Here Are The Latest Reports From Publicly Traded Aggregates Companies, In Alphabetical Order.
Arcosa
Arcosa has entered into a definitive agreement to acquire the construction materials business of Stavola Holding Corp. and its affiliated entities for $1.2 billion in cash, subject to customary post-closing adjustments.
Founded in 1948, Stavola is an aggregates-led and vertically integrated construction materials company primarily serving the New York-New Jersey Metropolitan Statistical Area (MSA) through its network of five hard rock natural aggregates quarries, 12 asphalt plants and three recycled aggregates sites.
For the last 12 months ended June 30, Stavola generated revenues of $283 million and Adjusted EBITDA of $100 million, representing a 35% Adjusted EBITDA margin. The aggregates business contributed 56% to Stavola’s last 12 months (LTM) Adjusted EBITDA. The structure of the transaction is expected to create tax benefits attributable to Arcosa with a net present value of approximately $125 million.
Commenting on the acquisition, Antonio Carrillo, Arcosa’s president and chief executive officer, noted, “Since becoming an independent public company in 2018, Arcosa has successfully executed against its long-term vision to grow in attractive markets and reduce the complexity and cyclicality of the overall business through strategic acquisitions and select divestitures. Over that time, we have expanded our Construction Products business both organically and inorganically, deploying approximately $1.5 billion on value enhancing acquisitions to date and increasing our aggregates presence in the top 50 MSAs.
“The acquisition of Stavola accelerates Arcosa’s strategic transformation by adding a premier aggregates-led platform in the nation’s largest MSA with favorable attributes from its exposure to lower volatility infrastructure-led end-markets. Pro forma for the transactions, Construction Products represents 65% of Arcosa’s LTM Adjusted EBITDA, and consolidated LTM Adjusted EBITDA Margin expands approximately 220 basis points. Stavola brings an experienced management team, a reputation for strong customer service, and a successful track record,” Carillo concluded.
Arcosa has also entered into a definitive agreement to sell its steel components business to Stellex Capital Management LLC, a New York-based private equity firm.
During the second quarter of 2024, the consturction materials producer took additional actions to optimize its portfolio and improve margins:
- Divested its single-location subscale asphalt and paving operation located in Tennessee that was operating at a modest loss.
- Sold a non-operating facility within Engineered Structures.
- Exited a small underperforming natural aggregates operation serving the Permian Basin in west Texas and redeployed the equipment.
- Total consideration for the divestitures was $137 million, which will be used to pay down debt.
Commenting on the the company’s portfolio actions, Carrillo continued, “Today’s announcements underscore the strength of our company and our confidence in the growth opportunities ahead of us. Construction Products and Engineered Structures are benefiting from increased scale and more resilient platforms and are well-positioned to benefit from infrastructure-driven tailwinds. Additionally, our two remaining cyclical businesses, wind towers and barge, command industry-leading positions with solid backlog visibility in place and anticipated multi-year market recoveries underway.
“We have committed financing in place to fund the purchase of Stavola that will result in initial net leverage above our targeted range. Our permanent financing strategy will allow for rapid deleveraging at an attractive cost of capital. Based on the anticipated strength of our cash flow generation, our goal is to return to our long-term net leverage targeted range within 18 months.”
Carrillo concluded, “We believe these portfolio actions underscore our commitment to increasing long-term shareholder value and our disciplined approach to capital allocation. We look forward to welcoming the Stavola team and customer base to Arcosa, and express our gratitude to the employees of our steel components business for their dedication and contributions to Arcosa.”
Cemex
Cemex reported second quarter results, noting that net sales were flat at $4.494 million, reflecting difficult weather conditions in key markets offset by pricing momentum.
- Net sales in the United States declined 2% to $1,392 million.
- Net sales in Mexico increased 6%, to $1,381 million,
- In the Europe, Middle East and Africa region, net sales were down 7%, to $1.190 million.
- Cemex’s operations in South, Central America and the Caribbean region reported net sales of $457 million, an increase of 3%.
