Financial Data and Key Metrics Changes - The company reported record financial results for Q3 2025, with revenue of $1.2 billion and adjusted EBITDA of $273 million, marking all-time quarterly highs [4][21] - Adjusted EBITDA margin improved to 22.7% for the quarter, reflecting strong contributions from recent acquisitions and cost control efforts [4][21] - Year-over-year revenue growth was driven by a 22% increase in revenue and a 56% increase in adjusted EBITDA over the past three years [14] Business Line Data and Key Metrics Changes - In the aggregates segment, prices increased by 8% and margins improved by 50 basis points [16] - Ready-mix volumes were up 16% with price increases of almost 6%, leading to a margin improvement of 160 basis points [17] - Asphalt volumes were down approximately 7% due to less paving work, but margins slightly improved compared to the previous year [18] Market Data and Key Metrics Changes - The Oregon market showed year-over-year improvements, with contracting services backlog approximately 90% of last year's level [7] - The Mountain segment experienced challenges due to less asphalt paving, but backlog remains at record levels [9] - The Central segment saw a substantial increase in backlog, up 83% year-over-year, driven by strong demand in Texas [10] Company Strategy and Development Direction - The company continues to focus on M&A as a core component of its competitive edge strategy, with multiple deals in the pipeline [5][12] - The competitive edge plan includes optimizing pricing and controlling costs, which has led to improved gross margins across product lines [4][12] - The company aims to achieve a long-term goal of a 20% adjusted EBITDA margin through ongoing process improvements and dynamic pricing [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stabilization of the Oregon market and the potential for continued growth in 2026 [31] - The company anticipates that public infrastructure investments will support profitable growth, with a record backlog and favorable weather conditions expected [6][21] - Management highlighted the importance of dynamic pricing and operational efficiencies in driving future performance [12][54] Other Important Information - The company ended the quarter with a net leverage position of 2.6 times and $457 million of borrowing capacity [20] - Capital expenditures are expected to be between 5% and 7% of revenue for the full year, with $664 million invested in growth initiatives through Q3 [20] Q&A Session Summary Question: Context for fourth quarter guidance and year-on-year growth - Management cited stabilization in Oregon, a strong backlog, and favorable weather as key factors supporting confidence in year-on-year growth [25][26] Question: Potential for rebound in Oregon next year - Management noted the need for stability in the Portland economy and the impact of the transportation funding bill on future results [30][31] Question: Performance of Strata and EBITDA contribution - Management expressed satisfaction with Strata's integration and performance, anticipating strong contributions in the coming year [32] Question: Insights on backlog and project types - Management indicated that while margins in backlog are slightly lower, the overall gross profit is higher due to increased asphalt paving [39][40] Question: Competitive bid dynamics in the Mountain region - Management acknowledged intensified competition but emphasized that the challenges are temporary and related to project timing rather than structural issues [47][49] Question: Future M&A activity - Management plans to focus on infill acquisitions in existing markets and adjacent markets, targeting higher-margin materials-led companies [84][85]

Financial Data and Key Metrics Changes - The company reported a record backlog of $1,300 million, the highest in its history, with a $650 million increase in new projects secured during the quarter compared to the previous year [18][19] - Adjusted EBITDA guidance was lowered by $55 million, primarily due to a softer Oregon market and wet weather, with updated guidance for consolidated revenue between $3,100 million and $3,300 million [36][37] - The company ended the quarter with nearly $1,400 million of long-term debt, resulting in a net leverage position of 3.1 times, which is expected to decrease below the long-term target of 2.5 times by year-end [35][36] Business Line Data and Key Metrics Changes - Contracting services revenue declined by 8.5% year-over-year, while asphalt revenue volumes decreased by 9% [28][30] - Aggregate revenue increased due to the acquisition of Strata, with prices improving by almost 12%, although lower volumes impacted gross margins [30][31] - Ready mix volume and price improved, resulting in a 15% increase in revenue, with significant contributions from the Central segment and higher demand in Hawaii and Alaska [31] Market Data and Key Metrics Changes - In Oregon, aggregate volumes were down about 25% year-over-year, significantly impacting consolidated financial results, with over 50% of EBITDA