Executive Summary

Q3 2024 delivered resilient top-line and record-quality earnings: net revenue rose 49.9% YoY to $1.11B, Adjusted EBITDA increased 50.9% to $314.7M, and Adjusted EBITDA margin reached 28.3%, an Elevate-era record .
Management refined FY24 guidance to Adjusted EBITDA of ~$970M–$1.0B (midpoint $985M) and lifted FY24 Adjusted EBITDA margin expectation to at least 24%; FY24 capex trimmed to ~$390M–$410M .
Weather was the principal headwind: Hurricanes (notably “Debbie”) drove ~120k tons of lost cement volume and ~$12M EBITDA impact; total Q3 storm headwind ~+$15M, with an additional ~$5M expected in Q4 from Hurricane Milton .
Cement margin expansion and pricing power offset volume softness: Cement Adjusted EBITDA margin rose to 43.3% YoY, aided by Argos USA synergies and lower kiln fuel costs; aggregates ASP increased 7.4% YoY, ready-mix ASP 8.1% YoY .
Potential stock catalyst: the company disclosed receipt of a non-binding acquisition proposal ahead of results dissemination; Board is evaluating alternatives .

What Went Well and What Went Wrong

What Went Well
- “Elevate-era record” profitability: Q3 Adjusted EBITDA margin hit 28.3% and LTM margin reached 24.3%, reflecting pricing, synergies, and execution. “We are increasing our Adjusted EBITDA margin expectations to at least 24% in 2024.” — Anne Noonan .
- Cement margin expansion despite softer volumes: Cement Adjusted EBITDA margin rose to 43.3% (+180 bps YoY), with sequential ASP +$2.33/t; Argos USA synergies and lower kiln fuels were tailwinds .
- Pricing momentum across portfolio: Aggregates ASP +7.4% YoY, ready-mix +8.1% YoY, asphalt +5.0% YoY; organic aggregates volumes +0.7% despite weather and divestitures .
What Went Wrong
- Severe weather headwinds: Hurricanes Barrel, Debbie, and Helene drove ~120k tons lost cement volume at Harleyville and ~$12M lost EBITDA; total Q3 storm headwind ~+$15M; Hurricane Milton expected to impact Q4 by ~$5M .
- Organic volume pressure: Organic cement volumes -11.3% YoY; organic ready-mix volumes -10.0% YoY, reflecting moderating demand and weather constraints .
- GAAP EPS optics: Diluted EPS fell to $0.60 from $1.92 in Q3’23, largely due to a $153.1M prior-year tax receivable agreement (TRA) benefit that boosted the base; Adjusted diluted EPS was $0.75 vs $0.81 .

Financial Results

Metric	Q3 2023	Q2 2024	Q3 2024
Net Revenue ($USD Billions)	$0.742	$1.075	$1.112
Operating Income ($USD Millions)	$127.98	$172.90	$194.65
GAAP Diluted EPS ($)	$1.92	$0.60	$0.60
Adjusted Diluted EPS ($)	$0.81	$0.66	$0.75
Adjusted EBITDA ($USD Millions)	$208.52	$296.17	$314.67
Adjusted EBITDA Margin (%)	28.1%	27.5%	28.3%
Adjusted Cash Gross Profit Margin (%)	33.9%	34.2%	34.4%
Operating Margin (%)	17.2%	16.1%	17.5%
Vs. Estimates (Revenue, EPS)	N/A (S&P Global consensus unavailable)	N/A (S&P Global consensus unavailable)	N/A (S&P Global consensus unavailable)

Estimates note: S&P Global consensus for Q3 2024 (Primary EPS, Revenue) was unavailable via our feed at the time of writing; as a result, we cannot assess beats/misses for this quarter.

