Titan America Announces First Quarter 2025 Results
- Reports Solid First Quarter Revenue, Net Income, and EPS -
- Resilient Pricing Helps Offset Adverse Weather Across Segments -
- Reaffirms 2025 Guidance -
NORFOLK, Va.--(BUSINESS WIRE)--May 05, 2025--
Titan America SA (NYSE: TTAM), a leading fully-integrated producer and supplier of building materials, services and solutions in the construction industry operating along the U.S. East Coast, today announced its first quarter 2025 financial results. Titan America SA, including its wholly-owned operating subsidiary, Titan America LLC, shall be referred to herein as "Titan America."
First-Quarter 2025 Highlights
-- Revenue of $392.4 million, compared to $400.1 million in Q1 2024
-- Net Income of $33.4 million, an increase of 13.0% compared to $29.5
million in Q1 2024
-- Earnings per share of $0.19, an increase of 11.8% compared to $0.17 in Q1
2024
-- Adjusted EBITDA(1) of $79.8 million, an increase of 11.7% compared to
$71.4 million in Q1 2024
"We reported solid results in the first quarter, demonstrating our operational resilience despite challenging weather conditions across much of our service territory," said Bill Zarkalis, President & CEO of Titan America. "Pricing across our products remains resilient, as demand from infrastructure and commercial partially offset continued softness in residential. We remain well positioned across key end markets and, despite the current macroeconomic uncertainty, are confident about the underlying growth prospects in our markets. We continue to make targeted investments to grow in accordance with our strategic plan and to deliver significant long-term shareholder value."
First Quarter 2025 Results (unaudited)
Three Months Ended March
31
------------------------
2025 2024 $ Change % Change
----------- ----------- -------- ----------
($ in thousands)
Revenue $ 392,438 $ 400,091 $(7,653) (1.9)%
Net Income $ 33,373 $ 29,533 $ 3,840 13.0%
Adjusted EBITDA $ 79,797 $ 71,446 $ 8,351 11.7%
Capital
Expenditures $ 32,498 $ 27,708 $ 4,790 17.3%
First Quarter 2025 Results
First quarter 2025 revenues were $392.4 million compared to $400.1 million in the prior year quarter. Revenues were affected primarily by adverse weather conditions in the quarter, especially in the Mid-Atlantic segment, which resulted in construction project delays.
Net income increased 13.0% to $33.4 million for the first quarter compared to $29.5 million in the prior year quarter, while Adjusted EBITDA increased 11.7% to $79.8 million compared to $71.4 million in the prior year quarter. The increase in both net income and Adjusted EBITDA was primarily driven by higher aggregates volumes, the timing of a seasonal maintenance outage at the Florida cement plant and resilient pricing for our products. These items more than offset the impact of inclement weather and softness in the residential markets which resulted in lower demand for construction materials in the first quarter of 2025. Net Income Margin and Adjusted EBITDA Margin in the first quarter of 2025 were 8.5% and 20.3%, respectively, compared to 7.4% and 17.9%, respectively, in the same period of 2024.
Cash flow and Capital Resources
For the period ended March 31, 2025, cash flow provided by operations was $35.2 million and capital expenditures were $32.5 million, resulting in free cash flow of $2.7 million.
As of March 31, 2025, Titan America had $143.2 million in cash and cash equivalents and $462.0 million total debt. Net debt was $318.7 million, representing a ratio of 0.84x trailing twelve-month Adjusted EBITDA.
Revenue and Adjusted EBITDA by Reportable Segment
Revenue
---------------------------------------------------
Three Months Ended March 31
---------------------------------------------------
2025 2024 % Change
------------------ ----------------- ------------
($ in thousands)
Florida $ 253,241 $ 252,409 0.3%
Mid-Atlantic 139,197 147,321 (5.5)%
Other(1) -- 361 NM(2)
-------------- -------------
Consolidated $ 392,438 $ 400,091 (1.9)%
-------------- -------------
(1) Other includes equipment, related services and miscellaneous revenue
(2) Not meaningful
Segment adjusted EBITDA
-------------------------------------
Three Months Ended March 31
-------------------------------------
2025 2024 % Change
------------ ----------- ----------
($ in thousands)
Florida $ 70,792 $ 56,235 25.9%
Mid-Atlantic $ 10,902 $ 18,229 (40.2)%
The Florida segment generated $253.2 million in revenue in the first quarter compared to $252.4 million in the prior year quarter, primarily due to an increase in aggregate volume, partially offset by a continued weakness in residential demand for cement and concrete block. Segment adjusted EBITDA for the quarter was $70.8 million, compared to $56.2 million in the prior year quarter, due to growth in aggregates, the timing of the Pennsuco cement plant annual maintenance outage and improved logistics costs.
