Revenue accelerated 54.2% YoY to $999.4M in Q3 2026, with gross margin recovering to 16.8% from 13.0% in Q2, though still below the 17.7% peak in Q4 2025, reflecting input cost volatility and integration dynamics.
Construction Partners, Inc. (ROAD) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 |
|---|
| Sales/Revenue | 3.48B | 2.81B | 1.82B | 1.56B | 1.3B | 910.74M | 785.68M | 783.24M | 680.1M | 568.21M | 542.35M |
| Revenue Growth % | 41.92% | 54.2% | 16.65% | 20.12% | 42.93% | 15.92% | 0.31% | 15.17% | 19.69% | 4.77% | - |
| Cost of Goods Sold | 2.93B | 2.37B | 1.57B | 1.36B | 1.16B | 793.95M | 663.47M | 665.28M | 580.56M | 477.24M | 467.46M |
| COGS % of Revenue | - | 84.39% | 85.83% | 87.27% | 89.47% | 87.18% | 84.45% | 84.94% | 85.36% | 83.99% | 86.19% |
| Gross Profit | 549.48M | 439.09M | 258.5M | 198.98M | 137.12M | 116.79M | 122.21M | 117.95M | 99.54M | 90.97M | 74.88M |
| Gross Margin % | 15.8% | 15.61% | 14.17% | 12.73% | 10.53% | 12.82% | 15.55% | 15.06% | 14.64% | 16.01% | 13.81% |
| Gross Profit Growth % | - | 69.86% | 29.91% | 45.12% | 17.4% | -4.44% | 3.61% | 18.5% | 9.42% | 21.48% | - |
| Operating Expenses | 241.44M | 199.29M | 150M | 126.65M | 107.16M | 86.22M | 68.4M | 62.52M | 55.1M | 47.87M | 40.43M |
| OpEx % of Revenue | - | 7.09% | 8.22% | 8.1% | 8.23% | 9.47% | 8.71% | 7.98% | 8.1% | 8.42% | 7.45% |
| Selling, General & Admin | 245.58M | 199.29M | 150M | 126.65M | 107.16M | 85.26M | 68.4M | 62.52M | 55.1M | 47.87M | 40.43M |
| SG&A % of Revenue | - | 7.09% | 8.22% | 8.1% | 8.23% | 9.36% | 8.71% | 7.98% | 8.1% | 8.42% | 7.45% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | 0 | 0 | 0 | 0 | 955K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 308.04M | 239.8M | 108.5M | 72.33M | 29.95M | 30.57M | 53.81M | 55.43M | 44.43M | 43.1M | 34.45M |
| Operating Margin % | 8.86% | 8.53% | 5.95% | 4.63% | 2.3% | 3.36% | 6.85% | 7.08% | 6.53% | 7.59% | 6.35% |
| Operating Income Growth % | - | 121.01% | 50% | 141.49% | -2.03% | -43.19% | -2.91% | 24.75% | 3.08% | 25.1% | - |
| EBITDA | 483.85M | 388.07M | 201.42M | 151.44M | 95.68M | 80.38M | 93.12M | 86.66M | 69.75M | 64.18M | 55.98M |
| EBITDA Margin % | 13.91% | 13.8% | 11.04% | 9.69% | 7.35% | 8.83% | 11.85% | 11.06% | 10.26% | 11.29% | 10.32% |
| EBITDA Growth % | 53.5% | 92.67% | 33.01% | 58.27% | 19.04% | -13.68% | 7.45% | 24.24% | 8.69% | 14.63% | - |
| D&A (Non-Cash Add-back) | 175.81M | 148.27M | 92.92M | 79.1M | 65.73M | 49.81M | 39.3M | 31.23M | 25.32M | 21.07M | 21.53M |
| EBIT | 246.41M | 224.9M | 121.8M | 91.05M | 36.88M | 30.92M | 55.57M | 57.55M | 61.33M | 44.74M | 37.23M |
| Net Interest Income | -57.47M | -90.36M | -29.7M | -25.64M | -8.56M | -2.41M | -3.11M | -1.86M | -1.27M | -3.96M | -4.66M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 57.47M | 90.36M | 29.7M | 25.64M | 8.56M | 2.41M | 3.11M | 1.86M | 1.27M | 3.96M | 4.66M |