Segment net revenue and profitability (Q3 2024 vs Q3 2023)

Net Revenue by Segment

Segment	Q3 2023 ($M)	Q3 2024 ($M)
West	461.09	492.01
East	159.55	296.62
Cement	121.32	323.22
Total Net Revenue	741.96	1,111.85

Adjusted EBITDA by Segment

Segment	Q3 2023 ($M)	Q3 2024 ($M)
West	117.85	128.38
East	50.09	70.32
Cement	50.36	140.08
Corporate	(9.77)	(24.10)
Consolidated	208.52	314.67

Key operating KPIs (Q3 2024 vs Q3 2023)

KPI	Q3 2023	Q3 2024
Aggregates Volume (k tons)	15,654	15,368
Aggregates ASP ($/ton)	$14.28	$15.34
Cement Volume (k tons)	746	2,261
Cement ASP ($/ton)	$155.79	$155.76
Ready-Mix Volume (k cubic yds)	1,383	2,254
Ready-Mix ASP ($/cyd)	$154.39	$166.85
Asphalt Volume (k tons)	1,385	1,292
Asphalt ASP ($/ton)	$85.20	$89.47

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA ($M)	FY 2024	$970–$1,010	~$970–$1,000	Lowered (range narrowed/lowered at top end)
Adjusted EBITDA Margin (%)	FY 2024	Not specified	At least 24%	Introduced/raised
Capital Expenditures ($M)	FY 2024	$430–$470	~$390–$410	Lowered
G&A Expense ($M)	FY 2024	Not specified	≤$330	Introduced (maintained vs prior call commentary)
Aggregates Pricing	FY 2024	Not specified	Double-digit YoY increase reaffirmed	Reaffirmed
Cement Pricing	FY 2024	Not specified	Mid-single-digit YoY increase reaffirmed; ASP exiting year mid-$150s/ton	Reaffirmed
Aggregates Volume	FY 2024	Not specified	Organic volumes down mid-single digits (Q4 relatively flat)	Lowered outlook
Cement Volume	FY 2024	Not specified	~8.6M tons; down ~250k tons in river market, ~200k in legacy Argos	Lowered outlook

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1, Q2)	Current Period (Q3)	Trend
Pricing power	Q1: ASPs strong across lines; FY24 momentum; guidance raised lower end . Q2: Pricing robust; aggregates +11.8% YoY ASP .	Aggregates ASP +7.4% YoY; ready-mix +8.1% YoY; cement ASP +$2.33 seq; 2025 aggs pricing plan 6–9% with Jan+midyear cadence .	Improving/stable
Weather impact	Q1: Poor weather hit volumes in several markets . Q2: Houston/weather disruptions noted .	Historic storms (Debbie, etc.) → ~120k tons lost, ~$12M EBITDA; total Q3 headwind ~$15M; Q4 Milton ~$5M .	Deteriorated in Q3
Synergies (Argos USA)	Q1: Raised FY24 synergy target to ≥$40M . Q2: On track for ≥$40M in 2024 .	~$40M in 2024; $80M across 2024–2025; $130M total over time; cement commercial harmonization ongoing .	On track/upward
Margins/quality of earnings	Q1: Margin expansion led by pricing/ops . Q2: Pro forma margin expansion; mix dilution in cement .	Record Q3 Adjusted EBITDA margin 28.3%; LTM 24.3% .	Improving
Demand by end-market	Q1: Residential subdued; public strong . Q2: Private end-markets restrained; public healthy .	Public steady/strong into 2025; private choppy with back-half recovery bias; regional green shoots (BC, VA, North FL, KC) .	Mixed
Fuel/inputs & hedging	—	Diesel hedged ~40% at ~$2.53/gal (vs $2.77 in 2024); natural gas 37% at ~$3.55/MMBtu (headwind vs 2024) .	Moderating inflation; some NG headwind
CapEx discipline	Q1: FY24 capex $430–$470M . Q2: Reaffirmed .	Reduced to $390–$410M; keep ~10% of net revenue target; deferrals on land/equipment .	Tightening
Portfolio optimization/M&A	Q1: Integration underway . Q2: Active dispositions/bolt-ons .	Four dispositions YTD; two aggs bolt-ons in FL and Phoenix; non-binding acquisition proposal disclosed .	Active

Management Commentary

“Our materials-led portfolio delivered another resilient quarter… to produce an Elevate-era record for EBITDA margins… we are increasing our Adjusted EBITDA margin expectations to at least 24% in 2024.” — Anne Noonan, CEO .
“Net leverage at 2.2x is down from 2.5x last quarter… ROIC at 8.9% will move concurrently with improvements at our legacy Argos USA cement plants.” — Anne Noonan .
Weather events: “Debbie… resulted in approximately 120,000 tons of lost volume and $12 million of lost EBITDA… all in, we estimate the 3 discrete weather events amounted to approximately $15 million in foregone EBITDA for the third quarter.” — Anne Noonan .
2025 framework: “We believe [2025] will set a year of growth in margin… aggregates pricing 6% to 9%… cement pricing remains a reliable lever… we will push into Horizon 2 adjusted EBITDA margin range of 25% to 27%.” — Anne Noonan .
Cost/inflation: “We believe… moderation of inflation [from] mid- to low single digit next year… diesel hedged at ~40% and favorable vs 2024; some natural gas headwind.” — Scott Anderson, CFO .

