Compared with the first half of 2022, Heidelberg Materials says its deliveries of aggregates actually rose slightly in North America. Highway infrastructure and large-scale manufacturing facility projects in the Midwest particularly drove the increase. Heidelberg Materials says sales volumes in the Southeast and Southwest remained stable as heightened construction activity levels continued.
Cemex
Cemex’s U.S. business reported a record second quarter, with EBITDA growing 87 percent to $303 million. Net sales in the U.S., meanwhile, grew 10 percent to $1.42 billion.
“The success of our pricing strategy, bolt-on investments and urbanization solutions business, as well as decelerating cost inflation, are driving what is shaping up to be a very strong year for our company,” says Fernando González, CEO of Cemex.
Eagle Materials
Eagle Materials provided insights about its first quarter of fiscal 2024 that ended June 30, noting that concrete and aggregate revenue was up 9 percent due to increased pricing for both and higher sales volumes in aggregates.
Eagle Materials’ operating earnings also increased 23 percent in concrete and aggregates, reflecting factors such as elevated concrete and aggregate net sales prices.
Summit Materials
Summit’s quarterly net revenue tied to aggregates jumped 13 percent to $182.5 million, and its average selling price for aggregates increased 14.5 percent.
The company’s adjusted cash gross profit margin in aggregates, meanwhile, slipped to 53.6 percent. That mark was at 53.7 percent in the second quarter of 2022.
Additionally, Summit’s aggregate sales volumes declined in the second quarter by 2.5 percent, although the company attributes part of the drop to divestitures in its East segment. Unfavorable weather conditions and residential construction softness in the West were factors, as well.
Arcosa
According to Arcosa , its construction products revenue increased 8 percent in the second quarter to $264.8 million. Higher pricing and volume growth in recycled aggregates drove the increase along with organic volume growth and acquisition-related contributions from the company’s trench shoring business.
Revenue tied to natural aggregates and specialty materials was relatively unchanged, Arcosa says, as higher pricing offset lower volumes.
“In construction products, we continued to successfully advance pricing, manage cost pressures and drive solid unit profitability in natural and recycled aggregates,” says Antonio Carrillo, president and CEO of Arcosa. “However, overall adjusted segment EBITDA margins were impacted by operating inefficiencies in our specialty materials business that we are addressing.”
Knife River
Knife River Corp. reported its first financial results as an independent, public company, noting that it set all-time second-quarter highs in revenue, net income and EBITDA.
The company, which now trades independently on the New York Stock Exchange, completed its spinoff from MDU Resources in June.
“Reflecting on the quarter, each of our regions benefited from disciplined materials pricing, targeted bidding and solid execution, which are key components of our Competitive EDGE strategy – Knife River’s plan for increasing adjusted EBITDA margins and executing on other key initiatives aimed at continued profitable growth,” says Brian Gray, president and CEO of Knife River. “As we head into the heart of the construction season, we look to further leverage our aggregates-led, vertically integrated business model to take advantage of industry tailwinds.”
Knife River reported second-quarter consolidated revenue of $785.2 million, a 10 percent increase from the prior-year period. The company says each of its regional segments performed well and that 10 percent price increases were established across all consolidated product lines.
Granite Construction
Granite Construction made quarterly gains in its materials business, noting that revenue and gross profit were up compared to the same period of 2022.
Higher aggregate and asphalt pricing, as well as increased aggregate sales volumes, were factors in the gains. Aggregate sales volumes increased 9 percent year over year, Granite says, while asphalt sales volumes in the quarter were flat.
“I expect we will see continued year-over-year improvement in materials and construction revenue and gross profit in the second half of the year,” says Kyle Larkin, president and CEO at Granite.
USLM
Lime and limestone revenues were up in the second quarter at United States Lime & Minerals (USLM), which experienced gains in both volumes and pricing.
According to USLM, lime and limestone revenues were up 23.6 percent in the second quarter to $73.7 million. For the first six months of the year, lime and limestone revenues jumped 27.5 percent to $140.2 million.
USLM says demand from environmental and oil and gas services customers were key contributors to volume increases.
