Construction Partners, Inc. ROAD, or CPI, is expanding its Texas operations through the acquisition of J.H. Strain & Sons, Inc.’s asphalt manufacturing and construction assets. The transaction adds two hot-mix asphalt plants, related crews and equipment to Lone Star Paving, the company’s Texas platform.
Construction Partners Builds Its Position in Abilene
The acquisition also brings more than 125 employees to Lone Star and adds J.H. Strain’s fleet and experienced workforce to the platform. The acquired operations serve the greater Abilene area, while J.H. Strain brings a longstanding presence in the market.
Abilene is a growing Texas market with ongoing investment, including several data center-related developments. The added plants, equipment and workforce give Lone Star a local presence to serve public and private infrastructure customers across the greater Abilene area and West Texas.
Construction Partners’ Acquisition Strategy Broadens Its Growth Base
Construction Partners has been using acquisitions to expand its local market presence and strengthen the vertically integrated operating network. The company completed its Oklahoma acquisition on Aug. 31, 2026, followed by the Florida acquisition on Sept. 21, before adding the Texas assets. The recent deals span asphalt production, transportation and roadway construction capabilities across its existing markets.
Construction Partners expects acquisitions to contribute about 22% of growth at the midpoint of its fiscal 2026 guidance, with approximately $140 million of acquired revenues carrying into fiscal 2027. The company also has an active pipeline of acquisition opportunities, including both tuck-in and platform opportunities.
ROAD Stock’s Performance
Shares of this Alabama-based civil infrastructure company have declined 15.2% over the past six months, underperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index.
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Construction Partners has faced pressure from higher energy costs and weather-related disruptions that can affect project activity. The company has been dealing with energy cost inflation and periods of unusually wet weather across its markets. Its cost pass-through model helps address higher input costs, but these factors remain relevant to operating performance.
Nonetheless, the underlying demand environment remains favorable. The company is seeing healthy bid activity, project lettings and contract awards across its markets, supported by continued investment in transportation infrastructure. Data center construction is also becoming a growing part of commercial activity, with the company pursuing projects across its existing footprint.
ROAD’s Zacks Rank & Key Picks
Construction Partners currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the same sector.
Sterling Infrastructure, Inc. STRL currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sterling delivered a trailing four-quarter earnings surprise of 27.2%, on average. The stock has gained 36.9% in the past six months. The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 65.1% and 84%, respectively, from a year ago.
EMCOR Group, Inc. EME presently carries a Zacks Rank of 2. It has a trailing four-quarter earnings surprise of 12.2%, on average. Shares of EMCOR have gained 3.8% in the past six months.
The Zacks Consensus Estimate for EMCOR’s 2026 sales and EPS indicates growth of 19.6% and 27.5%, respectively, from the prior-year levels.
JACOBS SOLUTNS J currently has a Zacks Rank of 2. It delivered a trailing four-quarter earnings surprise of 3%, on average. JACOBS stock has jumped 9% in the past six months.
The Zacks Consensus Estimate for JACOBS’ fiscal 2027 sales and EPS imply an increase of 6.4% and 14.5%, respectively, from a year ago.
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Construction Partners, Inc. (ROAD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).