Construction Partners (ROAD) Earnings Transcript

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Feb. 5, 2026 astatine 10 a.m. ET

• Chief Executive Officer — Rick Black

• President — Jules Ned

• Chief Financial Officer — Gregory A. Hoffman

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Rick Black: Eight states and implicit 110 section markets. On the nationalist side, some the national and authorities governments are continuing their concern successful infrastructure to support up with the increasing economies successful the Sunbelt. In Q1, we person seen beardown nationalist declaration bidding passim our 8 states and expect full federal, state, and section declaration awards successful FY '26 to summation astir 10 to 15% implicit FY '25. This is peculiarly existent for the tiny and medium-sized recurring attraction projects for authorities DOTs, cities, and counties that correspond a bulk of our work. On Capitol Hill, some houses of Congress proceed to enactment with Secretary Duffy connected completing a five-year reauthorization of the aboveground proscription programme by September 30.

We expect the size and signifier of this measure to beryllium known this spring. From what we person heard truthful far, we expect the reauthorization to supply a important summation successful the yearly backing magnitude going to the states by pro superior formula, which is bully quality for Construction Partners, Inc. Both the medication and galore members of the legislature proscription committees person stated that they judge the look method to the states is the champion means to prioritize hard infrastructure investments needed to enactment a increasing system and to guarantee timeliness successful gathering these projects. Turning to our maturation strategy.

We began fiscal 2026 with 2 ample and strategically important acquisitions that were completed successful October, successful Houston and successful Daytona Beach, Florida. Both businesses present person been afloat integrated and are operating well. Earlier this week, we announced different acquisition successful Houston. GMJ Paving Company, a starring asphalt paving contractor focused connected nationalist infrastructure projects crossed the greater Houston Metro Area. GMJ's blistery premix asphalt works located successful Baytown connected the East Side Of Houston expands our sum of this large metropolitan marketplace and complements our existing Houston assets exceptionally well.

This acquisition represents our twelfth blistery premix works successful the Houston market, further strengthening our geographic footprint and providing incremental throughput opportunities astatine our adjacent liquid asphalt terminal astatine the Houston Port. Last August, we made our archetypal introduction into the Houston marketplace with our acquisition of Durwood Green Construction, and past we importantly expanded operations successful October with the acquisition of Vulcan's Asphalt Construction assets successful Houston. With the summation of GMJ, we are further strengthening our marketplace presumption and expanding our squad with highly skilled, experienced operators who bring heavy section marketplace cognition and beardown lawsuit relationships. This positions america good to service 1 of the astir dynamic and rapidly increasing markets successful the country.