Q4 2025 Titan America SA Earnings Call

March 17, 2026

Speaker #1: Greetings. Welcome to Titan America's fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Speaker #1: If anyone should require operator assistance during the conference, please press star and the number 0 on your telephone keypad. Please note, this conference is being recorded.

Speaker #1: I'll now turn the conference over to Daniel Scott of Investor Relations. Thank you, and you may begin.

Speaker #2: Thank you, operator, and good afternoon to everyone on the line. Thank you for joining us for Titan America's fourth quarter and full year 2025 conference call.

Speaker #2: I am joined by Bill Zarkalis, President and Chief Executive Officer of Titan America, and Larry Wilk, Chief Financial Officer. Before we begin, I would like to remind you that earlier this afternoon we released Titan America's fourth quarter and full year 2025 results, which are available on our website at ir.titanamerica.com.

Speaker #2: Along with today's accompanying slide presentation, this call is being recorded, and a replay will be made available on our Investor Relations website. During the call, we will present both IFRS and non-IFRS financial measures.

Speaker #2: The most directly comparable IFRS measures and reconciliations for non-IFRS measures are available in today's press release and accompanying slides. Certain statements on today's call may be deemed to be forward-looking statements; such statements can be identified by terms such as 'expected,' 'to leave,' 'intend,' 'anticipate,' and 'may,' among others, or by

Speaker #1: The use of the future tense . You should not place undue reliance on forward looking statements . Actual results may differ materially from these forward looking statements , and we do not undertake any obligation to update any forward looking statements we make today For more information about factors that may cause actual results to differ materially from forward looking statements , please refer to the press release we issued today , as well as the risks and uncertainties described in our SEC filings .

Speaker #1: I will now turn the call over to Bill . Please go ahead Thank you . Dan . Good afternoon everyone , and thank you for joining us today for Titan America S fourth quarter and full year 2025 financial results .

Speaker #1: Call Before I get into the results , I want to take a moment to welcome Michael Bennett , who recently joined Titan America as vice President , Investor Relations and corporate Communications We're very pleased to have him on the team .

Speaker #1: If you turn to slide four in the presentation , I'd like to begin by highlighting what rather 2025 , a historic , transformative year for Titan America marked by strategic milestones in 2025 .

Speaker #1: Titan America joined the roster of companies that trade in the New York Stock Exchange following a strong period of 11 years of achieving above market performance and demonstrating we are passionate about providing innovative building materials and solutions that protect life and property , improve the quality of life .

Speaker #1: Generate economic prosperity and connect communities. Equally remarkable was the performance in 2025 in a construction materials market that was affected by soft demand and economic uncertainty. Titan America delivered all-time high revenue, adjusted EBITDA, net income, and operating cash flows.

Speaker #1: This success reflects the strength of our business model , disciplined decision making , skillful execution across our operations , and an unwavering focus on serving our customers .

Speaker #1: Titan America can grow and perform organically, even in challenging environments. At the end of the year, we concluded negotiations to acquire the Keystone Cement Company and signed an agreement in early January 2026.

Speaker #1: The strategic initiative marks a foundational investment in Titan America's new era of growth. It represents an important step forward in advancing our long-term growth strategy and reflects our disciplined approach to expansion through M&A. Coming out to the specifics, the year presented a mixed demand environment.

Speaker #1: The residential sector remained challenging for yet another year Throughout 2025 , due to persistent elevated mortgage rates and low housing affordability in contrast , robust demand from public sector projects driven by the infrastructure , investment and Jobs Act and strong private non-residential construction , particularly in data centers , manufacturing , logistics facilities and energy projects supported our performance .

Speaker #1: Our markets continue to benefit from population growth and business migration, particularly in Florida and the Carolinas, and the data center market remained exceptionally strong, with Virginia continuing to represent the largest hyperscale data center market in the world.

Speaker #1: In the fourth quarter . We achieved 4% year over year revenue growth and 12% year over year adjusted EBITDA improvement for the full year .

Speaker #1: We delivered record revenues, up approximately 2%, and record adjusted EBITDA of $390 million. This represented a 75 basis point improvement in our adjusted EBITDA margin, demonstrating the inherent benefit of our vertically integrated business model and our core efficiency, despite the challenging market and macro environment.

Speaker #1: For the full year , our Florida business segment delivered strong results with solid infrastructure and private non construction demand offsetting a soft residential end market Our investments increased aggregate capabilities and of initiatives helped deliver record full year adjusted EBITDA in 2025 , reflecting a disciplined execution during the year as well as the benefits of our strategic capacity investments .

Operator: Greetings. Welcome to Titan America's Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and the number zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Daniel Scott of Investor Relations. Thank you, and you may begin.

Operator: Greetings. Welcome to Titan America's Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A Q&A session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and the number zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Daniel Scott of Investor Relations. Thank you, and you may begin.

Speaker #1: The Mid-Atlantic business segment was impacted by a combination of tariffs and soft demand in Metro New York and New Jersey . The only regions where we not operate and integrated business model , as well as adverse weather impacting the Mid-Atlantic resilient pricing growth in infrastructure , data centers and private non-residential investment , as self-help from cost initiatives partially mitigated the impact from headwinds in the region .

Daniel Scott: Thank you, operator, and good afternoon to everyone on the line. Thank you for joining us for Titan America's Q4 and full year 2025 conference call. I am joined by Bill Zarkalis, President and Chief Executive Officer of Titan America, and Larry Wilt, Chief Financial Officer. Before we begin, I would like to remind you that earlier this afternoon we released Titan America's Q4 and full year 2025 results, which are available on our website at ir.titanamerica.com, along with today's accompanying slide presentation. This call is being recorded, and a replay will be made available on our investor relations website. During the call, we will present both IFRS and non-IFRS financial measures. The most directly comparable IFRS measures and reconciliations for non-IFRS measures are available in today's press release and accompanying slides. Certain statements on today's call may be deemed to be forward-looking statements.

