Construction Partners Business Summary

Construction Partners, Inc. (ROAD) is a vertically integrated civil infrastructure firm specializing in the construction and maintenance of roadways across the high-growth Sunbelt region, including Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas. The company generates revenue primarily through fixed-unit-price and fixed-price contracts, with a significant majority derived from public-sector projects such as state Departments of Transportation (DOTs), interstate highways, and airport infrastructure. Its business model is anchored by the strategic ownership of hot-mix asphalt (HMA) plants, aggregate facilities, and liquid asphalt terminals, which provide a high-margin internal supply chain for its primary segments: asphalt manufacturing and paving, site development, and bridge construction. Following the transformative acquisition of Lone Star Paving and recent 2025 expansions in the Houston market, ROAD has solidified its position as a leading consolidator in the fragmented civil infrastructure space. Relative to diversified heavy civil peers like Granite Construction, Vulcan Materials, and Martin Marietta, ROAD operates as a specialized "pure-play" maintenance and repair provider, leveraging geographic density to capture recurring public funding and private commercial demand. The company is led by President and CEO Fred J. (Jule) Smith, III, who joined the firm in 2009 and has over 25 years of industry experience, previously serving as President of the Fred Smith Company subsidiary. The executive leadership team includes Senior VP and CFO Gregory A. Hoffman and Executive Chairman Ned N. Fleming, III, a co-founder of the company and Managing Partner of SunTx Capital Partners, the private equity firm that backed ROAD’s inception and 2018 IPO. Founder and Vice Chairman Charles E. Owens provides deep institutional knowledge, having previously led Superfos Construction U.S. through more than 35 acquisitions. This leadership group is recognized for executing a disciplined "ROAD-Map" growth strategy, which has integrated over 30 acquisitions since the company's public debut to build a decentralized operating model that empowers local management. The board of directors features veteran industry and financial experts, including Mark R. Matteson and Noreen E. Skelly, ensuring a focus on capital allocation and operational excellence as the company scales toward a projected $3.5 billion revenue run rate in fiscal 2026.