During the quarter, Cemex achieved an important milestone with its second Investment Grade rating from Fitch Ratings. Cemex was also recognized as the top-scoring company in the World Benchmarking Alliance’s 2024 Climate and Energy Benchmark, among 91 of the world’s most influential aluminum, cement and steel companies, evidence that Cemex’s leadership in sustainability holds up well even beyond the cement industry.
“Our strong second quarter results demonstrate the efficacy of our commercial approach and growth strategy. Pricing contribution of our products continues to exceed decelerating input cost inflation, while our bolt-on investments, mainly in the United States, and our Urbanization Solutions business, continued to support EBITDA growth,” said Fernando A. González, CEO of Cemex. “On Climate Action, we continue to make steady progress in decarbonization with a 3% decline in Scope 1 emissions year-to-date. European operations are leading the way, with emissions today already at European industry 2030 targets and within reach of Cemex’s consolidated 2030 targets, almost six years ahead of time.”
CRH plc
CRH plc issued second quarter 2024 results for the three months ended June 30. The company is reporting total revenues of $9.7 billion, a 1% decrease, and $16.2 billion for the first half of 2024, no change.
The company noted these developments:
- Differentiated strategy continuing to deliver robust financial performance.
- Carefully constructed portfolio and operating footprint mitigated impact of adverse weather.
- Further profit growth and strong margin expansion driven by positive pricing and cost management.
- Significant portfolio activity year-to-date; with $3.7 billion invested in value-accretive M&A.
- Integration of materials acquisition in Texas progressing well; increasing run-rate synergy target to $65 million.
Albert Manifold, chief executive, said, “We are pleased to report another period of further profit growth and margin expansion for CRH. The execution of our differentiated solutions strategy continues to deliver robust financial performance, while the strength of our balance sheet and relentless focus on the disciplined allocation of our capital enables us to capitalize on the opportunities we see for further growth and value creation. Reflecting the strength of our financial performance, the positive underlying momentum in our business as well as the positive contribution from recent portfolio activity, we are raising our guidance and remain well positioned to deliver another record year in 2024.”
Eagle Materials
Eagle Materials Inc. reported financial results for the first quarter of fiscal 2025 ended June 30, noting record revenue of $608.7 million, up 1%; and record net earnings of $133.8 million, up 11%.
Commenting on the first quarter results, Michael Haack, president and CEO, said, “Fiscal 2025 is off to a solid start for Eagle, with record revenue of $608.7 million, EPS of $3.94, and gross margins of 30.7%, an increase of 140 bps. Our portfolio of businesses continued to perform well despite adverse weather conditions during the quarter across many of our core markets, which affected sales volumes for our Cement and Concrete and Aggregates businesses. We repurchased approximately 348,000 shares of our common stock for $85.5 million and ended the quarter with debt of $1.1 billion and a net leverage ratio (net debt to Adjusted EBITDA) of 1.3x, giving us substantial financial flexibility that supports disciplined capital allocation and long-term growth.”
Haack continued, “Underlying fundamentals in our markets continue to be favorable, and we expect demand for our products to remain steady for the balance of the year. Construction spending on infrastructure and heavy industrial projects continues to drive cement demand. In addition, despite some interest-rate sensitivity, residential construction activity remains resilient, given chronic housing-supply shortages and continued underlying demand strength. Our well-positioned balance sheet, significant cashflow generation and consistent, disciplined operational and strategic execution through shifting economic cycles positions Eagle for another strong fiscal year.”
Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement revenue, was $400.2 million, a 1% improvement. Heavy Materials operating earnings increased 14% to $92.1 million primarily because of higher Cement sales prices partially offset by lower Cement sales volume.
Concrete and Aggregates revenue was down 9% to $61.0 million, and operating earnings declined 58% to $3.0 million, reflecting lower Concrete and Aggregates sales volume partially offset by increased Concrete and Aggregates prices.
Cement revenue, including Joint Venture and intersegment revenue, was up 3% to $339.2 million. Operating earnings increased 20% to $89.1 million reflecting higher Cement sales prices partially offset by lower Cement sales volume.
Additionally, Cement operating costs benefitted from lower fuel costs, and cost control initiatives in our preventative maintenance programs, and because the prior year’s first quarter included approximately $2.8 million of costs associated with the step-up in inventory values related to the Stockton Terminal acquisition.
