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 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.
Summit Materials has announced that Karli Anderson will expand her role as Executive Vice President, now overseeing human resources and communications functions in addition to her existing responsibilities as Chief ESG Officer and Head of Investor Relations. This strategic move aims to enhance the Company’s ESG initiatives and optimize value for both employees and shareholders. Anderson brings a wealth of experience, having previously held significant roles at Royal Gold and Westwater Resources.
Summit Materials reported its third-quarter results for 2022, with net revenue of $686 million, a 3.6% increase year-over-year. Net income rose by 16.3% to $87.7 million, reflecting a 15.9% rise in basic EPS. The Company achieved record organic pricing growth in aggregates, cement, and ready-mix despite challenges such as divestitures and inflation. Summit's Adjusted EBITDA guidance was revised to $490-$510 million for the year. The acquisition of SCI Materials strengthens its portfolio in the growing Florida market while maintaining the strongest balance sheet in its history.
Summit Materials announced that its subsidiary, Continental Cement, successfully produced a 20% Portland Limestone Cement (IL20), which represents the lowest carbon cement currently available for field applications. This initiative, conducted in partnership with the Minnesota Department of Transportation and the National Road Research Alliance, aims to evaluate the performance of low carbon cement in future transportation infrastructure. The new cement reduces carbon emissions by 18-20% compared to traditional Portland Cement, marking a significant step towards sustainable construction materials.
Summit Materials, Inc. (NYSE: SUM) will release its third quarter 2022 financial results on November 2, 2022, after market close. A conference call is scheduled for November 3, 2022, at 11:00 AM ET to discuss these results and answer questions. The call will be accessible via a live teleconference, with details provided for both domestic and international participants. A replay will be available until November 8, 2022. Summit Materials is a leading supplier of aggregates, cement, and concrete in the U.S. and Canada, focusing on growth opportunities through acquisitions and market expansion.
Summit Materials (NYSE: SUM) announced the planned retirement of CFO Brian J. Harris, who has served for a decade. He will transition to a non-executive role after a successor is appointed and will act as a consultant until his retirement in Q4 2023. Under his leadership, the company achieved record earnings and the lowest net leverage in its history. The Board is currently searching for a successor, considering both internal and external candidates.
Summit Materials announces a full conversion of its Hannibal and Davenport plants to Portland Limestone Cement (PLC), reducing carbon emissions by up to 10% compared to traditional cement. This move supports Summit’s 2030 and 2050 decarbonization targets. In 2021, these plants produced 2.1 million tons of cement. The transition to PLC reflects Summit’s commitment to sustainability and its goal of becoming the leading sustainable construction materials provider.
Summit Materials reported record quarterly net income of $192.8 million, up 233.7% year-over-year, with net revenue increasing 2.2% to $631.9 million for Q2 2022. Operating income rose to $111.2 million, reflecting a 16.0% increase. Basic EPS surged 235.4% to $1.61. The company's net leverage ratio remains below target, with a strong balance sheet supporting investment opportunities. Summit reiterated its Adjusted EBITDA guidance for 2022 at $500-$530 million. Divestitures in the East segment generated $293.9 million in cash, contributing to strategic growth and market leadership initiatives.
Summit Materials, Inc. (NYSE: SUM) will release its second quarter 2022 financial results on August 3, 2022, after market close. A conference call to discuss the results is scheduled for August 4, 2022, at 11:00 a.m. ET. Interested parties can access the live teleconference by calling 1-888-330-3416 domestically or 1-646-960-0820 internationally, using conference ID 1542153. A replay will be available until August 11, 2022.
Summit Materials (NYSE: SUM) announced significant progress on its Elevate Strategy during its Investor Day. The company achieved key Horizon One targets, with a net debt to EBITDA ratio of 2.5, an 8.8% ROIC, and a 23.3% adjusted EBITDA margin. Additionally, it completed 10 divestitures generating approximately $470 million in proceeds. Summit has updated its 2022 adjusted EBITDA guidance to $500-$530 million, down from $529-$557 million. The company plans to utilize divestiture proceeds to repay $100 million on its Term Loan and has a share repurchase program in place with $202.5 million remaining.
FAQ
What is the current stock price of Summit Materials (SUM)?
What is the market cap of Summit Materials (SUM)?
What does Summit Materials, Inc. do?
Where does Summit Materials operate?
What are Summit Materials' core business operations?
What recent acquisitions has Summit Materials made?
How did Summit Materials perform financially in 2023?
What is Summit Materials' outlook for 2024?
What sustainability initiatives does Summit Materials have?
Who are the founders of Summit Materials?
What significant projects were undertaken by Summit Materials in 2023?
Where can I find more information about Summit Materials?
