ROAD Stock Paves AI-Assisted Path To Breakout | Investor's Business DailyBREAKING: [Dow Futures Rise After Strong Nvidia Earnings]---Nvidia (NVDA) and Alphabet (GOOGL) make headlines as artificial intelligence stocks to watch, but an asphalt-centered infrastructure company has paved its way into that conversation. Now shares of Construction Partners (ROAD) stand poised to drive right into a new buy zone. A force to be reckoned with in the heavy construction industry, alongside peers like MasTec (MTZ), Sterl ...

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. As many believe, US equities experienced solid returns in 2025, with double-digit gains across all major indices, yet underlying conditions revealed extreme volatility and market leadership. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Small Cap Strategy returned -1.89% net-of-fees, trailing the Russell 2000 Growth Index’s 1.22% return. The returns were volatile i ...

Core Insights - The company reported a strong start to fiscal 2026, with first-quarter revenue increasing by 44% year-over-year, driven by favorable weather and ongoing demand in the Sun Belt region [5][4][7] - The project backlog as of December 31, 2025, stood at $3.09 billion, covering approximately 80% to 85% of the expected contract revenue for the next 12 months [2][7] - Adjusted EBITDA rose by 63% to $112.2 million, with an adjusted EBITDA margin reaching a record 13.9% for the first quarter [4][7] Financial Performance - First-quarter revenue was reported at $809.5 million, with organic growth at 3.5% and acquisitive growth contributing 40.6% [3][7] - Net income for the quarter was $17.2 million, while adjusted net income was $26.4 million, translating to adjusted earnings per diluted share of $0.47 [2] - Gross profit increased by 58% to $121.5 million, with the gross profit margin improving to 15% from 13.6% year-over-year [3] Strategic Outlook - The company raised its fiscal 2026 revenue outlook to a range of $3.48 billion to $3.56 billion, with adjusted EBITDA expected between $534 million and $550 million [7][20] - Management anticipates a 10% to 15% increase in total federal, state, and local contract awards for fiscal 2026, primarily driven by recurring maintenance work [8] - The company is focused on mergers and acquisitions (M&A) as a central growth strategy, having completed significant acquisitions in Houston and Daytona Beach [6][10] Cash Flow and Leverage - The company ended the quarter with $104 million in cash and $163 million available under its credit facility, with a leverage ratio of 3.18x [15][16] - Management aims to reduce leverage to approximately 2.5x by late 2026, funding acquisitions through operating cash flow [16] Market Dynamics - The company is experiencing strong contract bidding across its eight-state footprint, with expectations for increased federal funding through the highway program reauthorization [9][8] - The integration of recent acquisitions is progressing well, with management emphasizing their core competency in this area [14][13]

Acquisition Strategy - The company has completed its twelfth hot mix plant acquisition in the Houston market, enhancing its geographic footprint and throughput opportunities at the nearby liquid asphalt terminal [1][2] - The recent acquisition of GMJ Paving Company, a leading asphalt contractor in Houston, complements existing assets and strengthens market position [2][39] - The company has a robust pipeline of acquisition opportunities across its footprint and surrounding states, focusing on strategic cultural fits [5][44] Financial Performance - For fiscal 2026, the company reported revenue of $809.5 million, a 44% increase year-over-year, with 3.5% from organic growth and 40.6% from acquisitions [8] - Gross profit for Q1 was $121.5 million, up approximately 58% compared to the previous year, with a gross profit margin of 15% [8] - Adjusted EBITDA increased by 63% to $112.2 million, with an adjusted EBITDA margin of 13.9% [9] Market Outlook - The company anticipates a 10-15% increase in total federal, state, and local contract awards in FY '26, particularly for small and medium-sized maintenance projects [4][32] - The revenue outlook for fiscal 2026 is projected between $3.48 billion and $3.56 billion, with adjusted EBITDA expected to range from $534 million to $550 million [11] - The company expects organic growth of approximately 7% to 8% for the fiscal year [11][21] Operational Efficiency - General and administrative expenses as a percentage of total revenue decreased to 7.7% in Q1, down from 7.9% the previous year [9] - The company aims to reduce its debt to trailing twelve-month EBITDA ratio to approximately 2.5 times by late 2026, currently at 3.18 times [10][42] - Cash flow from operations for 2026 was reported at $82.6 million, up from $40.7 million in 2025, with expectations to convert 75% to 85% of EBITDA to cash flow [10][11] Growth Strategy - The company is focused on both organic growth and strategic acquisitions to build shareholder value, with plans to bring online several greenfield facilities [6][5] - The Road 2030 growth plan aims to double the company's size to over $6 billion in revenue by 2030, targeting an EBITDA margin growth to approximately 17% [6][7] - The company is actively integrating recent acquisitions to create organic growth opportunities and enhance operational efficiency [24][39]