The average net Cement sales price for the quarter increased 6% to $156.10 per ton. Cement sales volume for the quarter declined 3% to 1.9 million tons, as adverse weather conditions in many of our markets, most notably in Texas and the Midwest, delayed several construction projects and affected shipments.
Granite
Granite Construction Inc. released its second-quarter financial report, noting revenue increased $183 million to $1.1 billion compared to $899 million for the same period in the prior year. The Construction and Materials segments posted year-over-year increases of 22% and 10%, respectively.
The company also announced that it has entered into an agreement, subject to customary closing conditions, to acquire Dickerson & Bowen, Inc., a regional aggregates, asphalt and highway construction company serving central and southern Mississippi.
Net income attributable to Granite Construction totaled $37 million, or $0.76 per diluted share, compared to net loss attributable to Granite of $17 million, or $(0.39) per diluted share, for the same period in the prior year.
- Adjusted net income attributable to Granite totaled $77 million, or $1.73 per diluted share, compared to $47 million, or $1.06 per diluted share, for the same period in the prior year.
- Gross profit increased $62 million to $165 million compared to $103 million for the same period in the prior year.
- For the six months ended June 30, net income attributable to Granite totaled $6 million, or $0.13 per diluted share, compared to net loss attributable to Granite of $40 million, or $(0.91) per diluted share, for the same period in the prior year.
- Adjusted net income attributable to Granite totaled $68 million, or $1.52 per diluted share, compared to $33 million, or $0.74 per diluted share, for the same period in the prior year.
Revenue increased $296 million to $1.8 billion compared to $1.5 billion for the same period in the prior year. The Construction and Materials segments posted year-over-year increases of 21% and 17%, respectively.
Gross profit increased $84 million to $219 million compared to $135 million for the same period in the prior year.
“I am pleased with our strong second quarter,” said Kyle Larkin, Granite president and chief executive officer. “Our teams continue to execute on our plan, and we are seeing the expected results. We earned record second quarter revenue, with an increase of 20% year-over-year, and also added to our CAP. This illustrates the strength of the macro construction market, and we believe there are many opportunities for us to build CAP further in the second half of the year. With our performance in the first half of 2024, I expect that our revenue will be in the upper half of our previous revenue guidance for the year in the range of $3.9 billion to $4.0 billion.
“In addition, we are excited to announce the agreement to acquire Dickerson & Bowen, Inc. of Brookhaven, Miss. The transaction is expected to close in the third quarter. The acquisition will add four asphalt plants and three sand and gravel pits. Dickerson & Bowen is a natural extension of the Lehman-Roberts Company and Memphis Stone & Gravel platform that we acquired at the end of 2023. This materials-focused, vertically integrated business will expand our existing footprint in this high growth market south through Jackson, Miss., and to the southern end of the state.”
Heidelberg Materials
Heidelberg Materials reported solid performance in the second quarter of 2024. While revenue declined slightly in comparison with the same quarter of the previous year, by €71 million or 2% to €5,506 million (previous year: €5,577), the company increased its result from current operations (RCO) by €40 million or 5% to €971 million (previous year: €931) in a persistently challenging environment.
In the second quarter, the decline in volumes slowed slightly in all business lines compared with the first quarter of 2024. The pressure on volumes is largely attributable to prolonged weak activity in the construction industry and adverse weather conditions in individual core markets. Active cost and price management largely offset the impact.
The North American market made a particularly significant contribution to its results. Investments in continuous growth combined with more efficient cost structures and increased production capacities resulting from the commissioning of the state-of-the-art cement plant in Mitchell, Ind., led to a strong result in North America and an improvement in the RCOBD margin, which increased group-wide to 23.4% (previous year: 22.1%).
In June, Heidelberg Materials became the first European manufacturer in the heavy building materials industry to issue a Green Bond. The issue volume amounted to €700 million with a term until 2034. The range of projects financed by this bond extends from the modernization of plants, for example to increase the use of alternative fuels, to the expansion of carbon capture and storage technologies.