variance attributed to this state [11][28] - The company noted strong demand in California, Hawaii, and Alaska, with aggregate volumes up almost 60% in Alaska and a 30% increase in contracting services revenue in California [12][31] - Record DOT budgets in the company's operating states are growing at 14% for fiscal year 2026, compared to just 3% for the U.S. average [19][80] Company Strategy and Development Direction - The company is focused on its competitive edge strategy, aiming for a long-term goal of a 20% adjusted EBITDA margin, with multiple paths identified to achieve this [20][100] - Recent acquisitions, including Kramer Trucking and High Desert Aggregates, align with the company's growth strategy and are expected to enhance its market presence [21][22] - The company continues to invest in process improvement teams to drive standardization, cost control, and pricing optimization [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of unfavorable weather and project delays in Oregon, but expressed confidence in the overall demand for infrastructure work and the company's ability to recover [5][36] - The integration of Strata is progressing well, and management remains optimistic about the contributions from recent acquisitions [41][58] - The company expects to see improved volumes and pricing in the second half of the year, driven by a strong backlog and favorable market conditions [20][30] Other Important Information - The company has maintained an active deal pipeline and continues to pursue acquisitions and organic growth opportunities that fit its strategic goals [23][90] - SG&A expenses increased by $9.7 million due to overhead costs from acquisitions and higher business development costs, but are still in line with expectations [32][33] - The company anticipates maintenance capital expenditures to be 5% to 7% of revenue for the full year [34] Q&A Session Summary Question: What are the expectations for the Oregon market in the second half of the year? - Management noted that the integration of Strata is on track, but the Oregon legislature's failure to pass a comprehensive transportation funding bill is a concern, impacting paving work for the year [41][42][43] Question: What factors might drive lower margins in the backlog? - Management indicated that shifting revenue from higher-margin Oregon to other regions and larger projects with lower margins are contributing to the lower margins observed [48][49] Question: How sustainable is the improvement in aggregate pricing? - Management credited the disciplined implementation of dynamic pricing and the acquisition of Strata for the improved average selling price, raising guidance for pricing increases to high single digits [50][51] Question: How are the Strata and Albina acquisitions performing? - Both acquisitions accounted for about 8% of total revenue for the quarter, with expectations for increased contributions in the second half of the year [59][60] Question: What is the company's appetite for M&A? - Management expressed a strong focus on integrating Strata while maintaining an active pipeline for future acquisitions that align with the company's growth strategy [90][91]

Financial Data and Key Metrics Changes - The company reported a record backlog of $1.3 billion, the highest in its history, with $650 million in new projects secured during the quarter, a $250 million increase from the same time last year [16][17]. - Adjusted EBITDA guidance was lowered by $55 million, primarily due to headwinds from a softer Oregon market and wet weather, with updated guidance for consolidated revenue between $3.1 billion and $3.3 billion [33][34]. Business Line Data and Key Metrics Changes - Contracting services revenue declined by 8.5% compared to last year, while asphalt revenue saw a 9% decline, although gross profit per ton improved by almost 8% [26][28]. - Aggregate revenue increased due to the acquisition of Strata, with prices rising by almost 12%, but lower volumes and production costs impacted gross margins [29]. - Ready mix volume and price improved, resulting in a 15% increase in revenue, with dynamic pricing contributing to an 8% price increase over last year [29]. Market Data and Key Metrics Changes - The Oregon market faced significant challenges, with aggregate volumes down about 25% year-over-year, impacting overall financial results [10]. - In contrast, the West region, particularly California, Hawaii, and Alaska, saw strong performance, with aggregate volumes up nearly 60% in Alaska and a 30% increase in contracting services revenue in California [11][12]. Company Strategy and Development Direction - The company is focused on a competitive edge strategy aimed at improving EBITDA margins, with a long-term goal of achieving a 20% adjusted EBITDA margin [19][98]. - Recent acquisitions, including Kramer Trucking and High Desert Aggregates, align with the company's growth strategy, targeting mid-sized high-growth markets [20][21][88]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of unfavorable weather and project delays