Construction Partners, Inc. (NASDAQ: ROAD) has deepened its Texas presence through a major acquisition, completing the purchase of eight hot-mix asphalt plants, along with equipment and crews, from affiliates of Vulcan Materials Company. The newly acquired operations, located throughout the Houston metropolitan area, will now integrate into Durwood Greene Construction Co., which CPI had purchased earlier in August 2025.
The move is part of CPI’s broader strategy to expand its footprint across high-growth Sunbelt markets, positioning the company to capture continued public infrastructure investment across Texas.
“Today’s acquisition significantly expands our operations in the fast-growing Houston area while reinforcing CPI’s strategy of building better markets and strategically growing our geographic footprint in Texas,” said Fred J. (Jule) Smith III, CPI’s president and CEO.
By acquiring both assets and skilled workers from Vulcan Materials, the company is enhancing its operational capacity and strengthening its workforce culture centered on safety, quality, and customer service.
The acquisition underscores Construction Partners’ momentum in the civil infrastructure sector. The company—known for its work on roads, highways, bridges, and airports across the Southeastern U.S.—is leveraging both organic expansion and strategic M&A to strengthen its leadership in regional construction markets.
CPI’s growth trajectory is backed by robust fundamentals. As of the end of the third quarter of 2025, the company reported a record project backlog of $2.94 billion, representing a 58.1% year-over-year increase. Notably, 80%–85% of its expected revenue for the next 12 months is already secured, ensuring strong visibility into fiscal 2026.
This backlog reflects ongoing strength in public infrastructure funding throughout the Sunbelt region, where population growth and transportation demand are fueling large-scale investment. The company also continues to benefit from the integration of several recent acquisitions, including Lone Star Paving, PRI, and Durwood Greene Construction.
Despite minor short-term fluctuations—ROAD stock dipped 1.2% during regular trading and 1.4% after hours following the acquisition—analysts remain optimistic about CPI’s long-term value creation and disciplined balance sheet management.
Construction Partners currently holds a Zacks Rank #1 (Strong Buy) rating, reflecting its consistent earnings performance and growth outlook. The company’s shares have surged 71.1% over the past year, significantly outperforming the broader Zacks Building Products – Miscellaneous industry, which declined 7.5% during the same period.
In addition to CPI, analysts point to other top-performing construction firms including Everus Construction Group Inc. (ECG) and Great Lakes Dredge & Dock Corporation (GLDD).
Everus has delivered an average 42.7% earnings surprise over the last four quarters, with projected 18% sales growth in 2025. Meanwhile, Great Lakes Dredge & Dock has averaged a 45.3% earnings surprise, with expected 21.4% EPS growth next year.
CPI’s latest deal aligns with its strategy of building scale in core infrastructure markets while preserving financial discipline. The company’s ability to integrate acquisitions efficiently and capture new project opportunities continues to set it apart from peers navigating inflation and supply chain pressures.
As public funding for roads and transportation continues to rise across Texas and the broader Sunbelt, CPI’s expanded presence in Houston positions it to capitalize on record levels of infrastructure spending and long-term urban growth.
With the cost of public construction accelerating and competition for labor intensifying, CPI’s acquisition of Vulcan’s Houston assets marks not just an expansion—but a strategic reinforcement of its regional dominance and long-term profitability goals.
Originally reported by Zacks.
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