Speaker #1: Larry will provide further detail on the segment's performance and our capital investments for 2026 . Later on , let's move now to slide five .

Speaker #1: As communicated, we have entered into an agreement to acquire the Keystone Cement Company in Bath, Pennsylvania, expanding our geographic reach on the eastern coast of our country, while strengthening our vertically integrated footprint in the region.

Speaker #1: The transaction will add to our domestic cement production capacity . It is synergistic to our existing operations and depending on acquisition , demonstrates a disciplined approach to creating M&A .

Speaker #1: And we believe positions us to capitalize on powerful secular growth trends in the region Keystone is a modest facility with approximately 990,000 short tons of current clinker capacity and is well positioned to serve a greater than 6 million short term addressable market across Pennsylvania , Ohio , Maryland , and Delaware These are markets where we have limited , if any , presence currently Ethan's mineral assets are expected to support more than 50 years of cement production capacity , and the site presents meaningful future commercial aggregates opportunities that fits squarely within our growth playbook The logistics and customer service network synergies with our existing operations are compelling .

Daniel Scott: Such statements can be identified by terms such as expect, believe, intend, anticipate, and may, among others, or by the use of the future tense. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today, as well as the risks and uncertainties described in our SEC filings. I will now turn the call over to Bill. Please go ahead.

Speaker #1: The Keystone is approximately 75 miles from our Essex Marine Hub, and approximately 200 miles from the Metro DC area, creating strong interconnectivity that we believe will enhance our strategic supply chain and customer service capabilities across the Mid-Atlantic. This acquisition adds to our domestic production capacity at what we believe is an attractive valuation relative to scarce, high-cost greenfield or brownfield investment alternatives.

Bill Zarkalis: Thank you, Dan. Good afternoon, everyone, and thank you for joining us today for Titan America's Q4 and full year 2025 financial results call. Before I get into the results, I want to take a moment to welcome Michael Bennett, who recently joined Titan America as Vice President, Investor Relations and Corporate Communications. We're very pleased to have him on the team. If you turn to slide 4 in the presentation, I'd like to begin by highlighting what rendered 2025 a historic, transformative year for Titan America marked by strategic milestones.

Speaker #1: The transaction is subject to regulatory approval and is currently under review. We believe it is strongly pro-competitive, and we look forward to providing updates in the near future. Slide six.

Bill Zarkalis: In 2025, Titan America joined the roster of companies that trade in the New York Stock Exchange following a strong period of 11 years of achieving above-market performance and demonstrating we are passionate about providing innovative building materials and solutions that protect life and property, improve the quality of life, generate economic prosperity, and connect communities. Equally remarkable was our performance in 2025. In a construction materials market that was affected by soft demand and economic uncertainty, Titan America delivered all-time high revenue, Adjusted EBITDA, net income, and operating cash flows. This success reflects the strength of our business model, disciplined decision-making, skillful execution across our operations, and an unwavering focus on serving our customers. Titan America can grow and outperform organically even in challenging environments.

Speaker #1: Now it showcases a selection of key projects we participated in during the fourth quarter across both business segments. As we have shared in the past.

Speaker #1: These projects illustrate both the breadth of our market reach and our technical capabilities in providing specialized solutions across diverse construction sectors. I'd like to highlight a few examples.

Speaker #1: At the top left of the slide, we have the Bentley Residences in Sunny Isles Beach in Miami. This is a more than 60-story, ultra-luxury oceanfront condominium tower with more than 200 residences.

Speaker #1: The foundation work alone is over 23,000yd³ of concrete . The largest in Florida history , supporting significant demand for structural concrete and building materials during construction The next photo to the right shows the job site at the Kennedy Space Complex , supporting next generation Starship missions , including a new launch tower and a dual pad knowledge facility .

Bill Zarkalis: At the end of the year, we concluded negotiations to acquire the Keystone Cement Company and signed an agreement in early January 2026. This strategic initiative marks a foundational investment in Titan America's new era of growth, represents an important step forward in advancing our long-term growth strategy, and reflects our disciplined approach to expansion through M&A. Coming now to the specifics. The year presented a mixed demand environment. The residential sector remained challenging for yet another year throughout 2025 due to persistently elevated mortgage rates and low housing affordability. In contrast, robust demand from public sector projects driven by the Infrastructure Investment and Jobs Act and strong private non-residential construction, particularly in data centers, manufacturing, logistics facilities, and energy projects supported our performance.

Speaker #1: The expansion will establish the Florida Space Coast as a major operational hub for Starship missions , significantly increasing capacity for commercial and government space missions The multi-year project is expected to require approximately 120,000yd³ of concrete , supporting substantial , no construction activity and materials demand across the Florida Space Coast region On the bottom left of the side , we have powerhouse 95 .

Speaker #1: This project is a large scale data center campus development near Fredericksburg in Virginia , located along the I-95 corridor . The project will be built on approximately 145 acres and is designed to support up to 800MW of power capacity , making it one of the largest emerging data center developments in the region .

Speaker #1: Powerhouse 95 is intended to serve hyperscale technology and cloud computing companies, expanding the North Virginia data center ecosystem southward and supporting Norcom construction projects.

Bill Zarkalis: Our markets continue to benefit from population growth and business migration, particularly in Florida and the Carolinas, and the data center market remain exceptionally strong, with Virginia continuing to represent the largest hyperscale data center market in the world. In Q4, we achieved 4% year-over-year revenue growth and 12% year-over-year Adjusted EBITDA improvement. For the full year, we delivered record revenues up approximately 2% and record Adjusted EBITDA of $390 million. This represented a 75 basis points improvement in our Adjusted EBITDA margin, demonstrating the inherent benefit of our vertically integrated business model and our cost efficiency despite a challenging market and macro environment. For the full year, our Florida business segment delivered strong results with solid infrastructure and private non-residential construction demand offsetting a soft residential end market.

