Construction Partners Forecasts 15% Fiscal 2027 Growth

The Tip Desk · November 8, 2026 · 3 min read

The Sunbelt road builder expects fiscal 2026 revenue of $3.660 billion to $3.680 billion and is guiding fiscal 2027 revenue to $4.175 billion to $4.275 billion.

Construction Partners, Inc. (ROAD), a vertically integrated civil infrastructure company specializing in roadway construction and maintenance across Sunbelt markets, said preliminary fiscal 2026 revenue is expected in the range of $3.660 billion to $3.680 billion, an increase of approximately 30% from $2.812 billion in fiscal 2025.

The company also introduced a fiscal 2027 outlook that anticipates approximately 15% growth in both revenue and Adjusted EBITDA at the midpoint of its guidance ranges. Fiscal 2027 revenue is expected in the range of $4.175 billion to $4.275 billion, with Adjusted EBITDA of $585.0 million to $620.0 million.

Net income in fiscal 2026 is expected at $141.5 million to $142.5 million, an increase of approximately 40% from $101.8 million in fiscal 2025. Adjusted net income is expected at $153.3 million to $154.9 million, up approximately 26% from $122.0 million. Adjusted EBITDA is expected at $520.0 million to $524.0 million, up approximately 23% from $423.7 million. Adjusted EBITDA margin is expected at 14.21% to 14.24%, compared with 15.1% in fiscal 2025.

President and Chief Executive Officer Fred J. (Jule) Smith, III, said fiscal 2026 was highlighted by record financial performance and significant year-over-year growth, reflecting execution of organic and acquisition strategies. During the year the company completed seven acquisitions across four high-growth Sunbelt states, established four new greenfield locations, and generated organic revenue growth of 7%.

Smith said two primary external headwinds affected profitability as the company exited the fiscal year: unusually wet weather in July across several of its largest markets and the unprecedented rapid pace and magnitude of increases in diesel fuel costs. He said the growth strategy remains intact.

The fiscal 2027 outlook includes net income of $170.9 million to $180.8 million, Adjusted net income of $174.6 million to $185.4 million, and Adjusted EBITDA margin of 14.0% to 14.5%. Smith said the outlook anticipates substantial growth in both revenue and Adjusted EBITDA, including approximately 6% to 8% organic revenue growth.

Looking beyond the first half of fiscal 2027, Smith said the company sees two primary catalysts for meaningful margin improvement: continued integration of fiscal 2026 acquisitions and the diminishing impact of elevated diesel fuel costs. As it moves through the second half of fiscal 2027, the company expects to benefit from completing lower-margin projects in its acquired backlog and replacing them with higher-margin work, while progressively incorporating increased diesel fuel costs into project pricing through its cost pass-through operating model. He said greater economic certainty and improving conditions in residential and commercial construction markets could provide further opportunities for margin expansion.

Just one month into fiscal 2027, the company had completed three strategic acquisitions. On November 4, 2026, it acquired Piedmont Paving, Inc., adding a hot-mix asphalt plant and more than 110 employees to its Georgia platform company, The Scruggs Company. The acquired operations expand Scruggs’ work along the Interstate 85 corridor between Columbus and Atlanta.

The company’s independent registered public accounting firm had not audited, reviewed, compiled or performed any procedures with respect to the preliminary fiscal 2026 information or completed its audit of the fiscal year ended September 30, 2026. Actual results may differ from the estimates as a result of year-end closing procedures, review adjustments and other developments.

In the fiscal third quarter ended June 30, 2026, revenue was $999.4 million, up 28.2% from $779.3 million a year earlier, after second-quarter revenue of $769.2 million, up 34.5% from $571.7 million a year earlier. Third-quarter Adjusted EBITDA was $163.0 million, up 23.8% from $131.7 million a year earlier. Project backlog was a record $3.36 billion at June 30, 2026, compared with $3.14 billion at March 31, 2026. The company raised fiscal 2026 guidance after the third quarter, citing strong results and the expected contribution from the Ellsworth Construction acquisition.