Suncrete Q1 Earnings Call Highlights

Key Points

• Suncrete posted strong Q1 growth, with revenue up 64% year over year to $61.8 million and adjusted EBITDA up about 20% to $10.9 million. The company also increased ready-mix volume by 58%, though it still reported a $1.7 million net loss.
• Management is pursuing an acquisition-led expansion strategy across the Sun Belt, highlighted by the recent purchases of Hope Concrete and Nelson Bros. Ready Mix. Suncrete said the deals expand its footprint in Texas and Louisiana and expects them to add $25 million to $35 million in forward EBITDA.
• Suncrete issued upbeat 2026 guidance and sees a deep acquisition pipeline, forecasting revenue of $420 million to $480 million and adjusted EBITDA of $71 million to $96 million. Executives said the company has strong cash access and low leverage, giving it room to keep consolidating a fragmented ready-mix market.

Suncrete NASDAQ: RMIX reported sharply higher first-quarter revenue in its first earnings call as a public company, while management outlined an acquisition-driven growth strategy aimed at expanding its ready-mix concrete platform across the Sun Belt.

Chief Executive Officer Randall Edgar said the company’s April listing on the Nasdaq under the ticker RMIX marked “a significant milestone” for the Tulsa-based ready-mix concrete producer. Suncrete operates across Oklahoma, Arkansas, Texas and Louisiana and is seeking to expand in fast-growing construction markets across the southern United States.

Edgar described Suncrete as a “pure-play ready-mix concrete company” serving public infrastructure, commercial and residential construction customers through concrete plants, mixer trucks and technology-enabled dispatch operations. He said the company’s model combines local pricing and customer oversight with the scale and purchasing power of a broader platform.

Revenue rises 64% in the first quarter

Chief Financial Officer Tommy Wenrod said first-quarter revenue rose to $61.8 million, up 64% from the same period a year earlier. The company reported a net loss of $1.7 million, compared with net income of $1.1 million in the year-ago quarter.

Adjusted EBITDA was $10.9 million, an increase of about 20% from the prior-year period, and adjusted EBITDA margin was 17.6%. Wenrod said total yards of ready-mix concrete produced and delivered increased 58% year over year.

Suncrete ended the quarter with $6.3 million in cash and cash equivalents and $22.5 million of available capacity under its revolving loan facility. Wenrod said the company raised approximately $226 million of primary capital through the SPAC transaction that closed on April 8, with proceeds intended to support acquisitive growth.

Cash flow from operations was $7.2 million in the quarter, up from $4.4 million in the first quarter of 2025. Management said it expects to convert 60% to 70% of EBITDA into cash flow from operations in fiscal 2026.

Company issues 2026 outlook including recent deals

Suncrete’s 2026 guidance includes expected organic growth and contributions from two second-quarter acquisitions: Hope Concrete and Nelson Bros. Ready Mix. The outlook assumes current economic conditions and no significant changes in the broader economy or Sun Belt conditions.

• Revenue: $420 million to $480 million
• Net income: Net loss of $4 million to net income of $20 million
• Adjusted EBITDA: $71 million to $96 million

During the question-and-answer session, Calvin Bocanegra, Suncrete’s treasurer and head of business development, said implied organic growth in the outlook is about 10% to 15%. He said Suncrete is targeting a long-term growth rate of 20%, split roughly evenly between organic growth and acquisitions.

Acquisitions expand Texas and Louisiana footprint

Edgar highlighted two recent acquisitions that expanded Suncrete’s presence in Texas and Louisiana. On April 29, the company acquired Hope Concrete, which operates 10 plants and approximately 90 mixer trucks serving North Texas and Southern Louisiana. Edgar said Hope brings an experienced management team, customer relationships and a reputation for service and operational discipline.

On May 7, Suncrete acquired Nelson Bros. Ready Mix, which operates nine plants and more than 120 mixer trucks across eight North Texas markets. Edgar said the deal further expands Suncrete’s footprint under the Hope Concrete platform and strengthens its position around the Dallas-Fort Worth metropolitan area.

In response to a question from Kathryn Thompson of Thompson Research Group, Bocanegra said the forward EBITDA contribution from the Hope and Nelson transactions was expected to be in the range of $25 million to $35 million. Executive Chairman Ned Fleming said management’s expectations are “always higher than that,” while emphasizing that Suncrete focuses on forward contribution rather than historical performance.

Fleming said the ready-mix market remains highly fragmented and includes many family-owned businesses facing generational transition, succession and estate-planning decisions. He said Suncrete aims to be a consolidator while preserving the local relationships and entrepreneurial cultures that make those businesses successful.

Management cites demand across end markets

Management said demand remains broad-based across infrastructure, commercial and residential markets. In response to a question from Ryan Merkel of William Blair, Bocanegra said Suncrete has seen “pretty strong organic growth across all three of our end markets” in both Tulsa and Oklahoma City.

Asked by Adam Thalhimer of Thompson Davis about commercial demand and data centers, Chief Operating Officer Mark Jones said Suncrete is working on “a couple data centers currently” and is in talks weekly regarding additional projects. Fleming said Tulsa is one of the fastest-growing cities in the Southwest and noted growth in the Bentonville, Arkansas, corridor.

Management also provided an update on the company’s Oklahoma City expansion and the Schwartz acquisition. Edgar said integration has gone “exceptionally well” and is ahead of plan. Fleming added that Suncrete expects to build toward the No. 1 relative market share position in Oklahoma City quickly.

Margins and integration remain key focus areas

Analysts pressed management on margins, particularly because 2026 guidance implies adjusted EBITDA margins in the high teens, below the company’s base business margin profile. Wenrod said acquisitions do not always have Suncrete’s profitability during the integration period, while noting that the base business has operated at a margin profile near 25%.

Fleming said acquired businesses can generally be brought toward Suncrete’s targeted margin profile within nine to 18 months, depending on the market, and often within nine to 12 months. He said the first acquisition Suncrete completed reached that point in about six months.

On inflation, Edgar said Suncrete has systems in place to pass through cost increases. Fleming cited a fuel charge added to invoices as one example of how the company manages diesel fuel fluctuations.

Management said the acquisition pipeline remains active across existing and adjacent markets. Edgar said the pipeline is “better than we could have hoped for,” while Fleming said opportunities are strong both across the Sun Belt and in Suncrete’s current markets. Jones said the company will consider additional metropolitan areas across the southern United States and may also pursue greenfield expansion, citing a recent expansion into Fayetteville, Arkansas.

Bocanegra said Suncrete had about 76.2 million shares outstanding as of the call, including rollover equity from recent acquisitions. He said the company is conservatively levered at less than 2.5 times net debt to run-rate EBITDA, giving it “a lot of dry powder” to pursue acquisitions during the remainder of 2026.

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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