Summit sees volumes, pricing grow in second quarter 2021

Second-quarter aggregate net revenues increased by $23.5 million at Summit Materials to $153.5 million.

Additionally, Summit says aggregate adjusted cash gross profit margin decreased to 55.9 percent in the second quarter compared to 57.7 percent in the second quarter of 2020.

Aggregate sales volumes increased 14.7 percent in the second quarter on organic growth in Summit’s West and East segments. Volumes increased in the Intermountain West, Virginia, the Carolinas, Georgia and British Columbia, Canada, but they were partially offset by slight decreases in Kansas and Missouri, where wind farm and flood repair volumes in the second quarter of 2020 did not repeat in 2021.

Average aggregate selling prices increased 2.4 percent in the second quarter.

Second-quarter details

Companywide, Summit’s net revenue increased $43.3 million, or 7.5 percent in the second quarter, to $618.5 million. According to Summit, the increase resulted from higher aggregate ready-mix concrete and cement revenues relative to a year ago on continued favorable market demand conditions and price growth in all lines of business.

The company also reported operating income of $95.9 million in the second quarter – a decrease of 4.1 percent, compared to $100.1 million in the prior-year period. Higher aggregate, cement and ready-mix volume and prices across the business were offset by increases in cost of revenue and general and administrative expenses associated with implementation of Summit’s “Elevate Summit” strategy, combined with fewer working days in Texas due to unusually wet conditions in May.

Adjusted earnings before interest, tax, depreciation and amortization increased in the second quarter to $163.8 million compared to $159.9 million in the second quarter of 2020.

“These results reflect our team’s commitment to operational and commercial excellence, which delivered volume growth in most lines of business and pricing growth in all lines of business,” says Anne Noonan, CEO of Summit Materials. “Demand fundamentals remain strong in our rural and exurban markets, while most of the state Departments of Transportation that we serve have returned to typical letting and operating conditions.”