Suncrete, Inc. (RMIX) Earnings Call Transcript & Summary

Thanks, operator, and good morning to all of you; we’re glad you could join the Suncrete conference call covering our second quarter 2026 results. A webcast of this call is available too, accessible via the audio link located on the Events and Presentations page within the investor relations section at suncrete.com. Any information captured during this call is current only as of today, August 14, 2026. Please keep in mind that time-sensitive information might no longer be accurate by the time anyone listens to a replay or reads a transcript. I also want to remind everyone that remarks in today’s discussion which aren’t historical facts — including expectations, future events, or future financial performance — constitute forward-looking statements made under the safe harbor provision of the Private Securities Litigation Reform Act of 1995. During today’s call, we’ll be making forward-looking statements that are inherently uncertain and beyond the company’s control. Actual results could differ materially. For our disclosures regarding forward-looking statements, please consult our earnings press release. These factors, along with other risks and uncertainties, are detailed in the company’s filings with the Securities and Exchange Commission. Management will also reference non-GAAP measures, such as adjusted EBITDA and adjusted EBITDA margin, plus supplemental adjusted EBITDA. Reconciliations to the closest GAAP measures appear at the end of today’s earnings release. Suncrete undertakes no obligation to publicly update or revise any forward-looking statements. I’d now like to hand the call over to Suncrete’s CEO, Randall Edgar. Randall?

Thanks, Rick, and hello everyone. It's good to have you with us today. On the line this morning are our CFO, Tommy Wentroth, our Executive Chairman, Ned Fleming, plus other members of the management team. I'll start by walking through what happened in our operations during the second quarter, along with an update on how busy we've been with M&A. Following that, Tommy will take over to go through the financial highlights for the second quarter and walk us through the 2026 outlook. After that, Ned will share some further thoughts on strategy, and then we'll take your questions. To start, I want to express appreciation to the over 1,100 team members throughout Suncrete for the commitment, hard work, and customer-first mindset they keep demonstrating. This business is fundamentally about people, and what drives our results is a robust culture paired with skilled teams that support our customers daily. We see our workforce and culture as essential to executing reliably, expanding operations, and generating value over the long term. In the second quarter, revenue rose considerably compared with the same period last year, with organic gains of about 9%, which shows solid performance throughout the company. Even though much of the areas we serve saw abnormally heavy rain during those three months, demand stayed robust in all of our markets. We've also kept up a very busy M&A cadence, bringing five additional businesses onto the Suncrete platform during the initial 60 days following our public listing. Our people are moving ahead well on bringing those operations together, and they're carrying out improvement plans tailored to each market that center on generating growth, realizing cost and operating efficiencies, and growing profitability. With supportive demand conditions throughout the areas we serve — spanning infrastructure spending, population and economic expansion, and solid commercial and residential construction activity — we continue to feel confident about holding to our 2026 guidance. Let's turn now to our growth strategy. During Q2, our company went through a major transformation. We made substantial strides in carrying out our plan to buy other businesses, closing on five deals that grew our ready-mix concrete and concrete products operation into six states throughout the Sun Belt. With the purchase of Hope Concrete, we set up a fresh platform in Texas and Louisiana, and then came the Nelson Bros. acquisition, which made us even stronger in North Texas. Buying ABC Block Company—a top concrete products supplier based in Little Rock, Arkansas—let us push into Arkansas, Louisiana, Missouri, and Mississippi as well. On top of that, we brought in two bolt-on acquisitions, which increased what we have in Louisiana. Through these deals, we showed that our model can scale, and that our team has the expertise and capability to build a top-tier ready-mix network by purchasing and integrating the strongest local players in each market. These new areas offer very appealing opportunities for growth over the long term, and we'll keep growing our footprint there. Together, the acquisitions strengthened what we can do locally by bringing in 31 ready-mix plants, 279 mixer trucks, and eight concrete production plants. Uniting five companies in a relatively short period is a real achievement, but it's also an essential part of building out and growing the Suncrete platform. We've got a ways to go on bringing several of these companies together, but progress has been solid, and we remain just as confident about reaching our performance targets. As we've said in the past, our integration playbook is designed so that acquired businesses' margins match Suncrete's historical margins within 9 to 18 months of the deal closing. Of the five companies we're integrating right now, three are tracking toward the earlier part of that range, and two face tough market conditions that may take a bit longer. Consider our Oklahoma City purchase from October as an example — it's already producing margins that match Suncrete's and are far above what that business showed before we bought it. When it comes to North Texas, conditions across the broader market remain more difficult, exactly as we expected going in; we've got a solid plan to improve things and remain optimistic about the opportunity over the long haul and our ability to lift results over time. In each company we've brought into the fold, we're steadily gaining ground by rolling out how Suncrete operates, focusing our work on procurement, maintaining pricing discipline, optimizing fleet and logistics, and executing well operationally overall. These initiatives are going to drive continued improvement in our margins and also position those businesses for durable growth over the long haul. At the same time, the list of possible acquisitions continues to expand, which gives us additional opportunities to gain scale in areas where we already have a presence and to enter attractive new geographies. Let's turn now to what we're seeing in terms of construction demand and activity across our markets. Commercial conditions remain strong, and the new construction work spans a broad range of customers — everything from smaller projects for strip centers and retail locations to bigger builds for manufacturing, warehousing, and distribution facilities; beyond that, AI data centers clearly represent a fast-growing end market across the whole region. We currently have several data center projects underway and expect that activity to continue. Our customers in the region rely on us as a trusted, reliable operating platform with real scale, and that puts us in a strong position to compete and win here. Across the country, projections suggest that at least 70% of new data center builds will happen in the Sun Belt states. Because we already have relationships with contractors both national and regional, and because we can handle big, complicated pours, we think we're set up well to take share in this sector. Before turning things over to Tommy, I want to note that the platform we continue to build is something we're proud of, and the opportunities ahead for growth have us excited. Since the day we started, a blend of demand that holds up well, tight operational discipline, and a culture that puts customers first has reliably driven our expansion — delivering about 20% growth each year along with reliably solid margins in a wide range of markets. Our growth strategy is built around 3 primary objectives aimed at capturing that opportunity: deepening our position where we already operate, driving growth from within, and entering attractive new markets through careful acquisitions that add value. Teaming up with excellent local operators sits at the core of this strategy — we provide the scale, resources, buying power, and operational backing that Suncrete brings, while preserving the local leadership and customer relationships that made those companies successful. Our belief is that combining regional founder-led businesses with what a larger organization brings to the table gives us a formula we can replicate again and again to drive profitable expansion. At this point, I'll pass things along to Tommy.