Speaker #1: I will now provide a more detailed breakdown of our financial results and business segment performance, Larry.

Speaker #2: Thank you , Bill , and good afternoon , everyone . Moving to slide seven . Let me share an overview of our fourth quarter and full year 2025 financial highlights .

Speaker #2: In 2025, weather played a meaningful role in our results, particularly in the first half of the year. We experienced harsh winter conditions in Q1 across our Mid-Atlantic region and saw continued adverse weather in Q2. Conditions improved by the middle of the year, enabling strong volume recovery in Q3, and our fourth quarter results also benefited from a favorable comparison to the hurricane-disrupted fourth quarter of 2020.

Speaker #2: For for the fourth quarter , revenue was $406 million , an increase of 4% compared to $390 million in Q4 2020 . For .

Speaker #2: Net income for the quarter was $44 million , an increase of 19% compared to $37 million in the prior year period Adjusted EBITDA for the quarter was $94 million , compared to $84 million in the prior year quarter , an increase of approximately 12% .

Speaker #2: Our Q4 adjusted EBITDA margin was 23.1% , up from 21.4% in Q4 2020 . For reflecting strong operational execution as we closed out the year for the full year , we delivered revenue of $1.66 billion , up 1.8% compared to $1.63 billion in 2020 .

Bill Zarkalis: Our investments in increased aggregates capabilities and our cost initiatives helped deliver record full-year Adjusted EBITDA in 2025, reflecting our disciplined execution during the year as well as the benefit of our strategic capacity investments. The Mid-Atlantic business segment was impacted by a combination of tariffs and soft demand in Metro New York and New Jersey, the only regions where we do not operate an integrated business model, as well as adverse weather impact in the Mid-Atlantic. Resilient pricing, growth in infrastructure, data centers, and private non-residential investment, as well as self-help from cost initiatives, partially mitigated the impact from the headwinds in the region. Larry will provide further detail on the segment's performance and our capital investments for 2026 later on. Let's move now to slide 5.

Speaker #2: For revenue growth was driven primarily by product pricing improvements for aggregates and ready mix concrete , as well as increased aggregate sales volumes , partially offset by lower sales volumes for cement and concrete block Reflecting ongoing softness in the residential market .

Speaker #2: Net income for the full year was $185 million, an increase of 12% compared to $166 million in the prior year. Adjusted EBITDA was $390 million, an increase of approximately 5% compared to $370 million in 2020.

Speaker #2: For our adjusted EBITDA margin expanded to 23.4% , up 75 basis points from 22.7% in 2024 . This margin expansion reflects the benefits of our vertically integrated model .

Bill Zarkalis: As communicated, we have entered into an agreement to acquire the Keystone Cement Company in Bath, Pennsylvania, expanding our geographic reach in the eastern coast of our country while strengthening our vertically integrated footprint in the region. This transaction will add to our domestic cement production capacity. It is synergistic to our existing operations, and this pending acquisition demonstrates a disciplined approach to value creating M&A, and we believe positions us to capitalize on powerful secular growth trends in the region. Keystone is a modern cement facility with approximately 990,000 short tons of current clinker capacity and is well-positioned to serve a greater than 6 million short ton addressable market across Pennsylvania, Ohio, Maryland, and Delaware. These are markets where we have limited, if any, presence currently.

Speaker #2: Our strategic capacity investments, particularly in aggregates, and effective cost management throughout the year. In Q4, operating cash flow was $81 million, compared to $51 million in the prior year quarter.

Speaker #2: For the full year 2025 delivered a record operating cash flow of $295 million , compared to $248 million in 2020 . For after net capital expenditures of $43 million , free cash flow was $38 million in Q4 2025 , compared to $27 million in Q4 2020 .

Speaker #2: For the net capital expenditures were $24 million for the full year, free cash flow was $132 million, after net capital expenditures of $163 million.

Speaker #2: Compared to $111 million after net capital expenditures of $137 million in 2020 . For . As I will expand upon shortly , our net leverage ratio further improved to 0.64 times at year end 2025 .

Speaker #2: Turning to slide eight . Let me walk you through our sales volume performance by Product line fourth quarter showed improved volume performance compared to the prior year quarter , which had been impacted by hurricane activity Cement volumes increased 0.2% compared to fourth quarter of 2020 .

Bill Zarkalis: Keystone's mineral assets are expected to support more than 50 years of cement production capacity, and the site presents meaningful future commercial aggregates opportunities that fit squarely within our growth playbook. The logistics and customer service network synergies with our existing operations are compelling. The Keystone plant is approximately 75mi from our Essex Marine hub and approximately 200mi from the Metro DC area, creating strong interconnectivity that we believe will enhance our strategic supply chain and customer service capabilities across the Mid-Atlantic. This acquisition adds to our domestic production capacity at what we believe is an attractive valuation relative to scarce high-cost greenfield or brownfield investment alternatives. The transaction is subject to regulatory approval and is currently under review. We believe it is strongly pro-competitive, and we look forward to providing updates in the near future.

Speaker #2: For reflecting improvements in Florida , driven by strong private non-residential construction and infrastructure demand , partially offset by the decline in Mid-Atlantic region aggregates volumes showed strong growth of 10.3% in the quarter , benefiting from the expanded production capacity in Florida Flash was up 23.2% on increased utility generation , while mixed volumes increased modestly with 0.6% growth .

Speaker #2: Concrete block volumes increased 9.8% in the quarter compared to the hurricane impacted prior year quarter For the full year 2025 , our cement volumes decreased by 2.4% as continued weakness in the residential sector weighed on demand across our markets This decline was partially mitigated by stronger demand from infrastructure and private non-residential including data centers and commercial development .

Speaker #2: We also saw strong performance in other product lines, with aggregate volumes increasing by 15.7%, supported by our strategic investments and expanded production capacity.

