Construction Partners (ROAD) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 FY26 grew 35% year-over-year to $769.2 million, driven by 11% organic and 24% acquisitive growth, with major acquisitions in Texas, Florida, and Tennessee expanding operations.

• Net income more than doubled to $9.2 million, with adjusted net income at $10.4 million and adjusted EPS at $0.18.

• Adjusted EBITDA rose 35% to $93.3 million, maintaining a margin of 12.1%.

• Record project backlog reached $3.14 billion, up from $2.84 billion a year ago, supporting a raised FY26 outlook.

• Continued focus on employee retention, culture, and operational excellence across 110 local markets.

Financial highlights

• Gross profit increased 39% to $98.9 million, with gross margin improving to 12.9%.

• Operating income rose 37% to $37.4 million.

• Cash flow from operations was $65.2 million in Q2 and $147.8 million for the six months ended March 31, 2026.

• General and administrative expenses were $63.6 million, 8.3% of revenue.

• Interest expense increased 18.5% to $25.6 million due to higher borrowings.

Outlook and guidance

• FY26 revenue guidance raised to $3.59–$3.65 billion.

• Net income expected at $159–$162 million; adjusted net income at $170.4–$174.2 million.

• Adjusted EBITDA guidance increased to $552–$564 million; margin expected at 15.38%–15.45%.

• Project backlog at $3.14 billion, covering 80%–85% of next 12 months’ contract revenue.

• Capital expenditures for FY26 projected at $165–185 million.