Summit Materials established companywide records for revenue and profitability in the third quarter, with its aggregate business contributing to the growth.
According to Summit, its net revenues in aggregates increased 9.9 percent in the third quarter to $179.8 million. The company’s adjusted cash gross profit margin in aggregates was 59 percent – up from 53.3 percent in the third quarter of 2022.
Additionally, Summit says its aggregate sales volumes decreased 3.8 percent in the third quarter despite a positive impact from acquisitions. Due primarily to reduced residential activity, Summit says organic aggregate sales volumes dropped 7.5 percent as lower volumes in Kansas, Missouri and British Columbia, Canada, more than offset organic aggregate volume growth in Virginia and north Texas.
The company’s average selling prices for aggregates, however, increased 14.4 percent.
“Once again I’m pleased to report we delivered record financial results this quarter as our sharp executional focus, along with a more powerful, materials-led portfolio, drove significant growth across the P&L,” says Anne Noonan, president and CEO of Summit. “Year-to-date performance and enduring pricing trends allow us to again increase our 2023 adjusted EBITDA guidance and carry strong momentum into 2024.”
Noonan also offered an update on the company’s merger with Argos USA, detailing how Summit expects the deal to close before the end of the first quarter in 2024.
“We look forward to our announced combination with Argos USA, which accelerates our materials-led strategy, enhances our scale and reach in cement, and bolsters our cash flow generation to fuel further aggregates-oriented organic and inorganic growth opportunities,” Noonan says.