Key Takeaways Masco to Report Q4 Earnings: Here's What Investors Must KnowPlumbing Products may support sales, aided by higher pricing and steady e-commerce and trade demand.Masco's margins face pressure from tariffs, commodity inflation and lower volumes despite mitigation efforts.Masco Corporation (MAS) is scheduled to report its fourth-quarter 2025 results on Feb. 10, before the opening bell.In the last reported quarter, the company’s adjusted earnings and net sales missed the Zacks Consensus Estimate by ...

Core Insights - Construction Partners, Inc. reported a strong start to fiscal 2026 with a 44% increase in revenue and a 63% increase in Adjusted EBITDA compared to the same quarter last year, achieving a record Adjusted EBITDA margin of 13.9% [2][6] - The company ended the quarter with a record project backlog of $3.09 billion, indicating strong demand across its markets [2][6] - The company has raised its fiscal 2026 outlook based on better-than-expected first-quarter results and anticipated contributions from recent acquisitions [7][8] Financial Performance - Revenue for the first quarter of fiscal 2026 was $809.5 million, up from $561.6 million in the same quarter last year, representing a 44.1% increase [3][6] - Adjusted net income for the quarter was $26.4 million, compared to a net loss of $3.1 million in the same quarter last year [5][21] - Adjusted EBITDA reached $112.2 million, a 63.1% increase from $68.8 million in the prior year [6][21] Operational Highlights - The company completed two strategic acquisitions in high-growth regions during the quarter, with plans for further expansion in the Houston market [3][8] - General and administrative expenses increased to $61.5 million but decreased as a percentage of total revenues to 7.7% from 7.9% year-over-year [4][21] - The company emphasized its culture of operational excellence and commitment to safety as key drivers of its performance [3][9] Future Outlook - The company anticipates organic revenue growth of approximately 7% to 8% for fiscal 2026, supported by strong industry tailwinds and increasing infrastructure funding [7][8] - The fiscal 2026 outlook has been raised for revenue, net income, Adjusted net income, Adjusted EBITDA, and Adjusted EBITDA margin [8][22] - The company is well-positioned to capitalize on the growing infrastructure repair and maintenance needs across the Sunbelt region [9][22]

Core Insights - Weyerhaeuser Company (WY) is expected to report fourth-quarter 2025 results on January 29, reflecting ongoing challenges in the housing and wood products market [1] - The company has consistently beaten earnings estimates in three of the last four quarters, with an average surprise of 65.7% [2] Earnings Estimates - The Zacks Consensus Estimate for the upcoming quarter's loss per share has widened to 13 cents from 12 cents, compared to an earnings per share (EPS) of 11 cents in the same quarter last year [3] - The consensus for net sales is projected at $1.58 billion, indicating a 7.2% year-over-year decline [3] Factors Influencing Q4 Results - Revenues are likely pressured by seasonally softer housing and repair-and-remodel activity, impacting demand in the Wood Products segment, which accounted for approximately 71.5% of third-quarter 2025 net sales [4] - Lumber and oriented strand board (OSB) pricing remained near historically low levels, with a 10% sequential decline in lumber output expected due to weaker market conditions [4] - The Timberlands segment's revenue trends are mixed, with domestic log demand softening in the Western region but stable demand in the U.S. South [6] Segment Performance - Wood Products segment net sales are expected to decline 9.7% year-over-year to $1.14 billion, with adjusted EBITDA projected to drop 96.2% to $6.1 million [5] - Timberlands segment net sales are anticipated to grow 2.9% to $511.4 million, while adjusted EBITDA is expected to decline 6.2% to $118.2 million [7] - The Real Estate, Energy and Natural Resources segment's net sales are projected to be $81.8 million, down 4.9% year-over-year, with adjusted EBITDA expected to increase 1.7% to $77.3 million [10] Margin Performance - Overall margin performance in Q4 is expected to remain under pressure, particularly in Wood Products, due to weak lumber and OSB pricing and lower operating rates [11] - Cost offsets, including a decline in log and fiber costs, are expected to cushion earnings volatility [12] Earnings Prediction Model - The model does not predict an earnings beat for Weyerhaeuser this time, with an Earnings ESP of -27.28% and a Zacks Rank of 3 [13]

