Construction Partners, Inc. ROAD is seeing growth momentum supported by steady public infrastructure demand across its operating regions. The company’s footprint in the Sunbelt aligns with areas experiencing economic expansion and population migration, which is driving consistent investment in roads, highways and related infrastructure. Public sector activity remains a key contributor to overall project visibility, supported by ongoing funding at federal, state and local levels.
The company reported strong public contract bidding activity across its markets in the first quarter of fiscal 2026, reflecting healthy demand from government agencies. Bidding strength has been seen across eight states, and the company expects total federal, state and local contract awards to increase approximately 10% to 15% over fiscal 2026. This demand is largely supported by recurring maintenance work for state departments of transportation, cities and counties. These projects form a stable base of revenues and provide consistent opportunities across multiple local markets.
Furthermore, strong project activity contributed to a solid backlog position, reflecting continued demand from public infrastructure programs. As of Dec. 31, 2025, project backlog stood at a record $3.09 billion, reflecting a 16.2% year-over-year increase. The company noted that a large portion of near-term revenues is already supported by existing contracts, which enhances visibility.
Looking ahead, additional support may come from policy developments. Work is ongoing toward a five-year reauthorization of the surface transportation program. The company expects this program to provide a significant increase in annual funding to states through a per capita formula. This approach is expected to support timely project execution and long-term infrastructure investment.
Overall, sustained public infrastructure demand, combined with strong bidding activity and funding visibility, is playing a key role in supporting Construction Partners’ growth trajectory.