With the acquisitions announced in July 2024 of Victory Rock, a producer of high-quality aggregates for concrete and asphalt in Texas, Highway Materials, one of the largest independent suppliers of aggregates, asphalt, and recycled materials in the Greater Philadelphia market, as well as Aaron Materials, an established concrete recycling and building materials producer in Texas, Heidelberg Materials is further expanding its presence in two core markets in the United States while adding to its rapidly growing portfolio of circular solutions in North America. In addition, the company recently announced the acquisition of Carver Sand & Gravel, the largest aggregates producer in the Albany, N.Y., area.
“Our strong development in North America has contributed to increasing our result and margin in the second quarter again despite the continued slight decline in volumes,” stated Dr. Dominik von Achten, chairman of the managing board of Heidelberg Materials. “We remain confident about the second half of the year and confirm our outlook for 2024.
“As part of our ongoing portfolio optimization, we further expanded our presence in the important U.S. market through targeted acquisitions in the second quarter. Together with our UK recycling activities, we will make an important contribution to strengthening our business and expanding our range of sustainable products,” von Achten said.
Heidelberg Materials has made further good progress in terms of sustainability. The cement business line’s share of revenue from sustainable products rose to 42.8%, and specific net CO₂ emissions fell by about an additional 2%.
To strengthen its activities in the circular economy sector, Heidelberg Materials acquired B&A Group, one of the leading construction soil and aggregates recycling companies in Southwest England, in May 2024. The acquisition of the Mick George Group, which was announced at the end of 2022, was also completed in May 2024. The company is the market leader in the recycling of construction and demolition waste in the Eastern region of the United Kingdom.
In July, the company opened an innovative recycling plant for selective separation in Katowice, Poland. The first of its kind, it features a crushing mechanism developed in-house that facilitates advanced separation and sorting capabilities so that demolition concrete can be fully recycled and replace virgin materials in concrete production.
Heidelberg Materials made significant progress on its ambitious carbon capture, utilization, and storage (CCUS) roadmap in the second quarter. In Bulgaria, the company successfully completed the construction of a pilot carbon capture installation at its Devnya plant and has been testing the new OxyCal capture technology there since mid-May.
In Germany, Linde and Heidelberg Materials held a groundbreaking ceremony for their Cap2U carbon capture project at the Lengfurt cement plant in June 2024. The world’s first large-scale CCU facility at a cement plant is scheduled to go into operation as early as 2025 with a capture capacity of around 70,000 tonnes of CO₂ per year. Due to its purity, the processed gas will be suitable for use in both the chemical and food industries.
The company anticipates that demand in the construction sector will stabilize at a low level globally, even though inflation and persistently high financing costs are likely to continue to have a negative impact on residential construction in particular. “We continue to expect that cost developments on the energy and raw materials markets will remain volatile. We will therefore maintain our focus on price adjustments and strict cost management,” the company stated.
Holcim
Holcim announced results for the first half of the year, reporting a net sales increase of 1.6%.
CEO Miljan Gutovic said, “I thank all members of the Holcim family for delivering record profitability in H1 2024. With our deeply embedded performance culture, our teams focused on successfully meeting our customers’ needs. Our leading sustainable building solutions, from ECOPact low-carbon concrete, to Elevate energy-efficient roofing systems, position us as the partner of choice for large-scale projects like infrastructure and data centers.
“We delivered broad-based profitable growth in H1, achieving a superior earnings profile with a record recurring EBIT margin of 23.2% in Q2, and are well on course to deliver free cash flow of above CHF 3 billion in 2024. With our track record of creating superior value across all market conditions and economic cycles, we are committed to another year of record results, capitalizing on our markets’ strong fundamentals.
“Our disciplined M&A execution continued with 11 value-accretive acquisitions to accelerate circular construction and scale up our ECOCycle technology, while expanding Solutions & Products and strengthening our aggregates and ready-mix businesses. Advancing climate action, we reduced CO2 per net sales by 7%.”
Holcim said it is continuing to invest in profitable growth with 11 value-accretive acquisitions, predominantly family-owned businesses bringing significant synergy upside.
