Summit Materials delivers ‘strong finish’ to 2020

Summit Materials reported its full-year 2020 and fourth-quarter results Wednesday, noting that it achieved a record annual net income for the year.

In 2020, Summit’s net income was $138 million. That figure was $59.1 million in 2019.

Summit reported a net income in the fourth quarter last year of $35.2 million.

“Summit delivered a strong finish to 2020, as migration trends continued to favor our rural and exurban markets, which directly benefited residential construction activity,” says Anne Noonan, CEO of Summit Materials. “In many of our key states, public spending activity was resilient and we had more working days. We are reporting record annual net income, adjusted EBITDA (earnings before interest, tax, depreciation and amortization) and free cash flow. We are focused on sustainable growth with investments in greenfields and end markets that are underpinned by strong growth fundamentals.”

Additional details

In the fourth quarter, Summit’s net revenue increased 13 percent to $571.9 million on higher ready-mixed concrete, aggregate, asphalt and paving revenue. Net revenue increased $104.1 million to $2.13 billion for the year as a result of growth in all lines of the business other than cement, Summit says.

Adjusted EBITDA increased in the fourth quarter to $130.6 million. Adjusted EBITDA increased to $485 million for 2020.

Sales volumes

In the fourth quarter, Summit says sales volumes increased 24.7 percent in aggregate, 4.5 percent in cement, 6.4 percent in concrete and 20.3 percent in asphalt relative to the same period last year.

Across 2020, sales volumes increased 9.5 percent in aggregate, 5 percent in concrete and 4.7 percent in asphalt. Sales volumes decreased 4.6 percent in cement.

Pricing

According to Summit, organic average selling prices for aggregate decreased 3.6 percent in the fourth quarter. Including acquisitions, Summit says average selling prices in the fourth quarter decreased 6.2 percent in aggregate and increased 2.8 percent in cement, 3.2 percent in concrete and 2.1 percent in asphalt.

Average selling prices across 2020 decreased 2 percent in aggregate due to product mix, Summit says. Average selling prices increased 1.5 percent in cement, 4.7 percent in concrete and 1.4 percent in asphalt.

Featured photo: P&Q Staff