There weren’t any S&P 500 earnings reactions yesterday…
But one stock stands out to us in the Engineering & Construction industry.
Construction Partners $ROAD isn’t a flashy name in tech or AI, but it doesn’t need to be.
This $6 billion infrastructure firm is doing exactly what investors want to see: delivering consistent growth, expanding cash flows, and turning in strong earnings reports quarter after quarter.
The company specializes in road construction and maintenance in the Southeastern U.S., a region benefiting from booming population growth, government infrastructure spending, and year-round construction weather.
It’s a simple business with a powerful tailwind.
More importantly, they're scaling the business correctly and spitting out a tremendous amount of free cash flow.
This isn’t noise. It’s a clear and durable trend.
Free cash flow tells the real story 👇
Construction Partners has gotten back on track after hitting a rough patch in late 2021 / early 2023 with strong execution and expanding margins.
The company is now generating more than $126M in trailing 12-month FCF, a record high.
That’s real cash that they can reinvest into projects, acquisitions, or return to shareholders.
You can also see how closely the price is correlated with this key fundamental metric.
The stock is coiling up for a fresh leg higher 👇
Construction Partners had its 5th consecutive positive earnings reaction on May 9th, and since then, it has been coiling just below the all-time highs from last November.
We love how the fundamentals and the technicals are aligning here.
We want to buy ROAD on strength above 104 in anticipation of a fresh leg higher.
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