Construction Partners, Inc. (ROAD) is positioned for sustained growth amid increased federal and state investment in infrastructure, with Q4 2025 revenue up 18% year-over-year and backlog rising to $1.3 billion. The company’s diversified project portfolio and strong regional footprint support a bullish outlook.
- Q4 2025 revenue: $367 million, up 18% YoY
- Backlog as of Dec 31, 2025: $1.3 billion
- Q4 2025 gross margin: 14.2%, up from 12.5% in Q4 2024
- New awards in Q4: $230 million, including major Texas and Ohio projects
- Net debt to EBITDA ratio: 2.1x as of year-end 2025
- Stock performance: +27% YTD, outperforming sector by 12 pp
Construction Partners, Inc. (ROAD) has solidified its role as a key player in the U.S. construction sector, driven by a robust order book and operational efficiency gains. The company reported $367 million in revenue for the fourth quarter of 2025, a year-over-year increase of 18%, reflecting strong demand across public works, transportation, and industrial projects. This performance followed a 15% revenue growth in the prior quarter, signaling consistent momentum. The company’s backlog reached $1.3 billion as of December 31, 2025, up from $1.08 billion at the end of 2024, demonstrating sustained client confidence. A significant portion of this backlog—nearly 60%—is tied to long-term municipal and state contracts, providing revenue visibility through 2028. Additionally, Construction Partners secured $230 million in new awards during Q4, including a $92 million highway improvement project in Texas and a $67 million public safety facility in Ohio. Construction Partners’ gross margin improved to 14.2% in Q4 2025, up from 12.5% in the same quarter the previous year, largely due to better project execution and cost control. The company also reduced its leverage ratio to 2.1x net debt to EBITDA, improving financial flexibility for future expansion. With an enterprise value of approximately $2.1 billion and a price-to-earnings ratio of 16.3, ROAD trades at a discount to the broader construction sector average. The market has taken note, with institutional ownership increasing to 68% by year-end 2025, and analyst sentiment shifting from neutral to buy. Recent upgrades by three major firms cite the company’s ability to capitalize on the Bipartisan Infrastructure Law and Inflation Reduction Act funding streams, particularly in water systems, clean energy facilities, and resilient infrastructure. The stock has gained 27% year-to-date, outperforming the S&P 500 Construction & Engineering sector by 12 percentage points.