Construction Partners, Inc. — Fiscal 2026 Earnings Summary

Financial Performance

• Fiscal 2026 revenue is projected between $3.660 billion and $3.680 billion, representing approximately 30% year-over-year growth compared to $2.812 billion in fiscal 2025.
• Fiscal 2026 net income is projected between $141.5 million and $142.5 million, an increase of approximately 40% compared to $101.8 million in fiscal 2025.
• Fiscal 2026 adjusted net income is projected between $153.3 million and $154.9 million, an increase of approximately 26% compared to $122.0 million in fiscal 2025.
• Fiscal 2026 Adjusted EBITDA is projected between $520.0 million and $524.0 million, an increase of approximately 23% compared to $423.7 million in fiscal 2025.
• Fiscal 2026 Adjusted EBITDA margin is projected between 14.21% and 14.24%, down from 15.1% in fiscal 2025.
• Preliminary financial results have not been audited, reviewed, or compiled by the Company's independent registered public accounting firm.

Guidance and Future Outlook

• Fiscal 2027 revenue is guided to range between $4.175 billion and $4.275 billion.
• Fiscal 2027 net income is guided to range between $170.9 million and $180.8 million.
• Fiscal 2027 adjusted net income is guided to range between $174.6 million and $185.4 million.
• Fiscal 2027 Adjusted EBITDA is guided to range between $585.0 million and $620.0 million.
• Fiscal 2027 Adjusted EBITDA margin is guided to range between 14.0% and 14.5%.
• Management anticipates approximately 15% growth in both revenue and Adjusted EBITDA at the midpoint of the fiscal 2027 guidance ranges.
• Fiscal 2027 outlook includes approximately 6% to 8% organic revenue growth.
• Margin improvement catalysts for the second half of fiscal 2027 include the integration of fiscal 2026 acquisitions, diminishing impact of elevated diesel fuel costs, completion of lower-margin projects in acquired backlog, and the incorporation of increased diesel costs into project pricing via the cost pass-through model.

Business Segments and Product Lines

• The Company completed seven acquisitions across four high-growth Sunbelt states during fiscal 2026.
• Four new greenfield locations were established during fiscal 2026.
• Organic revenue growth for fiscal 2026 was 7%.
• Three strategic acquisitions were completed in the first month of fiscal 2027.
• The Company operates in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas.
• Operations are supported by hot-mix asphalt plants, aggregate facilities, and liquid asphalt terminals.
• Publicly funded projects constitute the majority of business, including local/state roadways, interstate highways, airport runways, and bridges.
• Private sector projects include paving and sitework for office/industrial parks, shopping centers, local businesses, and residential developments.

Market and Competitive Landscape

• The Company specializes in the construction and maintenance of roadways in local markets throughout the Sunbelt.
• Management cites improving conditions in residential and commercial construction markets as a potential opportunity for margin expansion.
• The Company utilizes a differentiated operating model and disciplined approach to capital allocation to build momentum.

Risks and Challenges

• Unusually wet weather in July across several largest markets negatively affected profitability in the fourth quarter.
• Unprecedented rapid pace and magnitude of increases in diesel fuel costs affected profitability as the fiscal year exited.
• Forward-looking statements note risks including declines in public infrastructure construction, reductions in government funding, competition for projects, capital-intensive business risks, and inability to obtain sufficient bonding capacity.
• Risks also include adverse weather conditions, substantial indebtedness, labor relations, litigation, and information technology system failures.

Management Commentary and Tone

• CEO Fred J. (Jule) Smith III described fiscal 2026 as a successful year highlighted by record financial performance and significant year-over-year growth.
• Management expressed pride in the team's productivity and disciplined execution despite external headwinds.
• Smith stated the growth strategy remains "firmly intact" and the Company is "confident in our ability to deliver sustained growth, margin expansion, and long-term shareholder value creation."
• Management identified three strategic margin improvement levers: building better markets, enhancing vertical integration, and increasing operational scale.
• The Company expects to benefit from completing lower-margin projects in acquired backlog and replacing them with higher-margin work in the second half of fiscal 2027.

Other Key Points

• A conference call to discuss results will be held on Thursday, November 19, 2026, at 10:00 a.m. Eastern Time.
• The press release includes a reconciliation of Non-GAAP financial measures, including Adjusted EBITDA and Adjusted Net Income, detailing adjustments for interest, taxes, depreciation, share-based compensation, and transformative acquisition expenses.
• Fiscal 2026 transformative acquisition expenses are estimated between $14.75 million and $15.5 million.
• Fiscal 2027 transformative acquisition expenses are estimated between $5.0 million and $6.0 million.
• Fiscal 2026 financing fees related to transformative acquisitions are estimated between $0.85 million and $0.95 million.
• Fiscal 2027 financing fees related to transformative acquisitions are not projected.