They're like **Vulcan Materials or Martin Marietta (major aggregate and asphalt suppliers) that also build the roads and civil infrastructure projects themselves.**

They're like **the 'Tesla of roads' for the Southeastern US, manufacturing their own asphalt and other key materials, then using them to build and maintain civil infrastructure like highways and bridges.**

• Roadway Construction and Maintenance: Provides services for building and maintaining highways, roads, bridges, and airports, as well as commercial and residential developments.
• Hot Mix Asphalt (HMA) Manufacturing and Distribution: Produces and distributes hot mix asphalt for its own projects and for sales to third parties.
• Paving Services: Conducts activities such as constructing roadway base layers and applying asphalt pavement.
• Site Development: Offers services including the installation of utility and drainage systems for various projects.
• Aggregates Mining: Mines raw materials like sand and gravel for use in hot mix asphalt production.
• Liquid Asphalt Cement Distribution: Distributes liquid asphalt cement for internal use and sales to third parties, essential for HMA production.

Construction Partners, Inc. (ROAD) is a civil infrastructure company that primarily serves entities involved in large-scale infrastructure and development projects, rather than individuals. Due to the nature of its business in construction and maintenance of roadways and infrastructure, Construction Partners' customer base is highly diversified across numerous projects. It does not typically have specific major customers that are publicly traded companies, nor does it publicly disclose such concentrated customer relationships.

Instead, Construction Partners' major customers fall into the following categories:

• Governmental Agencies: These are primary customers for public infrastructure projects, including highways, roads, bridges, and airports. They encompass State Departments of Transportation (DOTs) in states like Alabama, Florida, Georgia, North Carolina, and South Carolina, as well as various local municipal and county governments.
• Private Developers and Businesses: For private infrastructure projects, Construction Partners works with a variety of commercial and residential developers, as well as other private businesses. These clients engage ROAD for site development, paving activities, and the installation of utility and drainage systems related to their developments.
• Other Construction Companies: Construction Partners also manufactures and distributes hot mix asphalt (HMA), aggregates (sand and gravel), and liquid asphalt cement. These materials are sold to third parties, which often include other general contractors or subcontractors involved in construction projects who require these essential materials.

Jule Smith, President and Chief Executive Officer

Jule Smith has served as President and Chief Executive Officer of Construction Partners, Inc. since April 2021. He joined CPI in 2011 when the company acquired his family's business, Fred Smith Company, which subsequently became CPI's North Carolina platform subsidiary. Under his leadership, Construction Partners has achieved significant growth, expanding its geographic footprint to eight states and increasing revenue by over 200%. Prior to becoming CEO, Mr. Smith held various leadership roles within the company, including Chief Operating Officer from October 2020 to March 2021 and Senior Vice President since 2017. Before joining FSC, he served as Chief Operating Officer of Fred Smith Construction, Inc. from 2005 to 2009. He earned both his Master of Business Administration and Bachelor of Arts degrees from Wake Forest University.

Greg Hoffman, Senior Vice President and Chief Financial Officer

Greg Hoffman has served as Chief Financial Officer of Construction Partners, Inc. since 2023. Prior to this role, he was the Senior Vice President of Finance from 2021 to 2023 and the Chief Financial Officer of Wiregrass Construction Company, CPI's Alabama subsidiary, from 2009 to 2021. Before joining Construction Partners, Mr. Hoffman held various positions of increasing responsibility at Corporate Express, Inc., a Staples company, including Division Controller and Vice President of Operations. He also served as Division Controller for APAC-Georgia, Inc., a heavy civil infrastructure company. Earlier in his career, he was a Manager at Ernst & Young, LLP, where he directed audit engagement teams for diverse industries. He earned a Bachelor of Science in Accounting from the University of Alabama.