Bill Zarkalis: At slide six now, it showcases a selection of key projects we participated in during Q4 across both business segments. As we have shared in the past, these projects illustrate both the breadth of our market reach and our technical capabilities in providing specialized solutions across diverse construction sectors. I'd like to highlight today a few examples. At the top left of the slide, we have the Bentley Residences in Sunny Isles Beach in Miami. This more than 60-story ultra-luxury oceanfront condominium tower with more than 200 residences. The foundation work alone is requiring over 23,000 cubic yards of concrete, the largest in Florida history, supporting significant demand for structural concrete and building materials during construction. The next photo to the right shows the job site at the Kennedy Space Center, supporting next generation Starship missions, including a new launch tower and a dual pad launch facility.

Speaker #2: Flash volumes grew by 20.9% from a low base, while concrete volumes grew modestly by 0.2%. Concrete block volumes declined 2.1% year over year.

Speaker #2: Turning to slide nine . Cement pricing in the fourth quarter was essentially flat , while aggregates increased 2.1% year over year Ready mix concrete pricing improved 0.9% , concrete pricing and pricing declined by approximately 2% for the full year 2025 , cement pricing remained resilient on a like for like basis .

Speaker #2: Declined modestly by 0.4% . Impacted primarily by unfavorable product and geographic mix aggregates . Pricing increased 2.8% , reflecting strong demand growth , while flash pricing increased 5.6% .

Speaker #2: Ready mix concrete pricing improved 1.2% , while concrete block pricing declined 1.7% . Impacted by softness in a single family residential market and elevated regional capacity Looking at slide ten , our Florida business segment delivered outstanding results in the fourth quarter and record performance for the year .

Speaker #2: Fourth quarter. External revenue was $247 million, an increase of 5.1% compared to $235 million in the fourth quarter of 2020. This was driven by higher volumes in cement and aggregates. Concrete block forms also improved from 2024.

Bill Zarkalis: The expansion will establish the Florida Space Coast as a major operational hub for Starship missions, significantly increasing capacity for commercial and government space missions. The multi-year project is expected to require approximately 120,000 cubic yards of concrete, supporting substantial non-residential construction activity and materials demand across the Florida Space Coast region. On the bottom left of the slide, we have PowerHouse 95. This project is a large scale data center campus development near Fredericksburg in Virginia, located along the I-95 corridor. The project will be built on approximately 145 acres and is designed to support up to 800 megawatts of power capacity, making it one of the larger emerging data center developments in the region. PowerHouse 95 is intended to serve hyperscale technology and cloud computing companies, expanding the Northern Virginia data center ecosystem southward and supporting non-residential construction projects.

Speaker #2: Hurricane affected quarter and Florida segment adjusted EBITDA of $65 million in the fourth quarter , and increase of 22.5% , compared to $53 million in the fourth quarter of 2024 , primarily due to productivity improvements and the impact of higher sales volumes as compared to hurricane prior year quarter Florida's adjusted EBITDA margin expanded to 26.1% , up from 22.4% in the fourth quarter of 2020 .

Speaker #2: For the full year, Florida business segment revenue was $1.2 billion, an increase of 2.7% from $998 million in 2020. For the full year, segment adjusted EBITDA was $279 million, an increase of 11.6% from $250 million in 2020.

Speaker #2: For segment adjusted EBITDA margin expanded to 27.2% in 2025 , from 25% in 2020 . Four and improvement of 217 basis points . Looking ahead , we expect the forward market to benefit from strong underlying long term fundamentals , population growth and business migration continued to support construction demand and infrastructure investments through projects funded by the moving Florida Forward Program and Iija .

Bill Zarkalis: Larry will now provide a more detailed breakdown of our financial results and business segment performance. Larry.

Larry Wilt: Thank you, Bill, and good afternoon, everyone. Moving to slide seven, let me share an overview of our Q4 and full year 2025 financial highlights. In 2025, weather played a meaningful role in our results, particularly in the first half of the year. We experienced harsh winter conditions in Q1 across our Mid-Atlantic region and saw continued adverse weather in Q2. Conditions improved by the middle of the year, enabling strong volume recovery in Q3, and our Q4 results also benefited from favorable comparison to the hurricane-disrupted Q4 of 2024. For the Q4, revenue was $406 million, an increase of 4% compared to $390 million in Q4 2024. Net income for the quarter was $44 million, an increase of 19% compared to $37 million in the prior year period.

Speaker #2: While single-family residential construction remains challenged, the housing deficit in Florida represents a significant long-term demand, as shown on slide 11.

Speaker #2: Let me discuss our Mid-Atlantic business segment performance for the fourth quarter . Mid-Atlantic external revenue was $159 million , an increase of 3% from $154 million in the fourth quarter of 2024 , with volume growth supported by the release of Project Order Book and favorable weather conditions relative to the prior year quarter Mid-Atlantic segment adjusted EBITDA was 32 million in the fourth quarter , compared to $34 million in the fourth quarter of 2020 .

Speaker #2: For a decline of 5.4%, with segment adjusted EBITDA margin of 20.4% compared to 22.3% in the prior year quarter. For the full year, revenue was $640 million, up 0.8% from $635 million in 2020.

Speaker #2: For segment adjusted EBITDA, it was $120 million, compared to $135 million in 2020 Q4. That is a decline of 10.6%, with segment adjusted EBITDA margin of 18.8% compared to 21.2% in 2024.

Larry Wilt: Adjusted EBITDA for the quarter was $94 million, compared to $84 million in the prior year quarter, an increase of approximately 12%. Our Q4 adjusted EBITDA margin was 23.1%, up from 21.4% in Q4 2024, reflecting strong operational execution as we closed out the year. For the full year, we delivered revenue of $1.66 billion, up 1.8% compared to $1.63 billion in 2024. Revenue growth was driven primarily by product pricing improvements for aggregates and ready-mix concrete, as well as increased aggregate sales volumes, partially offset by lower sales volumes for cement and concrete block, reflecting the ongoing softness in the residential market.