Thanks, Randall, and good morning, everyone. We'll walk through the results for our second quarter along with the main financial metrics. Revenue for Q2 reached $97.2 million, representing a 146% increase compared with the equivalent quarter one year earlier. The net loss in the second quarter was $37.1 million, compared with a net loss of $325,000 in last year's same quarter. In the second quarter of 2026, the net loss figure included a non-cash one-time charge of $26.9 million related to de-SPAC. Adjusted EBITDA for Q2 totaled $13.5 million, an increase from $7 million in the comparable quarter last year. For the second quarter, supplemental adjusted EBITDA came in at $14.6 million, which is an increase of about 90% compared with the same period a year ago. Reconciliations under GAAP and non-GAAP for net income, adjusted EBITDA, and supplemental adjusted EBITDA financial measures can be found at the conclusion of today's earnings release. Turning now to the balance sheet as of June 30th, total liquidity was approximately $51.1 million, consisting of $28.6 million in cash equivalents along with $22.5 million of available capacity through our revolving loan facilities. Additionally, in Q2 we finalized the fifth amendment to our credit agreement. That provides an extra $175 million delayed draw term loan, along with a $100 million accordion, and it doubled our revolver capacity to $50 million. It also boosts capital flexibility and lets us streamline how deals get executed. So the business now has ample, flexible, and efficient capital for growth. In the second quarter, roughly $19.6 million in cash was used in operating activities. That negative cash flow stemmed from a mix of elevated SG&A expenses, driven by including acquired operations, a higher overall headcount, and various acquisition-related costs linked to five deals we closed in Q2. For 2026, we continue to anticipate that between 60% and 70% of EBITDA will turn into cash flow from operations. Turning to our outlook: as of today, we are reaffirming our 2026 guidance. That guidance captures what management presently anticipates regarding organic growth and how projects will be executed throughout its core markets, and it factors in the contribution we expect from acquisitions completed recently — Hope Concrete, Nelson Bros., and ABC Block Company — following those deals closing in the company's second quarter. This outlook rests on economic conditions as they stand now and presumes nothing material shifts in the broader economy or in other conditions across the Sun Belt region. Any potential contribution from acquisitions made in the future is not reflected in this guidance. Here's what those ranges look like: top line between $420 million and $480 million; on the bottom line, anywhere from a $4 million net loss to $20 million in net income, once you exclude the one-time, non-cash accounting charge taken in Q2. For adjusted EBITDA, we're looking at $68 million to $93 million, while supplemental adjusted EBITDA comes in at $71 million to $96 million. On that note, let me hand things over to Ned Fleming, our Executive Chairman. Ned?

