New York, Feb 6, 2026, 10:02 (EST) — Regular session
- Shares of Construction Partners rose roughly 1% following a price-target boost from DA Davidson
- After a strong first quarter and record backlog, the road builder lifted its fiscal 2026 outlook
- Investors are focused on weather sensitivity, organic growth, and how quickly new contracts are being awarded
Shares of Construction Partners, Inc. climbed around 1.2% to $129.13 in early trading Friday, up $1.48 from the previous close. DA Davidson raised its price target on the road builder to $130 from $120 but kept a neutral rating. Analyst Brent Thielman pointed to the stronger guidance as a sign of “confidence,” highlighting Washington activity, organic growth, and deal-making as key areas to watch next. 1
The move comes after Thursday’s earnings report, which revealed a sharp profit surge alongside an increased full-year forecast—metrics investors have been focusing on this quarter to gauge which infrastructure companies can sustain margins amid rising workloads. Construction Partners posted first-quarter revenue of $809.5 million and net income of $17.2 million. Adjusted EBITDA climbed 63% to $112.2 million. Their backlog—the value of contracted but unfinished work—hit a record $3.09 billion. The company also lifted its fiscal 2026 revenue guidance to a range between $3.48 billion and $3.56 billion. CEO Fred J. (Jule) Smith III attributed the strong results in part to “favorable first-quarter weather.” 2
Management highlighted “strong industry tailwinds” in its local markets, driven by rising infrastructure funding and private projects across the Sunbelt, as it keeps adding acquisitions. The company wrapped up deals in Daytona Beach, Florida, and Houston, Texas, this quarter, and revealed another Houston-area acquisition earlier this week. 3
Construction Partners focuses on asphalt-based civil infrastructure, running projects in eight states. Its plants and material assets support its paving operations. The company handles roads, highways, runways, bridges, and commercial sitework. 4
During the earnings call, CFO Gregory A. Hoffman revealed that revenue growth for the quarter came from two main sources: 3.5% organic growth and 40.6% from acquisitions. Investors will likely keep a close eye on this balance, seeking reassurance the company can continue growing without relying heavily on further deals. 5
Executives highlighted the business’s uneven pace. They anticipate the first half of the fiscal year will deliver roughly 42% of total revenue and about 34% of adjusted EBITDA, with the bulk of profits expected during the peak season in the latter half. 6
Shares of other U.S. infrastructure-focused companies also moved up during the session. Granite Construction climbed around 1.9%, and Sterling Infrastructure jumped close to 4.9%. Meanwhile, the SPDR S&P 500 ETF increased by about 1.1%.
The near-term outlook remains uncertain. On the call, analysts grilled management about the acquisition pipeline, fluctuations in organic growth, and the pace of public contract awards. Executives said they expect contract awards to rise 10% to 15% in fiscal 2026—but warned this could fall short if weather conditions worsen or project schedules shift. 7
The upcoming catalyst is the company’s annual stockholders meeting on March 24 in Dothan, Alabama. Investors will be watching closely for updates on bookings, integration progress, and the bidding environment for the year. 8
