on it.
Vancouver, British Columbia--(Newsfile Corp. - June 5, 2026) - Mineral Road Discovery Inc. (CSE: ROAD) (the "Company" or "ROAD") is pleased to announce that, further to its news releases of April 8th, May 1st, May 21st and May 29th, 2026, it has closed the second tranche of its non-brokered private placement. The Company has issued an additional 3,000,000 units at a price of $0.06 per unit for proceeds of $180,000 (the "Private Placement"). Each unit consists of one common share and one warrant, with each warrant entitling the holder to purchase one common share at a price of $0.08 for a period of three years expiring June 3, 2029. Proceeds will be used for general working capital. All securities issued will be subject to a four month hold period expiring October 4, 2026.
Mineral Road Partners Inc. ("MR Partners"), a company controlled by Damien Reynolds, the Company's Chairman, interim CEO and Director, acquired 500,000 units of the Company. As a result, MR Partners now owns, directly and indirectly, 66.27% of the outstanding shares of the Company or 72.42% assuming exercise of all warrants held by MR Partners and is a "control person" as that term is defined under securities legislation.
MR Partners purchased the units for investment purposes. The Private Placement and the acceptance of the subscription by MR Partners was approved by unanimous resolution of the board of directors of the Company. There was no formal valuation of the Company done in connection with the Private Placement nor has there been such a formal valuation in the past 24 months. The Company relied upon the exemptions contained in Section 5.5(b) and 5.7(b) of Multilateral Instrument 61-101 ("MI 61-101") to avoid the formal valuation and shareholder approval requirements of MI 61-101. For the purposes of Section 5.5(b), the Company does not have any securities listed on any of the stock exchanges set out in Section 5.5(b) and for the purposes of Section 5.7(b) the exemption was available as the consideration paid for the units subscribed for by MR Partners was less than $2,500,000.
The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements. "United States" and "U.S. person" have the respective meanings assigned in Regulation S under the U.S Securities Act.
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Not for distribution to United States Newswire Services or for dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300357
Source: Mineral Road Discovery Inc.
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On June 08, 2026, Construction Partners Inc ROAD shares fell 3.8% to a current price of $106.30. The stock has experienced a significant decline over the past month, dropping 24.3%. Its 52-week range has been between $93.22 and $151.00, reflecting considerable volatility.
GF Value™ verdict: Current price is $106.30, which is 11.2% below the GF Value™ of $119.64.GF Score™: 95/100, indicating a strong overall performance.Most notable signal: Momentum rank of 10/10, suggesting strong upward price movement. Is ROAD Overvalued or Undervalued? Currently, Construction Partners Inc ROAD is trading at $106.30, which is 11.2% undervalued compared to its GF Value™ estimate of $119.64. This undervaluation presents a potential opportunity for investors who may be looking for stocks that are trading below their intrinsic value. The GF Valuation label indicates that ROAD is considered modestly undervalued, suggesting that there is some margin of safety for investors. However, it is essential to be cautious, as a decline in price can also indicate underlying issues that could affect future performance.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Considering the current price relative to the GF Value™, there may be an attractive entry point for potential investors, but further analysis of the company's fundamentals and market conditions is warranted.
How Does ROAD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 46.6x 65.1x Forward P/E 27.9x N/A The current P/E (TTM) of 46.6x is 28% below its 5-year median P/E of 65.1x. Additionally, the forward P/E of 27.9x indicates a more favorable valuation compared to the historical averages. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that ROAD is currently undervalued relative to its historical valuation metrics.
What Does ROAD's GF Score™ Tell Us? Metric Rating GF Score™ 95 Financial Strength 5/10 Profitability 9/10 Growth 10/10 Valuation 9/10 Momentum 10/10 The GF Score™ of 95/100 indicates a strong overall performance for Construction Partners Inc ROAD , with particularly high rankings in Growth (10/10) and Momentum (10/10). However, the Financial Strength rating of 5/10 suggests there may be some concerns in this area, which warrants further investigation. The strong Profitability (9/10) and Valuation (9/10) scores also indicate that the company's core operations are performing well and that it is priced attractively relative to its earnings.
What Are Insiders Doing with ROAD Stock? In the last three months, there have been no insider transactions reported for Construction Partners Inc ROAD . This lack of insider activity may suggest that executives and board members do not see immediate opportunities for buying or selling their shares, which can often imply confidence in the company's current valuation and outlook. However, it is essential to keep an eye on insider activity, as significant purchases or sales can signal changes in management's perspective on the company’s future performance.
What This Means for Investors Based on the analysis of the current price relative to the GF Value™, Construction Partners Inc ROAD is currently undervalued. This presents a potential opportunity for investors to consider, but it is essential to conduct further due diligence regarding the company’s financial health and market conditions.
For the complete analysis, visit the Construction Partners Inc ROAD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ROAD's GF Score™?
ROAD's GF Score™ is 95/100, indicating a strong overall performance with high potential for long-term returns.
Is ROAD overvalued or undervalued?
ROAD is currently considered undervalued, with a GF Value™ estimate of $119.64 compared to its current price of $106.30.
What is ROAD's P/E ratio?
ROAD's P/E (TTM) is 46.6x, which is significantly below its 5-year median P/E of 65.1x, suggesting a favorable valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