There were four highly-accretive acquisitions in Europe to accelerate circular construction – in Belgium, Switzerland, the UK and Germany – scaling up Holcim’s ECOCycle recycling technology; three acquisitions in Europe and Latin America to expand Solutions & Products; and bolt-on acquisitions in North America, Latin America and Europe to strengthen aggregates and ready-mix.
Customer demand for Holcim’s sustainable building solutions increased. In the first half of the year, net sales of Holcim’s low-carbon ECOPact concrete and low-carbon ECOPlanet cement accounted for 28% and 26% of ready-mix net sales and cement net sales, respectively, up significantly from 19% in each case at end-December 2023.
Advancing climate action, Holcim reduced CO2 per net sales by 7% compared to the prior-year period. In Q2, Holcim broke ground with its partners on two large-scale carbon capture, utilization and storage (CCUS) projects, in Germany and Belgium.
Knife River Corp.
Knife River Corp. announced financial results for the second quarter ended June 30, reporting record consolidated revenue of $806.9 million, a 3% increase from the prior-year record revenue, driven by price increases in its aggregates product line and increased contracting services revenues. The company also reported record second quarter net income of $77.9 million, compared to net income of $56.8 million in the prior-year period.
“We had a very strong second quarter and start to our construction season, and I’d like to thank our team for their continued effort to execute on our Competitive EDGE plan to help deliver record results,” Knife River President and CEO Brian Gray said. “We are pleased to report record second quarter revenue, net income and Adjusted EBITDA, building upon the previous records set in the second quarter of 2023. We also continued to improve our Adjusted EBITDA margin. On a trailing-twelve-month basis through June 30, Adjusted EBITDA margin grew by 240 basis points, to 15.9%. Driving these strong results were favorable market conditions, continued pricing initiatives, disciplined bidding for higher-margin work and solid project execution.”
“By completing more preconstruction activities in the first quarter, we pulled costs forward and were able to hit the ground running earlier in the second quarter,” Gray said. “Gross profit margin for contracting services increased by 320 basis points from the same quarter last year. Additionally, we have nearly $1 billion in backlog, at margins we expect to be slightly higher than the prior-year period.
“At the same time, we continue to optimize the pricing of our materials to reflect their value in the market,” Gray said. “These efforts are creating record profitability and have more than offset volume declines.
“Looking ahead, we see continued support for infrastructure investment,” Gray said. “We still expect to benefit from the Infrastructure Investment and Jobs Act – approximately 56% of IIJA funding has yet to be obligated in our market areas. Further, our states are continuing to be proactive. As of July 1, lawmakers in eight of Knife River’s 14 states have introduced additional legislation to fund construction projects. Funding in our states is at or near record levels, and the states are continuing to pursue long-term, resilient revenue solutions. It is clear there is public demand for safer, less-congested roads and bridges.
“We are excited about the second half of the year and beyond, including line-of-sight growth opportunities,” Gray said. “We are actively working on several potential acquisitions across our segments, focused on materials-based businesses, and we have the strong balance sheet to support these investments. We are in the right markets, with the right team and the right plan to deliver for our shareholders.
“Given our second quarter results and the visibility we have into the second half of the year, we are raising our guidance for 2024,” Gray said. “We anticipate revenue in the range of $2.8 billion to $3.0 billion and Adjusted EBITDA in the range of $445 million to $485 million.
Martin Marietta Materials
Martin Marietta Materials Inc. reported results for the second quarter ended June 30, noting revenues of $1.764 billion versus $1.821 billion in the second quarter of 2023, a 3% decline.
Second-quarter aggregates shipments decreased 2.8% to 53.0 million tons. Shipments from acquired operations were more than offset by poor weather, most notably in Texas and the Central Division, and softening warehouse, office and residential demand. Average selling price increased 11.6% to $21.61 per ton, or 12.0% on an organic mix-adjusted basis.
Aggregates gross profit increased 6% to $392 million, as contributions from acquired operations and organic pricing growth more than offset lower shipments. Notably, aggregates gross profit per ton increased 9% to a second-quarter record of $7.41 notwithstanding weather-driven inefficiencies negatively impacting operating leverage and the $20 million (or $0.37 per ton) headwind of selling acquired inventory after its markup to fair value as part of acquisition accounting.
