Suncrete Q2 Earnings Call Highlights

Suncrete (NASDAQ:RMIX) reported sharply higher second-quarter revenue and adjusted EBITDA as the ready-mix concrete and concrete-products company added five acquisitions and expanded its footprint across Sun Belt markets, while maintaining its full-year 2026 outlook.

Revenue rose 146% year over year to $97.2 million in the second quarter. The company said organic growth was approximately 9%, despite unusually wet weather across much of its operating footprint. Adjusted EBITDA increased to $13.5 million from $7 million a year earlier, while supplemental adjusted EBITDA rose about 90% to $14.6 million.

The company recorded a net loss of $37.1 million, compared with a $325,000 loss in the prior-year quarter. Chief Financial Officer Tommy Weinroth said the quarterly loss included a $26.9 million one-time, non-cash charge related to the company’s de-SPAC transaction.

Five Acquisitions Expand Platform

Chief Executive Officer Randall Edgar said the second quarter was a “transformative period” as Suncrete completed five acquisitions, including deals that established a Texas and Louisiana platform through Hope Concrete LLC and expanded its North Texas presence through Nelson Bros. Ready Mix LLC.

The company also acquired ABC Block Company, a Little Rock, Arkansas-based concrete-products supplier, extending Suncrete’s reach into Arkansas, Louisiana, Missouri and Mississippi. Two additional bolt-on acquisitions expanded its presence in Louisiana.

Combined, the acquisitions added 31 ready-mix plants, 279 mixer trucks and eight concrete-production plants. Suncrete now operates across six states in the Sun Belt, according to management.

Edgar said the company’s integration strategy is intended to bring acquired businesses’ margins in line with Suncrete’s historical margins within nine to 18 months. Three of the five acquired businesses are tracking toward the earlier end of that range, while two could take longer because of more challenging local market conditions.

Suncrete’s Oklahoma City acquisition, completed in October, is already generating margins consistent with the company’s historical profile, management said. By contrast, North Texas remains a more difficult operating environment, though the company said it has an improvement plan focused on purchasing, pricing discipline, fleet and logistics optimization, and operating execution.

Management also said ABC Block’s integration has progressed well and could provide strategic opportunities to expand concrete-products operations in markets where Suncrete already has ready-mix facilities.

Demand Supported by Construction and Data Centers

Edgar said commercial activity remained strong across the company’s markets, including projects involving retail, manufacturing, warehouses and distribution centers. The company is also participating in several data-center projects and expects sustained activity in that end market.

Management cited estimates that 70% or more of new U.S. data-center construction is expected to occur in Sun Belt states. Edgar said Suncrete’s contractor relationships, scale and ability to execute large, complex concrete pours position it to compete for those projects.

During the question-and-answer session, Executive Chairman Ned Fleming said the company is seeing opportunities tied to infrastructure development, manufacturing facilities, artificial intelligence-related construction and population growth. Management projected organic growth of roughly 7% to 10%, with Fleming later indicating about two-thirds of that growth could come from existing markets and about one-third from entry into new areas.

Suncrete also said it is pursuing greenfield expansion in addition to acquisitions. Edgar cited recent plant entries into Missouri and the Fayetteville market, saying the company may establish new facilities when customer demand and large projects support the investment.

On data-center work, management said project volumes can range from roughly 40,000 to 50,000 cubic yards for an initial phase to as much as 500,000 cubic yards for larger developments. Larger projects may require one or more plants to be located on-site and can continue for a year or more.

Weather Delays Expected to Shift Into Third Quarter

Management said wet weather in Texas and Oklahoma affected second-quarter volumes, but characterized the impact as a timing issue rather than lost demand. Edgar said concrete not poured on rainy days is generally shifted into future periods.

The company expects the third quarter to be its strongest seasonal period, consistent with historical patterns in its markets. Management said improved weather, higher volume absorption and continued acquisition integration should support second-half margins.

Suncrete also said it has fuel surcharges that are indexed to a federal reference and designed to pass fuel-cost changes through to customers. Management said pricing remained solid, with price increases implemented in certain markets where conditions support them.

Liquidity and 2026 Outlook

As of June 30, Suncrete had approximately $51.1 million of total liquidity, including $28.6 million of cash equivalents and $22.5 million of available capacity under revolving loan facilities.

During the quarter, the company completed a fifth amendment to its credit agreement that added a $175 million delayed-draw term loan, a $100 million accordion feature and increased revolver capacity to $50 million.

Cash used in operating activities totaled approximately $19.6 million in the quarter. Weinroth attributed the outflow to elevated selling, general and administrative expenses associated with acquired operations, additional headcount and costs tied to the five completed acquisitions. The company continues to expect conversion of 60% to 70% of EBITDA into cash flow from operations during 2026.

Suncrete maintained its 2026 guidance, which includes expected contributions from Hope Concrete, Nelson Bros. and ABC Block but excludes potential future acquisitions:

• Revenue of $420 million to $480 million
• Net income ranging from a $4 million loss to income of $20 million, adjusted for the second-quarter one-time non-cash charge
• Adjusted EBITDA of $68 million to $93 million
• Supplemental adjusted EBITDA of $71 million to $96 million

Fleming said Suncrete remains actively engaged with prospective sellers and expects a robust acquisition pipeline across its current footprint and adjacent high-growth Sun Belt markets.

About Suncrete (NASDAQ:RMIX)

Haymaker Acquisition Corp. 4 is a blank check company. It focuses on effecting a merger, share exchange, asset Acquisition, share purchase, reorganization, or other business combination with one or more businesses or entities. Haymaker Acquisition Corp. 4 is based in New York.

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