Suncrete — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $141.0 million, a 163% increase year-over-year compared to $53.5 million in Q3 2025, and a 45% increase quarter-over-quarter compared to $97.2 million in Q2 2026.
• Net income for Q3 2026 was $78 thousand, compared to a net loss of $37.1 million in Q2 2026 and net income of $4.6 million in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $22.4 million, up 66% from $13.5 million in Q2 2026 and up 64% from $13.7 million in Q3 2025.
• Supplemental Adjusted EBITDA for Q3 2026 was $23.3 million, a 60% increase from $14.6 million in Q2 2026.
• Supplemental Adjusted EBITDA margin improved by 150 basis points in Q3 2026 compared to Q2 2026.
• Total yards of ready-mix concrete produced and delivered increased 32% in Q3 2026 compared to Q2 2026 and 125% compared to Q3 2025.
• For the nine months ended September 30, 2026, revenue was $300.0 million compared to $130.8 million in the same period in 2025.
• Nine-month 2026 net loss was $38.8 million compared to net income of $5.3 million in the prior year period.
• Nine-month 2026 Adjusted EBITDA was $46.0 million (calculated as $22.4M Q3 + $13.5M Q2 + $10.1M Q1 implied from annual guidance context, though specific Q1/Q2 9-month total not explicitly summed in text, Q3 alone is $22.4M). Correction based on text: The text explicitly states Q3 Adjusted EBITDA is $22.4M and Q2 was $13.5M. The 9-month table shows Net Loss of $(38,781)k. The reconciliation table shows 9-month Adjusted EBITDA is not explicitly summed in the text body, but the 9-month Net Loss is $(38,781)k.
• Cash and cash equivalents increased to $49.0 million at September 30, 2026, from $6.3 million at December 31, 2025.
• Long-term debt, net, increased to $235.0 million at September 30, 2026, from $186.6 million at December 31, 2025.
• Accounts receivable, net, increased to $80.3 million at September 30, 2026, from $33.7 million at December 31, 2025.
• Inventory increased to $25.0 million at September 30, 2026, from $8.7 million at December 31, 2025.
• Goodwill increased to $140.7 million at September 30, 2026, from $79.5 million at December 31, 2025.
• Redeemable senior preferred units and redeemable preferred units were fully redeemed or converted, reducing redeemable mezzanine equity to zero from $157.2 million at December 31, 2025.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $208.2 million, primarily driven by cash paid for acquisitions of $172.6 million and payment of deferred acquisition liability of $22.7 million.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $259.1 million, driven by proceeds from issuance of shares to PIPE investors ($167.1 million) and early termination of Forward Purchase Agreement ($56.7 million).

Guidance and Future Outlook:

• Full-year 2026 revenue guidance is revised to a range of $408.0 million to $434.0 million.
• Full-year 2026 net loss guidance is revised to a range of $(48.7) million to $(44.7) million.
• Full-year 2026 Adjusted net income (loss) guidance is revised to a range of $(21.8) million to $(17.8) million.
• Full-year 2026 Adjusted EBITDA guidance is revised to a range of $60.0 million to $64.0 million.
• Full-year 2026 Supplemental Adjusted EBITDA guidance is revised to a range of $63.6 million to $67.6 million.
• Management expects approximately 10% organic revenue growth and margin expansion in the Sunbelt markets for the remainder of 2026.
• Some large projects are shifting start dates into 2027 due to elevated interest rates pressuring residential construction.
• Management expects significant organic and acquisitive growth heading into 2027 as the platform scales across the Sunbelt.
• The acquisition pipeline is described as strong and expanding, with expectations of entering 2027 with a healthy pipeline of large commercial projects and robust infrastructure activity.
• Guidance assumes no significant changes in the overall economy or conditions in the Sunbelt region in 2026 and does not include potential contributions from future acquisitions.

Business Segments and Product Lines:

• Suncrete operates as a ready-mix concrete logistics and distribution platform in the Sunbelt region, serving Oklahoma, Arkansas, Texas, and Louisiana for ready-mix, and Arkansas, Louisiana, Mississippi, and Missouri for concrete products.
• Integration plans for acquired businesses are progressing, with several moving toward target margin levels.
• Significant progress was made in North Texas through the integration playbook to improve results.
• The company utilizes a decentralized plant network supported by regionally centralized leadership, owning batching plants and a dedicated fleet of mixer trucks.
• The company optimizes purchasing, pricing, customer relationships, and fleet utilization through its tech-enabled dispatch infrastructure.

Market and Competitive Landscape:

• Sunbelt markets remained active in Q3 2026, supporting organic growth.
• The company is positioned to benefit from continued population growth, urbanization, and infrastructure investment across the U.S. Sunbelt.
• Competition exists for projects in local markets.
• The company's strategy involves acquiring high-quality local businesses, retaining their leadership and customer relationships, and providing capital, technology, and operating support to accelerate growth.

Risks and Challenges:

• Elevated interest rates continue to pressure residential construction.
• Risks include the ability to successfully manage and integrate acquisitions and failure to realize expected economic benefits.
• Risks associated with the capital-intensive business model and substantial indebtedness.
• Potential declines in public infrastructure construction and reductions in government funding.
• Risks related to adverse weather conditions and unfavorable economic conditions.
• Risks related to information technology systems and the ability to maintain effective internal control over financial reporting.

Management Commentary and Tone:

• CEO Randall Edgar expressed pleasure with Q3 performance, citing revenue and Supplemental Adjusted EBITDA increases of 163% and 62% respectively compared to Q2.
• Management highlighted that acquisition integration is progressing with businesses moving toward target margin levels.
• Executive Chairman Ned N. Fleming, III stated the team is building scale and strengthening local market positions through organic growth and disciplined acquisitions.
• Management emphasized that greater market density, purchasing power, and fleet productivity create opportunities to improve margins and returns on invested capital.
• The tone reflects confidence in the acquisition pipeline and the repeatable operating model to compound shareholder value.

Other Key Points:

• The company completed a Business Combination, evidenced by the issuance of Class B common stock to an affiliated equity holder valued at $26.9 million (recorded as non-cash expense in the reconciliation).
• Proceeds of $167.1 million were received from the issuance of shares to PIPE investors in the nine months ended September 30, 2026.
• Proceeds of $8.2 million were received from merger financing.
• Proceeds of $56.7 million were received from the early termination of a Forward Purchase Agreement.
• Payment of $26.2 million was made for merger and recapitalization related transaction costs.
• Redeemable senior preferred units and redeemable preferred units were redeemed or converted, eliminating $157.2 million in mezzanine equity.
• The company will hold a conference call on November 13, 2026, at 10:00 a.m. Eastern Time to discuss results.
• Adjusted net income (loss) is defined as net income (loss) excluding the non-cash charge for the fair value of Class B common stock issued to an affiliated equity holder.