Construction Partners, Inc. (NASDAQ: ROAD) announced the acquisition of GMJ Paving Company, LLC on February 2 2026. The deal adds GMJ’s hot‑mix asphalt plant in Baytown, east of Houston, to Construction Partners’ portfolio, bringing the company’s total number of plants in the Houston market to twelve and expanding throughput capacity at its nearby liquid asphalt terminal.
The acquisition is a key element of Construction Partners’ Sunbelt strategy, which has focused on high‑growth markets such as Texas. By adding a second hot‑mix facility in the Houston area, the company deepens its vertically integrated model—owning the entire supply chain from aggregate and liquid asphalt to paving services. The move also strengthens the firm’s market share in a region that has seen robust public‑infrastructure spending and a growing demand for road and bridge projects.
Operationally, the Baytown plant will increase Construction Partners’ capacity to produce and deliver hot‑mix asphalt, allowing the company to meet rising demand from state and local governments. The additional throughput will also support the company’s liquid asphalt terminal, improving logistics and reducing transportation costs. The integration is expected to generate cost synergies and enhance scheduling flexibility for large‑scale paving contracts.
Construction Partners’ fiscal 2025 results—revenue up 54% to $2.812 billion and Adjusted EBITDA rising 92% to $423.7 million—provide a strong foundation for the expansion. The company’s Adjusted EBITDA margin improved to 15.1% from 12.1% in fiscal 2024, driven by both organic growth and the impact of strategic acquisitions. Management has guided fiscal 2026 revenue to $3.400 billion–$3.500 billion and Adjusted EBITDA to $520.0 million–$540.0 million, reflecting confidence in continued Sunbelt momentum and infrastructure investment.
CEO Fred J. Smith III said the GMJ acquisition “expands our market share in Houston and adds skilled, experienced operators with extensive local knowledge.” He added that the deal is part of a broader strategy to enter the right markets with the right partners, positioning the company for sustained growth in the Sunbelt region.
The acquisition follows Construction Partners’ earlier purchases of Durwood Greene Construction Co. in August 2025 and the Houston‑area assets of Vulcan Materials Company in October 2025. Together, these moves have consolidated the firm’s presence in the Houston market, increased its operational capacity, and reinforced its focus on public‑infrastructure projects that benefit from the region’s strong economic fundamentals.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.