Q&A Highlights

2025 outlook: Management expects aggregates pricing +6–9% with January and mid-year actions; cement to pursue harmonized January pricing with potential mid-years; cautious volume stance (back-half weighted) given private end-market hesitancy .
Cost/inflation and margin path: Inflation moderating to low-single digits in 2025; diesel hedge favorable; some NG headwind; confidence in reaching 25–27% Adjusted EBITDA margin in 2025 .
Cement supply/demand & pricing: Public end-market strength; private choppy; PCA view back-half 2025 recovery; plausible mid-year price opportunity depending on demand recovery .
CapEx and SG&A discipline: CapEx cut to $390–$410M by deferring non-critical projects; SG&A run-rate trending below $330M guide on scale synergies and spend control .
Portfolio optimization & synergies: Four dispositions YTD; two aggregates bolt-ons (FL, Phoenix); $40M 2024 synergies on track; $80M across 2024–2025 and $130M long-term targeted .

Estimates Context

S&P Global consensus (EPS and Revenue) for Q3 2024 was unavailable via our data feed at the time of writing; therefore, we cannot definitively state beat/miss versus Street for the quarter. We attempted to retrieve “Primary EPS Consensus Mean” and “Revenue Consensus Mean” for SUM Q3 2024, but the mapping was unavailable; we note this explicitly to avoid misinterpretation.

Key Takeaways for Investors

Mix of resilience and self-help: Despite historic weather headwinds, SUM delivered record-quality margins through pricing discipline, Argos USA synergies, and operating excellence; margin durability is improving .
Guidance reset but margin raised: FY24 Adjusted EBITDA tightened to ~$970–$1,000M; FY24 margin “at least 24%” underscores earnings quality; capex cut enhances FCF potential .
Cement profitability inflecting: Higher ASPs, lower kiln fuel costs, and synergy capture are expanding cement margins even with lower imports and soft volumes .
2025 margin ambition: Pricing levers (aggs 6–9%), cost moderation, synergy runway, and portfolio optimization support 25–27% Adjusted EBITDA margin target; execution on pricing/ops is key .
Weather is volatility risk: Q3 storms cost ~$15M; Q4 faces a ~$5M headwind from Milton; watch weather normalization and construction season length in river markets for Q4 outcomes .
M&A optionality/catalyst: Non-binding acquisition proposal introduces strategic optionality; management continues to pursue aggregates-led bolt-ons and portfolio optimization with ~$738M cash and a capable balance sheet .
Trading lens: Near-term, stock narrative likely hinges on (i) cement/aggregates pricing follow-through into January, (ii) weather normalization/seasonality, and (iii) updates on the acquisition proposal and synergy cadence .

Appendix: Additional Details

Selected line-of-business performance (Q3 2024)

Aggregates: Net revenue $192.3M; ASP +7.4% YoY; organic volume +0.7% YoY; margin 58.5% (down 50 bps YoY) .
Cement: Net revenue $323.2M; Adjusted cash gross profit margin 47.2% (+90 bps YoY); organic volumes -11.3% YoY; ASP +3.9% YoY .
Products: Net revenue $516.4M (+48.9% YoY); adjusted cash gross profit margin 17.8% (down YoY) given inclusion of lower-margin Argos ready-mix .
Liquidity: Cash $737.5M; debt ~$2.8B; RCF availability $592.7M .

Other relevant Q4 press release

On Oct. 24, 2024, Summit disclosed a non-binding acquisition proposal; initial discussions underway; Board evaluating; no assurance of definitive agreement .

All cited figures are sourced from Summit’s Q3 2024 press release and 8-K, prior quarter releases, and the Q3 2024 earnings call transcript as referenced above.

Summit Materials, Inc. (SUM)·Q3 2024 Earnings Summary