Start here if you're new
what it is
It builds and repairs roads, bridges, airports, and developments, and it also makes the asphalt those jobs need.
how it gets paid
Last year Constr. Part made $2.8B in revenue. roads and highways was the main engine at $1.34B, or 48% of sales.
why it's growing
Revenue grew 54.2% last year. Revenue grew 44% vs. prior year. That tells you demand and acquisitions are still pushing the top line hard.
what just happened
ROAD put up $809M in quarterly revenue, but the market still saw a miss against the latest EPS estimate.
At a glance
B balance sheet — gets the job done, barely
45/100 earnings predictability — expect surprises
70.9x trailing p/e — you're paying up for this one
9.0% return on capital — nothing to write home about
xvary composite: 54/100 — below average
What they do
It builds and repairs roads, bridges, airports, and developments, and it also makes the asphalt those jobs need.
This business wins by owning more of the job. Vertical integration (doing the paving and making the asphalt yourself) → fewer outside suppliers → you keep the schedule and more of the economics. The proof is in the numbers: annual revenue hit $2.8B, up 54.2% vs. prior year, while operating margin reached 16.0% across six states.
How they make money
$2.8B
annual revenue · their business grew +54.2% last year
roads and highways
$1.34B
commercial developments
$0.42B
residential developments
$0.28B
bridges and airports
$0.34B
hot mix asphalt
$0.42B
The products that matter
builds and maintains roads
Road Construction
$2.8B revenue · 100% of the business
it's the entire $2.8B business, and last year's 54.2% growth tells you exactly why the stock rerated. it also tells you why a funding slowdown would hit everything at once.
100% of revenue
Key numbers
70.9x
trailing p/e
You are paying a premium price today for earnings that still belong to a contractor, not a software company.
$2.8B
annual revenue
This shows ROAD is no tiny regional operator anymore. Scale matters in materials, bidding, and equipment usage.
16.0%
operating margin
Margin is what proves the model. Growth without margin is just more trucks burning diesel.
$1.7B
long-term debt
Debt is fuel when jobs are flowing. It gets louder when construction demand cools.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $1.7B (19% of capital)
- net profit margin 6.0% — keeps 6 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ROAD 3 years ago → it's now worth $48,220.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
ROAD put up $809M in quarterly revenue, but the market still saw a miss against the latest EPS estimate.
Latest-quarter revenue rose 44% vs. prior year and EPS came in at $0.31, up 617% vs. prior year. The business is growing fast, but the most recent reported EPS sat below the $1.14 consensus figure listed in the supplied estimate set.
$809M
revenue
$0.31
eps
15.0%
gross margin
the number that mattered
Revenue grew 44% vs. prior year. That tells you demand and acquisitions are still pushing the top line hard.
-
construction partners delivered record-breaking results to open its fiscal 2026. (year began october 1st.) the heavy civil infrastructure company reported adjusted earnings of $0.47 per share, versus a slight net loss in the year-ago period, while revenues surged 44%, to $809.5 million.
-
this performance was driven by a mix of disciplined operational execution and the successful integration of recent acquisitions.
-
on the back of these results, cpi raised its full-year 2026 guidance.the nation's infrastructure repair and maintenance needs continue to grow alongside population migration, economic expansion, and increasing roadway capacity throughout the sun belt.
-
against this backdrop, the company now projects revenue to range between $3.48 billion and $3.56 billion (previously $3.4 billion to $3.5 billion), with organic growth of approximately 7% to 8%.
-
this is supported by a record $3.09 billion backlog, with 80% to 85% converting to revenue over the next 12-months.
source: company earnings report, 2026
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What could go wrong
the #1 risk is southeastern public-works funding slowing after the growth spike.
med
Public infrastructure dollars are the oxygen here
Management grew the business to $2.8B in revenue, but the page you are reading only shows one engine: road construction. If funding timing slips or project awards cool in its six-state footprint, the whole growth story slows with it.
impact: 100% of the $2.8B revenue base sits inside this business line.
med
Low-margin businesses do not get many mistakes
Net profit margin was 5.1%, and the latest quarterly margin was 3.6%. That means cost inflation, weather delays, labor issues, or poor bidding discipline do not need to be dramatic to matter.
impact: when you only keep 3.6%–5.1% of revenue, small execution misses can do outsized damage to earnings.
med
The stock is priced for continued hyper-growth
At $130.53, ROAD trades at 70.9x trailing earnings and roughly 44.2x the $2.95 EPS estimate for fy2026. That's a premium multiple for a contractor. If growth normalizes, the multiple can normalize with it.
impact: the stock does not need bad results to fall — it may only need results that are merely less impressive.
when 100% of revenue comes from one business and the stock trades at 70.9x trailing earnings, any slowdown in funding, backlog, or margin can pressure both profits and the multiple at the same time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings report
You want to see whether revenue stays on the steep climb and whether margin improves from the latest 3.6% quarterly level.
metric
fy2026 path to $4B revenue
The street is looking for $4B in revenue. That's the number underwriting a lot of the current valuation.
trend
institutional flow
Net selling for two straight quarters is not fatal, but you would rather see buyers come back if the stock wants to hold a premium multiple.
risk
project funding and award timing in the southeast
This company works across six southeastern states. If public funding cadence slows there, the revenue story can cool faster than investors expect.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts are not waving a red flag, but they are not calling for runaway near-term outperformance either.
risk profile
average
stability score 3 means this sits near the market middle on risk. Not a bunker stock. Not a disaster by default.
chart momentum
average
technical score 3 says the chart is behaving like a normal stock right now. The excitement is in the fundamentals and the valuation debate, not in a special chart signal.
earnings predictability
45 / 100
45 / 100 means the earnings line can move around. For you, that means estimate misses matter more here than they do in steadier industrial names.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 100 buyers vs. 134 sellers in 4q2025. total institutional holdings: 45.1M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$90
$231
$131
current price
$161
target midpoint · +23% from current · 3-5yr high: $220 (+70% · 14% ann'l return)
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