Cement and ready mixed concrete revenues decreased 37% to $261 million and gross profit decreased 44% to $72 million compared with the prior-year quarter, primarily due to the February 2024 divestiture of the South Texas cement plant and related concrete operations, as well as extremely wet weather in Texas.
Asphalt and paving revenues and gross profit increased modestly to $245 million and $37 million, respectively, both second-quarter records.
On April 5, the company completed the acquisition of 20 active aggregates operations in Alabama, South Carolina, South Florida, Tennessee and Virginia from Blue Water Industries LLC (BWI Southeast) for $2.05 billion in cash.
Ward Nye, chairman and CEO of Martin Marietta, stated, “Martin Marietta experienced a series of factors in the second quarter impacting product shipments. Historic precipitation in Texas and in parts of the Midwest, together with ongoing restrictive monetary policy, curtailed volumes for the three-month period. While we view these circumstances as temporary, they nonetheless negatively impacted our financial results. Yet, despite these interim challenges, we made substantial progress during the period. Specifically, Martin Marietta concluded the first half of 2024 with record aggregates profitability and the best safety performance in our company’s history. Equally, in the second quarter we expanded our Adjusted EBITDA margin and increased aggregates gross profit per ton by 9% despite shipments that were notably encumbered by April and May’s historically wet weather. These results demonstrate the resiliency of our aggregates-led business and our steadfast focus on what we can control. The quarter was also highlighted by the April 5th acquisition and subsequent integration of the Blue Water Industries operations. This pure-play aggregates acquisition not only strengthens the durability of our business and enhances our margin profile, but also expands our advantaged nationwide presence into attractive SOAR 2025 target markets including Tennessee and South Florida.
“Putting the quarter in broader perspective, recent macroeconomic data indicates that the typical lag effects of restrictive monetary policy are slowing product demand in the interest-rate-sensitive private construction sector. Consequently, we lowered our 2024 full-year Adjusted EBITDA guidance to $2.2 billion at the midpoint. That said, we fully expect this rate-driven private construction softness will be relatively short-lived as single-family housing remains fundamentally underbuilt; and recent inflation and employment data should provide support for more accommodative monetary conditions beginning in September.”
Nye concluded, “Over the longer time frame, stakeholders should continue to expect Martin Marietta to build upon our foundation that has proven successful – an aggregates-led growth platform focused on the nation’s most vibrant markets, disciplined execution of our strategic plan and an unwavering commitment to employee safety and commercial and operational excellence. Together with our unrivaled attractive growth opportunities, these core foundational elements provide us confidence in our ability to responsibly navigate through macroeconomic cycles and continue driving superior shareholder value.”
Smart Sand Inc.
Smart Sand Inc. announced results for the second quarter of 2024. Tons sold were approximately 1,274,000 in the second quarter of 2024, compared to approximately 1,336,000 tons in the first quarter of 2024 and 1,084,000 tons in the second quarter of 2023, a 5% decrease sequentially and 18% increase over the comparable period in 2023.
Revenues were $73.8 million in the second quarter of 2024, compared to $83.1 million in the first quarter of 2024 and $74.8 million in the second quarter of 2023. Revenues decreased in the second quarter of 2024, compared to the first quarter of 2023, primarily due to lower total sand sales. Second quarter 2024 revenues were relatively consistent compared to second quarter 2023, due to higher total sand sales, which were offset by lower average selling prices.
“Smart Sand had a strong second quarter,” stated Charles Young, Smart Sand’s chief executive officer. “We implemented several efficiency measures during the quarter to reduce our production costs and administrative expenses that led to our contribution margin, adjusted EBITDA and free cash flow all improving compared to first quarter 2024 results.
