Street Calls of the Week
DOTHAN, Ala. - Construction Partners, Inc. (NASDAQ:ROAD) announced Monday it has acquired eight hot-mix asphalt plants along with related crews and equipment in the Houston metropolitan area from Vulcan Materials Company (NYSE:VMC) affiliates. The company, which has delivered an impressive 83.5% return over the past year according to InvestingPro data, continues its aggressive expansion strategy.
The acquired operations will be integrated into Durwood Greene Construction Co., which CPI purchased in August 2025, according to a company press release. The transaction expands CPI’s production capacity and geographic reach in the Houston market.
"The addition of these eight hot-mix asphalt plants, together with their associated crews and equipment, provides our management team at Durwood Greene with powerful tools to increase production and better serve new and existing customers," said Fred J. Smith, III, President and CEO of Construction Partners.
The acquisition aligns with CPI’s strategy to strengthen its presence in Texas markets. The company specializes in construction and maintenance of roadways across the Sunbelt region, operating in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee and Texas.
Construction Partners focuses primarily on publicly funded infrastructure projects including local and state roadways, interstate highways, airport runways and bridges. The company also performs private sector projects such as paving for commercial and residential developments.
Financial terms of the transaction were not disclosed in the company’s statement.
In other recent news, Construction Partners Inc. reported its third-quarter earnings for 2025, showing a significant increase in revenue but falling short of analysts’ expectations for both earnings per share (EPS) and revenue. The company announced an EPS of $0.81, which missed the projected $0.94, and revenue of $779.3 million, below the anticipated $811.76 million. Despite these figures, the company’s strategic acquisitions and market expansion have generated positive investor sentiment. Additionally, Baird upgraded Construction Partners’ stock rating from Neutral to Outperform, citing stronger-than-expected performance from recent acquisitions in Texas and Tennessee, which are larger and yield higher margins than initially estimated. The firm also raised its price target to $122.00 from $112.00. Furthermore, DA Davidson adjusted its price target for Construction Partners to $110.00 from $100.00, maintaining a Neutral rating on the stock. The adjustment was influenced by what the firm described as a "choppy quarter of weather" impacting the company’s operations. These developments highlight the company’s ongoing efforts to expand and optimize its operations.
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