0001628280-26-028556
SEC filingMixed Q1: revenue and gross profit grew strongly on volume gains, but operating losses widened due to higher D&A and labor costs, resulting in a deeper net loss.
Revenue increased 9.1% to $7.4 billion, driven by strong volume growth in aggregates and ready-mix concrete, partially offset by pricing declines in aggregates. The company benefited from robust demand in infrastructure and residential end-markets.
Gross profit grew 11.3% to $2.0 billion, outpacing revenue growth, resulting in gross margin expansion to 27.7% from 27.2%. This improvement was driven by favorable product mix and pricing in ready-mix concrete, which helped offset higher input costs.
Net loss widened to $176 million from $94 million, reflecting the operating loss and higher interest expense. The company's interest expense increased due to higher debt levels from acquisitions and share repurchases.
Management expects favorable underlying demand across key end-markets, supported by significant public infrastructure investment and continued reindustrialization activity. Key risks include higher borrowing costs from potential credit rating downgrades, commodity price volatility managed through supply contracts, and integration of recent acquisitions. The company has no material off-balance sheet arrangements.