Construction Partners Q1 revenue up 44%, beats estimates

Overview

• Civil infrastructure firm's fiscal Q1 revenue up 44%, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company completed strategic acquisitions in Daytona Beach and Houston

Outlook

• Company raises FY26 revenue outlook to $3.48 bln-$3.56 bln

• Company expects FY26 net income between $154 mln and $158 mln

• Company projects FY26 adjusted EBITDA margin of 15.34%-15.45%

Result Drivers

• OPERATIONAL EXECUTION - Co attributed strong Q1 results to outstanding operational execution and favorable weather conditions

• RECORD BACKLOG - Co ended Q1 with a record project backlog of $3.09 bln, indicating strong market demand

• STRATEGIC ACQUISITIONS - Co completed acquisitions in Daytona Beach and Houston, aiding expansion and market share growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Construction Partners Inc is $124.00, about 8% above its February 4 closing price of $114.77

• The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 39 three months ago

Press Release: ID:nPn1mKHv4a

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