Welcome to our dedicated page for Summit Materials news (Ticker: SUM), a resource for investors and traders seeking the latest updates and insights on Summit Materials stock.
Summit Materials, Inc. (NYSE: SUM) is a leading vertically integrated construction materials company. Founded by CEO Tom Hill and a small group of investors in 2009, including Blackstone Capital Partners and Silverhawk Capital Partners, Summit quickly grew through more than 30 acquisitions, leading to the establishment of ten operating companies spread across three geographic regions in the U.S. and Canada.
Core Business Operations:
- Aggregates: Summit Materials produces critical construction materials like crushed stone, sand, and gravel, sourced from its owned and operated quarries and sand and gravel pits.
- Cement: The company owns two cement plants and multiple cement distribution terminals, ensuring a steady supply to their clients.
- Ready-Mix Concrete and Asphalt: Summit operates ready-mix concrete plants and asphalt plants, providing comprehensive paving and other related services.
- Landfill Sites: The company also manages landfill sites, contributing to its diversified operational portfolio.
Geographic Reach:
Summit Materials operates in 21 U.S. states and British Columbia, Canada. This extensive footprint allows the company to serve a variety of public infrastructure, residential, and non-residential markets.
Recent Achievements and Projects:
In 2023 and early 2024, Summit Materials undertook significant projects to bolster its market presence and financial health:
- $800M Senior Notes Offering: Completed in December 2023, the offering aims to fund the acquisition of Argos North America Corp., repay existing loans, and cover associated expenses. This transaction is expected to close soon, enhancing Summit's operational scale.
- Acquisition of Argos North America Corp.: Set to complete on January 12, 2024, this deal will create the fourth-largest cement platform in the U.S. The acquisition is projected to generate annual synergies of at least $100 million, with significant benefits expected within the first 24 months.
- Investor Day 2024 Highlights: The company reiterated its 2024 guidance with an expected Adjusted EBITDA range of $950 million to $1,010 million, showcasing its commitment to growth and shareholder value.
Financial Condition:
Summit Materials reported significant financial results for 2023, with a net revenue increase to $2.4 billion and operating income reaching $310.6 million. The company's robust financial health is further supported by a positive outlook for 2024, expecting Adjusted EBITDA between $970 million and $1,010 million.
Commitment to Sustainability:
Summit Materials emphasizes environmental and social responsibilities, ensuring that best practices are implemented across its operations. The company is dedicated to providing a safe work environment while striving to exceed environmental regulations.
For more information, visit www.summit-materials.com.
Summit Materials, Inc. (NYSE: SUM) will release its first quarter 2023 financial results on May 3, 2023, after market close. A conference call is scheduled for May 4, 2023, at 12:00 p.m. ET to discuss the results and recent developments.
A webcast will be available at Summit's investor website, providing access to the call and presentation materials. Participants can register for the live call using provided domestic and international numbers. A replay will also be accessible until May 11, 2023.
Summit Materials operates as a vertically integrated construction materials company in the U.S. and Canada, offering aggregates, cement, and concrete products for various markets.
Summit Materials (NYSE: SUM) announced the opening of the largest cement storage dome in North America, located in Davenport, IA, on March 20, 2023. This $30 million investment will enhance operational safety and efficiency by replacing winter storage barges. The new facility aligns with the company's sustainability efforts, as Continental Cement has shifted all production to low carbon cement. Additionally, a $32 million investment for expanding Green America Recycling operations is underway, aiming to reduce fossil fuel reliance by 55%. This commitment boosts Summit's environmental initiatives while promising improved service capabilities.
Summit Materials, Inc. (NYSE: SUM) announced a new Collective Bargaining Agreement (CBA) with the United Steelworkers Local 11-205 for its subsidiary, Continental Cement Company, at the Hannibal, Missouri plant. This five-year CBA, effective until April 2027, includes annual wage increases of 5% for the first three years and 4% for the last two, alongside a ratification bonus for employees. The agreement aims to enhance job classification efficiency and reduce reliance on third-party contractors, improving the plant's reliability. The plant produced over 1 million tons of cement in 2021 and transitioned to lower-emitting Portland Limestone Cement in August 2022.
Summit Materials (NYSE: SUM) announces the appointment of Scott Anderson as the new Executive Vice President and Chief Financial Officer, effective March 1, 2023. Anderson, previously the President of the Central Region since 2020, has extensive industry experience and has been pivotal in enhancing operational efficiency. Under his leadership, the Central Region has become more materials-oriented, with approximately 75% of Adjusted EBITDA derived from aggregates. He succeeds Brian Harris, who will transition to an advisory role. Anderson aims to drive growth and profitability for Summit, leveraging his industry knowledge and commitment to the company's strategic plan.
Summit Materials (NYSE: SUM) reported its Q4 and full-year results for 2022, highlighting a 7.5% decline in net revenue, totaling $511.7 million for Q4 and $2.22 billion for the full year. However, operating income increased by 13.7% to $65 million in Q4 and 6.3% for the year, reaching $269 million. Net income saw a significant 31.7% drop in Q4, totaling $30.3 million, though full-year net income rose 78.9% to $275.9 million. EPS decreased by 30.6% to $0.25 in Q4, while annual EPS increased 78.7%. Looking ahead, Summit expects Adjusted EBITDA of $480 million to $520 million for 2023.
Summit Materials (NYSE: SUM) is set to release its fourth quarter and full year 2022 financial results after market close on
Summit Materials has declared a special stock dividend of 0.017 shares of Class A common stock for each outstanding share, payable on December 29, 2022, to stockholders of record as of December 15, 2022. This decision is backed by excess cash of approximately $59.5 million from its subsidiary, Summit Holdings. The LP Units will be purchased at a price of $29.94. Cash payments will be made in lieu of fractional shares. The Company's board retains the discretion over future dividends, which cannot be predicted.
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