Thanks, Tommy. Hello, everyone, and I appreciate you being with us today. Randall, Tommy, Mark Jones, along with the whole Suncrete team, have had an incredibly full plate as they carry out a disciplined growth strategy. As Randall explained, we closed 5 acquisitions in the quarter and continue to be actively involved with a number of other potential sellers. We've assembled a deep, seasoned leadership group that grasps the ready-mix business at an extremely sophisticated level, from sand and rock and cement through to the finished product; we are proven operators with an unwavering focus on customer service, operational excellence, and disciplined growth. Equally important, Randall saw the chance early on to build a scaled platform in an industry that is highly fragmented. Suncrete is positioned strategically, financially, and organizationally to take advantage of long-term growth throughout the Sun Belt. Within the ready-mix industry, Suncrete holds a highly differentiated position. A great many privately owned operators who are working through generational transitions and looking for more scale and operational resources want trusted acquirers. That dynamic opens a significant opportunity for Suncrete to become the acquirer of choice for high-quality local operators in search of a long-term partner that values their people, entrepreneurial culture, customer relationships, and local market expertise. Our scalable operating platform puts us in position to drive continued market share gains by combining organic growth with strategic acquisitions. At the heart of our approach is partnering with high-quality local operators and giving them the scale, resources, and support of the wider Suncrete organization while preserving the entrepreneurial culture, local leadership, and customer relationships that allowed those businesses to succeed. Our strategy is simple and extremely disciplined. Build strong local market positions, partner with exceptional operators, maintain operational excellence, and take advantage of scale benefits across a broader platform. Since ready-mix concrete is essentially a local business, density, logistics, customer service, and operational execution all matter. Our decentralized operating model, paired with centralized operational support and financial resources, produces a meaningful competitive advantage. As Suncrete keeps scaling, the company's greater market density, purchasing power, fleet utilization, and operating efficiencies offer meaningful opportunities to improve profitability and generate attractive returns on invested capital. Going forward, we continue to see a very robust pipeline of acquisition opportunities throughout our existing footprint and in adjacent high-growth Sun Belt markets. Importantly, our strategy isn't just about buying assets. We are focused on partnering with outstanding local operators, investing in their people and businesses, and creating long-term value together as part of a broader Suncrete platform. With significant opportunities for both organic growth and strategic M&A, Suncrete is well positioned to build a leading ready-mix platform across the Sun Belt and deliver compelling long-term value for all our stakeholders, employees, suppliers, customers, communities, and absolutely our shareholders; now, I'd like to turn the call over for questions. Operator?

Hello, and thanks for taking my questions this morning. To start, since you closed deals in late April, May, and June, you're in a period of digesting those. Could you give us a bit more detail on how the integration work is progressing, keeping in mind that folding in ABC Block Company can differ somewhat from both Hope Concrete and Nelson Bros.? So whatever insight you can share on that, plus how things are moving forward?

Good morning, Kathryn. Randall here. The integration efforts are proceeding at differing paces, though in our view all of them are tracking well. Take Oklahoma City, for instance — that operation's results have already risen to match what Suncrete has historically delivered. In North Texas, we've run into somewhat more difficulty, yet we remain confident we'll resolve it inside our 9 to 18 month playbook. We don't see any significant problems with these integrations, but they simply can't be finished instantly. As for ABC Block Company, that one has also progressed quite smoothly; there's a solid management team in place, and in fact it's gone better than we expected — we're quite pleased with it.

