DENVER - Summit Materials, Inc. (NYSE: NYSE:SUM), a leading construction materials company, presented key updates at its Investor Day in New York City, reaffirming its financial goals under the Elevate Summit Strategy and announcing the elimination of its Up-C corporate structure to reduce complexity.
CEO Anne Noonan emphasized the company's commitment to its strategic priorities, which include market leadership, sustainability, innovation, and an asset-light approach. Summit Materials aims to sustain leverage below 3x, achieve a return on invested capital (ROIC) of at least 10%, and reach adjusted EBITDA margins of 30% or higher.
The company's sustainability efforts are integral to its operations, with a focus on reducing carbon emissions as part of its broader environmental, social, and governance (ESG) initiatives.
Summit also reported progress on the integration of Argos USA, which is expected to generate at least $130 million in synergies. This move is part of the company's strategy to strengthen its materials-led portfolio through targeted acquisitions and optimization.
CFO Scott Anderson announced the completion of the exchange of all outstanding LP units, simplifying the company's structure and focusing on eliminating the associated tax receivable agreement (TRA) liability in a value-accretive manner.
For 2024, Summit reiterated its guidance, projecting adjusted EBITDA between $950 million and $1,010 million, with capital expenditures estimated at $430 million to $470 million.
The company's Investor Day presentation, which includes further details on the Elevate Summit Strategy, growth drivers, and capital allocation, is available for replay on Summit's website.
Summit Materials operates across the United States and British Columbia, Canada, providing aggregates, cement, ready-mix concrete, and asphalt to various markets. The company has a history of successful acquisitions and continues to seek growth opportunities.
This article is based on a press release statement from Summit Materials, Inc.
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