“Currently we continue to see strong demand in the main operating basins we serve. However, natural gas prices remain at low levels and exploration and production are continuing their recent trends of front-loading budget spending. So, we are keeping a close eye on activity levels and are prepared to right size our operations as needed should we see a slowdown in activity. We returned to being free cash flow positive in the second quarter and we expect to be free cash flow positive for 2024. While we could see some slowdown in activity in natural gas basins in the second half of the year, we believe long-term fundamentals for natural gas activity remain strong and we are well positioned to take advantage of expected increased activity in natural gas basins in 2025. Additionally, we expect to start marketing sand in the Utica shale formation in the third quarter through our new terminals in northeast Ohio. Activity in this basin is targeting oil opportunities and increased activity in this market will help balance our sales volumes between oil and gas markets. We continue to strengthen our balance sheet as we refinanced and extended the terms of our existing Oakdale Equipment financing under a new $10 million, four-year equipment financing. Our liquidity levels are strong, our leverage levels remain low. We remain focused on generating positive free cash flow on a consistent basis going forward.”
Summit Materials
Summit Materials Inc. announced results for the second quarter ended June 29, reporting that net revenue increased $395.1 million, or 58.1%, in the second quarter to $1,075.5 million. In the quarter, $464.0 million of net revenue was due to acquisitions, primarily the Argos USA transaction. Divestitures decreased net revenue by $46.6 million in the period. All lines of business experienced organic pricing growth.
Operating income increased in the second quarter by 33.4% to $172.9 million largely due to the Argos USA transaction. Summit’s operating margin percentage for the three months ended June 29, decreased to 16.1% from 19.1%.
Net income attributable to Summit Inc. increased to $106.1 million, or $0.60 per basic share, compared to $83.6 million, or $0.70 per basic share in the prior-year period. Summit reported adjusted diluted net income of $115.2 million, or $0.66 per adjusted diluted share, compared to an adjusted diluted net income of $84.7 million, or $0.71 per adjusted diluted share, in the prior-year period.
Aggregates net revenues increased by $4.6 million to $187.1 million in the second quarter. Aggregates adjusted cash gross profit margin expanded to 54.1% in the second quarter as compared to 53.6% in the prior-year period, reflecting strong commercial and operational execution.
Aggregates sales volume decreased 10.0% in the second quarter. Organic aggregates sales volumes decreased 9.4% as a result of wet weather conditions and restrained private end-market activity. Average selling prices for aggregates increased 11.8%, with organic pricing increasing 10.8%. Pricing growth was strong throughout the footprint and led by the East Segment, which increased 14.8% versus the prior-year period.
Cement Segment net revenues increased to $324.8 million in the second quarter. Cement Segment adjusted cash gross profit margin decreased to 49.4% in the second quarter, compared to 52.8% in the prior-year period, due primarily to margin mix impacts from inclusion of the Argos USA assets.
Sales volume of cement increased 238.0%. Organic sales volumes decreased 16.5% due to reduced import volume in the River Markets and moderating demand conditions. Organic average selling prices increased 7.3% in the second quarter, primarily reflecting traction from increases implemented earlier in the year.
Products net revenues were $495.5 million in the second quarter, up 60.0% versus the prior-year period. Products adjusted cash gross profit margin decreased to 17.3% in the second quarter. Organic average sales price for ready-mix concrete increased 5.6%, with pricing growth in both segments.
Organic sales volumes of ready-mix concrete decreased 14.9% due to adverse weather conditions in Houston and restrained private end-market activity. Organic average selling prices for asphalt increased 0.5%. Organic sales volume decreased 6.6%, driven, in part, by unfavorable timing on activity.
“We are pleased and proud to report that our teams safely and successfully managed through weather-related disruptions to deliver a strong quarter of strategic execution and solid financial results,” remarked Anne Noonan, Summit Materials president and CEO. “Our resilient performance was supported by positive pricing momentum across all lines of business, ongoing cost savings initiatives underway across our network, and a more durable portfolio. As a result, our 2024 financial targets are virtually unchanged. Namely, we are still on track to generate at least $40 million of Argos USA synergies, drive significant pro forma margin expansion this year, and confidently deliver 2024 Adjusted EBITDA within our previous guidance range. Without question, Summit Materials is well positioned to capitalize on a constructive pricing environment and tap operation improvements across our enterprise to profitably grow in an uneven demand environment. This growth, together with a fortified and capable balance sheet will help generate significant shareholder value this year and the years ahead. Our team remains focused on controlling what we can, acting with agility, and delivering on all of our 2024 stakeholder commitments.”
