What Happened?

Shares of civil infrastructure company Construction Partners (NASDAQ: ROAD) jumped 3.9% in the afternoon session after the company announced it acquired P&S Paving, Inc., a move that expanded its operations into Daytona Beach and Florida's East Coast. P&S Paving, headquartered in Daytona Beach, provided various paving, sitework, and utility services from its two hot-mix asphalt plants. This acquisition enhanced Construction Partners' ability to offer its services in the high-growth Interstate 95 corridor. The deal aligned with the company's strategy for future growth and strengthened its market position in Florida.

After the initial pop the shares cooled down to $122.28, up 4% from previous close.

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What Is The Market Telling Us

Construction Partners’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock gained 8% on the news that the company reported strong fourth-quarter results, which blew past analysts' sales and EPS expectations. In addition, its EBITDA outperformed Wall Street's estimates by a wide margin. Guidance was also encouraging, with the company lifting full-year revenue guidance. The growth outlook was informed by strong industry tailwinds in some of the company's operating regions. The company is also benefiting from tuck-in acquisitions which drove the larger portion of the 42% y/y growth during the quarter. Zooming out, we think this quarter featured some important positives.

Construction Partners is up 39.2% since the beginning of the year, but at $122.28 per share, it is still trading 10.6% below its 52-week high of $136.74 from September 2025. Investors who bought $1,000 worth of Construction Partners’s shares 5 years ago would now be looking at an investment worth $5,709.

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