The Mid-Atlantic segment generated $139.2 million in revenue in the first quarter compared to $147.3 million in the prior year quarter as adverse weather conditions led to lower sales volumes. Segment adjusted EBITDA decreased to $10.9 million, compared to $18.2 million in the prior year quarter, as the impact of lower sales volumes was partially mitigated by lower repair, maintenance and logistics costs.
2025 Outlook
Regarding Titan America's outlook, Titan America President & CEO Bill Zarkalis stated, "Based on our first quarter results and barring a severe economic downturn, we are reaffirming our growth outlook for 2025. We continue to expect revenue growth in the mid-single digit percent range, with modest improvement in Adjusted EBITDA margins compared to 2024, with our results weighted toward the second half of the year. Our strong market positions, participation flexibility and vertically integrated business model position us to navigate uncertainty and evolving market dynamics as we remain focused on operational excellence and executing our strategic initiatives to deliver long-term shareholder value."
Conference Call
Titan America will host a conference call at 5:00 p.m. ET on May 5, 2025. The conference call will be broadcast live over the Internet. Additionally, a slide presentation will accompany the conference call. To listen to the call and view the slides, please visit the Investors section of Titan America's website at https://www.titanamerica.com/. For those who are unable to listen to the live broadcast, an audio replay of the conference call will be available on the Titan America website for 30 days.
About Titan America SA
Titan America is a leading vertically-integrated producer of cement and building materials in the high-growth economic mega-regions of the U.S. East Coast, with operations and leading market positions across Florida, the Mid-Atlantic, and Metro New York/New Jersey. Titan America's family of company brands includes Essex Cement, Roanoke Cement, Titan Florida, Titan Virginia Ready-Mix, S&W Ready-Mix, Powhatan Ready Mix, Titan Mid-Atlantic Aggregates, and Separation Technologies. Titan America's operations include cement plants, construction aggregates and sand mines, ready-mix concrete plants, concrete block plants, fly ash production facilities, marine import and rail terminals, and distribution hubs.
Forward-Looking Statements
This press release may include forward-looking statements. Forward-looking statements are statements regarding or based upon our management's current intentions, beliefs or expectations relating to, among other things, Titan America's future results of operations, financial condition, liquidity, prospects, growth, strategies, developments in the industry in which we operate and the proposed offering. In some cases, you can identify forward-looking statements by terminology such as "continue," "could," "expect," "goal," "may," "plan, " "predict," "propose," "should," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. By their nature, forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results or future events to differ materially from those expressed or implied thereby. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this report regarding trends or current activities should not be taken as a report that such trends or activities will continue in the future. Titan America undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this report. The information contained in this report is subject to change without notice. No re-report or warranty, express or implied, is made as to the fairness, accuracy, reasonableness or completeness of the information contained herein and
no reliance should be placed on it.
Financial Measures (Non-IFRS)
In addition to the financial information presented in accordance with International Financial Reporting Standards ("IFRS"), this press release includes the following Non-IFRS financial measures: Adjusted EBITDA, Adjusted EBITDA Margin, free cash flow, net debt and the ratio of net debt to Adjusted EBITDA. We define Adjusted EBITDA as net income before finance cost, net, income tax expense, depreciation, depletion and amortization, further adjusted to remove the impact of additional items such as (gain)/loss on disposal of fixed assets, asset impairment (recovery)/loss, foreign exchange (gain)/loss, net, derivative financial instrument (gain)/loss, net, fair value loss on sale of accounts receivable, net, share-based compensation and other non-recurring items, including certain transaction costs related to our initial public offering. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues. We define free cash flow as net cash provided by operating activities, less net payments for capital expenditures, which includes (i) investments in property, plant and equipment, (ii) investments in identifiable intangible assets and (iii) proceeds from the sale of assets, net of disposition costs. We define net debt as the sum of short and long-term borrowings, including accrued interest and short-term and long-term lease liabilities less cash and cash equivalents. We define the ratio of net debt to Adjusted EBITDA as the ratio derived by dividing net debt by Adjusted EBITDA. See "Reconciliation of IFRS to Non-IFRS" section for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure.
We believe that in addition to our results determined in accordance with IFRS, these Non-IFRS financial measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures.
Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as comparative measures.
(1) As used throughout this release, the terms Adjusted EBITDA, Adjusted
EBITDA margin, net debt and free cash flow are non-IFRS financial metrics. See
"Reconciliation of IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS
financial measures to the most directly comparable IFRS measure. See
"Financial Measures (Non-IFRS)" for further discussion on these non-IFRS
measures and why we believe they are useful.
