New York, Feb 6, 2026, 10:02 (EST) — Regular session
- Construction Partners shares edged up about 1% after DA Davidson raised its price target.
- The road builder bumped up its fiscal 2026 forecast after a robust first quarter and a record backlog.
- Weather sensitivity, organic growth, and the pace of new contract awards are in sharp focus for investors right now
Construction Partners, Inc. shares edged up 1.2% to $129.13 early Friday, a gain of $1.48 from Thursday’s close. DA Davidson bumped its price target for the road builder to $130 from $120, though left its rating at neutral. Analyst Brent Thielman flagged stronger guidance as a sign of “confidence,” and called out Washington activity, organic growth, and M&A as the next areas to track. StreetInsider.com
After Thursday’s earnings landed, Construction Partners shares got a jolt: profit shot up, and the full-year forecast moved higher, both key numbers investors have tracked this quarter while weighing which infrastructure names can actually keep margins up as workloads build. First-quarter revenue reached $809.5 million, with net income at $17.2 million. Adjusted EBITDA didn’t just rise—it jumped 63%, hitting $112.2 million. The company’s backlog—contracts inked, jobs not yet done—set a new high at $3.09 billion. On top of that, Construction Partners bumped up its fiscal 2026 revenue outlook, now pegged between $3.48 billion and $3.56 billion. CEO Fred J. (Jule) Smith III pointed to “favorable first-quarter weather” as a factor behind the robust results. SEC
Management pointed to “strong industry tailwinds” in local markets—more infrastructure dollars and private jobs rolling in across the Sunbelt—as it continues to tack on acquisitions. This quarter, the company closed deals in Daytona Beach, Florida, and Houston, Texas, and then disclosed yet another Houston-area buyout earlier this week. PR Newswire
Construction Partners operates across eight states, centering on asphalt-driven civil infrastructure projects. The company’s plants and materials back up its paving work, covering roads, highways, runways, bridges, and commercial site development.
CFO Gregory A. Hoffman told analysts on the earnings call that the quarter’s revenue split out to 3.5% organic growth and a hefty 40.6% boost from acquisitions. That mix will be watched closely by investors looking for signs the company can keep up growth on its own, without leaning too much on deal-making.
Company leaders pointed to volatility in performance. They’re projecting around 42% of annual revenue and 34% of adjusted EBITDA will land in the first six months, expecting profits to cluster later in the year—when business tends to peak.
Granite Construction rose roughly 1.9%, while Sterling Infrastructure surged nearly 4.9%. Shares in other U.S. infrastructure names were higher too. The SPDR S&P 500 ETF tacked on about 1.1%.
The short-term picture’s still murky. During the call, analysts pressed management on where the acquisition pipeline stands, what’s driving swings in organic growth, and whether public contract awards are picking up. Execs projected a 10% to 15% bump in contract awards for fiscal 2026, but cautioned that number’s at risk if weather turns or schedules slip.
Next up: the annual stockholders meeting on March 24 in Dothan, Alabama. Investors are zeroing in on any news about bookings, how integration is moving along, and what the bidding landscape looks like for the year.