Hi Kathryn, Ned here. I'd simply say that predicting how fast these operations actually get folded in and reach the margin level of the markets they compete in is tough. What I believe we're observing at this point is that all of them are truly tracking to plan and hitting the mark. Forecasting how that plays out from one month to the next, or one quarter to the next, isn't easy. Like Randall mentioned, OKC ramped up somewhat faster than we anticipated and has genuinely been a wonderful surprise, to a degree. For ABC Block Company, I think it hands us some genuine strategic possibilities going forward. Since we bought into that business, it has made some incredible strides. It has truly been a standout.

Alright, that's great. During the quarter, you mentioned organic growth of 9%, and considering how tough the weather was at times, I'd call that quite solid. When you think about the growth formula, past organic, and your emphasis on end markets, you brought up AI as a demand driver. What other things are fueling plain core demand at the businesses you've acquired, plus organic growth? Over the coming, does that blend have an effect across the next, let's say, 12 to 18 months?

Our markets remain strong, honestly. Plenty of solid projects are coming our way, commercial ones and clearly a portion of those involve AI; we're capturing our portion of the AI work. Still, the markets are healthy; at the moment we're focused on lifting margins, examining expenses and finding more efficiencies. Ned, anything you'd like to add there?

Yes. Kathryn, you're the expert on this topic. There's $1 trillion-$2 trillion in infrastructure set to be constructed, and we're building a company right at the center of that expansion and advancement; growth is what we're witnessing. We're bidding on a Hyundai plant, placing concrete there. AI projects exist. Developments are happening because cities are expanding. Organic growth is genuinely exceeding what we first forecast. It'll be 7%-10%. When we layer acquisitive growth on top of that, this becomes a business that expands robustly well into the foreseeable future.

Great. Many thanks. That's very kind.

Thanks, Kathryn. Enjoy your weekend.

Thanks.

Hi, everyone. Seems like the weather played a part in softer. Hi, how are you, Ned? It appears that conditions caused reduced volumes during the quarter, especially in Texas and Oklahoma; but could you share any details on how ordering trends moved across the quarter into early August, and have you observed shipments rebounding in July and August? I realize Texas is still experiencing some wet conditions. But just provide us with any insights regarding how patterns have developed over the quarter and maybe any information on areas not affected by weather, how those have evolved.

So, the main way weather affects our operations is by delaying the volumes to later periods. You never lose a yard of concrete. It simply doesn't get poured on that day with rain. Then usually, the third quarter is the best quarter in concrete, at least in this geographic area given the weather patterns we experience. Thus, we think what we lost in the second quarter is moving into the third, and the third quarter typically has, going back historically, the third quarter is generally the top quarter for a concrete business.

Hey, Philip, as you know, we play an outdoor —

Yeah, go ahead.

Ours is an outdoor sport, and across 12 months it typically balances out. My view is that during the prior quarter, and as our geographic reach grows, the effect of weather will diminish. Thus we will keep broadening that footprint; what struck me was that suddenly I find myself tracking weather conditions for a whole range of reasons. Oklahoma and Texas. You'd want Texas to get rain while Oklahoma stays dry, and the opposite as well. That's what pushes us to widen that territory, so weather affects us less.

Randall, did you notice shipments sort of bouncing back during July and August? I suppose, stepping back, you clearly reaffirmed your guidance for the entire year, though the first half was a bit harder right from the start. Which drivers ought we keep in mind for the second half so you can reach your framework? With luck, you're seeing volume bounce back. Yet what considerations should we have for the second half, and considering that softer beginning, can the midpoint of the range still realistically be hit now?

Yes, we definitely think so. Once more, we expect the third quarter to be a strong one, since that's always the case historically in the concrete business, even when every variable remains unchanged; however, we also think an important element will be enhancing the integration process. A plan is in place on our end.

Understood.

Like we said before, with OKC, we managed to complete that integration work faster than we had expected, and it's running ahead of plan, yet our expectation remains 18 months. Once more, certain ones might land nearer to nine, others might land nearer to 18, though we remain quite confident that we're keeping pace.

Yeah, Philip, looking at it from the angle of someone who's been at this for a very, very long stretch now across various sectors, projecting integration month by month is genuinely tough. What we do know is that with them, we'll typically arrive there within 12 to 18 months. A few of them move faster than that. Across the year, though, it balances out. The more acquisitions we complete, the more skilled we become at handling them.

