Construction Partners, Inc. ROAD or CPI, is scheduled to report results for the first quarter of fiscal 2025 on Feb. 7, before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings per share (EPS) and revenues topped the Zacks Consensus Estimate by 1.8% and 0.1%, respectively. On a year-over-year basis, EPS decreased 1.7% but revenues grew 13.3% from the year-ago level, respectively.

ROAD’s earnings surpassed expectations in each of the trailing four quarters, delivering an average surprise of 32.2%.

Construction Partners, Inc. Price and EPS Surprise

Construction Partners, Inc. price-eps-surprise | Construction Partners, Inc. Quote

How Are Estimates Placed for Construction Partners Stock?

The Zacks Consensus Estimate for ROAD’s EPS has remained at 14 cents over the past 60 days. The estimated figure indicates a decrease of 26.3% from the year-ago level.

The consensus estimate for total revenues is pegged at $514.7 million, indicating 29.8% growth from the year-earlier level.

Factors That May Influence ROAD’s Quarterly Results

Construction Partners‘ fiscal first-quarter revenues are likely to register growth, given its backlog strength, acquisitions, and strategic investments.

ROAD is benefiting from a record project backlog of $1.96 billion (as of Sept. 30, 2024), and the fiscal fourth quarter marked 16 consecutive quarters of backlog growth. This backlog underscores strong demand across its Sunbelt markets, fueled by both public infrastructure projects and commercial demand. The continued flow of funds from the Infrastructure Investment and Jobs Act is another key tailwind. Less than half of the $348 billion in highway funding has been committed to projects, indicating that there is still a long runway for federally funded infrastructure work. This is likely to have benefited the company’s top line in the to-be-reported quarter as well.

Again, operational efficiency improvements and increased scale are likely to drive growth. The company’s ongoing efforts in vertical integration, particularly with asphalt terminal expansions in Panama City and Huntsville, are expected to have contributed to improved margins and cost efficiencies. Meanwhile, continued population migration to the Sunbelt states provides a strong demand foundation for ROAD’s services.

One of the most significant factors is its acquisition of Lone Star Paving, which brings high-margin operations and a strong presence in Texas, a state with substantial infrastructure spending. The Lone Star acquisition accelerates the company’s margin expansion goals by two years, validating its strategy of growth through vertical integration and strategic acquisitions.

Despite the positive outlook, ROAD faces several potential headwinds. One key challenge is the execution of its Lone Star acquisition. While the integration is expected to drive meaningful margin expansion, interest expense will also weigh on earnings. The company’s new debt facility, while supporting the acquisition, adds approximately $650 million in additional interest-bearing obligations.

Overall, while infrastructure spending remains strong, the broader macroeconomic environment—including potential shifts in government funding, inflation, and input costs—could impact the company’s growth. Any delays in project funding or execution could affect revenue timing, particularly in the public sector.

What Our Model Unveils for ROAD

Our proven model predicts an earnings beat for ROAD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: ROAD has an Earnings ESP of -28.57%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Stocks Poised to Beat on Earnings

Here are a few other stocks from the Zacks Construction sector, which according to our model, have the right combination of elements to post an earnings beat this reporting cycle.

TopBuild Corp. BLD has an Earnings ESP of +1.28% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BLD is expected to register an 8.3% increase in earnings for the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 1%.

Dycom Industries DY currently has an Earnings ESP of +3.91% and a Zacks Rank of 3.

DY reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 16.6%. Its earnings for the to-be-reported quarter are expected to grow 13.9%.

Quanta Services, Inc. PWR currently has an Earnings ESP of +0.46% and a Zacks Rank of 3.

It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 4%.

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