| Other Income/Expense | -119.1M | -105.28M | -16.41M | -6.93M | -1.66M | -2.05M | -758K | 1.6M | 16.88M | -2.32M | -1.89M |
| Pretax Income | 188.94M | 134.53M | 92.1M | 65.4M | 28.29M | 28.53M | 53.06M | 57.03M | 61.32M | 40.78M | 32.56M |
| Pretax Margin % | 5.43% | 4.78% | 5.05% | 4.18% | 2.17% | 3.13% | 6.75% | 7.28% | 9.02% | 7.18% | 6% |
| Income Tax | 46.43M | 32.75M | 23.16M | 16.4M | 6.92M | 8.35M | 12.76M | 13.91M | 10.53M | 14.74M | 10.54M |
| Effective Tax Rate % | 24.57% | 24.34% | 25.15% | 25.08% | 24.44% | 29.27% | 24.05% | 24.39% | 17.17% | 36.15% | 32.37% |
| Net Income | 142.51M | 101.77M | 68.94M | 49M | 21.38M | 20.18M | 40.3M | 43.12M | 50.79M | 26.04M | 22.02M |
| Net Margin % | 4.1% | 3.62% | 3.78% | 3.13% | 1.64% | 2.22% | 5.13% | 5.51% | 7.47% | 4.58% | 4.06% |
| Net Income Growth % | 91.24% | 47.63% | 40.68% | 129.23% | 5.94% | -49.93% | -6.55% | -15.1% | 95.05% | 18.25% | - |
| Net Income (Continuing) | 142.51M | 101.78M | 68.94M | 49M | 21.38M | 20.18M | 40.3M | 43.12M | 50.79M | 26.04M | 22.02M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.53 | 1.84 | 1.31 | 0.94 | 0.41 | 0.39 | 0.78 | 0.84 | 1.11 | 0.51 | 0.43 |
| EPS Growth % | 4176.09% | 40.46% | 39.36% | 129.27% | 5.13% | -50% | -7.14% | -24.32% | 117.65% | 18.6% | - |
| EPS (Basic) | - | 1.85 | 1.33 | 0.95 | 0.41 | 0.39 | 0.78 | 0.84 | 1.11 | 0.51 | 0.43 |
| Diluted Shares Outstanding | 56.27M | 55.37M | 52.58M | 52.26M | 51.96M | 51.77M | 51.64M | 51.43M | 45.92M | 50.82M | 50.82M |
| Basic Shares Outstanding | 55.91M | 54.94M | 51.88M | 51.83M | 51.77M | 51.64M | 51.49M | 51.42M | 45.61M | 50.82M | 50.82M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 120.17% | - |
Quick answers to the most common questions about buying ROAD stock.
For fiscal year 2025, Construction Partners, Inc. (ROAD) reported total revenue of $2.81B. This represents a 418.6% increase compared to $542.3M in 2016.
Construction Partners, Inc. (ROAD) is profitable, generating $101.8M in net income for the fiscal year ending 2025 with a net profit margin of 3.6%.
Construction Partners, Inc. (ROAD) reported an operating income of $239.8M, resulting in an operating profit margin of 8.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Construction Partners, Inc. (ROAD) generated $439.1M in gross profit for the year, representing a gross profit margin of 15.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Integration and margin volatility
Metrics are mathematically derived from official filings.
Acquisition-Fueled Revenue Acceleration
Revenue surged 54.2% year-over-year to $999.4M in Q3 2026, per the latest income statement, with organic growth likely contributing a smaller share given the aggressive roll-up strategy.
