Suncrete — Q2 2026 Earnings Summary

Financial Performance

• Revenue for the quarter ended June 30, 2026, was $97.2 million, a 146% increase compared to $39.5 million in Q2 2025.
• Net loss for the quarter was $37.1 million, compared to a net loss of $325,000 in Q2 2025.
• Adjusted EBITDA for the quarter was $13.5 million, up from $7.0 million in Q2 2025.
• Supplemental Adjusted EBITDA (excluding affiliated consultant compensation) for the quarter was $14.6 million, up from $7.7 million in Q2 2025.
• Total yards of ready-mix concrete produced and delivered increased 123% year-over-year.
• Gross profit was $28.3 million for the quarter, compared to $12.7 million in Q2 2025.
• Operating expenses were $37.0 million for the quarter, including $12.2 million in acquisition-related costs, compared to $9.9 million in Q2 2025.
• Cash and cash equivalents increased to $28.6 million at June 30, 2026, from $6.3 million at December 31, 2025.
• Total assets grew to $699.4 million at June 30, 2026, from $384.7 million at December 31, 2025.
• Long-term debt, net, was $201.1 million at June 30, 2026, compared to $186.6 million at December 31, 2025.

Guidance and Future Outlook

• The Company is maintaining its full-year 2026 outlook, which includes the expected contribution of recent acquisitions (Hope Concrete, Nelson Bros., and ABC Block Company) following their close in Q2 2026.
• 2026 Revenue guidance is set at $420 million to $480 million.
• 2026 Net loss guidance is set at $(31) million to $(7) million.
• 2026 Adjusted net income (loss) guidance is set at $(4) million to $20 million.
• 2026 Adjusted EBITDA guidance is set at $68 million to $93 million.
• 2026 Supplemental Adjusted EBITDA guidance is set at $71 million to $96 million.
• The outlook excludes the potential contribution of any future acquisitions and assumes no significant changes in the overall economy or Sunbelt region conditions.
• The 2026 guidance includes a $26.9 million non-cash charge related to the business combination that impacted net income.

Business Segments and Product Lines

• The Company established a new platform in Texas and Louisiana through the acquisition of Hope Concrete.
• The Company acquired Nelson Bros., strengthening its position in North Texas.
• The Company expanded into Arkansas, Louisiana, Missouri, and Mississippi through the acquisition of ABC Block Company, a supplier of concrete products.
• The Company is integrating these businesses and implementing initiatives across purchasing, pricing, logistics, and operational execution.
• The acquisition pipeline continues to expand to build scale in existing markets and enter new geographies.

Market and Competitive Landscape

• Demand remained strong across markets despite unusually wet weather in the second quarter.
• The Company cites favorable fundamentals in the Sunbelt region, supported by infrastructure investment, population growth, economic growth, and healthy commercial and residential construction activity.
• The Company aims to drive market share gains through organic growth and disciplined M&A.
• The strategy involves partnering with high-quality local operators while providing resources, scale, and support.

Risks and Challenges

• Risks include the ability to successfully manage and integrate acquisitions and failure to realize expected economic benefits.
• Potential risks include declines in public infrastructure construction, reductions in government funding, and adverse weather conditions.
• The Company faces risks related to its capital-intensive business, substantial indebtedness, and restrictions imposed by debt terms.
• Other risks include competition for projects in local markets, risks associated with information technology systems, and the ability to maintain effective internal control over financial reporting.

Management Commentary and Tone

• CEO Randall Edgar expressed confidence in the outlook, citing significant year-over-year growth and strong execution despite wet weather.
• Management highlighted putting people, culture, and safety at the forefront as a competitive advantage for delivering exceptional service.
• Executive Chairman Ned N. Fleming, III, stated the team's exceptional execution advances the long-term growth strategy and positions the company to enhance shareholder value.
• Management remains confident in the fiscal 2026 guidance due to demand drivers, an expanding platform, and continued execution of growth strategies.

Other Key Points

• The Company acquired Hope Concrete, Nelson Bros., and ABC Block Company during the quarter.
• A $26.9 million non-cash charge related to the business combination (fair value of Class B common stock issued to an affiliated equity holder) impacted net income.
• Proceeds from the issuance of shares to PIPE investors were $167.1 million for the six months ended June 30, 2026.
• Proceeds from merger financing were $8.2 million, and prepaid forward early termination proceeds were $56.7 million for the six months ended June 30, 2026.
• Cash paid for acquisitions, net of cash acquired, was $174.1 million for the six months ended June 30, 2026.
• Distributions to senior preferred unitholders were $628,000 for the quarter, and Series A preferred stock dividends were $540,000 for the quarter.
• Accretion of redeemable preferred units to redemption value was $10.6 million for the quarter.
• Redeemable mezzanine equity was reduced to zero at June 30, 2026, from $157.2 million at December 31, 2025.