Condensed Consolidated Statements of Income (Unaudited)
(all amounts in thousands of US$
except for earnings per share) Three Months Ended March 31
---------------------------------
2025 2024
----------- -----------
Revenue $ 392,438 $ 400,091
Cost of goods sold (301,035) (318,975)
----------- -----------
Gross profit 91,403 81,116
----------- -----------
Selling expense (8,240) (7,870)
General and administrative expense (30,914) (25,539)
Net impairment gain/(loss) on
financial assets 280 (16)
Fair value loss on sale of accounts
receivable, net (963) (1,486)
Other operating income, net 182 126
----------- -----------
Operating income 51,748 46,331
----------- -----------
Finance cost, net (6,580) (5,466)
Foreign exchange (loss)/gain, net (13,812) 7,521
Derivative financial instrument
gain/(loss), net 10,904 (9,237)
Other non-operating income 2,552 --
----------- -----------
Income before income taxes 44,812 39,149
----------- -----------
Income tax expense (11,439) (9,616)
----------- -----------
Net income $ 33,373 $ 29,533
----------- -----------
Earnings per share of common stock:
Basic earnings per share $ 0.19 $ 0.17
Diluted earnings per share $ 0.19 $ 0.17
Weighted average number of common
stock - basic and diluted 180,262,465 175,362,465
Condensed Consolidated Balance Sheet (Unaudited)
March 31, December 31,
(all amounts in thousands of US$) 2025 2024
---------- --------------
Current assets:
Cash and cash equivalents $ 143,246 $ 12,124
Trade and other receivables, net 137,727 106,056
Inventories 220,128 227,638
Prepaid expenses and other current assets 11,617 14,308
Income taxes receivable 24,711 22,802
Derivatives and credit support payments 962 1,328
--------- ----------
Total current assets 538,391 384,256
--------- ----------
Noncurrent assets:
Property, plant, equipment and mineral
deposits, net 860,251 851,733
Right-of-use assets 61,601 64,688
Other assets 12,618 13,846
Intangible assets, net 29,748 30,167
Goodwill 221,562 221,562
--------- ----------
Total noncurrent assets 1,185,780 1,181,996
--------- ----------
Total assets $1,724,171 $ 1,566,252
--------- ----------
Current liabilities:
Accounts and related party payables $ 133,699 $ 148,558
Accrued expenses 30,276 24,879
Provisions 12,278 10,081
Income taxes payable 7,675 1,872
Short term borrowing, including accrued
interest 37,014 33,608
Lease liabilities 11,977 12,386
Derivatives and credit support receipts 464 1,318
Other current liabilities 224 6,344
--------- ----------
Total current liabilities 233,607 239,046
--------- ----------
Non-current liabilities:
Long-term borrowings 359,157 358,222
Lease liabilities 53,829 55,967
Provisions 52,332 50,926
Deferred income tax liability 99,178 98,212
Derivatives and credit support receipts 4,470 8,418
Other noncurrent liabilities 5,154 5,447
--------- ----------
Total noncurrent liabilities 574,120 577,192
--------- ----------
Total liabilities 807,727 816,238
--------- ----------
Stockholders' equity 916,444 750,014
--------- ----------
Total liabilities and stockholders' equity $1,724,171 $ 1,566,252
--------- ----------
Condensed Consolidated Statements of Cash Flows (Unaudited)
(all amounts in thousands of US$) Three Months Ended March 31
-----------------------------------
2025 2024
----------- ----------
Cash flows from operating activities
Income before income taxes $ 44,812 $ 39,149
Adjustments for:
Depreciation, depletion and
amortization 24,434 22,103
Gain on divestiture (2,552) --
Finance cost 7,432 5,734
Finance income (852) (268)
Foreign exchange loss/(gain), net 13,812 (7,521)
Derivative financial instrument
(gain)/loss, net (10,904) 9,237
Changes in net operating assets
and liabilities (29,641) (27,449)
Other (5,434) 1,435
----------- ----------
Cash generated from operations
before income taxes 41,107 42,420
----------- ----------
Income taxes, net (5,914) (933)
----------- ----------
Net cash provided by operating
activities 35,193 41,487
----------- ----------
Cash flows from investing activities
Investments in property, plant
and equipment (31,915) (27,781)
Investments in intangible assets (641) (2)
Short term investments -- (7,535)
Interest received 852 268
Proceeds from the sale of assets,
net of disposition costs 58 75
Proceeds from sale of investment 5,368 --
----------- ----------
Net cash used in investing activities (26,278) (34,975)
----------- ----------
Cash flows from financing activities
Borrowings from affiliated party 9,691 --
