What Titan America (TTAM) Said on Its Q3 Earnings Call

Key Points

• Revenue rose 5.7% to $462 million, helped by the Keystone acquisition, but adjusted EBITDA fell 18.6% to $95 million and net income declined to $40 million. Higher costs, Florida weakness and an unplanned Roanoke Cement outage pressured profitability.
• Conditions diverged by region: Florida revenue and adjusted EBITDA fell amid weaker residential activity, lower volumes and pricing, while Mid-Atlantic revenue increased 22.5%, primarily due to Keystone. The Roanoke outage cut cement production by about 60,000 tons.
• Titan America forecast mid-single-digit revenue growth in 2026, including Keystone, but expects its adjusted EBITDA margin to decline about 250–300 basis points from 2025. It is targeting at least $30 million in Keystone synergies by 2029 and more than $50 million in annual benefits from its separate Project Cornerstone initiative.

Titan America NYSE: TTAM reported higher third-quarter revenue but lower earnings and margins as its Keystone Cement acquisition helped offset weaker conditions in Florida, while higher costs and an unplanned plant outage weighed on profitability.

Revenue rose 5.7% to $462 million from $437 million a year earlier, including approximately $30 million from Keystone. Adjusted EBITDA fell 18.6% to $95 million, and the adjusted EBITDA margin narrowed to 20.6% from 26.7%.

Net income declined to $40 million, or $0.22 per share, from $57 million, or $0.31 per share, a year earlier. Management cited higher material and energy costs, labor shortages at Florida job sites, unfavorable weather and an unplanned maintenance outage at the Roanoke Cement plant.

“While infrastructure demand remained resilient across our markets, deteriorating residential activity continued to weigh on our performance, particularly in Florida,” President and CEO Bill Zarkalis said on the earnings call.

Florida weakness and Roanoke outage

Florida external revenue fell to $249 million from $263 million, while segment adjusted EBITDA declined to $61 million from $81 million. The segment’s adjusted EBITDA margin was 24.4%, down from 30.8% a year earlier.

CFO Larry Wilt said lower ready-mix concrete and cement volumes, along with lower cement and concrete block pricing, contributed to the revenue decline. Favorable ready-mix pricing and aggregate volumes partially offset those pressures. Management also pointed to housing affordability, labor constraints and record September rainfall in key Southeast Florida markets.

In the Mid-Atlantic, external revenue increased 22.5% to $213 million, primarily because of Keystone. Segment adjusted EBITDA was $37 million, in line with the prior year, while the margin fell to 17.2% from 21.1%.

The Roanoke outage reduced cement production by approximately 60,000 tons. Combined with import disruptions, it caused an estimated similar reduction in third-quarter cement sales volumes in the segment, Wilt said.

Zarkalis said the outage was resolved during the quarter. He added that lingering logistics disruptions remain, although they are less severe than in the second quarter. Titan America could not use its usual complementary import supplies to cover customer needs during the shutdown, he said.

Volumes, pricing and outlook

Including Keystone, companywide cement volumes increased 9.6% year over year. Excluding the acquisition, cement volumes declined 6.2%. Ready-mix concrete volumes fell 5.2%, while aggregates, fly ash and concrete block volumes increased.

External cement pricing decreased 1.7%, and concrete block pricing fell 3%. Ready-mix concrete pricing rose 5.4%, while fly ash pricing increased 6.6%. Aggregates pricing was broadly stable, Wilt said.

For 2026, Titan America updated its outlook to call for mid-single-digit revenue growth, including Keystone, and a decline in adjusted EBITDA margin of approximately 250 to 300 basis points from 2025. Zarkalis said the outlook reflects market conditions, unplanned maintenance outages and Keystone’s low contribution before synergies.

Looking ahead to 2027, Zarkalis said the company expects continued support from infrastructure and some nonresidential investment, but does not expect the pressures affecting housing to change in the near term without lower mortgage and policy rates.

Titan America has announced price increases effective January 1 across its markets: $12 per ton for cement, $15 per cubic yard for ready-mix concrete, $3 per metric ton for prime aggregates and $0.10 per concrete block. Zarkalis said the increases are intended to help offset rising costs.

Acquisition integration and cost savings

Titan America is targeting at least $30 million in annual run-rate synergies specific to Keystone by 2029. Wilt said Keystone’s full-year EBITDA margin was 10% last year and that the company has a multiyear plan to raise margins to more normal levels. He said reliability and product quality are improving, though margins remain a challenge.

The company also said its separate Project Cornerstone productivity initiative has delivered approximately $20 million in benefits during 2026. Titan America is targeting more than $50 million in annual run-rate benefits from the program by 2029. Management said the effort focuses on operating efficiency, distribution and procurement, with minimal remaining investment required.

For the first nine months of 2026, operating cash flow rose to $220 million from $215 million, while free cash flow fell to $67 million from $94 million as the company increased investment in selected growth projects. Net capital expenditures were approximately $153 million.

As of September 30, the company reported $48 million in cash and cash equivalents and $580 million in total debt. Its leverage ratio was 1.43 times trailing 12-month adjusted EBITDA following the Keystone acquisition. The board approved a $0.04-per-share issue premium distribution, payable January 11, 2027, to shareholders of record on December 18, 2026.

About Titan America (NYSE:TTAM)

Titan America is a building materials company that produces and supplies cement, ready-mix concrete, aggregates and other construction products. Its materials are used in residential, commercial, infrastructure and other construction projects.

The company operates cement manufacturing facilities, distribution terminals, aggregate quarries and ready-mix concrete plants. Its product portfolio also includes concrete masonry products and related materials used by contractors, concrete producers and construction companies.

Titan America serves customers primarily across the eastern and southeastern United States, with operations and distribution capabilities covering markets including Florida, Virginia, the Carolinas, the Mid-Atlantic and the Northeast.

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