Summit achieves record quarterly pricing growth

Summit Materials reported its first-quarter results Wednesday, providing insights about the performance of its aggregate business.

According to Summit, its quarterly net revenue in aggregates increased while aggregate sales volumes decreased. Net revenue in aggregates was up 16.4 percent in the quarter to $143.7 million. Sales volumes in aggregates dropped 6.2 percent.

Summit partially attributed the decline in aggregate sales volumes to divestitures in its East Segment.

Additionally, Summit says organic aggregates sales volumes dropped 3.4 percent due to unfavorable weather conditions and residential softness in its West Segment that more than offset organic aggregate volume growth in the company’s East Segment.

Average selling prices for aggregates jumped 20.5 percent, marking the strongest quarterly growth rate in Summit’s history. Pricing growth was experienced in all Summit markets, the company says. Texas and the Intermountain West had the greatest pricing gains for the company.

“It’s clear by our record first-quarter results that we have a solid head start as we enter the prime construction season,” says Anne Noonan, president and CEO of Summit. “As expected and due to January pricing actions, we witnessed significant pricing momentum across each of our lines of business and in all of our markets. Those pricing gains, coupled with demand resiliency and solid operational execution, fueled our second consecutive quarter of year-over-year margin growth.

“This early performance, together with stronger pricing and improved demand expectations gives us the confidence to raise our full-year adjusted EBITDA (earnings before interest, tax, depreciation and amortization) outlook,” Noonan adds. “And while second-half visibility is challenging, particularly when it comes to residential demand, supply chain constraints and uncertain cost trends, we feel we have enough within our control to deliver on these upgraded financial commitments for 2023.”