Construction Partners, Inc. Announces Preliminary Fiscal 2026 Financial Results and Introduces Fiscal 2027 Outlook
Construction Partners, Inc. (ROAD) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS RELEASE Construction Partners, Inc. Announces Preliminary Fiscal 2026 Financial Results and Introduces Fiscal 2027 Outlook DOTHAN, AL, November 5, 2026 – Construction Partners, Inc. (NASDAQ: ROAD) (“CPI” or the “Company”), a vertically integrated civil infrastru
How this was made
The 30-second read
Why it matters
The guidance indicates a significant step‑up in revenue and EBITDA, which may drive buying interest and support the stock price.
Market read
New guidance for a mid‑cap infrastructure firm can influence sector sentiment and attract investors seeking growth exposure.
What to watch
Potential weather‑related disruptions and the integration risk of recent acquisitions could temper upside.
Construction Partners, Inc. Announces Preliminary Fiscal 2026 Financial Results and Introduces Fiscal 2027 Outlook
Preliminary fiscal 2026 results indicate record growth in revenue, net income and Adjusted EBITDA, while adjusted EBITDA margin declined from fiscal 2025 amid wet weather and rapidly rising diesel fuel costs. Fiscal 2027 outlook calls for further growth and a 14.0% to 14.5% Adjusted EBITDA margin.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fiscal 2026 preliminary revenueGAAP | $3.660 billion to $3.680 billion | – | approximately 30% |
| Fiscal 2026 preliminary net incomeGAAP | $141.5 million to $142.5 million | – | approximately 40% |
| Fiscal 2026 preliminary adjusted net incomenon-GAAP | $153.3 million to $154.9 million | – | approximately 26% |
| Fiscal 2026 preliminary Adjusted EBITDAnon-GAAP | $520.0 million to $524.0 million | – | approximately 23% |
| Fiscal 2026 preliminary Adjusted EBITDA marginnon-GAAP | 14.21% to 14.24% | – | – |
| Fiscal 2026 preliminary reconciliation net income (in thousands)GAAP | $141,500 to $142,500 | – | – |
| Fiscal 2026 preliminary reconciliation interest expense, net (in thousands)other | 111,250 to 111,950 | – | – |
| Fiscal 2026 preliminary reconciliation provision for income taxes (in thousands)other | 46,250 to 46,550 | – | – |
| Fiscal 2026 preliminary reconciliation depreciation, depletion, accretion and amortization (in thousands)other | 177,750 to 178,350 | – | – |
| Fiscal 2026 preliminary reconciliation share-based compensation expense (in thousands)other | 28,500 to 29,150 | – | – |
| Fiscal 2026 preliminary reconciliation transformative acquisition expenses (in thousands)other | 14,750 to 15,500 | – | – |
| Fiscal 2026 preliminary reconciliation Adjusted EBITDA (in thousands)non-GAAP | $520,000 to $524,000 | – | – |
| Fiscal 2026 preliminary reconciliation revenues (in thousands)GAAP | $3,660,000 to $3,680,000 | – | – |
| Fiscal 2026 preliminary adjusted net income reconciliation transformative acquisition expenses (in thousands)other | 14,750 to 15,500 | – | – |
| Fiscal 2026 preliminary adjusted net income reconciliation financing fees related to transformative acquisition (in thousands)other | 850 to 950 | – | – |
| Fiscal 2026 preliminary adjusted net income reconciliation tax impact due to above reconciling items (in thousands)other | (3,827) to (4,038) | – | – |
| Fiscal 2026 preliminary adjusted net income reconciliation adjusted net income (in thousands)non-GAAP | $153,273 to $154,912 | – | – |
Fiscal year 2027 outlook
- Revenue$4.175 billion to $4.275 billion
- NoteNet income in the range of $170.9 million to $180.8 million
- NoteAdjusted net income in the range of $174.6 million to $185.4 million
- NoteAdjusted EBITDA in the range of $585.0 million to $620.0 million
- NoteAdjusted EBITDA margin in the range of 14.0% to 14.5%
- NoteInterest expense, net: 114,400 to 123,000 (in thousands)
- NoteProvision for income taxes: 55,805 to 59,175 (in thousands)
- NoteDepreciation, depletion, accretion and amortization: 192,945 to 201,000 (in thousands)
- NoteShare-based compensation expense: 46,000 to 50,000 (in thousands)
- NoteTransformative acquisition expenses: 5,000 to 6,000 (in thousands)
- NoteFinancing fees related to transformative acquisition: — — (in thousands)
- NoteTax impact due to above reconciling items: (1,216) to (1,464) (in thousands)
What drove it
- Revenue is expected to increase approximately 30% in fiscal 2026, supported by organic and acquisition growth strategies.
- The Company completed seven acquisitions across four high-growth Sunbelt states during fiscal 2026.
- The Company established four new greenfield locations during fiscal 2026.
- Organic revenue growth was 7% during fiscal 2026.
- The Company had completed three strategic acquisitions one month into fiscal 2027.
- Fiscal 2027 outlook anticipates approximately 6% to 8% organic revenue growth.
- Management expects fiscal 2026 acquisition integration, completion of lower-margin acquired-backlog projects, and pricing pass-throughs for diesel fuel costs to support margin improvement in the second half of fiscal 2027.
