Overview

• U.S. civil infrastructure firm's fiscal Q2 revenue rose 35%, beating analyst expectations

• Adjusted net income for fiscal Q2 more than doubled year-over-year

• Company raised FY26 outlook after record $3.14 bln project backlog

Outlook

• Construction Partners raises FY26 revenue outlook to $3.59 bln-$3.65 bln

• Company sees FY26 net income of $159 mln-$162 mln

• Construction Partners expects FY26 adjusted EBITDA of $552 mln-$564 mln

Result Drivers

• PROJECT EXECUTION - Co said exceptional execution across business units drove Q2 results, per CEO Jule Smith

• FAVORABLE WEATHER - Co said favorable weather conditions supported efficient project advancement in Q2

• ENERGY COSTS - Co said energy cost volatility had limited impact due to pass-through contract terms and vertical integration

Company press release: ID:nPn6vXfW6a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$769.2 mln	$677.62 mln (6 Analysts)
Q2 EPS		$0.16
Q2 Net Income		$9.18 mln
Q2 Gross Profit		$98.85 mln
Q2 Operating Income		$37.38 mln
Q2 Pretax Profit		$12.07 mln

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy."

• Wall Street's median 12-month price target for Construction Partners Inc is $135.00, about 2.8% above its May 7 closing price of $131.36

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 36 three months ago

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