Ned N. Fleming, III, Executive Chairman of the Board

Ned N. Fleming, III is a founder of Construction Partners Inc. and serves as Executive Chairman of the Board. He also co-founded the private equity firm SunTx in 2001, where he serves as Managing Partner. Over 23 years, Mr. Fleming has collaborated closely with the Board and Executive Management Team to grow CPI from a small asphalt company in Alabama into a publicly traded company operating across eight Sunbelt states. Prior to co-founding SunTx, Mr. Fleming was President and Chief Operating Officer of Spinnaker Industries, Inc., a publicly traded materials manufacturing company, until its sale in 1999. He also gained experience at a Dallas-based private investment firm, where he led acquisitions in the food and beverage and defense industries. Mr. Fleming received an M.B.A. from Harvard Business School and a B.A. in Political Science from Stanford University.

Charles E. Owens, Vice Chairman of the Board

Charles E. Owens is a co-founder of Construction Partners, Inc. He served as President and Chief Executive Officer from the company's inception until March 2021, when he transitioned to Vice Chairman of the Board. From 1990 until its sale in 1999, Mr. Owens was President and Chief Executive Officer of Superfos Construction U.S., Inc., the North American operation of a publicly held Danish company. During his tenure at Superfos Construction U.S., he oversaw the successful acquisition and integration of more than 35 companies, contributing to its growth into one of the largest highway construction companies in the United States. He received a Bachelor of Business Administration degree from Troy University.

Nelson Fleming, Senior Vice President of Strategy and Business Development

Nelson Fleming has served as Senior Vice President of Strategy and Business Development for Construction Partners, Inc. since 2020. In this role, he is responsible for leading the company's strategic growth initiatives, acquisitions, and long-term corporate development planning across its expanding Sunbelt footprint. Since CPI's initial public offering in 2018, the company has completed 40 acquisition transactions, effectively doubling the size of its local market operations. Mr. Fleming also serves on the Board of Directors of the National Asphalt Pavement Association (NAPA).

1. Reliance on Government Funding and Economic Conditions: A substantial portion of Construction Partners' revenue is derived from publicly funded infrastructure projects, particularly from state Departments of Transportation (DOTs). Reductions in government funding or broader economic downturns, especially in the Sunbelt region where the company operates, could lead to a decrease in demand for infrastructure projects, thereby negatively impacting the company's financial condition and liquidity.

2. Volatility of Input Costs and Supply Chain Disruptions: As a civil infrastructure company heavily involved in manufacturing and distributing hot mix asphalt (HMA) and using aggregates, Construction Partners is exposed to fluctuations in material and energy costs. Inflationary pressures, supply chain disruptions, and particularly the volatility of crude oil prices (which directly affects asphalt costs) can significantly increase operational expenses. These increased costs may not always be fully passed on to customers or recouped through contracts, potentially eroding profit margins and affecting overall profitability.

3. Acquisition Strategy and Integration Risks: Construction Partners' growth strategy includes strategic acquisitions to expand its operations and market presence. However, there is a risk that acquired businesses may not be successfully integrated, or that these acquisitions might not achieve the anticipated financial and operational benefits. Failure to effectively integrate new companies could lead to increased costs, reduced profits, and challenges in maintaining a strong backlog quality.

Construction Partners, Inc. (ROAD) operates within several addressable markets primarily focused on civil infrastructure in the U.S. The key markets for their products and services are estimated as follows:

• Road and Highway Construction: The market size for Road & Highway Construction in the U.S. was approximately $189.8 billion in 2025 and is projected to reach $191.9 billion in 2026. This market encompasses the construction and maintenance of highways, roads, streets, and related infrastructure. The broader U.S. transportation infrastructure construction market was valued at $233.03 billion in 2025 and is forecast to reach $298.12 billion by 2031.
• Hot Mix Asphalt (HMA): The U.S. asphalt market, of which Hot Mix Asphalt is the largest category, was valued at approximately $4.2 billion in 2024 and is poised to grow to $4.42 billion in 2025.
• Aggregates: The U.S. aggregates market, which includes crushed stone, sand, and gravel used in construction, was valued at approximately $164.65 billion in 2024 and is anticipated to reach $170.26 billion in 2025.
• Site Development: The market size for Land Development in the U.S. was an estimated $22.5 billion in 2025 and $22.6 billion in 2026.