in Oregon, but expressed confidence in the overall demand for infrastructure work and the strength of DOT budgets in other states [5][9][27]. - The company remains optimistic about the second half of the year, expecting strong demand and volume growth driven by record backlog and ongoing infrastructure investments [19][24]. Other Important Information - The company has maintained a strong focus on dynamic pricing initiatives, which have contributed to improved pricing across product lines [23][96]. - SG&A expenses increased by $9.7 million due to overhead costs from recent acquisitions, but the company expects these costs to align with previous guidance for the year [30][31]. Q&A Session Summary Question: What are the expectations for the Oregon market in the second half of the year? - Management noted that the integration of Strata is on track, but the Oregon legislature's failure to pass a comprehensive transportation funding bill may delay paving work [39][40][41]. Question: What factors might drive lower margins in the backlog? - Management indicated that shifting revenue from higher-margin Oregon to other regions and the nature of larger projects could contribute to lower margins [46][47]. Question: How are the Strata and Albina acquisitions performing? - Both acquisitions are performing well, contributing about 8% to total revenue for the quarter, with expectations for increased contributions in the second half of the year [58][61]. Question: What is the company's approach to dynamic pricing? - The company is approximately 50% through the implementation of dynamic pricing, which has shown positive momentum and is expected to contribute to achieving the long-term EBITDA margin goal [96][98].

Financial Data and Key Metrics Changes - The company is positioned for its most profitable year in history, forecasting record revenue, net income, and adjusted EBITDA [6][9] - The first quarter results were in line with expectations, with a seasonal loss of approximately 8% of annual EBITDA, which is an increase from the historical 5% due to recent acquisitions [10][11] - The company spent approximately $8 million in the first quarter on SG&A, primarily related to acquisitions and business development activities [10][30] Business Line Data and Key Metrics Changes - Aggregate volumes are expected to increase by high single digits for the full year, despite a 9% decline in the first quarter due to lower demand in Oregon and weather impacts [26][50] - Ready mix revenue increased by 9% due to higher average selling prices and volume growth, with expectations for high teens volume growth for the full year [28] - Asphalt activity was light in the first quarter, which typically accounts for less than 5% of the full year's volume, but is expected to pick up in the second quarter [28] Market Data and Key Metrics Changes - The company has a strong backlog, with public projects representing 87% of it, and has seen increased bidding activity compared to last year [18][19] - The company is tracking 51 transportation funding bills at the state level, with significant funding approved in states like Idaho and North Dakota [16][17] - The company is experiencing pressure in private construction markets, particularly in Oregon and Montana, while seeing strength in Hawaii, California, and Texas [41][42] Company Strategy and Development Direction - The company is actively pursuing an acquisition program, having closed on Strata Corporation and evaluating additional deals [7][11] - Investments in operational improvements and competitive edge strategies are ongoing, including dynamic pricing initiatives and technology deployment [12][13] - The company is focused on maintaining a disciplined approach to bidding and project selection to optimize margins and minimize risk [19][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy and the potential for record results in 2025, despite macroeconomic uncertainties [7][9] - The company is well-positioned to benefit from infrastructure investments, with significant funding available for public projects [15][34] - Management noted that while private projects have seen some delays, they expect many to resume in the second half of the year [96] Other Important Information - The company has raised its full-year guidance, expecting consolidated revenue between $3.25 billion and $3.45 billion, and adjusted EBITDA between $530 million and $580 million [33] - SG&A expenses are expected to increase by $20 million for the full year, primarily due to acquisition-related costs and business development activities [30][60] Q&A Session Summary Question: Resiliency in private construction markets - Management noted that private construction is strong in Hawaii, California, and Texas, while facing pressure in Oregon and Montana [41][42] Question: Update on Strata integration - Integration is going well, with expectations for positive contributions to margins and overall operations [44] Question: Volumes across segments - Management indicated that aggregate volumes were down 9% in the first