Construction Partners, Inc. — Fiscal 2026 Third Quarter Earnings Summary

Financial Performance

• Revenue for the quarter ended June 30, 2026, was $999.4 million, a 28.2% increase compared to $779.3 million in the same quarter of fiscal 2025.
• Gross profit was $168.4 million in Q3 FY26, compared to $131.8 million in Q3 FY25.
• General and administrative expenses were $63.1 million in Q3 FY26, compared to $51.0 million in Q3 FY25; as a percentage of revenue, this decreased 20 basis points to 6.3% from 6.5%.
• Net income was $59.6 million in Q3 FY26, compared to $44.0 million in Q3 FY25.
• Adjusted net income was $60.6 million in Q3 FY26, a 34% increase compared to $45.2 million in Q3 FY25.
• Diluted earnings per share based on adjusted net income were $1.08 in Q3 FY26, compared to $0.81 in Q3 FY25.
• Adjusted EBITDA was $163.0 million in Q3 FY26, a 23.8% increase compared to $131.7 million in Q3 FY25.
• Adjusted EBITDA margin was 16.3% in Q3 FY26, compared to 16.9% in Q3 FY25.
• Total assets were $3.612 billion at June 30, 2026, compared to $3.239 billion at September 30, 2025.
• Total liabilities were $2.571 billion at June 30, 2026, compared to $2.327 billion at September 30, 2025.
• Long-term debt, net of current maturities, was $1.745 billion at June 30, 2026, compared to $1.574 billion at September 30, 2025.
• Cash and cash equivalents were $94.5 million at June 30, 2026, compared to $156.1 million at September 30, 2025.
• For the nine months ended June 30, 2026, net cash provided by operating activities was $240.9 million, compared to $179.3 million in the same period of 2025.
• Net cash used in investing activities for the nine months ended June 30, 2026, was $445.0 million, compared to $1.033 billion in the same period of 2025.
• Net cash provided by financing activities for the nine months ended June 30, 2026, was $139.8 million, compared to $893.4 million in the same period of 2025.

Guidance and Future Outlook

• The Company raised its fiscal 2026 outlook for revenue to a range of $3.640 billion to $3.680 billion.
• Fiscal 2026 net income guidance is raised to a range of $165.0 million to $168.0 million.
• Fiscal 2026 adjusted net income guidance is raised to a range of $177.6 million to $181.4 million.
• Fiscal 2026 adjusted EBITDA guidance is raised to a range of $559.0 million to $569.0 million.
• Fiscal 2026 adjusted EBITDA margin guidance is raised to a range of 15.36% to 15.46%.
• Management remains on track to deliver sustained revenue growth, expanding profitability, and continued progress toward achieving ROAD 2030 objectives.

Business Segments and Product Lines

• Project backlog reached a record $3.36 billion at June 30, 2026, compared to $2.94 billion at June 30, 2025, and $3.14 billion at March 31, 2026.
• The Company expanded its Oklahoma footprint through the acquisition of Ellsworth Construction.
• Ellsworth Construction adds experienced employees, strategically located facilities, and a strong reputation for execution in the Tulsa and Oklahoma City metropolitan areas.
• The acquisition expands capabilities in the data center construction market, complementing the existing Overland data center portfolio in North Texas.
• The Company operates in local markets throughout the Sunbelt, including Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas.
• Publicly funded projects constitute the majority of business, including local and state roadways, interstate highways, airport runways, and bridges.
• Private sector projects include paving and sitework for office and industrial parks, shopping centers, local businesses, and residential developments.

Market and Competitive Landscape

• Demand for public infrastructure and commercial construction projects remained healthy throughout the Company's markets.
• The Company operates in the fastest-growing markets in the Sunbelt.
• The decentralized operating model and local market strategy are cited as drivers of resilience against market conditions.

Risks and Challenges

• The quarter was impacted by energy cost inflation and extremely wet weather in May across many markets.
• Forward-looking statements identify risks including the ability to successfully manage and integrate acquisitions, failure to realize expected economic benefits from acquisitions, and failure to implement growth strategies in a timely manner.
• Risks include declines in public infrastructure construction, reductions in government funding, and competition for projects in local markets.
• Risks associated with the capital-intensive business, government requirements, unfavorable economic conditions, and restrictive financing markets are noted.
• Risks include the ability to obtain sufficient bonding capacity, accurately estimate contract risks, and the cancellation of significant contracts.
• Risks related to adverse weather conditions, substantial indebtedness, and restrictions imposed by debt terms are highlighted.
• Risks include maintaining relationships with suppliers, retaining key personnel, property damage, litigation, and information technology system risks.

Management Commentary and Tone

• Fred J. (Jule) Smith, III, President and CEO, stated that strong results reflect the continued execution of the operating strategy and team dedication despite inflation and weather impacts.
• Smith noted that results underscore the resilience of the decentralized operating model, the strength of the local market strategy, and the ability to execute across diverse market conditions.
• Ned N. Fleming, III, Executive Chairman, stated the Company continues to create long-term shareholder value through disciplined execution combining organic growth with strategic acquisitions.
• Fleming expressed high confidence in the Company's long-term strategy, competitive position, and ability to capitalize on opportunities, citing a strong balance sheet and healthy customer funding.

Other Key Points

• The Company acquired Ellsworth Construction earlier in the month prior to the earnings release to expand its Oklahoma footprint.
• The Company will conduct a conference call on August 7, 2026, at 10:00 a.m. Eastern Time to discuss results.
• The Company reported a gain on the sale of property, plant, and equipment of $5.9 million in Q3 FY26.
• Acquisition-related expenses were $1.8 million in Q3 FY26.
• Share-based compensation expense for the nine months ended June 30, 2026, was $31.2 million.
• The Company purchased treasury stock costing $29.8 million during the nine months ended June 30, 2026.
• The Company issued long-term debt, net of costs, of $294.9 million during the nine months ended June 30, 2026.
• The Company repaid long-term debt of $386.4 million during the nine months ended June 30, 2026.
• Business acquisitions, net of cash acquired, totaled $337.4 million for the nine months ended June 30, 2026.
• The Company operates hot-mix asphalt plants, aggregate facilities, and liquid asphalt terminals to support its infrastructure construction and maintenance services.