Construction Partners reports share redistribution

Published 12/12/2024, 07:24
Construction Partners reports share redistribution

Construction Partners, Inc. (NASDAQ:ROAD), a $5.46 billion market cap company specializing in heavy construction, announced a recent redistribution of shares by one of its principal shareholders. On Monday, SunTx Capital Partners (WA:CPAP) II, L.P. ("SunTx Partners II") and SunTx Capital Partners II Dutch Investors, L.P. ("SunTx Partners Dutch LP") distributed an aggregate of 322,958 shares of Class A common stock and 177,042 shares of Class B common stock to their respective partners at no cost.

Following this distribution, SunTx Partners II and SunTx Partners Dutch LP retain ownership of 3,743,068 shares of Class B common stock in the company. As of today, the combined ownership of SunTx Capital Partners, including its principals, affiliates, and family members, represents approximately 51.2% of the voting power of Construction Partners' common stock. According to InvestingPro data, the company currently trades at a P/E ratio of 73.7, suggesting a premium valuation compared to its Fair Value.

This information, relayed through a regulatory filing with the Securities and Exchange Commission (SEC), is not intended for incorporation into any other filings under the Securities Act of 1933 or the Exchange Act, unless explicitly stated otherwise.

Construction Partners, headquartered in Dothan, Alabama, operates within the heavy construction sector under the standard industrial classification code 1600. The company is incorporated in Delaware and concludes its fiscal year at the end of September.

The SEC filing provides investors with an update on the ownership structure of the company, which could be relevant for understanding the distribution of voting power within the company. The redistribution of shares by SunTx Capital Partners II and its Dutch counterpart is a transaction that does not involve the exchange of funds.

The information in this article is based on a press release statement. InvestingPro analysis shows the company has achieved impressive growth with a 122.3% total return year-to-date and maintains good financial health with a 16.7% revenue growth. For deeper insights into Construction Partners' valuation and growth prospects, including 16 additional ProTips and comprehensive financial metrics, explore the full Pro Research Report available on InvestingPro.

In other recent news, Construction Partners Inc (NASDAQ:ROAD). reported a record fiscal year in 2024, with revenue growing by 17% to $1.82 billion and net income rising by 41% to $68.9 million. The company's adjusted EBITDA also saw a significant increase of 28%, reaching $220.6 million.

DA Davidson, in light of these results and the additional contributions from the Lone Star Paving acquisition, has raised the price target for Construction Partners to $95.00 from the previous target of $75.00 while maintaining a neutral rating on the stock.

The acquisition of Lone Star Paving played a transformative role in the firm's strategy, enhancing its presence in Texas and contributing to its EBITDA margins. Furthermore, Construction Partners completed eight acquisitions in fiscal 2024, expanding its market share in Sunbelt states.

Looking ahead, the company anticipates robust demand in commercial and public markets, backed by the Infrastructure Investment and Jobs Act.

For fiscal 2025, Construction Partners projects increased revenue between $2.48 billion and $2.58 billion, and adjusted EBITDA between $347 million and $377 million. These are amongst the recent developments for Construction Partners.

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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