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    TTAM
    Earnings call· Jun 2026(Q2 FY26)

    Titan America SA Q2 FY26 earnings call TTAM

    Jul 28, 2026 Source

    Executive summary

    Titan America Q2 FY26 — Strong Mid-Atlantic Performance and Keystone Integration

    Titan America delivered solid Q2 FY26 results, driven by robust Mid-Atlantic performance and the strategic acquisition of Keystone Cement, which is expected to yield significant synergies. Despite temporary headwinds in Florida from maintenance outages and import disruptions, the company maintained strong financial flexibility and is focused on capitalizing on infrastructure and private nonresidential demand.

    Highlights

    5

    • Q2 revenue increased by 9.6% year-over-year to $471 million.

    • Mid-Atlantic segment revenue grew 27% to $214 million, with adjusted EBITDA up 30% to $53 million.

    • Operating cash flow for H1 2026 increased to $137 million from $108 million in H1 2025.

    • Free cash flow for H1 2026 increased to $50 million from $26 million in H1 2025.

    • Keystone Cement acquisition completed, targeting at least $30 million in annual run-rate synergies by 2029.

    Concerns

    4

    • Adjusted EBITDA margin declined by 180 bps to 21.4% in Q2, primarily due to Pennsuco outage costs.

    • Florida segment adjusted EBITDA decreased to $51 million from $62 million, with margin declining to 19.7% from 23.8%.

    • Extended maintenance shutdowns at Pennsuco and temporary import logistics challenges had an adverse direct impact of approximately $7 million in Q2.

    • Net income for Q2 decreased to $43 million from $51 million, with EPS at $0.23 compared to $0.28.

    Guidance & targets

    3
    CategoryTargetConfidence
    Full-year 2026 Revenue Growth
    High single-digit growth
    high materiality
    High
    Full-year 2026 Adjusted EBITDA Margin
    Modest decline
    high materiality
    High
    Full-year 2026 Adjusted EBITDA Margin Decline
    25 to 50 basis points
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Mid-Atlantic
    Strong performance driven by infrastructure and nonresidential construction, particularly data centers. Keystone contributed $20 million to revenue. Improved pricing and cost discipline offset higher raw material and energy costs.
    Adjusted EBITDA margin: 24.7% (vs 24.1% in Q2 2025)H1 2026 External Revenue: $359 million (up 16.7% vs $308 million in H1 2025)H1 2026 Adjusted EBITDA: $65 million (up 27% vs $52 million in H1 2025)H1 2026 Adjusted EBITDA margin: 18.2% (vs 16.7% in H1 2025)
    		$214 million27%—Adjusted EBITDA $53 million
    Florida
    Impacted by extended Pennsuco outage and import disruptions, leading to lower ready-mix concrete volumes and softer pricing. Added costs from temporarily sourcing cement and aggregates from third parties.
    Adjusted EBITDA margin: 19.7% (vs 23.8% in Q2 2025)H1 2026 External Revenue: $510 million (vs $514 million in H1 2025)H1 2026 Adjusted EBITDA: $123 million (vs $133 million in H1 2025)H1 2026 Adjusted EBITDA margin: 24.2% (vs 25.9% in H1 2025)
    		$257 million-1.6%—Adjusted EBITDA $51 million

    Operational metrics

    21
    Consolidated Revenue
    $471 millionup 9.6% YoY (vs $429 million in Q2 FY25)
    Q2 FY26

    Keystone contributed $20 million to Q2 revenue.

    Consolidated Adjusted EBITDA
    $101 millionup 1.3% YoY (vs $99 million in Q2 FY25)
    Q2 FY26
    Consolidated Adjusted EBITDA Margin
    21.4%down 180 bps YoY (vs 23.2% in Q2 FY25)
    Q2 FY26

    Reflects costs associated with the extended Pennsuco outage.

    Consolidated Adjusted EBITDA Margin
    21.1%down from 21.8% in H1 FY25
    H1 FY26
    Net Income
    $43 milliondown from $51 million in Q2 FY25
    Q2 FY26
    Diluted EPS
    $0.23down from $0.28 in Q2 FY25
    Q2 FY26
    Net Debt
    $538 million
    as of June 30, 2026

    Total debt of $574 million and cash and cash equivalents of $36 million.

