Construction Partners guides to roughly 15% EBITDA growth in fiscal 2027 after a weather and fuel hit
The company had revenue of $3.67bn in fiscal 2026 and guides to $4.175bn to $4.275bn in fiscal 2027, with net income of $170.9m to $180.8m.
Table: Revenue, Adjusted EBITDA, Net income
Construction Partners expects adjusted EBITDA of $585m to $620m in fiscal 2027, roughly 15% growth at the midpoint, after weather and fuel costs cut into its fourth-quarter profit. EBITDA is earnings before interest, tax, depreciation and amortisation.
Fred Smith, president and chief executive, said unusually wet weather in July and rapid increases in diesel fuel costs pressured fourth-quarter profitability. He expects margins to improve as the company integrates its 2026 acquisitions and fuel costs moderate.
The guidance is management's own forecast, but it suggests the company sees the quarter's squeeze as temporary rather than structural. Its answer is acquisitions. Bolt-on deals such as S.E. Cline in Florida add permitted plants and site development capacity along growth corridors, and they underpin the revenue ramp even though input costs stayed volatile.
For investors in road and infrastructure builders more broadly, fuel remains a swing factor to track quarter by quarter, separate from the longer-run demand these acquisitions are built around.
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Construction Partners announces completion of its acquisition of S.E. Cline Construction, a commercial site development and underground utility construction company based in Palm Coast, Florida. The acquired operations, including about 60 employees and a rail-served, permitted hot-mix asphalt plant site in Bunnell, Florida, will join Construction Partners' Florida platform company, C.W. Roberts Contracting. President and Chief Executive Officer Fred J. Smith, III said the deal builds on the company's prior acquisition of P&S Paving and strengthens its presence along Florida's Interstate 95 corridor.