Construction Partners, Inc.

Construction Partners, Inc. is a civil infrastructure contractor focused on building and maintaining roadway networks across the Sunbelt. The company combines asphalt manufacturing, paving, site development, aggregates mining, and liquid asphalt distribution to serve public transportation agencies and private development projects.

13,1 %

15,6 %

3,6 %

+54,2 %

1.61

1.34

— Construction Partners, Inc.
%
Construction projects65% Public and private civil infrastructure projects including highways, roads, bridges, airports, and site development.
Hot mix asphalt18% Manufacturing and sale of HMA used internally on projects and sold to third parties.
Aggregates8% Mining and sale of sand, gravel, and construction stone for internal use and external customers.
Liquid asphalt cement4% Distribution of liquid asphalt cement used in HMA production and sold externally.
Other sitework and maintenance services5% Maintenance, utility, drainage, and related civil works supporting roadway and development projects.

The company sells primarily to public agencies and private developers that need roadway and site infrastructure built...

  • State DOTsprimary

    Buy roadway construction and maintenance under fixed unit price contracts; this is the largest customer base and anchors public work demand.

  • Federal, municipal, and local agenciesprimary

    Buy transportation and public works projects such as roads, bridges, airports, and local infrastructure improvements.

  • Commercial developers and businessessecondary

    Buy site development, paving, utilities, and drainage for commercial projects and industrial sites.

  • Residential developerssecondary

    Buy subdivision and site preparation services, often bundled with paving and drainage work.

  • Third-party materials customerssecondary

    Buy HMA, aggregates, and liquid asphalt cement for use in their own construction projects.

Construction Partners operates across Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee,...

  • Operations span the Sunbelt across eight U.S. states
  • Core markets include Alabama, Florida, Georgia, and Texas
  • Local plant and quarry proximity matters for transport economics
  • Revenue is tied to state and municipal transportation funding
  • Acquisitions expand the footprint into adjacent regional markets

The company is pursuing a vertical-integration model that ties together asphalt production, aggregates, liquid asphalt,...

01
Acquire and integrate regional asphalt and paving businessesmedium-term

Acquisitions add plants, crews, backlog, and market density, which support scale and local pricing power.

02
Deepen vertical integrationmedium-term

Owning HMA, aggregates, and liquid asphalt supply reduces dependence on third parties and supports margins.

03
Expand in Sunbelt transportation marketslong-term

Population growth and infrastructure spending in the region support recurring roadway demand.

04
Improve plant and fleet utilizationshort-term

Higher utilization lowers unit costs and improves gross margin on both internal and external work.

The business is exposed to project execution risk, commodity and supply-chain volatility, and dependence on public...

high

Dependence on state DOT and public infrastructure spending

A large share of revenue comes from public projects, so budget delays or funding cuts can reduce backlog and utilization.

Scope
Projects performed for all DOTs accounted for 43.4% of fiscal 2025 revenues.
Materiality
high
high

Materials and supply-chain disruption

The company depends on third parties for liquid asphalt cement, equipment, and other inputs needed for HMA and paving work.

Scope
Shortages or price spikes can delay projects and raise costs.
Materiality
high
medium

Design-build and joint venture liability

Design errors, partner nonperformance, or limited control in joint ventures can create unplanned costs and legal exposure.

Scope
Relevant when the company takes on design-build or JV projects.
Materiality
medium
medium

Goodwill impairment after acquisitions

Rapid acquisition growth increases goodwill, and underperformance could trigger impairment charges.

Scope
Goodwill rose materially after recent acquisitions.
Materiality
high
medium

Cybersecurity and IT interruption

Operations depend on IT systems for project management, billing, and supplier coordination.

Scope
A breach or outage could interrupt operations and damage reputation.
Materiality
medium
Construction contract revenue recognition
Affects gross margin, backlog conversion, and quarterly comparability
Cost-to-cost estimates and contract settlements
Can create volatility in reported project profitability
Goodwill impairment
Potential non-cash charges to earnings and equity
Seasonality and working capital
Makes interim results less comparable across quarters

: 28.4.2026