Construction Partners reelects directors, ratifies accountants

Published 21/03/2025, 21:42
Construction Partners reelects directors, ratifies accountants

On Thursday, Construction Partners, Inc., a heavy construction firm valued at $4.14 billion, concluded its annual stockholders’ meeting with key decisions on director elections and auditor ratification. According to InvestingPro data, the company maintains strong financial health with a current ratio of 1.54 and impressive revenue growth of 22.91% over the last twelve months. Shareholders voted on three proposals during the March 20, 2025 Annual Meeting, with a 92% turnout based on the voting power as of the January 20, 2025 record date.

The first proposal involved the election of Class I directors. Ned N. Fleming, III, Charles E. Owens, and Fred J. (Jule) Smith, III were reelected with significant majorities. The vote counts were 100,529,168, 101,319,385, and 108,979,879 respectively, with each director receiving over 100 million votes in favor and the remaining votes withheld. There were also 2,235,647 broker non-votes for each director.

The second proposal was the ratification of the appointment of RSM US LLP as the company’s independent registered public accountants for the fiscal year ending September 30, 2025. This was approved with an overwhelming majority of 123,894,304 votes in favor, 185,600 against, and 16,066 abstentions.

The third and final proposal was the advisory, non-binding approval of the company’s executive compensation. It passed with 110,739,431 votes for, 11,097,487 against, 23,405 abstentions, and 2,235,647 broker non-votes.

These results affirm the shareholders’ support for the current board’s composition and its accounting practices. The directors elected will serve until the 2028 annual meeting, providing continuity in the company’s leadership. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with multiple valuation metrics showing elevated levels. Discover 13 additional exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription, including the detailed Pro Research Report available for this and 1,400+ other US stocks.

The information for this article is based on a recent SEC filing by Construction Partners, Inc.

In other recent news, Construction Partners Inc (NASDAQ:ROAD). reported impressive financial results for the first quarter of fiscal year 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.25, which was significantly higher than the forecast of $0.18. Their revenue also exceeded projections, coming in at $561.6 million compared to the anticipated $508.75 million. This notable performance was driven by a combination of organic growth and strategic acquisitions, contributing to a 41.6% year-over-year revenue increase.

Additionally, BofA Securities maintained its Buy rating on Construction Partners, although it slightly reduced the stock’s price target from $107 to $100. The firm’s analysis highlighted a substantial 68% increase in EBITDA to $69 million, which was 19% above consensus estimates. However, the company reported lower-than-expected free cash flow of $14 million, attributed to weather-related factors.

Construction Partners’ strategic growth initiatives included recent acquisitions that significantly bolstered their revenue, with the company projecting fiscal year 2025 revenue between $2.66 billion and $2.74 billion. The firm remains optimistic about continued infrastructure investments in the Sunbelt states, which are expected to support future growth. Despite challenges such as potential cost inflation and integration risks, analysts remain positive about the company’s market position and outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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