    Leverage Ratio (Net Debt to TTM Adjusted EBITDA)
    1.37xup from 0.64x at beginning of year
    as of June 30, 2026

    Increase due to Keystone acquisition.

    Cement Volumes
    10%YoY increase
    Q2 FY26

    Includes Keystone's initial contribution and demand for heavy building materials in infrastructure and private nonresidential construction.

    Total Aggregate Volumes
    -1.3%YoY decrease
    Q2 FY26

    Growth in external sales offset by decline in internal consumption in Florida due to Pennsuco maintenance.

    Total Fly Ash Volumes
    12%YoY increase
    Q2 FY26

    On a low base compared to the prior year quarter.

    Ready-Mix Concrete Volumes
    2.6%YoY increase
    Q2 FY26

    Mid-Atlantic generated strong growth in nonresidential applications, while Florida volumes were impacted by project delays.

    Concrete Block Volumes
    8.3%YoY increase
    Q2 FY26

    Driven by strong alignment with top regional players.

    Cement Pricing
    -1.5%YoY decline
    Q2 FY26

    Like-for-like improvements in Mid-Atlantic offset by softness in Florida.

    Aggregate Pricing
    —
    Q2 FY26

    Declined due to diverse dynamics and product mix demand across regional markets in Florida.

    Fly Ash Pricing
    FlatYoY
    Q2 FY26
    Ready-Mix Concrete Pricing
    4.4%YoY increase
    Q2 FY26

    Driven partly by focused participation in high-growth, high-value market segments.

    Concrete Block Pricing
    -2.6%YoY decline
    Q2 FY26

    Reflecting channel and customer mix.

    Net Capital Expenditures
    $87 million
    H1 FY26

    Focused on increasing domestic cement and aggregates capacity, improving logistics, and enhancing downstream channels.

    Dividend Distribution
    $0.04
    Q2 FY26

    Approved by Board of Directors.

    Adverse Direct Impact from Florida Headwinds
    $7 million
    Q2 FY26

    Total impact from Pennsuco outage and import supply chain disruptions.

    Industry KPIs

    7
    MetricValueDetails
    Network scaleKeystone acquisition expands geographic reach
    Energy cost hedgingHigher sea freight rates
    Volume by product lineCement: 10%; Total Aggregate: -1.3%; Total Fly Ash: 12%; Ready-Mix Concrete: 2.6%; Concrete Block: 8.3%%
    Pricing by product lineCement: -1.5%; Aggregate: declined; Fly Ash: flat; Ready-Mix Concrete: 4.4%; Concrete Block: -2.6%%
    Infrastructure funding exposureVirginia data center capital
    M a pipeline bolt on acquisitionsKeystone Cement Company acquisition completed
    Segment revenue EBITDA growth by segmentMid-Atlantic: 27% revenue growth, 30% adjusted EBITDA growth; Florida: -1.6% revenue growth, -17.7% adjusted EBITDA growth%

    Deals & partnerships

    1
    Keystone Cement CompanyExpands geographic reach in Pennsylvania, Ohio, Delaware, and Maryland; strengthens vertically integrated footprint in the Mid-Atlantic region.

    Acquisition completed in Q2 FY26. Funded with a combination of cash on hand and a new term loan issued in April 2026. Synergies expected to build over a 3-year period, with the largest contribution in year 3.

    Capital programs

    1
    Fly Ash Recycling Plant at Brunner Islandunderway$30 million
    Start: under construction

    Benefit: 400,000 tons of concrete grade fly ash per year

    First-of-its-kind plant recovering fly ash directly from landfills. Complements the newly acquired Keystone plant.

    Risks & headwinds

    5
    Residential Construction SoftnessQ2 FY26, ongoing

    Continued headwinds in residential construction activity, leading to project delays and softer cement demand impacting the Florida region.

    Mitigation: Focused participation in high-growth, high-value market segments like non-residential and infrastructure in the Mid-Atlantic.

    Extended Maintenance OutagesQ2 FY26

    Scheduled extended maintenance shutdowns at the Pennsuco plant resulted in longer outages than prior year, negatively impacting Florida Q2 results. Contributed to an adverse direct impact of approximately $7 million in Q2.

    Mitigation: The Q2 outage is complete. Normal, shorter duration maintenance is still ahead in H2, but not expected to be disruptive.