Core Viewpoint - PulteGroup Inc. is expected to report its fourth-quarter 2025 results on January 29, with anticipated declines in both earnings per share (EPS) and total revenues compared to the previous year [1][2] Revenue Performance - The Zacks Consensus Estimate for PulteGroup's fourth-quarter EPS has decreased to $2.78, reflecting a 20.6% decline from the year-ago EPS of $3.50 [2] - Total revenues are projected at $4.31 billion, indicating a 12.4% year-over-year decline, primarily due to ongoing affordability challenges in the housing market and high mortgage rates [2][3] Home Closings and Segment Performance - Home closings are expected to be between 7,200 and 7,600 units, down from 8,103 units a year ago, with a predicted decline of 8.3% year over year to 7,429 units [4] - Homebuilding revenues are forecasted to decrease 12.2% year over year to $4.22 billion, while Financial Services revenues are expected to drop 4.4% to $110 million [5] Pricing and Margins - The average selling price (ASP) for the quarter is anticipated to be between $560,000 and $570,000, down from $581,000 a year ago, with a predicted decrease of 3.3% year over year to $561,700 [6] - Home sales gross margin is expected to be between 25.5% and 26%, down from 27.5% in the previous year, with SG&A expenses projected to rise to between 9.5% and 9.7% [9] Orders and Backlogs - Net new orders are expected to decline by 0.9% year over year to 6,114 units, while total backlog is projected to decrease by 15.6% to 8,572 units, with a total backlog value of $5.49 billion, down 15.5% year over year [10] Earnings Prediction - The model does not predict an earnings beat for PulteGroup this quarter, with an Earnings ESP of +2.10% and a Zacks Rank of 4 (Sell) [11]

Core Viewpoint - United Rentals, Inc. (URI) is expected to report its fourth-quarter 2025 results on January 28, with adjusted earnings per share (EPS) anticipated to show a year-over-year increase despite a recent miss in the previous quarter [1][3]. Financial Performance - In the last reported quarter, URI's adjusted EPS missed the Zacks Consensus Estimate by 6.3% and decreased by 0.8% year over year, while total revenues exceeded the consensus estimate by 1.7% and increased by 5.9% year over year [1][2]. - The Zacks Consensus Estimate for fourth-quarter adjusted earnings has risen to $11.90 per share, reflecting a 2.7% increase from the previous year's earnings of $11.59 per share [3]. - The consensus estimate for total revenues is projected at $4.26 billion, indicating a growth of 3.9% from the prior-year quarter [3]. Revenue Drivers - Revenue growth is expected to be driven by strong demand in public infrastructure and non-residential markets, supported by federal and state funding and lower interest rates [4]. - New project activity is anticipated to be broad-based, particularly in sectors such as data centers, semiconductors, LNG facilities, hospitals, and airports, indicating sustained demand across key industrial and construction markets [4]. - Specialty rentals, which offer higher margins, are expected to contribute to revenue growth through both organic means and cold-starts that expand capacity in new markets [5]. Operational Strategy - URI's diverse fleet management approach focuses on customer demand and optimizing utilization levels, which is expected to enhance service to large customers requiring a wide range of equipment [6]. - Strategic acquisitions and joint ventures are likely to have further catalyzed growth trends in the upcoming quarter [6]. Earnings Outlook - Year-over-year bottom-line growth is anticipated due to higher fleet productivity and disciplined rate management, alongside continued cost control measures [7]. - However, inflationary pressures and elevated delivery costs may partially offset these gains, limiting margin expansion [7]. Market Sentiment - Recent upward adjustments in EPS estimates signal cautious optimism ahead of the fourth-quarter earnings report [9]. - The combination of a positive Earnings ESP of +0.64% and a Zacks Rank of 3 (Hold) suggests a potential earnings beat for URI [10].

Company Overview - Construction Partners, Inc. (CPI) is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt, including Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas [2] - The company specializes in the construction, repair, and maintenance of surface infrastructure, primarily focusing on publicly funded projects such as local and state roadways, interstate highways, airport runways, and bridges [2] - CPI also engages in private sector projects, including paving and sitework for office and industrial parks, shopping centers, local businesses, and residential developments [2] Upcoming Financial Results - CPI will release its fiscal 2026 first quarter results on February 5, 2026, before the market opens [1] - A conference call to discuss the results is scheduled for 10:00 a.m. Eastern Time on the same date, accessible via phone or webcast [1] - The conference call can be accessed by dialing (412) 902-0003 or through the company's Investor Relations website [1]