U.S. Lime
United States Lime & Minerals Inc. reported second quarter 2024 results. The company’s revenues in the second quarter were $76.5 million, compared to $74.0 million in the second quarter 2023, an increase of $2.6 million, or 3.5%. For the first six months 2024, the company’s revenues were $148.2 million, compared to $140.8 million in the first six months 2023, an increase of $7.5 million, or 5.3%.
Lime and limestone revenues were $76.3 million in the second quarter 2024, compared to $73.7 million in the second quarter 2023, an increase of $2.6 million, or 3.5%. For the first six months 2024, lime and limestone revenues were $147.7 million, compared to $140.2 million in the first six months 2023, an increase of $7.5 million, or 5.3%.
The increase in revenues in the second quarter and first six months of 2024, compared to the comparable 2023 periods, resulted from increases in average selling prices for the company’s lime and limestone products, partially offset by decreased sales volumes.
The decreases in sales volumes in the second quarter and first six months 2024, compared to the comparable 2023 periods, were principally due to decreased demand from the company’s construction customers, partially offset by increased demand from its industrial and roof shingle customers.
The company’s gross profit was $34.8 million in the second quarter 2024, compared to $27.1 million in the second quarter 2023, an increase of $7.7 million, or 28.3%. The company’s gross profit was $65.4 million in the first six months 2024, compared to $51.1 million in the first six months 2023, an increase of $14.3 million, or 28.0%.
The company’s lime and limestone gross profit was $34.8 million in the second quarter, compared to $27.1 million in the second quarter 2023, an increase of $7.7 million, or 28.4%. The lime and limestone gross profit in the first six months of 2024 was $65.5 million, compared to $51.2 million in the prior-year period, an increase of $14.3 million, or 28.0%. The increases in gross profit in the second quarter and first six months of 2024, compared to the 2023 periods, resulted primarily from the increased revenues discussed above.
“In the second quarter 2024, we experienced reduced demand from our construction customers as heavier than usual rainfalls contributed to the delay of construction projects in the south-central United States,” said Timothy W. Byrne, president and chief executive officer. “Looking ahead, we expect improved demand from our construction customers will come with improved weather conditions,” Byrne added.
Vulcan Materials
Vulcan Materials Co. announced results for the quarter ended June 30, reporting total revenue of $2.014 billion versus $2.113 billion for the same period in 2023. Year to date, the company is reporting total revenue of $3.560 billion, versus $3.762 billion in the first half of 2023.
Second quarter segment aggregates gross profit increased 6% to $529 million ($8.79 per ton), and gross profit margin expanded 120 basis points. Cash gross profit per ton improved 12% to $10.92 per ton. Continued pricing and operational execution drove margin expansion despite lower shipments and challenging weather conditions throughout the quarter.
Aggregates shipments decreased 5% as compared to the prior year’s second quarter as a result of significant rainfall in many key markets, particularly in Texas and across the Southeast.
Price growth in the second quarter was strong with all markets realizing year-over-year improvement. Freight-adjusted selling prices increased 12% (mix-adjusted 11%) as compared to the prior year.
Challenging weather conditions also impacted operating efficiencies and contributed to the year-over-year increase in freight-adjusted unit cash cost of sales in the quarter. On a trailing-12-months basis, unit cash cost has increased 10%.
Tom Hill, Vulcan Materials’ chairman and chief executive officer, said, “Our aggregates-led business delivered another quarter of earnings growth and margin expansion. Even with significant rainfall disrupting construction activity and operating efficiencies, our aggregates cash gross profit per ton increased 12%. Gross profit margin expanded 120 basis points. These results demonstrate our consistent execution and the durable characteristics of our business. The construction environment remains supportive of continued aggregates price growth, and our focus remains on compounding aggregates unit profitability to drive earnings growth and strong cash generation.”
Regarding the company’s outlook, Hill said, “Significant weather disruptions throughout the first half of the year impacted both construction activity and operating efficiencies, resulting in adjustments to our aggregates volume and cost outlook for the full year. Despite the challenging environment, aggregates cash gross profit per ton has increased double-digits this year, and we expect this trend to continue for the remainder of the year. The pricing environment remains positive, and overall demand fundamentals continue to underpin long-term growth.”