Concerns
- Unusually wet weather in July across several of the Company's largest markets affected profitability during the fourth quarter.
- The unprecedented rapid pace and magnitude of increases in diesel fuel costs affected profitability as the Company exited fiscal 2026.
- Adjusted EBITDA margin is expected to be 14.21% to 14.24% in fiscal 2026, compared to 15.1% in fiscal 2025.
- The fiscal 2026 information is preliminary and remains subject to year-end closing procedures, review adjustments and other developments.
- The Company's independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to the preliminary fiscal 2026 financial information.
What to watch
- Final fiscal 2026 financial results for the fiscal quarter and year ended September 30, 2026.
- Integration and realization of expected economic benefits from fiscal 2026 acquisitions and the three strategic acquisitions completed in fiscal 2027.
- The pace at which increased diesel fuel costs are incorporated into project pricing through the Company's cost pass-through operating model.
- Replacement of lower-margin work in acquired backlog with higher-margin projects.
- Conditions in residential and commercial construction markets and their potential effect on margin expansion.
Analysis
Construction Partners reported preliminary fiscal 2026 ranges that point to record growth. Revenue is expected to be $3.660 billion to $3.680 billion versus $2.812 billion in fiscal 2025, while net income is expected to be $141.5 million to $142.5 million versus $101.8 million. Adjusted EBITDA is expected to be $520.0 million to $524.0 million, compared with $423.7 million in fiscal 2025. Management attributed the performance to execution of organic and acquisition growth strategies, including seven acquisitions, four new greenfield locations and 7% organic revenue growth.
Profitability growth did not translate into higher adjusted EBITDA margin. Preliminary adjusted EBITDA margin is expected to be 14.21% to 14.24%, compared with 15.1% in fiscal 2025. Management identified unusually wet weather in July in several large markets and the rapid, substantial increase in diesel fuel costs as fourth-quarter profitability headwinds. The preliminary result remains subject to closing procedures, review adjustments and the completion of the audit of the fiscal year ended September 30, 2026.
The fiscal 2027 outlook calls for revenue of $4.175 billion to $4.275 billion, net income of $170.9 million to $180.8 million, and Adjusted EBITDA of $585.0 million to $620.0 million. Management said the midpoint of its guidance ranges anticipates approximately 15% growth in both revenue and Adjusted EBITDA. The outlook also includes approximately 6% to 8% organic revenue growth, indicating that management expects continued contributions from both local-market growth and platform expansion.
Margin recovery is central to the fiscal 2027 outlook. The Company guided to Adjusted EBITDA margin of 14.0% to 14.5% and expects catalysts beyond the first half of the year from continued acquisition integration and a diminishing effect from elevated diesel fuel costs. Management expects to complete lower-margin projects in acquired backlog, replace them with higher-margin work and increasingly pass diesel-cost increases through project pricing. The Company also reported three strategic acquisitions completed one month into fiscal 2027, making execution and integration important variables for the guided growth and margin profile.
Management, verbatim
Fiscal 2026 was a successful year for CPI, highlighted by record financial performance and significant year-over-year growth, with revenue increasing approximately 30%, net income rising approximately 40%, and Adjusted EBITDA growing approximately 23%.
Fred J. (Jule) Smith, III, President and Chief Executive Officer
I was particularly proud of our team’s productivity and disciplined execution despite two primary external headwinds during the fourth quarter.
Fred J. (Jule) Smith, III, President and Chief Executive Officer
Our fiscal 2027 outlook anticipates substantial growth in both revenue and Adjusted EBITDA, including approximately 6% to 8% organic revenue growth, as we continue to expand our operating platform and execute our long-term growth strategy.
Fred J. (Jule) Smith, III, President and Chief Executive Officer
Not in the filing
stated, not guessed- Final audited fiscal 2026 results
- Fiscal 2026 quarterly results, including fourth-quarter revenue, income and margins
- Segment revenue, segment profitability and segment growth
- Gross profit and gross margin
- Operating income and operating margin
- Diluted EPS and adjusted diluted EPS
- Operating cash flow
- Free cash flow
- Capital expenditures
- Cash and cash equivalents
- Total debt or net debt
- Share repurchases
- Dividends
- Prior fiscal 2026 outlook for comparison
- Fiscal 2027 gross-margin guidance
- Fiscal 2027 operating-expense guidance
- Fiscal 2027 tax-rate guidance
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Construction Partners, a NASDAQ‑listed civil infrastructure firm, filed an 8‑K reporting FY2026 preliminary results and FY2027 outlook.
Ticker impact
Construction Partners disclosed preliminary FY2026 results and FY2027 outlook with ~30% revenue growth and 15% guidance growth.
likely support as investors price in robust revenue and EBITDA growth outlook
The company provided new, material guidance for the next fiscal year, indicating higher revenue and EBITDA, which typically lifts sentiment and can attract buying.
Market effects
Sets a positive tone for the civil infrastructure and construction sector, suggesting demand strength in Sunbelt markets.
May boost investor sentiment toward Sunbelt‑focused construction firms and related material suppliers.
Limited to U.S. construction and infrastructure investors; no broader macro impact.
Counterpoint
If diesel fuel cost inflation persists longer than expected, margins could be pressured despite revenue growth.
Key entities
- companyConstruction Partners, Inc.
NASDAQ‑listed civil infrastructure company providing the guidance.