The 54.2% YoY growth in Q3 2026, up from 28.2% in the prior quarter, indicates a step-change in scale, likely driven by a transformative acquisition. While the pace is impressive, investors should monitor the organic component, as the company's 'buy-and-build' model may mask underlying market growth. The sequential revenue increase from $769.2M to $999.4M suggests strong seasonality and integration benefits, but sustainability hinges on continued M&A execution and Southeast infrastructure demand.
Gross Margin Recovery Amid Commodity Risk
Gross margin improved to 16.8% in Q3 2026 from 13.0% in Q2, as reported in financial statements, but remains below the 17.7% peak in Q4 2025, reflecting input cost volatility.
The 380 basis point sequential gross margin expansion suggests better pricing or cost pass-through, yet the 15.61% average gross margin is thin relative to peers like STRL (23.0%). This highlights the company's exposure to liquid asphalt and diesel costs, which can cause margin swings. The Q3 2026 margin is still below the 17.7% achieved in Q4 2025, indicating that the company has not fully recovered its peak profitability, possibly due to acquisition integration costs or commodity headwinds.
Operating Leverage Amplifies Earnings
Operating income jumped to $109.4M in Q3 2026 from $36.6M in Q2, per the income statement, as SG&A remained flat, demonstrating significant operating leverage on higher revenue.
SG&A held nearly constant at $63.1M despite a 30% revenue increase, driving operating margin from 4.8% to 10.9%. This suggests that the company's cost base is largely fixed, allowing incremental revenue to flow through to operating income. However, the volatility in operating margin—ranging from 0.8% in Q2 2024 to 11.3% in Q4 2025—indicates that leverage cuts both ways, with utilization rates and project mix playing critical roles.
Earnings Quality Tempered by SBC and Tax
Net income of $59.6M in Q3 2026 includes $8.8M in stock-based compensation, as per the income statement, and the effective tax rate appears low, warranting scrutiny of earnings quality.
SBC of $8.8M represents about 15% of net income, which is not immaterial and can dilute shareholders. The effective tax rate implied by the data (net income of $59.6M on pre-tax income of $109.4M) is roughly 45%, which is unusually high and may include one-time items or valuation allowances. Investors should adjust for these factors to assess underlying profitability, especially given the company's aggressive acquisition pace that may involve purchase accounting adjustments.
COGS Dominates Cost Structure
COGS accounted for 83.2% of revenue in Q3 2026, as reported, with SG&A at 6.3%, indicating that input costs are the primary profit lever.
The cost structure is heavily weighted toward variable inputs like asphalt, fuel, and labor, leaving little room for error. The 16.8% gross margin means that a 1% increase in input costs could wipe out a significant portion of operating profit. Management's ability to pass through costs via escalation clauses is critical, but the data shows margin volatility, suggesting imperfect pass-through. SG&A discipline is evident, but the focus must remain on COGS management.
Q3 2026 Marks a Turning Point
Q3 2026 stands out as the inflection quarter, with revenue and operating income reaching record levels, per the income statement, driven by a likely transformative acquisition and strong execution.
The jump in revenue from $769.2M to $999.4M and operating income from $36.6M to $109.4M represents a step-change in scale and profitability. This inflection appears to be acquisition-driven, and the raised guidance suggests management confidence in sustaining this trajectory. However, the lasting impact depends on whether the company can maintain margins while integrating new operations and whether the growth is repeatable organically.
What Could Invalidate the Base Case
The 54.2% revenue growth may mask integration risks and margin volatility, as gross margins remain below prior peaks and the low debt-to-equity ratio suggests possible equity dilution.
Short-sellers could argue that the aggressive acquisition pace may lead to integration indigestion, with cost overruns or project delays eroding the reported operating leverage. The thin gross margin of 16.8% in Q3 2026, while improved, is still below the 17.7% in Q4 2025, indicating that commodity cost pass-through is not fully effective. Additionally, the exceptionally low debt-to-equity ratio of 1.85% may reflect recent equity issuance, which could dilute existing shareholders and signal that management views the stock as overvalued. If organic growth is minimal and margins remain volatile, the current valuation premium could be unjustified.