Operating cash flow exceeded net income (OCF/NI of 1.56 in Q3 2026), but heavy acquisition outflows ($61.6M) and rising capex (6.3% of revenue) limited FCF margin to 3.1%, underscoring cash consumption by inorganic growth.
Construction Partners, Inc. (ROAD) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 |
|---|
| Cash from Operations | 352.84M | 291.3M | 209.08M | 157.16M | 16.5M | 48.5M | 105.17M | 55.27M | 66.12M | 46.93M | 51.69M |
| Operating CF Margin % | - | 10.36% | 11.46% | 10.05% | 1.27% | 5.33% | 13.39% | 7.06% | 9.72% | 8.26% | 9.53% |
| Operating CF Growth % | 149.16% | 39.33% | 33.04% | 852.58% | -65.98% | -53.89% | 90.28% | -16.4% | 40.9% | -9.22% | - |
| Net Income | 142.51M | 101.78M | 68.94M | 49M | 21.38M | 20.18M | 40.3M | 43.12M | 50.79M | 26.04M | 22.02M |
| Depreciation & Amortization | 175.81M | 148.27M | 92.92M | 79.1M | 65.73M | 45.43M | 40.23M | 28.98M | 25.32M | 20.67M | 19.27M |
| Stock-Based Compensation | 41.34M | 37.01M | 14.41M | 10.76M | 8M | 3.55M | 1.57M | 957K | 975K | 513K | 217K |
| Deferred Taxes | 50.42M | 27.46M | 22.68M | 11.16M | 5.97M | 3.75M | 3.31M | 3M | -481K | 865K | 8.15M |
| Other Non-Cash Items | -12.25M | -7.1M | -3.69M | -11.57M | -4.72M | 229K | 165K | 109K | -2.95M | 660K | 912K |
| Working Capital Changes | -44.98M | -16.12M | 13.82M | 18.7M | -79.85M | -24.63M | 19.6M | -20.89M | -7.53M | -1.82M | 1.13M |
| Change in Receivables | -80.28M | -66.74M | -1.1M | -23.39M | -97.08M | -42.22M | 7.41M | -20.59M | 9.27M | -19.62M | -13.69M |
| Change in Inventory | -18.55M | -5.15M | -15.48M | -7.32M | -17.51M | -3.93M | -1.18M | -8.83M | -2.75M | -3.06M | 3.3M |
| Change in Payables | 47.52M | 47.47M | 13.43M | 17.22M | 41.32M | 20.2M | -5.71M | 6.93M | 7.46M | 11.64M | -10.53M |
| Cash from Investing | -692.06M | -1.28B | -307.58M | -143.37M | -197.33M | -263.41M | -79.36M | -60.23M | -89.59M | -30.69M | -19M |
| Capital Expenditures | -177.28M | -137.93M | -87.93M | -97.81M | -68.85M | -56.33M | -52.57M | -42.48M | -42.8M | -24.4M | -24.86M |
| CapEx % of Revenue | 5.1% | 4.9% | 4.82% | 6.26% | 5.29% | 6.19% | 6.69% | 5.42% | 6.29% | 4.29% | 4.58% |
| Acquisitions | -548.96M | -1.16B | -231.78M | -91.79M | -128.57M | -210.73M | -30.19M | -13.85M | -51.72M | -10.84M | 5.85M |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 20.37M | 17.77M | 14.06M | 43.33M | 7.53M | 3.65M | 3.4M | -3.89M | 5.33M | 4.56M | 0 |
| Cash from Financing | 317.57M | 1.07B | 126.11M | -264K | 159.14M | 123.85M | 41.89M | -13.57M | 95.06M | -39.78M | -20.88M |
| Debt Issued (Net) | 352.57M | 1.09B | 137.42M | -125K | 159.18M | 123.85M | 41.89M | -13M | 4.56M | -6.12M | -18.09M |
| Equity Issued (Net) | -32.51M | -23.54M | -11.31M | -139K | -39K | 0 | 0 | -566K | 95.44M | -2.36M | -2.79M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -21.92M | -31.29M | 0 |
| Share Repurchases | -32.51M | -23.54M | -11.31M | -139K | -39K | 0 | 0 | -569K | -2.57M | -3M | -3M |
| Other Financing | -2.49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.94M | 0 | 0 |
| Net Change in Cash | -21.65M | 82.33M | 27.6M | 13.52M | -21.69M | -91.06M | 67.7M | -18.52M | 71.59M | -23.54M | 11.81M |
| Free Cash Flow | 175.56M | 153.37M | 121.15M | 59.35M | -52.35M | -7.83M | 52.6M | 12.79M | 23.32M | 22.53M | 26.84M |
| FCF Margin % | 5.05% | 5.45% | 6.64% | 3.8% | -4.02% | -0.86% | 6.69% | 1.63% | 3.43% | 3.96% | 4.95% |
| FCF Growth % | 14.89% | 26.6% | 104.14% | 213.36% | -568.45% | -114.89% | 311.09% | -45.13% | 3.5% | -16.06% | - |
| FCF per Share | 3.12 | 2.77 | 2.30 | 1.14 | -1.01 | -0.15 | 1.02 | 0.25 | 0.51 | 0.44 | 0.53 |
| FCF Conversion (FCF/Net Income) | 1.23x | 2.86x | 3.03x | 3.21x | 0.77x | 2.40x | 2.61x | 1.28x | 1.30x | 1.80x | 2.35x |
| Interest Paid | -73.7M | 80.58M | 21.68M | 19.16M | 9.29M | 3.2M | 2.04M | 2.64M | 2.34M | 3.31M | 4.31M |
| Taxes Paid | -5.72M | 5.51M | 5.45M | 1.01M | 1.37M | 6.22M | 9.9M | 9.12M | 14.36M | 12.53M | 2.57M |
Quick answers to the most common questions about buying ROAD stock.
