Summit Materials (SUM) investor relations material

Executive summary

• Net revenue rose 49.9% to $1.11 billion, driven by the Argos USA acquisition, portfolio optimization, and organic pricing growth.

• Adjusted EBITDA grew 50.9% to $314.7 million, with margin reaching a record 28.3% for Q3, supported by integration synergies and pricing momentum.

• Operating income increased 52.1% to $194.7 million, while net income fell to $105.2 million due to higher interest expense and a prior-year tax benefit.

• Four asset divestitures and two bolt-on acquisitions completed in 2024, enhancing aggregates and cement positions.

• Maintained a safety-first approach during severe weather, resulting in zero safety incidents at affected facilities.

Financial highlights

• Q3 2024 net revenue: $1.11 billion (up 49.9% year-over-year); Adjusted EBITDA: $314.7 million (up 50.9% year-over-year); Adjusted EBITDA margin: 28.3%.

• Adjusted diluted EPS was $0.75, down from $0.81 year-over-year due to higher share count and interest expense.

• Operating margin for Q3: 17.5% (up from 17.2% year-over-year); Adjusted cash gross profit margin: 34.4%.

• Free cash flow for Q3: $140.4 million, up from $98.3 million year-over-year; nine months: $90.1 million.

• Working capital at September 28, 2024: $1.16 billion; cash and equivalents: $737.5 million.

Outlook and guidance

• 2024 Adjusted EBITDA guidance refined to $970 million–$1 billion, with margin expected at least 24%.

• Aggregates organic volumes expected to decrease mid-single digits; cement volumes projected at 8.6 million tons.

• Double-digit aggregates pricing and mid-single digit cement pricing growth reaffirmed for 2024 and 2025.

• CapEx for 2024 set at $390–$410 million, maintaining a 10% of net revenue commitment.

• 2025 framework targets Adjusted EBITDA margin of 25%–27%, with $80 million in run-rate synergies from Argos integration.