Summit Materials Inc (SUM) Reports Record Revenue and Profitability in Q3 2023
Summit Materials Inc (NYSE:SUM) reported an 8.2% increase in net revenue, reaching $741.96 million in Q3 2023.
The company's net income soared by 165.5% to $232.725 million compared to the same period last year.
Operating income saw a slight increase of 0.7% to $127.983 million.
Summit Materials Inc (NYSE:SUM) raised its 2023 Adjusted EBITDA guidance, reflecting strong year-to-date performance and enduring pricing trends.
On November 1, 2023, Summit Materials Inc (NYSE:SUM), a leading vertically integrated construction materials company, announced its financial results for the third quarter ended September 30, 2023. The company reported record financial results, with significant growth across the P&L, driven by a sharp executional focus and a more powerful, materials-led portfolio.
Financial Highlights
Summit Materials Inc (NYSE:SUM) reported an 8.2% increase in net revenue, reaching $741.96 million in Q3 2023, compared to $686.009 million in the same period last year. Operating income saw a slight increase of 0.7%, amounting to $127.983 million. The company's net income soared by 165.5% to $232.725 million, compared to $87.651 million in Q3 2022. Basic EPS also saw a significant increase of 168.1%, reaching $1.93.
CEO Commentary
Once again I'm pleased to report we delivered record financial results this quarter as our sharp executional focus along with a more powerful, materials-led portfolio drove significant growth across the P&L," commented Anne Noonan, Summit Materials President and CEO.
2023 Guidance
Reflecting its strong year-to-date performance and enduring pricing trends, Summit Materials Inc (NYSE:SUM) has increased its 2023 Adjusted EBITDA guidance. The revised outlook is now for $560 million to $570 million in Adjusted EBITDA for the full year 2023. The company maintains its outlook for 2023 capital expenditures of approximately $240 million to $260 million, including greenfield projects.
Company Performance Analysis
Summit Materials Inc (NYSE:SUM) reported an increase in net revenue by $56.0 million, or 8.2% in the third quarter to $742.0 million, as increases in average sales prices across all lines of business more than offset lower volumes. Operating income increased $0.9 million, or 0.7% in the third quarter to $128.0 million, driven by increases in average sales price that more than offset a combination of inflationary increases in cost of revenue, higher general and administrative expenses, and increased transaction costs versus the prior year period.
Future Outlook
The company looks forward to its announced combination with Argos USA, which is expected to enhance its scale and reach in cement, and bolster its cash flow generation to fuel further Aggregates-oriented organic and inorganic growth opportunities. The transaction is expected to close before the end of the first quarter of next year.
Explore the complete 8-K earnings release (here) from Summit Materials Inc for further details.
This article first appeared on GuruFocus.
