Summit Materials announced results for the third quarter ended Sept. 28, reporting that net revenue increased $369.9 million, or 49.9%, to $1,111.8 million.
Cement Segment net revenue increased to $323.2 million during the quarter. Adjusted cash gross profit margin for the segment increased to 47.2%, compared to 46.3% in the prior-year period.
The segment’s operating income grew 142.5% to $92.8 million. Adjusted EBITDA increased $89.7 million, primarily from the Argos USA transaction. Adjusted EBITDA margin increased to 43.3% from 41.5%.
Sales volume of cement during the third quarter increased 203.1% while organic sales volumes decreased 11.3% due to a combination of adverse weather conditions and moderating demand leading to, in part, lower imported volumes versus Q3 2023. Organic average selling prices increased 3.9% in the quarter, primarily reflecting increases implemented earlier in the year.
“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,” said Summit Materials President and CEO Anne Noonan. “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.
“Today, due to volumes below prior expectations and including valuable self-help offsets, we are refining the mid-point of our full-year guide to $985 million,” she continued. “Concurrently and thanks to strong execution, we are increasing our Adjusted EBITDA margin expectations to at least 24% in 2024. Without question, our Summit team has successfully navigated a dynamic environment to strengthen our business, improve our commercial and operational capabilities, and critically, build momentum as we focus on the fourth quarter and our path forward in 2025.”
