Third-quarter rundown: Severe weather a factor for producers

Summit Materials

Summit Materials reported strong growth in the third quarter, with net revenue increasing 49.9 percent ($369.9 million) to $1.11 billion.

For Summit, the third quarter represented another period of nearly 50 percent revenue growth. The company reported a 58.1 percent increase in the second quarter. In the first quarter this year, Summit’s revenue increased 89.9 percent following its merger with Argos USA.

According to Summit, $403.4 million of its third-quarter revenue was due to acquisitions – primarily the Argos merger. This outpaced the company’s $43.6 million in net revenue decreases related to divestitures.

Organic prices increased across all business lines, the company adds.

Summit’s operating income increased 52.1 percent in the third quarter to $194.7 million, largely due to the Argos USA merger.

“Our materials-led portfolio delivered another resilient quarter of financial results, even amid significant rainfall and severe weather events that impacted many of our key markets,” says Anne Noonan, president and CEO of Summit. “I’m incredibly proud of our teams that responded safely and with agility to produce an Elevate-era record for EBITDA margins and take valuable steps towards achieving our strategic agenda.”

Knife River

Knife River Corp. made 1 percent gains in the third quarter in revenue, gross profit and net income, although its adjusted EBITDA slipped about 1 percent.

The company says volumes declined in the third quarter though additional price increases were achieved.

“Our third-quarter results demonstrate the fundamental strength of our business and the benefits of our segment diversity,” says Brian Gray, president and CEO of Knife River. “We achieved record quarterly revenue, gross profit and net income, and adjusted EBITDA was near our record from the third quarter of 2023.

“Our geographic segments contributed record EBITDA of $224.6 million for the quarter, a combined 6 percent increase year over year across the Pacific, Northwest, Mountain and Central segments, which helped us overcome the anticipated EBITDA reduction at our energy services segment,” he adds.

Arcosa

Arcosa reported a modest increase in construction products revenues and a slight decrease in aggregate and specialty materials organic revenue in its third-quarter report.

Third-quarter revenues in Arcosa’s construction products business increased 1 percent to $265.9 million, primarily due to recent acquisitions. Referencing its decreased organic revenue, Arcosa cites lower volumes, a decrease in freight revenue and a reduction in revenue from recently divested operations as factors leading to the downturn.

Higher pricing partially offset lower organic volumes, Arcosa says.

“We continue to successfully execute on our portfolio optimization strategy and are strengthening the foundation of our business by reducing the complexity and cyclicality while improving our margin profile,” says Antonio Carrillo, president and CEO of Arcosa. “During the third quarter, we completed the divestiture of our steel components business, and on Oct. 1, we closed on the $1.2 billion acquisition of the aggregates-led construction materials business of Stavola, our largest transaction to date.”

Granite

Net income and total revenue were up in the third quarter at Granite Construction, which experienced gains in its materials business.

Granite’s net income in the third quarter totaled $79 million, an increase of 36 percent versus the prior-year period. The company’s third-quarter revenue increased 14 percent year over year to $1.3 billion.

Revenue in Granite’s materials business increased year over year by $24 million. Revenue from acquired businesses and higher aggregate and asphalt prices were contributing factors, the company says.

Granite says gross profit in its materials business increased due to the same factors.

Eagle Materials

Eagle Materials reported financial results for its second quarter of fiscal 2025 ending Sept. 30, achieving a record revenue of $623.6 million and net earnings of $143.5 million.

The totals reflect a 0.22 percent increase and a 4.67 percent decrease, respectively.

“Eagle’s portfolio of businesses continued to perform well despite ongoing adverse weather during the quarter, which affected sales volumes primarily in our cement and concrete and aggregates businesses,” says Michael Haack, president and CEO of Eagle Materials. “We remain optimistic about our near-term and future opportunities and confident in our ability to execute on them.”

USLM

Lime and limestone revenues and gross profit were up in the third quarter at United States Lime & Minerals (USLM).

USLM’s third-quarter lime and limestone revenues totaled $89.2 million. The total is up 19.6 percent from the third quarter of 2023,

USLM says the increase resulted from higher average selling prices for its lime and limestone products, as well as increased sales volumes that principally derived from construction and roof shingle customers.

The company’s lime and limestone gross profit in the third quarter, meanwhile, was $43.2 million. That total is up 53.3 percent versus the third-quarter 2023 mark.