Okay. Appreciate the color, guys.

Thanks.

Yes, excellent. Thank you for fielding my questions, everyone. I suppose I was hoping to dig a bit deeper into the margin outlook for the back half. Naturally, I understand your business has undergone significant transformation because of those acquisitions. Some of them, though, were already part of the company during the quarter, and clearly they'll be folded in further going forward. Still, that second half margin projection reflects a fairly substantial increase. If I'm doing the math right, at the midpoint it's somewhere around 20%-ish compared with roughly 14%-ish here. So my question is essentially this: could you walk through a few of the particular factors that will get you there? Volume clearly being one of them. You've brought up seasonality a few times now, and everyone's aware of that factor. But is there anything additional we ought to be aware of that supports your confidence? And perhaps, specifically, folks, I believe it would benefit everyone on this call if we spent a moment discussing the third quarter in particular; we're already at the midpoint of that quarter. Your full-year guidance spans quite a wide range. So that all of us can try to nail down the seasonal pattern correctly, maybe you could help narrow that down with more detail about what you're expecting in 3Q compared with 4Q.

I promise I'll stop harping on the weather after this, but we're anticipating that the third quarter won't bring such an unusual pattern. Once more, concrete usually peaks in Q3. Still, the integration work is moving along nicely. That said, certain margin profiles need more time than others. When it comes to guidance, I'd like to hand things to Calvin if that's alright. He's in a strong position to address that. Calvin?

Morning, Andy. Randall put it nicely, didn't he? Integration is factored into the Q3 numbers, particularly when it comes to margin. Once again, with improved weather patterns, fewer fixed costs weigh down your yardage. And finally, I'd mention that a number of these acquisitions are performing very well. Take the Oklahoma City deal we completed — it's tracking right in line with Suncrete's margin profile, and we'll reap those benefits during our strongest quarter, which is coming up in Q3 and Q4.

Understood. Thanks.

Andy, that ought to be our biggest quarter by volume, and absorption gives that margin a lift too.

Sure. Okay. Great. Now, what other items should I bring up here? Perhaps regarding the balance sheet and how the capital is structured, it's nice to have what's formally in place at this point, which is excellent; we observed the average diluted share count, and thanks for listing the shares on the balance sheet as of the quarter's close. Whenever we check that share count at the quarter's end on the balance sheet, and we total up the A's and B's, does that give the correct figure? Or do shares remain from that forward contract you all sold in the pipe? I'm just trying to grasp the capital structure a bit more clearly and where things stand regarding proceeds from that, plus the shares recorded on the balance sheet there.

Yeah, Andy, allow me to address your initial question. Ned here. First off, we possess a very robust balance sheet. It provides us a chance to proceed; we have plenty of unlevered capital available for use. We have cash. We're accumulating cash as we keep generating cash flow. Regarding the forward contract, they completed it very swiftly, to be honest. We've moved past all of that. I believe the share figures you're seeing will prove correct going forward. We're thrilled to deliver that and have it finished; we'd expect to maintain a robust balance sheet and keep striving for that. You can observe that our cash flow multiple has dropped considerably since the de-SPAC. I believe it was roughly 3.4, and now we've fallen to 2.5. We'll keep going. That's a range we truly appreciate.

Understood, that clears things up. For my final question, I want to circle back to margins briefly. Fuel costs have clearly risen a great deal, and expenses for fuel and energy tend to ripple into other segments of the supply chain. For instance, shipping charges for certain aggregates you rely on as inputs would be an evident downstream consequence. I was curious how that played out for you during the quarter, and whether it shapes your guidance at all regarding the margins you're carrying or the posts here in the back half of the year. Thanks, everyone. I'll stop there.

Sure, we've got a fuel surcharge that's existed for, I don't know, years, and a federal reference indexes it, so it simply gets passed along.

All right. Are there any further consequences on the downstream side, though, Randall?

Nothing has shown up for us. Demand is still robust, plus plenty of projects continue to emerge from the pipeline.

All right. That's all from me. Thank you, everyone.

Hi, appreciate you taking my question. I'm just wondering about SG&A, which came in at roughly $25 million for the quarter. What I'd like to know is what the appropriate quarterly run rate should be as we close out the year?

That figure is roughly the correct run rate, Rohit.