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DOTHAN, Ala. - On Thursday, Construction Partners, Inc. (NASDAQ:ROAD) reported fourth-quarter earnings that fell short of analyst expectations despite posting better-than-expected revenue.
The civil infrastructure company’s shares tumbled 4.69% in pre-market trading after the results.
The Sunbelt-focused roadway construction firm reported fourth-quarter adjusted earnings of $1.02 per share, missing analyst estimates of $1.09, while revenue climbed to $899.5 million, exceeding the consensus forecast of $881.15 million. The quarterly revenue represented a 67% increase compared to the same period last year.
Investors appeared to focus on the earnings miss rather than the revenue outperformance, sending shares lower in trading. The company’s fiscal 2025 performance showed significant growth, with full-year revenue increasing 54% to $2.81 billion and net income rising 48% to $101.8 million compared to fiscal 2024.
"We delivered a strong fourth quarter that capped a year of significant growth and margin expansion," said Fred J. (Jule) Smith, III, President and CEO. "Our disciplined execution across our Sunbelt operations, powered by more than 6,800 employees, continues to drive record results through safe, efficient project construction and strong market demand."
The company maintained its fiscal 2026 outlook, projecting revenue between $3.4 billion and $3.5 billion, in line with analyst expectations of $3.42 billion. Construction Partners also reported a record project backlog of $3.03 billion at the end of September, up from $1.96 billion a year earlier.
During fiscal 2025, the company expanded its geographic footprint through five strategic acquisitions, entering Texas and Oklahoma while strengthening its presence in Tennessee and Alabama. Two additional acquisitions were completed in October to enter the Daytona Beach market in Florida and expand operations in Houston, Texas.
"The fundamentals in our core markets remain strong, supported by ongoing transportation investment, population growth, and healthy commercial demand," Smith added. "With these tailwinds, our fiscal 2026 outlook reflects another year of meaningful growth."
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