    Import Logistics DisruptionsQ2 FY26

    Substantial delays in cement imports due to disruptions in overseas ports and shipping, leading to stock-outs and the need for costly third-party supply. Contributed to an adverse direct impact of approximately $7 million in Q2.

    Mitigation: Expect logistics conditions to normalize in H2 FY26. Import costs for cement were contracted for the year, but some sea freight rates are exposed in H2 and are higher than a year ago.

    Inflationary PressuresQ2 FY26, ongoing

    Higher raw material and energy costs (fuel, electricity), more significant in Florida than Mid-Atlantic.

    Mitigation: Operational excellence initiatives and successful management of price over cost.

    Potential Canadian Cement TariffsUncertain

    Discussions around tariffs on imported Canadian cement.

    Mitigation: Management is monitoring the situation and waiting to see how it plays out, as the impact on their markets is not yet clear.

    What to watch in Q3 FY26

    5

    Florida Ready-Mix Business Performance

    H2 FY26
    CurrentVolumes impacted by project delays in Q2 FY26.
    TargetBetter times ahead based on order book.

    Why it matters

    Recovery in the Florida ready-mix business is crucial for overall segment performance, which faced significant headwinds in Q2.

    Look, I think as we look at the ready-mix business that we've got, in particular, drives some of the cement volumes that [ can be pull through ], we see better times ahead for that in Florida in the second half of the year based on the order book that we have.

    Q&A highlights

    7

    Can you elaborate on cement pricing trends, especially the softness in Florida, and how you're managing price-cost given inflationary pressures?

    Mid-Atlantic pricing is robust due to non-residential and infrastructure demand, while Florida pricing is resilient but not increasing, mainly due to residential softness and Q2 specific headwinds (Pennsuco outage, import disruptions). Management states they managed price over cost well, with Mid-Atlantic margins improving despite inflationary pressures.

    “What I can say for sure is that pricing dynamics remain stable. And we see more dynamic pricing in growing regions and especially growing applications and regions, especially in the Mid-Atlantic.”

    asked by Anthony Pettinari · answered by Vassilios Zarkalis

    2 min read5 chapters

    Detailed Narrative

    01

    Keystone Cement Acquisition

    Titan America completed the acquisition of Keystone Cement Company in Q2 FY26, expanding its geographic reach into Pennsylvania, Ohio, Delaware, and Maryland. This acquisition strengthens the company's vertically integrated footprint in the Mid-Atlantic region and is expected to generate at least $30 million in annual run-rate synergies by 2029, with the largest contribution anticipated in year three as operational, commercial, and logistics initiatives take full effect.

    02

    Data Center Market Participation

    The company is actively capitalizing on the data center construction boom in Virginia, which is the world's data center capital. Titan America participates in over 50% of the 148 data centers currently under construction in its serviceable market area, with an additional 250 data centers in pre-construction in the state, indicating sustained demand for construction materials and follow-on investments in power generation and infrastructure.

    03

    Fly Ash Recycling Plant Investment

    Titan America's subsidiary, Separation Technologies (ST), is developing a first-of-its-kind fly ash recycling plant at the Brunner Island Steam Electric Station in Pennsylvania. This plant, requiring an investment of approximately $30 million, is already under construction and expected to be fully operational in Q3 FY27. It will produce about 400,000 tons of concrete-grade fly ash annually by recovering material directly from landfills, complementing the Keystone plant's product mix.

    04

    Florida Segment Headwinds

    The Florida segment faced temporary headwind📎s in Q2 FY26, including extended scheduled maintenance shutdowns at the Pennsuco cement and aggregates plant and substantial delays in cement imports due to disruptions in overseas ports and shipping. These issues led to reduced production, stock-outs, and increased costs from third-party sourcing, resulting in an adverse direct impact of approximately $7 million and impacting the segment's profitability.

    05

    Mid-Atlantic Segment Strength

    The Mid-Atlantic region demonstrated strong performance, driven by robust project activity in private nonresidential and public infrastructure investments, particularly in data centers. This led to significant volume growth and higher ready-mix concrete pricing, offsetting softness in residential demand and contributing to improved segment margins. Keystone contributed $20 million to the segment's Q2 revenue.

    AI-generated summary of the company’s earnings call. Not investment advice.