Titan America Q3 profit falls on higher costs, weak Florida demand
Overview
U.S. building materials producer's Q3 revenue rose 5.7% yr/yr, driven by the Keystone acquisition
Q3 net income fell 31% and adjusted EBITDA declined 19% on higher costs, unfavorable weather and a plant outage
Company cites soft residential demand and cost headwinds, especially in Florida, as challenges
Outlook
Company expects mid-single-digit revenue growth for full-year 2026 vs 2025
Company anticipates 2026 Adjusted EBITDA Margin to decline by 250-300 basis points year over year
Updated outlook reflects market headwinds, unplanned maintenance outages and low pre-synergy contribution from Keystone
Result Drivers
HIGHER ENERGY AND MATERIALS COSTS - Co said increased energy and materials costs pressured margins and reduced profitability in Q3
UNPLANNED PLANT OUTAGE - Unplanned maintenance outage at Roanoke Cement plant reduced volumes and increased costs in the Mid-Atlantic segment
FLORIDA HEADWINDS - Soft residential demand, job-site labor constraints and record rainfall reduced construction activity and sales volumes in Florida
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $461.64 mln | ||
Q3 EPS | $0.22 | ||
Q3 Net Income | $39.76 mln | ||
Q3 Adjusted EBITDA | $94.99 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)