Construction Partners, Inc. (NASDAQ:ROAD) shares rose 5.44% in premarket trading on Friday after the infrastructure company reported second-quarter results that exceeded Wall Street expectations and raised its outlook for fiscal 2026.
Quarterly earnings and revenue top forecasts
The company reported adjusted earnings per share of $0.18 for the second quarter, outperforming analyst estimates, which had projected a loss of -$0.02 per share.
Revenue for the quarter reached $769.19 million, comfortably ahead of the consensus forecast of $679.23 million. Sales increased 34.5% compared with $571.7 million recorded in the same quarter last year.
Construction Partners said the stronger performance was supported by favourable weather conditions, strong operational execution and 11% organic revenue growth across the business.
Company lifts 2026 revenue and EBITDA guidance
Following the stronger quarterly performance, the company raised its fiscal 2026 revenue forecast to a range between $3.59 billion and $3.65 billion.
The midpoint of the updated guidance, $3.62 billion, is above analyst expectations of $3.53 billion.
Construction Partners also increased its adjusted EBITDA outlook to between $552 million and $564 million, with projected EBITDA margins ranging from 15.38% to 15.45%.
“We delivered a strong quarter, driven by exceptional execution across the business,” said Fred J. Smith, III, President and Chief Executive Officer. “Strong financial performance in the quarter led to 35% growth in both revenue and adjusted EBITDA, including 11% organic revenue growth.”
Profitability and backlog continue to improve
Adjusted EBITDA rose 34.6% year-on-year to $93.3 million, compared with $69.3 million in the prior-year period.
Net income increased to $9.2 million, or $0.16 per diluted share, versus $4.2 million, or $0.08 per share, during the second quarter of fiscal 2025.
The company also reported a record project backlog of $3.14 billion as of March 31, 2026, up from $2.84 billion recorded a year earlier.