Speaker #2: As we mentioned throughout the year, in Mid-Atlantic segments, 2025 reflected three distinct headwinds—soft demand in Metro New York and New Jersey markets.

Speaker #2: Adverse weather in the first half of the year that suppressed volumes across Virginia and the Carolinas , and higher raw material costs , including those from tariffs that were not fully offset by price increases Looking ahead to 2026 , infrastructure demand remains high and data center construction remains robust in both scale and pace in markets we serve .

Speaker #2: While tariffs remain in effect , they are expected to represent a smaller year over year headwind in 2026 . Despite the challenges of 2025 .

Larry Wilt: Net income for the full year was $185 million, an increase of 12% compared to $166 million in the prior year. Adjusted EBITDA was $390 million, an increase of approximately 5% compared to $370 million in 2024. Our adjusted EBITDA margin expanded to 23.4%, up 75 basis points from 22.7% in 2024. This margin expansion reflects the benefits from our vertically integrated model, our strategic capacity investments, particularly in aggregates and effective cost management throughout the year. In Q4, operating cash flow was $81 million, compared to $51 million in the prior year quarter.

Speaker #2: Our expectations for 2026 are constructive, and we see clear reason to be optimistic for improved performance in the Mid-Atlantic region. Now, turning to the balance sheet and cash flows on slides 12 and 13.

Speaker #2: As of December 31, 2025, we had $211.8 million in cash and cash equivalents, and total debt of $462.4 million. Our net debt position was $250.7 million, representing a leverage ratio of 0.64 times for 2025.

Speaker #2: Adjusted EBITDA and improvement from 0.71 times at the end of the third quarter and 1.21 times at the end of 2024. This strong leverage profile provides significant balance sheet capacity to pursue strategic growth opportunities, while maintaining our disciplined approach to capital allocation.

Larry Wilt: For the full year 2025, we delivered a record operating cash flow of $295 million compared to $248 million in 2024. After net capital expenditures of $43 million, free cash flow was $38 million in Q4 2025, compared to $27 million in Q4 2024, when net capital expenditures were $24 million. For the full year, free cash flow was $132 million after net capital expenditures of $163 million, compared to $111 million after net capital expenditures of $137 million in 2024. As I will expand upon shortly, our net leverage ratio further improved to 0.64x at year-end 2025.

Speaker #2: As demonstrated by the previously announced agreement to acquire the Keystone Cement Company. Following regulatory approval, operating cash flow for the year was $295 million, and free cash flow was $132 million.

Speaker #2: After $163 million in net CapEx investments indicated on page 13. Our next meaningful debt maturity is in July 2027. Slide 14 shows our CapEx profile for 2025 and 2024.

Speaker #2: Net capital expenditures in 2025 were $163 million and focused on several key areas. Among them, investments to expand domestic cement plants in line with our previously communicated strategic plan, investments and vertical integration for ready-mix, concrete, and concrete block facilities that meet customer needs and represent a channel to market for our upstream construction materials, including cement. We also expanded access to reserves near our Roanoke cement plant and added an additional dragline in Florida.

Larry Wilt: Turning to slide 8, let me walk you through our sales volume performance by product line. The Q4 showed improved volume performance compared to the prior-year quarter, which had been impacted by hurricane activity. Cement volumes increased 0.2% compared to the Q4 of 2024, reflecting improvements in Florida, driven by strong private non-residential construction and infrastructure demand, partially offset by the decline in Mid-Atlantic region. Aggregates volumes showed strong growth of 10.3% in the quarter, benefiting from the expanded production capacity in Florida. Fly ash was up 23.2% on increased utility generation, while ready-mix volumes increased modestly with 0.6% growth. Concrete block volumes increased 9.8% in the quarter compared to the hurricane-impacted prior-year quarter.

Speaker #2: Aggregates driving reliability and operational excellence on slide . I'll remind you of our capital allocation strategy . We remain focused on three key priorities investing in the business , including organic growth opportunities , pursuing strategic M&A , and providing returns to shareholders , all while maintaining a healthy net leverage profile in 2026 , our planned organic growth investments include innovative mining approaches at our aggregate production facility in Miami , development , permitting , and construction of our previously announced precast lintel manufacturing facility in Florida .

Speaker #2: Completion of our expanded, processed, engineered fuel investments in our Miami cement plant investments and operations, and efficiency of our marine import terminals in Virginia and New Jersey.

Speaker #2: Expansion of our rail terminal network in Florida, enhancing our aggregate distribution capabilities. Investments to increase our cement grinding capacity, along with our previously announced plans and our vertically integrated investments in ready-mix, concrete, and concrete block facilities to support upstream volumes and returns.

Larry Wilt: For the full year 2025, our cement volumes decreased by 2.4% as continued weakness in the residential sector weighed on demand across our markets. This decline was partially mitigated by stronger demand from infrastructure and private non-residential construction, including data centers and commercial development. We also saw stronger performance in our other product lines, with aggregates volumes increasing by 15.7%, supported by our strategic investments and expanded production capacity. Fly ash volumes grew by 20.9% from a low base, while ready-mix concrete volumes grew modestly by 0.2%. Concrete block volumes declined 2.1% year-over-year. Turning to slide nine. Cement pricing in Q4 was essentially flat, while aggregates increased 2.1% year-over-year.

Speaker #2: I'd also like to announce that earlier today, our Board of Directors approved an issue premium distribution of $0.04 per share, payable on May 8, 2026.

Speaker #2: Shareholders of record on April 20, 2026. With that, I'll turn it back to Bill for his closing remarks.

Speaker #1: Thank you , Larry Let me say that in conclusion , 2025 was a record year for Titan America . Despite continued softness in residential sector tariffs and a number of challenges in the macro and geopolitical backdrop , we are proud of our strong financial performance in our first year as a public company , which reflects the effectiveness of our unique business model and the dedication of our team Now to our 2026 outlook on slide 16 .

