Revenue growth has accelerated to 34.6% as of 2026Q2, yet net margins remain thin at 1.2% due to the structural sensitivity of asphalt production costs.
| Sales/Revenue | 3.26B | 2.81B | 1.82B | 1.56B | 1.3B | 910.74M | 785.68M | 783.24M | 680.1M | 568.21M | 542.35M |
| Revenue Growth % | 48.81% | 54.2% | 16.65% | 20.12% | 42.93% | 15.92% | 0.31% | 15.17% | 19.69% | 4.77% | - |
| Cost of Goods Sold | 2.74B | 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 | 512.9M | 439.09M | 258.5M | 198.98M | 137.12M | 116.79M | 122.21M | 117.95M | 99.54M | 90.97M | 74.88M |
| Gross Margin % | 15.74% | 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 | 233.46M | 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 | 233.46M | 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 | 0 | 0 | 0 | 0 | 0 | 955K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 279.44M | 239.8M | 108.5M | 72.33M | 29.95M | 30.57M | 53.81M | 55.43M | 44.43M | 43.1M | 34.45M |
| Operating Margin % | 8.58% | 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 | 450.57M | 388.07M | 201.42M | 151.44M | 95.68M | 80.38M | 93.12M | 86.66M | 69.75M | 64.18M | 55.98M |
| EBITDA Margin % | 13.83% | 13.8% | 11.04% | 9.69% | 7.35% | 8.83% | 11.85% | 11.06% | 10.26% | 11.29% | 10.32% |
| EBITDA Growth % | 70.73% | 92.67% | 33.01% | 58.27% | 19.04% | -13.68% | 7.45% | 24.24% | 8.69% | 14.63% | - |
| D&A (Non-Cash Add-back) | 171.12M | 148.27M | 92.92M | 79.1M | 65.73M | 49.81M | 39.3M | 31.23M | 25.32M | 21.07M | 21.53M |
| EBIT | 272.2M | 224.9M | 121.8M | 91.05M | 36.88M | 30.92M | 55.57M | 57.55M | 61.33M | 44.74M | 37.23M |
| Net Interest Income | -54.29M | -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 | 54.29M | 90.36M | 29.7M | 25.64M | 8.56M | 2.41M | 3.11M | 1.86M | 1.27M | 3.96M | 4.66M |
| Other Income/Expense | -111.69M | -105.28M | -16.41M | -6.93M | -1.66M | -2.05M | -758K | 1.6M | 16.88M | -2.32M | -1.89M |
| Pretax Income | 167.76M | 134.53M | 92.1M | 65.4M | 28.29M | 28.53M | 53.06M | 57.03M | 61.32M | 40.78M | 32.56M |
| Pretax Margin % | 5.15% | 4.78% | 5.05% | 4.18% | 2.17% | 3.13% | 6.75% | 7.28% | 9.02% | 7.18% | 6% |
| Income Tax | 40.75M | 32.75M | 23.16M | 16.4M | 6.92M | 8.35M | 12.76M | 13.91M | 10.53M | 14.74M | 10.54M |
| Effective Tax Rate % | 24.29% | 24.34% | 25.15% | 25.08% | 24.44% | 29.27% | 24.05% | 24.39% | 17.17% | 36.15% | 32.37% |
| Net Income | 127M | 101.77M | 68.94M | 49M | 21.38M | 20.18M | 40.3M | 43.12M | 50.79M | 26.04M | 22.02M |
| Net Margin % | 3.9% | 3.62% | 3.78% | 3.13% | 1.64% | 2.22% | 5.13% | 5.51% | 7.47% | 4.58% | 4.06% |
| Net Income Growth % | 106.91% | 47.63% | 40.68% | 129.23% | 5.94% | -49.93% | -6.55% | -15.1% | 95.05% | 18.25% | - |
| Net Income (Continuing) | 127M | 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) | 2.26 | 1.84 | 1.31 | 0.94 | 0.41 | 0.39 | 0.78 | 0.84 | 1.11 | 0.51 | 0.43 |
| EPS Growth % | 1714.51% | 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 | 56.26M | 55.37M | 52.58M | 52.26M | 51.96M | 51.77M | 51.64M | 51.43M | 45.92M | 50.82M | 50.82M |
| Basic Shares Outstanding | 55.92M | 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% | - |
Integration and commodity volatility
As reported in recent financial statements, Construction Partners achieved a 54.20% year-over-year revenue growth rate, signaling a rapid scale-up that appears heavily driven by an aggressive acquisition strategy rather than purely organic volume increases within its core Southeastern infrastructure markets.
The company's ability to sustain such high growth rates suggests successful execution of its roll-up model, yet investors should monitor whether this pace is diluting project-level focus. The reliance on inorganic growth warrants further investigation into the organic performance of legacy assets versus newly acquired operations.
Based on the provided income statement data, the company maintains a gross margin of 15.61%, which reflects the inherent thin-buffer nature of asphalt production and paving services where commodity price fluctuations for liquid asphalt cement can rapidly compress profitability.
The margin profile appears highly sensitive to plant utilization rates, suggesting that any slowdown in regional infrastructure spending could lead to significant operating deleverage. Maintaining these margins requires precise pass-through capabilities, which may be tested if inflationary pressures in labor and materials persist.
According to the latest quarterly filings, operating income has shown significant volatility, scaling from $2.8M in 2024Q2 to $102.0M in 2025Q4, which indicates that the company is attempting to capture economies of scale through its vertical integration strategy.
While the expansion of operating margins suggests improved overhead efficiency, the inconsistency in quarterly results implies that integration costs and project timing remain significant variables. Investors should monitor whether SG&A growth remains disciplined as the company continues to absorb new acquisitions into its existing corporate structure.
Analysis of the income statement reveals that the company's rapid growth trajectory may mask underlying integration risks, as evidenced by the fluctuation in net margins which dipped into negative territory as recently as 2025Q1.
Short-term volatility in earnings quality suggests that the company's reliance on acquisitions could lead to operational friction or project-level cost overruns. The market may be overestimating the durability of these margins if the company fails to maintain the same level of cost control across its expanding geographic footprint.
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.