Titan America S.A. Q1 FY2026 earnings call

• First quarter was usually the weakest, but Titan delivered solid performance with YoY improvement in results. • Florida segment had robust performance with strong infrastructure and non-residential construction participation. • Mid-Atlantic region had strong YoY improvement despite winter weather, driven by start of substantial projects and pricing/efficiency benefits. • Completed acquisition of Keystone Cement Company on May 1st, expanding geographic reach and strengthening vertically integrated footprint. • Opened Titan America Innovation Hub in Miami in April, designed to accelerate advanced materials, digital technologies, and construction solutions. • Capital expenditure in Q1 focused on increasing domestic cement and aggregates capacity, improving logistics networks, and enhancing downstream channels.

In Florida, external revenue was $253 million in Q1, essentially flat YoY. Adjusted EBITDA was $73 million, up 2.5% YoY, with margin at 28.6%. Mid-Atlantic external revenue was $145 million, up 4.2% YoY. Adjusted EBITDA was $13 million, up 16% YoY, with margin at 8.7%. Total cement volumes were broadly stable. Aggregates volumes grew 1.8%. Fly ash volumes up 12.3%. Ready-mix concrete volumes down 2.1%. Concrete block volumes up 9.7%. External pricing improved sequentially from Q4 2025. Cement pricing flat YoY. Aggregates and fly ash pricing down 0.6% and 2.4% YoY. Ready mix concrete prices up YoY. Concrete block pricing down 2.1% YoY.

• Reaffirming full year 2026 outlook. • Anticipate low single-digit revenue growth YoY with modest expansion in adjusted EBITDA margins. • Guidance does not include contribution from Keystone as focusing on integrating acquisition. • Recent oil and energy price surge due to Iran conflict introduces risks, with residential sector softness expected to continue through year with inflection point potentially delayed to 2027.

• Winter weather disruptions in mid-Atlantic region weighed on volumes. • Macroeconomic backdrop introduced incremental uncertainty. • Conflict in Iran exacerbated geopolitical uncertainty, triggering inflationary pressures with increasing fuel and energy costs. • Softness in residential sector. • Volatility in ocean freight and potential delays in cement imports.

Q: Congrats on strong quarter, question on Keystone Acquisition Program. What needs to happen to get margin up?

A: Implement game-changing synergies like optimizing costs, improving logistics, energy consumption, and bringing operational excellence.

Q: How quickly can get Keystone to good margin profile?

A: Integration team already working, anticipate details in upcoming second quarter analyst call.

Q: Impressive reiteration of guidance in inflationary backdrop, what are impactful inflations?

A: Mixed environments, some zip code area differences, look at price and volume opportunities, pass-throughs on fuel costs, alternative fuels projects in progress.

Q: On aggregates, how significant are ambitions and what makes Titan partner of choice?

A: Well-positioned aggregate producer in some markets, have ambitions to be bigger, using newer mining technologies.

Q: On cement, change in import situation and pricing expectations?

A: Some ocean freight delays and volatility, import strategy is flexible combining local production and imports, pricing increases in April in stronger markets.

Q: Question on Keystone revenue, why low realized?

A: Clinker capacity but reliability issues and capacity utilization limitations, opportunity to improve capacity utilization and margins.

Q: Energy cost, impetus for further pricing actions?

A: Industry faced with inflationary pressure necessitating price increases.

Q: Intentions on building out downstream assets around Keystone?

A: Capitalize on existing assets, integrate with nearby businesses, enhance relationships with downstream customers.

Q: CapEx needed for Keystone synergies?

A: Detailed plans to be provided in second quarter call, no high capital intensity expected