Larry Wilt: Ready-mix concrete pricing improved 0.9%, while concrete block pricing and fly ash pricing declined by approximately 2%. For the full year 2025, cement pricing remained resilient on a like-for-like basis, declining modestly by 0.4%, impacted primarily by unfavorable product and geographic mix. Aggregates pricing increased 2.8%, reflecting strong demand growth, while fly ash pricing increased 5.6%. Ready-mix concrete pricing improved 1.2%, while concrete block pricing declined 1.7%, impacted by softness in the single-family residential market and elevated regional capacity. Looking at slide 10. Our Florida business segment delivered outstanding results in Q4 and record performance for the year.

Speaker #1: In 2026, we expect the softness in the residential sector to continue. The recent surge in oil and energy prices introduces additional risks in an already complex and uncertain economic backdrop. Based on current market dynamics, with fears of inflation fueled by high energy costs, it seems that mortgage rates will remain broadly at current elevated levels and hold the probability low as a result, in 2026.

Speaker #1: We believe investment in the residential sector may be stabilizing at current lower levels, with a much-anticipated residential sector inflection point potentially being pushed into 2027.

Larry Wilt: Q4 external revenue was $247 million, an increase of 5.1% compared to $235 million in Q4 2024, driven by higher volumes in cement and aggregates. Concrete block volumes also improved from 2024's hurricane affected quarter, and the Florida segment Adjusted EBITDA was $65 million in Q4, an increase of 22.5% compared to $53 million in Q4 2024, primarily due to productivity improvements and the impact of higher sales volumes as compared to the hurricane impacted prior year quarter. Florida's Adjusted EBITDA margin expanded to 26.1%, up from 22.4% in Q4 2024.

Speaker #1: We continue residential softness in mind . Our guidance for 2026 on a like for like basis anticipates low single digit revenue growth compared to 2025 , with modest expansion in our adjusted EBITDA margins This outlook reflects our leading positions in our key markets , operational efficiencies , and the ongoing benefits of our strategic investments .

Speaker #1: We remain focused on executing our growth blueprint in the years ahead. As we look to 2026 and beyond, we are excited about the strong growth opportunities ahead.

Speaker #1: The market where we operate are the beneficiaries of significant tailwinds , including infrastructure investment , manufacturing , reshoring and onshoring . Emerging trends in resilient organization and overall construction technology .

Larry Wilt: For the full year, the Florida business segment revenue was $1.02 billion, an increase of 2.7% from $998 million in 2024. Full year segment Adjusted EBITDA was $279 million, an increase of 11.6% from $250 million in 2024. Segment Adjusted EBITDA margin expanded to 27.2% in 2025 from 25% in 2024, an improvement of 217 basis points. Looking ahead, we expect the Florida market to benefit from strong underlying long-term fundamentals. Population growth and business migration continue to support construction demand and infrastructure investments through projects funded by the Moving Florida Forward program and IIJA. While single-family residential construction remain challenged, the structural housing deficit in Florida represents a significant long-term demand tailwind.

Speaker #1: We continue to innovate and expand our product offerings , particularly focusing on meeting the evolving needs of our customers for sustainable , high performance products , services and solutions Our investments in new technologies and digital transformation are yielding tangible results .

Speaker #1: In terms of operational efficiency , cost reduction , and enhanced customer service . The proposed foundational acquisition of the Keystone Cement Company marks an important milestone in our journey expanding our geographical footprint into Pennsylvania and Ohio , adding substantial cement production capacity , further strengthening our Mid-Atlantic positioning .

Speaker #1: While reinforcing our commitment to unlocking significant value for all our stakeholders in the quarters and years ahead, before we open the call for questions, I want to express my sincere gratitude to all our Titan America team members. The dedication to safety, operational excellence, and to serving our customers with care and quality every single day is what makes this company work. I'm proud of what they accomplished in 2025.

Larry Wilt: On slide 11, let me discuss our Mid-Atlantic business segment performance. For Q4, Mid-Atlantic external revenue was $159 million, an increase of 3% from $154 million in Q4 2024, with volume growth supported by the release of project order book and favorable weather conditions relative to the prior year quarter. Mid-Atlantic segment Adjusted EBITDA was $32 million in Q4 compared to $34 million in Q4 2024, a decline of 5.4% with segment Adjusted EBITDA margin of 20.4% compared to 22.3% in the prior year quarter. For the full year, Mid-Atlantic revenue was $640 million, up 0.8% from $635 million in 2024.

Speaker #1: With that, I'll turn the call over to the operator for the Q&A session. Operator.

Speaker #3: Thank you. We will now be conducting the question and answer session. If you would like to ask a question, please press star and the number one on your telephone keypad.

Speaker #3: A confirmation tone will indicate your line is in question. You may press star and the number two (*2). If you would like to remove your question from the queue, for participants using speaker equipment, it may be necessary to pick up your handset before pressing the keys. One moment while we poll for questions. Our first question comes from Anthony Penari with Citigroup.

Larry Wilt: Full year segment Adjusted EBITDA was $121 million compared to $135 million in 2024, a decline of 10.6% with segment Adjusted EBITDA margin of 18.8% compared to 21.2% in 2024. As we mentioned throughout the year, our Mid-Atlantic segment's 2025 performance reflected three distinct headwinds. Soft demand in the metro New York and New Jersey markets, adverse weather in the first half of the year that suppressed volumes across Virginia and the Carolinas, and higher raw material costs, including those from tariffs, that were not fully offset by product price increases.

Speaker #3: You may proceed with your question.

Speaker #4: Hi, this is Asher on for Anthony. Thanks for taking my question. I was just wondering if you could walk through a little more detail.

Speaker #4: Some of the puts and takes driving the guide for 26 . I mean , you talked already about the push out of kind of recovering to 2027 , but just on the infrastructure and private non-res side of the business , how do you compare your expectations now versus three months ago ?

Speaker #4: And then also, they may be able to break out the guide for revenue between price and volume.