quarter but are expected to increase in the coming months [50][51] Question: End market mix post-acquisitions - The company remains heavily exposed to public works, with 87% of construction revenue coming from public projects [52][54] Question: SG&A breakdown for the quarter - SG&A increased by $13 million, with $8 million related to the step-up in investment and $4 million from acquisitions [62][63] Question: Impact of oil price decline on costs - Management stated that the decline in oil prices has not materially changed cost expectations across segments [86] Question: Future investment cycles - The company views the current $20 million step-up in SG&A as a one-time investment to support future growth [94] Question: Delayed private projects - Delays are primarily in private contracts, with expectations for many to resume in the third quarter [96][97]

Financial Data and Key Metrics Changes - The company is positioned for its most profitable year in history, forecasting record revenue, net income, and adjusted EBITDA [5][22] - The first quarter results were in line with expectations, with a seasonal loss of approximately 8% of annual EBITDA due to recent acquisitions [8][10] - SG&A expenses increased by $13 million compared to the prior year, primarily due to acquisition-related costs and business development activities [29][30] Business Line Data and Key Metrics Changes - Aggregate product line saw a 6% year-over-year increase in average selling price, but overall volumes were down 9% due to lower demand in Oregon and weather impacts [25][26] - Ready mix revenue increased by 9% driven by higher average selling prices and volume growth, with expectations for high teens volume growth for the full year [26][27] - Contracting services experienced higher revenues, particularly in the Mountain segment, but gross profit was lower compared to the previous year due to project types and incentives recognized [27][28] Market Data and Key Metrics Changes - The company has a strong public project backlog, representing 87% of total backlog, with increased bidding activity noted in recent months [16][17] - The West segment saw revenue and EBITDA increases, particularly in Hawaii and California, while Oregon faced decreased demand due to funding issues [19][20] - The Mountain segment is benefiting from new transportation funding in Idaho, with positive signs for future growth [20][21] Company Strategy and Development Direction - The company is actively pursuing an acquisition program, having closed on Strata Corporation and planning further deals focused on materials-led companies [6][10] - Investments in operational improvements and competitive edge strategies are expected to drive long-term profitable growth [6][12] - The company is committed to safety and operational excellence as part of its corporate culture [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy despite macroeconomic uncertainties, highlighting a resilient business model insulated from tariff impacts [6][7] - The company anticipates benefiting from significant infrastructure investment needs, with a strong funding backdrop for public projects [14][15] - Management remains optimistic about achieving record results for the full year, supported by recent acquisitions and ongoing operational improvements [22][32] Other Important Information - The company has approved $68 million for organic growth projects for the full year, with significant capital expenditures planned [30][31] - The company ended the quarter with $86 million in unrestricted cash and no borrowings on its revolver, indicating strong liquidity [32] Q&A Session Summary Question: Resiliency in private construction markets - Management noted that Hawaii, California, and Texas are showing positive activity in private construction, while Oregon and Montana are experiencing pressure [38][40] Question: Update on Strata integration - The integration of Strata is progressing well, with expectations for positive contributions to margins and overall operations [41][44] Question: Volumes across segments - Management indicated that while the first quarter saw a 9% decline in aggregate volumes, 70% of states experienced increases, and they remain confident in achieving guidance numbers [49][50] Question: End market mix post-acquisitions - The company confirmed that 87% of construction contracting revenue is from public works, with Strata's addition slightly increasing private market influence [52][53] Question: SG&A clarification - Management provided a breakdown of the $13 million increase in SG&A, attributing $8 million to the step-up in investment and $4 million to acquisition-related costs [60][62] Question: Impact of delayed private projects - Delays are primarily in private projects, with expectations for many to resume in the third quarter, particularly in the West Coast region [96][100] Question: Future investment and margin targets - The $20 million step-up in SG&A is seen as an investment in future growth, with management confident in reaching long-term margin targets [92][95]