Financial Data and Key Metrics Changes - Adjusted EBITDA improved by 9% year-over-year to $660 million despite lower aggregate shipments [6][12] - Adjusted EBITDA margin expanded by 260 basis points, and cash gross profit per ton increased by 13% [6][12] - Year-to-date cash gross profit per ton reached $11.25, over 50% higher than three years ago [17] Business Line Data and Key Metrics Changes - Aggregate shipments were impacted by an estimated 2 to 3 million tons due to extreme weather conditions [7][20] - Freight-adjusted average selling prices improved by 5%, with mix-adjusted prices up by 8% [8] - Cash gross profit per ton for aggregates increased by 9% despite lower volumes [7][46] Market Data and Key Metrics Changes - Residential construction activity remains weak, with single-family housing starts and permits continuing to decline [9] - Private non-residential construction is showing signs of recovery, particularly in data centers, with over $35 billion in projects being discussed [11][12] - Public infrastructure contract awards increased by over 20% year-over-year, indicating strong demand [12][35] Company Strategy and Development Direction - The company is focused on a two-pronged growth strategy: improving organic profitability and acquiring strategic assets [6] - Continued investment in maintenance and growth capital expenditures is expected to reach approximately $700 million for the full year [15][43] - The company anticipates a strong second half of 2025, supported by improving private and public demand [16][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaffirming the full-year adjusted EBITDA guidance of $2.35 billion to $2.55 billion, citing strong backlogs and booking pace [13][22] - The company noted that improvements in both private and public demand are translating into accelerating bookings and growing backlogs [12][13] - Management highlighted the importance of weather conditions in the Southeast for future performance, with July showing normal weather patterns leading to strong shipments [21][22] Other Important Information - The company generated over $1 billion in free cash flow on a trailing twelve-month basis, which is expected to support long-term value creation for shareholders [15][106] - The company reclassified $550 million of commercial paper borrowings from long-term to short-term debt, indicating a strategy to reduce interest expenses [15] Q&A Session Summary Question: What gives confidence in reaffirming EBITDA guidance despite a tough first half? - Management noted that despite weather impacts, prices and unit margins improved, indicating strong underlying performance and confidence in the second half [20][21] Question: Are project timelines stretching out or is customer confidence improving? - Management confirmed that project timelines are improving, with backlogs and booking pace increasing across all end markets except single-family housing [28][29] Question: How is the infrastructure spending trend impacting the company? - Management indicated that infrastructure spending is strong, with significant increases in contract awards and bookings, particularly in Southeastern states [35][36] Question: What is the outlook for capital expenditures for the full year? - Management expects full-year capital expenditures to be around $700 million, lower than the initial guidance due to weather-related delays [43] Question: How does the company view pricing and profitability in the second half? - Management expressed optimism about maintaining pricing momentum and improving unit margins, despite potential impacts from product mix [55][56] Question: What is the expected impact of the proposed Union Pacific and Norfolk Southern merger? - Management does not foresee significant impacts from the merger, as the company primarily operates within local markets [62] Question: How does the recent tax legislation affect the company? - Management expects a cash tax benefit of over $40 million for the year due to new tax legislation, with potential benefits approaching $100 million [90] Question: What is the outlook for free cash flow and capital allocation? - Management indicated that strong cash generation will allow for returning cash to shareholders while maintaining flexibility for growth opportunities [106][107]

Financial Data and Key Metrics Changes - Net income for the quarter increased by 38% due to strong foreign exchange rates and lower interest expenses [13] - Free cash flow from operations was slightly over $200 million, with a year-over-year increase of 3% when adjusted for severance payments and discontinued operations [33][34] - Consolidated EBITDA margin remained resilient, slightly above the historical ten-year second quarter average, despite a significant volume decline [18] Business Line Data and Key Metrics Changes - In the EMEA region, strong volume recovery and operating leverage led to impressive results, extending four consecutive quarters of earnings recovery [12] - Consolidated prices for ready mix and aggregates increased by 12% sequentially, while cement prices remained relatively flat year-over-year [14] - In the U.S., ready mix volume adjusted for asset divestitures declined by a mid-single-digit rate, while aggregate prices increased by 5% compared to the fourth quarter of 2024 [22] Market Data and Key Metrics Changes - The Mexican market faced challenges due to difficult prior year comparisons and record precipitation levels, impacting volumes [19] - The EMEA region experienced strong demand conditions, with double-digit growth rates in the Middle East and Africa [28] - In the U.S., the residential sector showed weakness, but infrastructure projects and data centers are expected to drive demand in the second half of the year [101] Company Strategy and Development Direction - The company is focused on operational excellence and sustainable shareholder returns, with a roadmap to streamline operations and empower regional teams [5][6] - A strategic shift towards prioritizing small to midsize M&A transactions in the U.S. is planned, aiming for immediate positive impacts on earnings [9] - The company aims to progressively grow its shareholder return program, including potential dividend increases and opportunistic share buybacks [48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the year, expecting improvements in volumes in Mexico as the government accelerates infrastructure projects [21] - The company anticipates a tailwind of about $60 million in consolidated EBITDA if foreign exchange rates remain stable [38] - Management acknowledged the volatility and lack of visibility in key markets but remains confident in self-help measures taken to date [38] Other Important Information - The company expects EBITDA savings from Project Cutting Edge to reach $200 million this year, up from an initial expectation of $150 million [10] - Energy costs on a per ton of cement basis declined by 15% in the first half, driven by lower power and fuel prices [34] - The company has a comfortable debt maturity schedule with no immediate need to access capital markets [36] Q&A Session Summary Question: Additional savings from Project Cutting Edge - Management indicated that the additional $50 million in savings mainly comes from overhead headcount reductions, with confidence in achieving the $200 million target [42][43] Question: Shareholder return platform - The company clarified that building a shareholder return platform involves capital allocation decisions focused on shareholder returns, including potential dividend increases and share buybacks [48][49] Question: Free cash flow generation levers - Management highlighted that free cash flow generation will be driven by various factors, including reduced CapEx, cutting edge savings, and operational excellence [51][56] Question: New corporate structure and free cash flow conversion - Management explained that the new corporate structure aims to decentralize operational excellence initiatives, which will support improved free cash flow conversion [59][62] Question: Pricing trends in Mexico and the U.S. - Management confirmed a price increase in Mexico effective July 1, expecting further improvements, while in the U.S., cement prices are not expected to increase significantly [72][74] Question: EMEA region performance outlook - Management expressed excitement about the EMEA region, anticipating strong growth driven by infrastructure investments and potential reconstruction efforts in Ukraine [78][80]