ROAD Q2 2026 Earnings Transcript

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DATE

Friday, May 8, 2026 astatine 10:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — F. Jule Smith

• Chief Financial Officer — Gregory T. Hoffman

• Executive Chairman — Ned N. Fleming III

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Full Conference Call Transcript

Construction Partners' CEO, Jule Smith. Jule?

F. Smith: Thank you, Rick, and bully morning, everyone. We admit you joining america for today's call. With maine this greeting are Greg Hoffman, our Chief Financial Officer; and Ned Fleming, our Executive Chairman. I'd similar to statesman by thanking our astir 7,000 employees for their hard enactment and excellence successful achieving a large 2nd quarter, exceeding profitability expectations and increasing backlog, which allows america to meaningfully rise our outlook for FY '26. While the fiscal results of focusing connected our household of company's civilization are hard to measure, we cognize that gathering a large civilization does person a existent interaction connected bottommost enactment results. At CPI, we clasp ourselves accountable by perpetually measuring respective cardinal areas of taste health.

First, we absorption connected keeping a debased turnover of employees, which increases the acquisition and stableness of our workforce. Second, we strive to little payment costs, truthful we maximize the take-home wage to our employees' families. This helps america pull the astir talented folks to our teams crossed each 110 section markets. And finally, each year, we survey each 7,000 employees for honorable and candid feedback, which gives america imaginativeness connected however to amended and innovate arsenic a company. Maintaining this absorption connected our civilization volition proceed to thrust show and nutrient large results. In Q2, we grew revenue, adjusted EBITDA and backlog. Favorable upwind successful the 4th provided the quality to beforehand enactment efficiently and transcend expectations.

We play an outdoor game. And erstwhile we person adust weather, we tin enactment much days and consequently summation our volumes. Looking astatine the outgo situation during Q2, vigor volatility had a constricted interaction connected results owed to the extortion of the liquid asphalt scale connected much than 80% of our full revenue, the carnal hedging of diesel substance and the lipid terms hedging mechanics inherent to our vertical integration astatine the liquid asphalt terminals. Today, we root much than 50% of our liquid AC needs internally. As we look to the aboriginal comparative to gathering our backlog, our pass-through outgo exemplary reacts rapidly to rising commodity prices. Turning present to the request environment.

Construction task request passim our footprint remains beardown for some nationalist infrastructure enactment arsenic good arsenic commercialized improvement for caller construction. Our teams are actively bidding and gathering a wide scope of commercialized projects. A fewer examples to highlight. In Texas, Four Star Paving is moving connected a portfolio of 8 information halfway projects totaling astir $100 cardinal of declaration value. In Tennessee, our caller acquisition, Four Star Paving presently is moving connected 12 warehouse projects successful the dynamic Metro Nashville market, totaling a declaration worth of astir $28 million. And successful Alabama, Wiregrass Construction is moving connected a Mag 7 information halfway successful the Northeast portion of the authorities valued astatine astir $4 million.