Do You Believe in Construction Partners’ (ROAD) Improved Long-Term Growth Prospects?

Core Insights - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, but the Conestoga Small Cap Composite underperformed the Russell 2000 Growth Index, returning -1.4% compared to the Index's 12.2% gain [1] Company Overview: Construction Partners, Inc. (NASDAQ:ROAD) - Construction Partners, Inc. is a civil infrastructure company focused on roadway construction and maintenance, with a one-month return of -13.96% and a 52-week gain of 35.79% [2] - As of October 17, 2025, the stock closed at $115.01 per share, with a market capitalization of $6.451 billion [2] Financial Performance - Construction Partners, Inc. reported revenue of $779.3 million in fiscal Q3 2025, reflecting a 51% increase compared to fiscal Q3 2024 [4] Market Position and Strategy - The company benefits from federal and state infrastructure spending, which has led to backlog growth and improved revenue visibility [3] - Lower asphalt and fuel costs have supported margin recovery, alongside strong project execution in the Southeastern U.S. [3] - Management's disciplined acquisition strategy has expanded the company's market presence into Texas, Tennessee, and Oklahoma, enhancing long-term growth prospects [3]