Construction Partners, Inc. (ROAD) generated $291.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Construction Partners, Inc. (ROAD) generated $153.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Construction Partners, Inc. (ROAD) spent $137.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Construction Partners, Inc. (ROAD) spent $23.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Integration and margin volatility
Metrics are mathematically derived from official filings.
Earnings Quality Boosted by Working Capital
Operating cash flow exceeded net income in every quarter, with OCF/NI reaching 1.56 in Q3 2026, per the cash flow statement, suggesting strong cash conversion despite heavy acquisition activity.
The consistent OCF/NI above 1.0 indicates that reported earnings are backed by cash generation, not just accruals. However, the Q3 2026 OCF/NI of 1.56 is partly due to a $33.0M working capital outflow, which may reflect timing of project billings. Investors should monitor whether this conversion persists as the company integrates acquisitions.
FCF Margin Expansion on Higher Revenue
Free cash flow margin improved to 3.1% in Q3 2026 from 2.5% in Q2, per the cash flow statement, as revenue surged 54.2% YoY, indicating operating leverage is translating into cash generation.
FCF turned positive in Q3 2026 at $30.6M, up from $18.9M in Q2, despite a significant increase in capex. The margin expansion suggests that the acquisition-fueled growth is beginning to generate cash, but the absolute FCF remains modest relative to the company's scale. The trajectory appears improving, though sustainability depends on maintaining plant utilization and controlling integration costs.
Capital Intensity Rising with Expansion
CapEx as a percentage of revenue climbed to 6.3% in Q3 2026 from 4.7% in Q3 2025, per the cash flow statement, reflecting increased investment in asphalt plants and equipment to support growth.
The rise in capital intensity suggests that ROAD is investing heavily in its vertical integration strategy, likely to expand its plant network and fleet. While this supports long-term growth, it also pressures near-term FCF. The company's ability to convert these investments into higher margins will be critical, as the current gross margin of 15.61% remains thin.
Working Capital Volatility from Project Timing
Working capital changes swung from a $21.3M outflow in Q4 2025 to a $7.5M inflow in Q1 2026, per the cash flow statement, indicating project billing and payment timing are highly variable.
The erratic working capital movements are typical for a project-based business, but the magnitude of swings—such as the $33.0M outflow in Q3 2026—suggests that cash flow can be lumpy. This may reflect under-billings on large projects or delayed collections from public clients. Investors should monitor the trend in working capital days to assess whether the company is managing its cycle efficiently.
Aggressive M&A Outflows Outpace Buybacks
Acquisition-related cash outflows totaled $61.6M in Q3 2026, per the cash flow statement, far exceeding the $3.8M in buybacks, underscoring the company's focus on inorganic growth.
The cash flow statement reveals that ROAD is deploying significant capital into acquisitions, with cumulative acquisition outflows exceeding $1.5B over the past year. This aligns with the 'buy-and-build' strategy, but it also means that cash is being consumed rather than returned to shareholders. The low debt-to-equity ratio suggests equity financing, which may dilute existing shareholders.
Cumulative Cash Generation Lags Net Income
Over the last five quarters, cumulative operating cash flow of $725.9M exceeded cumulative net income of $246.8M, per the cash flow statement, but heavy capex and acquisitions have consumed the surplus.
While operating cash flow has been robust, the cumulative FCF of $327.4M is far below net income due to aggressive capex and acquisition spending. This divergence suggests that reported earnings are not yet translating into distributable cash, as the company reinvests heavily. Investors should assess whether this reinvestment will eventually yield higher returns, given the current ROIC is not disclosed.
What Could Invalidate the Base Case
The cash flow statement obscures the true cost of acquisitions, as SBC of $8.8M in Q3 2026 is added back to operating cash flow, per the cash flow statement, potentially overstating cash generation.
While operating cash flow appears strong, the add-back of stock-based compensation and the use of POC accounting may inflate reported cash generation. Additionally, the low debt-to-equity ratio could indicate recent equity issuance, which may signal dilution. Investors should scrutinize the sustainability of cash conversion and the integration of acquired businesses, as any margin erosion could quickly turn FCF negative.