Construction Partners, Inc. ROAD, or CPI, has acquired Overland Corporation (“Overland”), an asphalt manufacturing and paving company, based in Ardmore, OK. Overland provides paving services for public, commercial and residential projects. The transaction adds eight hot-mix asphalt plants to CPI's operations, expanding its capabilities in the region.

Shares of ROAD gained 4.3% during Friday’s trading session and 1.9% in the after-hours.

ROAD Supports Leverage Reduction Strategy With Acquisition

The transaction marks ROAD's entry into its eighth state. Overland has established itself as a leading infrastructure contractor in Oklahoma and is well-positioned to capitalize on the strong asphalt markets in Oklahoma and northern Texas, driven by the continued expansion of the Dallas metro area.

ROAD plans to support Overland in pursuing organic and acquisitive growth opportunities within local markets. The acquisition aligns with ROAD's cultural and operational goals and supports its strategy to reduce the leverage ratio to approximately 2.5x in the next four to six quarters.

ROAD’s Strategic Acquisitions Fuel Expansion

Construction Partners follows a profitable buyout strategy, which enhances as well as expands its product offerings and geographical reach. One of the highlighted acquisitions of the company in the calendar year 2024 was the Lone Star Paving Acquisition.

On Nov. 1, 2024, it acquired Asphalt, Inc., LLC (doing business as Lone Star Paving), a vertically integrated asphalt manufacturing and paving company headquartered in Austin, TX. The acquisition brought in 10 hot mix asphalt plants, four aggregate facilities and one liquid asphalt terminal to ROAD’s portfolio. The company boosted its Texas footprint, expanded customer base and enhanced ROAD’s project pipeline with this accretive buyout.

Furthermore, during fiscal 2024, Construction Partners completed eight acquisitions for approximately $231.7 million across four states, adding to or expanding its operations in Alabama, Georgia, North and South Carolina. This resulted in ROAD adding 11 asphalt plants and a diverse fleet of equipment and vehicles to its portfolio.

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Shares of this vertically integrated civil infrastructure company have surged 70.1% in the past six months, outperforming the Zacks Building Products - Miscellaneous industry’s 5.9% growth.

ROAD Zacks Rank & Other Key Picks

Currently, CPI sports a Zacks Rank #1 (Strong Buy).

Here are some other top-ranked stocks from the same sector space.

Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

It delivered a trailing four-quarter earnings surprise of 21.5%, on average. Shares of STRL have gained 57% in the past six months. The Zacks Consensus Estimate for STRL’s 2025 sales and EPS implies an increase of 7.3% and 8.1%, respectively, from the prior-year levels.

Weyerhaeuser Company WY currently flaunts a Zacks Rank of 1. WY delivered a trailing four-quarter earnings surprise of 41.6%, on average. The stock has rallied 2.8% in the past six months.

The consensus estimate for WY’s 2025 sales and EPS indicates an increase of 7.9% and 72.8%, respectively, from a year ago.

MasTec, Inc. MTZ presently sports a Zacks Rank of 1. MTZ delivered a trailing four-quarter earnings surprise of 40.2%, on average. The stock has gained 43.4% in the past six months.

The Zacks Consensus Estimate for MTZ’s 2025 sales and EPS indicates an increase of 8.8% and 43.4%, respectively, from a year ago.

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