Larry Wilt: Looking ahead to 2026, infrastructure demand remains high and data center construction remains robust in both scale and pace in the markets we serve. While tariffs remain in effect, they are expected to represent a smaller year-over-year headwind in 2026. Despite the challenges of 2025, our expectations for 2026 are constructive, and we see clear reason to be optimistic for improved performance in the Mid-Atlantic region. Now turning to the balance sheet and cash flows on slides 12 and 13. As of 31 December 2025, we had $211.8 million of cash and cash equivalents and total debt of $462.4 million.

Speaker #2: Yeah. I'm afraid our phone went out here just for a minute, if you don't mind. Just repeat the question. Very sorry about that.

Speaker #4: Yes . I was just asking about the puts and takes driving the guide . You talked about the recovery , getting pushed to 2027 , but I was wondering if you could talk about your expectations now versus three months ago for the private side and the infrastructure side .

Speaker #4: And then also within the the revenue guidance for 2026 , is there like a break out between fights and volume ? Yeah .

Speaker #1: We don't see any major change in relation to infrastructure and the private non-residential side . It will continue strong as we know from the statistics About 50% of the I , j a funds have been spent .

Larry Wilt: Our net debt position was $250.7 million, representing a leverage ratio of 0.64x 2025 Adjusted EBITDA, an improvement from the 0.71x at the end of Q3 and 1.21x at the end of 2024. This strong leverage profile provides significant balance sheet capacity to pursue strategic growth opportunities while maintaining our disciplined approach to capital allocation, as demonstrated by the previously announced agreement to acquire the Keystone Cement Company following regulatory approval. Operating cash flow for the year was $295 million, and free cash flow was $132 million after $163 million in net CapEx investments. As indicated on page 13, our next meaningful debt maturity is in July 2027.

Speaker #1: So we expect the rest to be spent in the next three years. And also we expect the momentum to continue, either with renewal of the II this year in September, or with the continuing resolution.

Speaker #1: And also we see positive trends in certain parts of private non-residential . As you know , data centers , logistics , infrastructure , health and other elements like warehousing , the space center in Florida .

Speaker #1: So overall, we're very confident and optimistic about the non-res elements in relation to residential. There was anticipation that potentially the second half of 2026, we're going to see the inflection point.

Speaker #1: We all are awaiting . But of course , the recent geopolitical events with inflationary pressures potentially fueled by the high oil prices . And of course , the high energy prices It seems unlikely that the fed will proceed with reduction of the policy rates .

Larry Wilt: Slide 14 shows our CapEx profile for 2025 and 2024. Net capital expenditures in 2025 were $163 million and focused on several key areas. Among them, investments to expand capacity at our domestic cement plants in line with our previously communicated strategic plan. Investments in vertical integration through ready-mix concrete and concrete block facilities that meet customer needs and represent a channel to market for our upstream construction materials, including cement and aggregates. Expanded access to limestone reserves near our Roanoke cement plant. Additional dragline investments in Florida aggregates, driving reliability and operational excellence. On Slide 15, I'll remind you of our capital allocation strategy. We remain focused on three key priorities, investing in the business, including organic growth opportunities, pursuing strategic M&A, and providing returns to shareholders, all while maintaining a healthy net leverage profile.

Speaker #1: And we see many analysts projecting mortgage rates to stay at or around 6%. So, above the level that we were hoping will ease the ability issues about housing and will trigger the inflection point, that's why we said that.

Speaker #1: It seems likely that the inflection point is being pushed towards 2027.

Speaker #4: That's helpful. Switching gears, I wanted to ask about the Ohio and Pennsylvania markets that you're entering with Keystone. What makes those markets attractive?

Speaker #4: Can you just kind of compare, contrast those markets with your two existing markets?

Larry Wilt: In 2026, our planned organic growth investments include innovative mining approaches at our aggregates production facility in Miami. Development, permitting, and construction of our previously announced precast lintel manufacturing facility in Florida. Completion of our expanded processed engineered fuel investments at our Miami cement plant. Investments in operations and efficiency of our marine import terminals in Virginia and New Jersey. Expansion of our rail terminal network in Florida, enhancing our aggregates distribution capabilities. Investments to increase our Pennsuco cement grinding capacity in line with our previously announced plans. Our vertically integrated investments in ready-mix concrete and concrete block facilities to support upstream volumes and returns. I'd also like to announce that earlier today, our board of directors approved an issue premium distribution of $0.04 per share, payable on 8 May 2026 to shareholders of record on 20 April 2026.

Speaker #2: Okay. I think it's a territory that we're familiar with. We operate the flash businesses there. You can see them on the map.

Speaker #2: I think we scattered them on there in some slides that we presented. So we deal with some of those customers today, not through the cement element.

Speaker #2: When you look at manufacturing reshoring, you know, Ohio, Pennsylvania are places of attraction as a place that we see good growth opportunities ahead.

Speaker #2: The plan is well set up to fix that , to to serve both those markets . And as we said in the opening comments , that facility also has the benefit of serving our Washington DC area .

Speaker #2: And we can take, then, some of that logistics synergy into our business as well, as we connect those two together.

Speaker #4: Great. That's helpful. I'll turn it over. Thank you.

Speaker #3: Our next question comes from Phil Ng with Jefferies. You may proceed.

Speaker #5: Hey , guys , it's Jess , one for Phil . I just wanted to start with cement on pricing . There was a little bit of sequential decline , just curious if that was kind of more of the mix pressures .

Larry Wilt: With that, I'll turn it back to Bill for his closing remarks.

Bill Zarkalis: Thank you, Larry. Let me say that in conclusion, 2025 was a record year for Titan America, despite continued softness in the residential sector, tariffs, and a number of challenges in the macro and geopolitical backdrop. We are proud of our strong financial performance in our first year as a public company, which reflects the effectiveness of our unique business model and the dedication of our team. Turning now to our 2026 outlook on slide 16. In 2026, we expect the softness in the residential sector to continue. The recent surge in oil and energy prices introduces additional risks in an already complex and uncertain economic backdrop. Based on current market dynamics, with fears of inflation fueled by high energy costs, it seems that mortgage rates will remain broadly at current elevated levels and house affordability low.

