Abstract
Construction Partners will release fiscal Q1 2026 results on February 05, 2026 Pre-Market; this preview compiles last quarter’s reported metrics and current-quarter forecasts, synthesizing recent institutional views to frame revenue, margin, EPS expectations, and business-mix dynamics.
Market Forecast
Consensus for the current quarter points to revenue of $753.55 million, with adjusted EPS of $0.30 and EBIT of $44.74 million; year over year, revenue is projected to rise by 45.61% and adjusted EPS by 114.79%. Margin expectations imply ongoing operating leverage, though explicit gross and net margin forecasts are not disclosed. The main business is expected to benefit from steady funding and project execution across public and private infrastructure markets, with project backlog conversion supporting higher volumes and operating efficiencies. Public infrastructure projects are seen as the most promising segment near term, building on recent awards and state-level funding momentum, with revenue expected to outpace the corporate average year over year.
Last Quarter Review
In the previous quarter, Construction Partners reported revenue of $899.85 million, a gross profit margin of 17.71%, GAAP net profit attributable to the parent company of $56.57 million, a net profit margin of 6.29%, and adjusted EPS of $1.06, with revenue growing 67.21% year over year and adjusted EPS rising 89.29% year over year. Sequentially, net profit grew by 28.43% as pricing discipline and cost control supported margin improvement through seasonally strong volumes. The company’s core business mix included $1.82 billion from private infrastructure projects and $995.57 million from public infrastructure projects in the last reported period, with public work continuing to rise on robust demand and funding tailwinds.
Current Quarter Outlook (with major analytical insights)
Mainline paving and site work
Construction Partners’ primary activity in asphalt paving and site development should continue to benefit from favorable bid environments and project execution, aided by a strong public-funding backdrop and resilient private demand. The forecast acceleration in revenue to $753.55 million suggests improved seasonal mobilization and backlog conversion, with project phasing trending earlier than last year. Pricing discipline and mixed improvements in aggregates and liquid asphalt sourcing support EBIT growth to $44.74 million, indicating incremental operating leverage if weather remains manageable. The primary watch item is the cadence of material cost inflation and fuel inputs, which can compress spread if not offset by index-based pricing or quicker change-order recovery.
Public infrastructure programs
State and municipal road programs appear set to remain a key driver this quarter, consistent with elevated lettings and continued dispersion of multi-year funding. The company’s recent momentum in public projects, which accounted for $995.57 million in the last reported period, aligns with the forecast revenue growth rate of 45.61% year over year for the quarter. Execution on multi-project work orders and corridor rehabilitations typically delivers better plant utilization and crew productivity in early fiscal quarters, which should help maintain gross profit margin resilience relative to last year’s seasonal baseline. Risk factors include weather disruptions in the Southeast footprint and any delay in notice-to-proceed timing, both of which can push revenue recognition and impair fixed-cost absorption.
Private infrastructure and commercial demand
Private infrastructure activity, which contributed $1.82 billion in the last reported period, remains an important source of diversified demand spanning industrial, commercial, and residential-related site work. While select end markets have seen mixed permitting trends, the company has historically managed backlog composition to prioritize higher-visibility projects with favorable terms. Assuming continued bid selectivity and disciplined capacity allocation, the business can deliver margin stability even if certain sub-markets soften, aided by project-level logistics advantages near owned asphalt plants. Monitoring lead indicators such as commercial permitting and regional industrial investments will be crucial for gauging volume durability into the spring build season.
Key stock-price drivers this quarter
Investors will likely focus on fiscal Q1 conversion of backlog into revenue, margin progression versus the 17.71% gross profit margin benchmark, and adjusted EPS delivery around $0.30. Any commentary on materials cost trends—especially liquid asphalt and aggregates—will influence sentiment, as will the balance between public and private mix and the timing of future awards. Updated views on capital allocation, M&A appetite for bolt-on quarry or plant assets, and visibility on the next two quarters’ bid pipeline could shape expectations for full-year operating leverage and cash generation.
Analyst Opinions
Recent institutional commentary indicates a predominance of bullish views, citing stronger-than-expected state-level funding execution and solid order pipelines. Positive stances emphasize near-term revenue acceleration to $753.55 million and substantial year-over-year EPS growth of 114.79% as signs of healthy operating momentum and improved pricing pass-through. Bullish analysts highlight the company’s positioning within public infrastructure programs and its efficiency gains across plants and crews, which could support gross margin stability even as input costs fluctuate. In contrast, fewer cautious opinions focus on potential weather-related schedule slips and materials inflation; however, the balance of commentary leans toward constructive expectations for this quarter’s print and guidance trajectory, favoring the upside case on volume conversion and margin hold-in.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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