How Summit Materials’ aggregate business is performing

By Kevin Yanik| February 15, 2024

Net revenues, sales volumes and pricing were all up within Summit Materials’ aggregate business in the fourth quarter.

Summit’s net revenue was also up companywide in the fourth quarter, as was the company’s adjusted EBITDA.

Aggregate net revenues were up by $22 million in the fourth quarter to $157.6 million. Aggregate sales volumes increased 5.7 percent in the quarter, and average selling prices for aggregates increased 9.2 percent.

“Summit is at an exciting and pivotal point in our company’s history,” says Anne Noonan, president and CEO of Summit Materials, which reported its fourth-quarter and full-year 2023 financial results Thursday. “Our team has effectively capitalized on dynamic, yet constructive market conditions to drive record revenue and profitability.”

For the full year, Summit’s aggregate net revenues increased by $79.6 million to $663.6 million. Adjusted cash gross profit margin tied to aggregates increased to 49.9 percent in 2023 – up from 48.5 percent in 2022.

Summit’s aggregate sales volumes were down 1.9 percent last year. Excluding acquisitions and divestitures, organic sales volumes of aggregates decreased 3.1 percent in 2023 – primarily reflecting unfavorable weather early in the year and soft residential construction demand.

Summit’s average selling prices for aggregates increased 14.6 percent in 2023. Summit’s West segment saw greater pricing growth (up 16.7 percent) than its East segment (up 12 percent).

“For 2024, with an improved footprint and increased scale, we anticipate delivering another year of strong growth and returns,” Noonan says. “Our positive outlook is supported by robust commercial conditions, an improving demand backdrop and a full set of growth opportunities that are unique to Summit Materials.

“Crucially, our high-quality execution, financial performance and strategic focus has afforded us the balance sheet flexibility to continue our pursuit of value-accretive capital allocation priorities,” she adds. “Today and moving forward, we firmly believe Summit is very well-positioned to generate superior value creation for our shareholders.”

Featured photo: P&Q Staff