Construction Partners, Inc.

Fast-growing Sunbelt civil-infrastructure roll-up with strong margins and backlog but heavy acquisition leverage.

Strengths

• Top-decile growth: revenue +54% (88th pct), net income +48% (78th pct); $3.0B backlog
• Top-quartile operating margin 8% (78th pct), gross margin 15.6% (75th pct), OCF margin 10.4% (75th pct); FCF $153M
• IIJA-funded, non-discretionary demand with a ROAD 2030 plan targeting $6B revenue

Risks

• Maxed leverage: D/E 1.73 (100th pct) from $1.5B+ of debt-funded M&A
• Returns only mid-pack: ROE 11.2% (38th pct), ROA 3.1% (55th pct)
• Integration risk across five acquisitions and weather/seasonality