Construction Partners Inc. (NASDAQ:ROAD) delivered better-than-expected third-quarter results on Friday, with earnings and revenue both exceeding Wall Street forecasts as strong infrastructure demand supported growth. The company also increased its full-year guidance, sending shares higher in pre-market trading.
The stock gained nearly 5% following the announcement.
Earnings and Revenue Beat Expectations
Construction Partners reported adjusted earnings of $1.06 per share for the third quarter, edging past analysts’ consensus estimate of $1.05.
Revenue climbed 28% year over year to $999.4 million, comfortably ahead of the expected $958.8 million, driven by continued strength in public infrastructure spending and commercial construction activity.
Adjusted net income rose 34% to $60.6 million from $45.2 million a year earlier.
Adjusted EBITDA increased 24% to $163.0 million, compared with $131.7 million in the third quarter of fiscal 2025.
Company Raises Full-Year Guidance
Following the strong quarterly performance, Construction Partners lifted its fiscal 2026 revenue outlook to between $3.64 billion and $3.68 billion.
The midpoint of the new forecast, $3.66 billion, is above analysts’ consensus estimate of $3.61 billion.
The company also increased its adjusted EBITDA guidance to a range of $559.0 million to $569.0 million, implying an adjusted EBITDA margin of between 15.36% and 15.46%.
Adjusted net income for the full year is now expected to reach between $177.6 million and $181.4 million.
Record Backlog Supports Growth Outlook
President and Chief Executive Officer Fred J. Smith, III said, “Our strong third quarter results reflect the continued execution of our operating strategy and the dedication of our teams throughout the CPI family of companies.”
He added, “During the quarter, we delivered revenue growth of 28% and Adjusted EBITDA growth of 24%, despite the impact of energy cost inflation and extremely wet weather in May across many of our markets.”
Construction Partners ended the quarter with a record backlog of $3.36 billion, up from $2.94 billion a year earlier, providing strong visibility into future revenue.
Gross profit also improved significantly, increasing to $168.4 million from $131.8 million in the prior-year quarter.
Infrastructure Demand Remains Supportive
The company continues to benefit from healthy demand across both public infrastructure and commercial construction markets.
Despite higher energy costs and weather-related disruptions during the quarter, Construction Partners maintained strong operational execution, supporting higher profitability and reinforcing confidence in its upgraded full-year outlook.
Construction Partners stock price