Construction Partners (NASDAQ: ROAD) is expected to drive future revenue growth over the next 2-3 years through several key factors:

1. Strategic Acquisitions and Market Expansion: The company has a consistent strategy of investing in growth through strategic mergers and acquisitions (M&A), particularly in the Sunbelt states. This strategy has led to an expanded geographic footprint and increased market share, with recent acquisitions in Texas, Oklahoma, Tennessee, and expansion in key markets like Houston and Daytona Beach, Florida. This approach allows Construction Partners to enter new markets with experienced local operators and leverage their existing infrastructure.
2. Increased Public Infrastructure Spending: A significant driver is the projected increase in federal infrastructure spending and continued strong investment from state and local governments in infrastructure projects. This includes substantial increases in contract awards ("lettings values") in several states, particularly Florida and Georgia, which are key markets for the company. Public contracting budgets are expected to remain robust, especially for small, recurring maintenance projects that constitute a large portion of the company's work.
3. Organic Growth in Existing and New Markets: Construction Partners is committed to achieving organic growth within its operations, with an anticipated organic growth rate of approximately 7% to 8% for fiscal year 2026. This growth is supported by strong demand in the Sunbelt region, fueled by population migration and economic development. The company aims to grow market share and leverage its platform in these dynamic areas.
4. Robust Project Backlog: The company's substantial and growing project backlog provides a strong foundation for future revenue. As of the first quarter of fiscal year 2026, the backlog was reported at $3.09 billion, demonstrating strong demand and confidence in future revenue streams. The backlog at the end of fiscal year 2025 was approximately $3.03 billion, indicating consistent booking gains.
5. Favorable Macroeconomic Trends: Construction Partners benefits from several overarching macroeconomic trends. These include continued population growth and migration to the Sunbelt states where the company operates, reshoring trends in the United States that necessitate new infrastructure, and the expanding need for infrastructure related to artificial intelligence (AI) development. These trends collectively contribute to sustained demand for civil infrastructure services.

Share Repurchases

• Construction Partners authorized a new share repurchase program of up to $50 million for its Class A common stock on March 2, 2026, effective through September 30, 2028, to offset dilution from equity awards and for opportunistic buybacks.
• In fiscal year 2025, the company repurchased 145,099 shares of Class A common stock for $11.5 million under a stock repurchase program authorized for up to $40 million through March 2026.

Share Issuance

• Construction Partners' shares outstanding were 0.056 billion for the quarter ending December 31, 2025, marking a 3.48% increase year-over-year.
• The company's shares outstanding for fiscal year 2025 were 0.055 billion, reflecting a 5.32% increase from 2024.
• Over the last five years, Construction Partners has experienced shareholder dilution, with its share count growing by 8.4%.

Inbound Investments

• FMR LLC disclosed a 10.7% passive stake in Construction Partners (ROAD) on February 6, 2026.
• FMR LLC reported beneficial ownership of 4,596,141.77 shares of Construction Partners Inc Class A common stock, equivalent to 9.6% of the class.

Outbound Investments

• In fiscal year 2025, the company completed five acquisitions across four states, adding 27 hot-mix asphalt (HMA) plants, four aggregate facilities, and a liquid asphalt terminal.
• Post fiscal 2025, Construction Partners further expanded its operations by acquiring eight HMA plants in Houston, Texas, and two HMA plants in Florida.
• Significant acquisitions include eight HMA plants in the Houston, Texas metro area from affiliates of Vulcan Materials Company in October 2025, PRI of East Tennessee, Inc., and Pavement Restorations, Inc. in May 2025 to expand in Tennessee, and SJ&L General Contractor, LLC (Alabama) and Littlefield Construction Company (Georgia) in January 2024 to enhance service capabilities.

Capital Expenditures

• For fiscal year 2026, Construction Partners anticipates capital expenditures to range between $165 million and $185 million, allocated for both maintenance and growth initiatives.
• In the last 12 months, the company's capital expenditures amounted to -$146.57 million.
• Capital investments are primarily focused on expanding margins and increasing relative market share.