Construction Partners (ROAD) investor relations material

Executive summary

• Revenue increased 44% year-over-year to $809.5 million for Q1 FY26, driven by strong operational execution, robust demand, and favorable weather conditions.

• Adjusted net income rose 99% year-over-year to $26.4 million, reflecting improved profitability and one-time acquisition expenses.

• Adjusted EBITDA grew 63% year-over-year to $112.2 million, with a record Q1 Adjusted EBITDA margin of 13.9%.

• Project backlog reached a record $3.09 billion, reflecting strong demand in both commercial and public sectors across the Sun Belt.

• Growth strategy includes significant acquisitions in Houston and Daytona Beach, with further expansion through the acquisition of GMJ Paving in Houston.

Financial highlights

• Gross profit increased to $121.5 million from $76.6 million year-over-year, with gross margin rising to 15% from 13.6%.

• Operating income was $50.4 million, up from $13.8 million in the prior year quarter.

• Adjusted EBITDA margin reached 13.9% for Q1 FY26, up from 12.3% a year ago.

• Net income was $17.2 million; adjusted net income was $26.4 million, or $0.47 per diluted share.

• Cash flow from operations was $82.6 million, up from $40.7 million in Q1 FY25.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $3.48–$3.56 billion, with organic growth expected at 7%-8%.

• Net income guidance set at $154–$158 million; adjusted net income at $163.5–$168.7 million.

• Adjusted EBITDA guidance increased to $534–$550 million, with margin expected at 15.34%–15.45%.

• Expect 75%-85% EBITDA conversion to operating cash flow in FY26.

• First half of the year expected to contribute 42% of revenue and 34% of adjusted EBITDA; second half to deliver 58% of revenue and 66% of adjusted EBITDA.