Ethan Trollinger

Ethan Trollinger asked for an update on the M&A rollover impact to revenue for fiscal 2026. He also inquired about the evolution of the Houston market, specifically how the margin profile has changed or is expected to change, and if more M&A opportunities exist in that market or other large metros.

Answer

CFO Greg Hoffman stated that the M&A rollover impact to revenue for the remaining three quarters of fiscal 2026 is estimated at $260 million-$280 million, including the recent GMJ acquisition. CEO Jule Smith highlighted the successful integration and market share expansion in Houston through acquisitions like Durwood Greene, Vulcan assets, and GMJ Paving, noting GMJ's strong niche in public infrastructure paving. Executive Chairman Ned Fleming added that the company continuously seeks other fast-growing metropolitan areas similar to Houston for strategic platform investments.

Ethan Trollinger from Raymond James asked for an update on the M&A rollover impact to revenue for fiscal year 2026. He also inquired about the evolution of the Houston market, including changes in its margin profile and future M&A opportunities, particularly after the GMJ acquisition. Additionally, he asked if there are other large metropolitan areas identified for expansion similar to the Houston strategy.

Answer

CFO Greg Hoffman stated the M&A rollover impact to revenue for the remaining three quarters of fiscal 2026 is estimated at $260 million-$280 million, including GMJ. CEO Jule Smith highlighted the successful integration and complementary nature of acquisitions in Houston, with GMJ expanding geographic coverage and public infrastructure paving capabilities. Executive Chairman Ned Fleming confirmed that Construction Partners actively identifies other high-growth metropolitan areas for strategic expansion, seeking platform companies to invest in.