Repayment of third party line of
credit (25,000) --
Lease payments (2,321) (2,464)
Proceeds from IPO 144,000 --
Derivative credit support
receipts/(payments) and
settlements 7,028 (7,116)
Net payments under cash
management line of credit 1,583 --
Interest paid (3,602) (2,124)
IPO Costs (9,172) --
----------- ----------
Net cash provided by/(used in)
financing activities 122,207 (11,704)
----------- ----------
Net increase/(decrease) in cash and
cash equivalents 131,122 (5,192)
----------- ----------
Cash and cash equivalents at:
Beginning of period 12,124 22,036
Effects of exchange rate changes -- (69)
----------- ----------
End of period $ 143,246 $ 16,775
=========== ==========
Reconciliation of IFRS to Non-IFRS Reconciliation of IFRS Net Income to
Non-IFRS Adjusted EBITDA and IFRS Net Income Margin to Non-IFRS Adjusted
EBITDA Margin
-----------------------------------------------------------------------------
Three Months Ended
March 31 Twelve Months Ended
-------------------------- ------------------------------
December 31,
2025 2024 March 31, 2025 2024
------- ------- -------------- --------------
($ in thousands)
Net income $ 33,373 $ 29,533 $ 169,914 $ 166,074
Finance cost, net 6,580 5,466 27,289 26,175
Income tax
expense 11,439 9,616 59,367 57,544
Depreciation,
depletion and
amortization 24,434 22,103 102,272 99,941
(Gain)/loss on
disposal of
fixed assets (37) 788 1,586 2,411
Foreign exchange
loss/(gain),
net 13,812 (7,521) 487 (20,846)
Derivative
financial
instrument
(gain)/loss,
net (10,904) 9,237 2,300 22,441
Fair value loss
on sale of
accounts
receivable, net 963 1,486 4,097 4,620
Share-based
compensation 774 785 3,830 3,841
IPO transaction
expenses 1,884 762 12,938 11,816
Other (2,521) (809) (5,329) (3,617)
------- ------- --------- ---------
Adjusted EBITDA $ 79,797 $ 71,446 $ 378,751 $ 370,400
======= ======= ========= =========
Revenue $392,438 $400,091 $1,626,740 $1,634,393
Net Income
Margin(1) 8.5% 7.4% 10.4% 10.2%
Adjusted EBITDA
Margin(2) 20.3% 17.9% 23.3% 22.7%
(1) Net Income Margin is calculated as net income divided by revenues.
(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by
revenues.
Reconciliation of Free Cash Flow
Three Months Ended March 31
2025 2024
----------- ----------
($ in thousands)
Net cash provided by operating
activities $ 35,193 $ 41,487
Adjusted by:
Investments in property, plant and
equipment (31,915) (27,781)
Investments in identifiable
intangible assets (641) (2)
Proceeds from the sale of assets,
net of disposition costs 58 75
----------- ----------
Net Capital Expenditures (32,498) (27,708)
=========== ==========
Free Cash Flow $ 2,695 $ 13,779
----------- ----------
Reconciliation of Net Debt
As of
---------------------------------------
March 31, 2025 December 31, 2024
---------------- ---------------------
($ in thousands)
Short-term borrowings, including
accrued interest $ 37,014 $ 33,608
Long-term borrowings 359,157 358,222
Short-term lease liabilities 11,977 12,386
Long-term lease liabilities 53,829 55,967
Less:
Cash and cash equivalents (143,246) (12,124)
----------- --------------
Net Debt $ 318,731 $ 448,059
=========== ==============
Net Debt to Adjusted EBITDA
As of
-------------------------------------
March 31, 2025 December 31, 2024
---------------- -------------------
($ in thousands)
IFRS:
Short-term borrowings, including
accrued interest $ 37,014 $ 33,608
Long-term borrowings 359,157 358,222
Short-term lease liabilities 11,977 12,386
Long-term lease liabilities 53,829 55,967
------------ --- --------------
Total Debt $ 461,977 $ 460,183
Trailing Twelve Months Net
Income 169,914 166,074
Ratio of Total Debt to Net
Income 2.7 2.8
Non-IFRS:
Net Debt $ 318,731 $ 448,059
Trailing Twelve Months Adjusted
EBITDA $ 378,751 $ 370,400
Ratio of Net Debt to Adjusted
EBITDA 0.8 1.2
Product Volumes and External Pricing
Three Months Ended March 31
-----------------------------
Volumes (in
thousands)
(1)(2)(3) 2025 2024 Change % Change
--------------- ------------ -------- ----------
Total cement
volumes 1,295 1,392
Cement
consumed
internally (343) (362)
---------- -----------
External cement
volumes 952 1,030 (78) (7.6)%
Total
aggregates
volumes 2,056 1,664
Aggregates
consumed
internally (984) (906)
---------- -----------
External
aggregates
volumes 1,072 758 314 41.4%
External
ready-mix
concrete
volumes 1,116 1,141 (25) (2.2)%
External
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