Construction Partners (ROAD) Expands Base in Alabama & Georgia
Construction Partners, Inc. ROAD, or CPI, completed the acquisitions of SJ&L General Contractor, LLC, based in Huntsville, AL, and Littlefield Construction Company, located in Waycross, GA. These strategic acquisitions aim to enhance ROAD's presence in existing growth markets by expanding services and adding crews and equipment to its portfolio.
The Huntsville metro area and I-65 corridor are experiencing significant growth. The SJ&L team will be integrated into ROAD's Alabama platform, Wiregrass Construction Company. This integration allows ROAD to offer comprehensive services for both private and public projects in this market.
In Georgia, The Scruggs Company recently entered the Waycross market with a new asphalt plant. With the acquisition of Littlefield, ROAD is well-positioned to tap into the surface treatment market and provide a full range of infrastructure services from a strategic location, reaching from the Port of Brunswick to south-central Georgia.
Solid Buyouts Aid Construction Partners
Shares of this vertically integrated civil infrastructure company have gained 34.7% in the past six months compared with the Zacks Building Products - Miscellaneous industry’s 22.1% growth. The company is benefiting from accretive acquisitions, a solid backlog level and strategic business initiatives.
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ROAD follows a profitable buyout strategy, which enhances and expands its product offerings and geographical reach. On Nov 1, 2023, ROAD acquired three hot-mix asphalt plants and construction operations in Concord, NC, and Rock Hill and McConnells, SC, from Reeves Construction Company.
On Oct 2, 2023, the company strengthened its presence in the dynamic Upstate region of South Carolina with the acquisition of Hubbard Paving & Grading, Inc. This added a hot-mix asphalt plant and construction operations to its subsidiary company, King Asphalt, Inc.
On Aug 1, the company acquired a hot-mix asphalt plant in Myrtle Beach, SC, from C.R. Jackson, Inc. and established a new greenfield hot-mix asphalt plant and market in Waycross, GA. Also, on May 1, it acquired the Huntsville, AL, operations of Southern Site Contractors, LLC.
Increased government infrastructure spending is bolstering the company’s prospects. The U.S. administration’s endeavor to rebuild the nation’s deteriorating roads and bridges and fund new climate-resilient and broadband initiatives is expected to boost the company’s prospects.
Zacks Rank & Key Picks
Construction Partners currently sports a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Construction sector are:
Fluor Corporation FLR sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 37.5%, on average. Shares of FLR have increased 16.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FLR’s 2024 sales and earnings per share (EPS) suggests growth of 9.3% and 11.1%, respectively, from the year-ago period’s levels.
M-tron Industries, Inc. MPTI currently sports a Zacks Rank of 1. MPTI delivered a trailing four-quarter earnings surprise of 35.6%, on average. The stock has surged 311.7% in the past year.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates growth of 12.5% and 13.4%, respectively, from the previous year’s levels.
AECOM ACM carries a Zacks Rank of #2 (Buy). It has a trailing four-quarter earnings surprise of 2.1%, on average. Shares of ACM have increased 9.8% in the past year.
The Zacks Consensus Estimate for ACM’s 2024 sales and EPS indicates an increase of 4.5% and 17.5%, respectively, from the year-ago period’s levels.
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