Construction Partners, Inc. (NASDAQ:ROAD) slid in premarket trading on Thursday after the company’s latest quarterly results showed a profit shortfall, overshadowing an otherwise strong top-line performance.
Shares were down 4.69% after the civil infrastructure specialist reported adjusted fourth-quarter earnings of $1.02 per share, below Wall Street’s $1.09 estimate. Revenue, however, reached $899.5 million, comfortably ahead of the consensus forecast of $881.15 million and marking a 67% increase from the same quarter last year.
Despite the robust sales growth, the earnings miss drew most of the market’s attention, pushing the stock lower. For fiscal 2025 overall, Construction Partners delivered a year of substantial expansion, with revenue up 54% to $2.81 billion and net income climbing 48% to $101.8 million.
“We delivered a strong fourth quarter that capped a year of significant growth and margin expansion,” said Fred J. (Jule) Smith, III, President and CEO. “Our disciplined execution across our Sunbelt operations, powered by more than 6,800 employees, continues to drive record results through safe, efficient project construction and strong market demand.”
The company reaffirmed its fiscal 2026 guidance, expecting revenue of $3.4 billion to $3.5 billion, which aligns with analysts’ projection of about $3.42 billion. Construction Partners also reported a record backlog of $3.03 billion as of September, up from $1.96 billion the prior year.
During fiscal 2025, the company broadened its operating footprint through five acquisitions, adding new markets in Texas and Oklahoma and deepening its presence in Tennessee and Alabama. It closed two more deals in October to establish a position in Daytona Beach, Florida, and further expand in Houston, Texas.
“The fundamentals in our core markets remain strong, supported by ongoing transportation investment, population growth, and healthy commercial demand,” Smith added. “With these tailwinds, our fiscal 2026 outlook reflects another year of meaningful growth.”