ROAD Stock Gains on Overland Acquisition, Expanding Into Eighth State

Acquisition and Expansion Strategy - Construction Partners Inc (ROAD) acquired Overland Corporation, an asphalt manufacturing and paving company based in Ardmore, OK, adding eight hot-mix asphalt plants to its operations [1] - The acquisition marks ROAD's entry into its eighth state and strengthens its presence in Oklahoma and northern Texas, driven by the expansion of the Dallas metro area [2] - ROAD plans to support Overland in pursuing organic and acquisitive growth opportunities, aligning with its strategy to reduce the leverage ratio to approximately 2.5x in the next four to six quarters [3] - ROAD completed the acquisition of Lone Star Paving, adding 10 hot mix asphalt plants, four aggregate facilities, and one liquid asphalt terminal, boosting its Texas footprint and project pipeline [4][5] - In fiscal 2024, ROAD completed eight acquisitions worth approximately $231.7 million across four states, adding 11 asphalt plants and expanding its operations in Alabama, Georgia, North Carolina, and South Carolina [6] Financial Performance and Market Position - ROAD's shares surged 70.1% in the past six months, significantly outperforming the Zacks Building Products - Miscellaneous industry's 5.9% growth [8] - The company currently holds a Zacks Rank 1 (Strong Buy), reflecting strong market confidence [9] Peer Performance in the Sector - Sterling Infrastructure Inc (STRL) delivered a trailing four-quarter earnings surprise of 21.5% on average, with shares gaining 57% in the past six months The Zacks Consensus Estimate for STRL's 2025 sales and EPS implies increases of 7.3% and 8.1%, respectively [10] - Weyerhaeuser Company (WY) delivered a trailing four-quarter earnings surprise of 41.6% on average, with shares rallying 2.8% in the past six months The consensus estimate for WY's 2025 sales and EPS indicates increases of 7.9% and 72.8%, respectively [11] - MasTec Inc (MTZ) delivered a trailing four-quarter earnings surprise of 40.2% on average, with shares gaining 43.4% in the past six months The Zacks Consensus Estimate for MTZ's 2025 sales and EPS indicates increases of 8.8% and 43.4%, respectively [11]