Speaker #5: And then, if you could kind of remind us what you announced for 2026, and how those conversations are progressing. Thanks.

Speaker #1: I think it's a safe assumption to say this isn't due to the mix. As you recall, we report across the areas of Titan America.

Speaker #1: So, there are elements of geography mix, and also elements of packaging mix and delivery mix, where it is pick-up, customer pick-up, or delivery.

Speaker #1: So there is an element of mix , but still , of course , on a like for like element , you will see price increases in the low single digits .

Speaker #1: Now, in relation to our announcements, we have announced a $12 per tonne increase across the areas where we operate for cement. We have announced a $10 per cubic yard increase across the areas we operate for ready-mix concrete, and a $3 per tonne increase for aggregates finished goods.

Bill Zarkalis: As a result, in 2026, we believe investment in the residential sector may be stabilizing at current lower levels, with a much-anticipated residential sector inflection point being potentially pushed into 2027. With continued residential softness in mind, our guidance for 2026 on a like-for-like basis anticipates low single-digit revenue growth compared to 2025, with modest expansion in our Adjusted EBITDA margins. This outlook reflects our leading positions in our key markets, operational efficiencies, and the ongoing benefits of our strategic investments. We remain focused on executing our growth blueprint in the years ahead. As we look to 2026 and beyond, we are excited about the strong growth opportunities ahead.

Speaker #5: And all those increases for January? Or were they spread out between January and April?

Speaker #2: Yeah, I mean, I think, well, they were for January, and just based on the market, we largely pushed those increases into April.

Speaker #2: That's, I think, the recent events in the war in Iran, for example, may give some additional impetus to increase those.

Speaker #2: But I think largely we'll expect , absent that is to see price increases that would generally be in line with some of the increases that we have seen over the last year or so .

Speaker #2: So perhaps more in aggregates , more ready mix and , you know , a little less reps in in some we we've still developing some of those internally , but that's what we would see today

Speaker #5: Yep . That makes sense . Thank you . Very helpful . I'll turn it over .

Speaker #3: Our next question comes from Tad Dillard with Bernstein. You may proceed.

Speaker #6: Hey , good afternoon guys . So my question is on fuel costs . What share of that does that represent ? Cost of sales .

Bill Zarkalis: The markets where we operate are the beneficiaries of significant tailwinds, including infrastructure investment, manufacturing reshoring and onshoring, and emerging trends in resilient urbanization and overall construction technology. We continue to innovate and expand our product offerings, particularly focusing on meeting the evolving needs of our customers for sustainable, high-performance products, services, and solutions. Our investments in new technologies and digital transformation are yielding tangible results in terms of operational efficiency, cost reduction, and enhanced customer service. The proposed foundational acquisition of the Keystone Cement Company marks an important milestone in our journey, expanding our geographical footprint into Pennsylvania and Ohio, adding substantial cement production capacity, and further strengthening our Mid-Atlantic positioning while reinforcing our commitment to unlocking significant value for all our stakeholders in the quarters and years ahead.

Speaker #6: And then, I guess, how much of the $100 price of oil is embedded in your guide? Or is it something that might potentially change as we need to mark to market?

Speaker #2: Yep . You know , fuel . Fuel , energy , broadly represents about 8% of the cost of goods sold that we have slightly more than that as we close out last year .

Speaker #2: You break that down between its components . Obviously , the fuel has electricity , as a piece . And what you refer to at the end , the liquid fuel has a piece as well Each of them have their own characteristics .

Speaker #2: You know , we've invested , for example , in our capabilities for alternative fuels . We've invested in the capabilities to have multi sourcing , whether solid or natural gas , both cement plants in Roanoke and Pensacola .

Speaker #2: So we have some initiatives that we've taken to help mitigate some of those costs that you described . Having said that , when you look at liquid fuel , for example , we're at $5 per gallon today .

Speaker #2: This is public information . You can see it , you know , from EIA as registered every week . That's higher than it was this time a year ago .

Speaker #2: For those things that are externally facing things like ready mix , concrete , there are built in fuel surcharge mechanisms that would generally cover some of those cost increases that we would see .

Bill Zarkalis: Before we open the call for questions, I want to express my sincere gratitude to all our Titan America team members. Their dedication to safety, operational excellence, and to serving our customers with care and quality every single day is what makes this company work. I'm proud of what they accomplished in 2025. With that, I'll turn the call over to the operator for the Q&A session. Operator?

Speaker #2: And then on the aggregate side , for example , that's a smaller piece of overall total called a third . And those things we address as we go along , price increases that would be supported by those energy cost increases we're seeing before .

Speaker #1: So fundamentally, in relation to the energy bill, all I mean, in relation to the fuel, which is the biggest part for our plan, is that we have the capability to be able to burn gas.

Operator: Thank you. We will now be conducting the question-and-answer session. If you would like to ask a question, please press star and the number one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and the number two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we poll for questions. Our first question comes from Anthony Pettinari with Citigroup. You may proceed with your question.

Operator: Thank you. We will now be conducting the Q&A session. If you would like to ask a question, please press star and the number one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and the number two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we poll for questions. Our first question comes from Anthony Pettinari with Citigroup. You may proceed with your question.

Speaker #1: Cole and alternative fuels , and we have recently invested in an during the maintenance of . We install a new state of the art dual burner in order to increase the capability to multiple feeds and different types of fuel and .

Speaker #1: We are completing . Within April , our investment in a new . Capabilities for alternative fuels in Pensacola , which is going to grow .

Speaker #1: The use of alternative fuels by 50% . So multiple levels here to face any increase in cost . And as I said , the other important element , which is the diesel for moving products , we have automatic surcharges , which are included in our contracts for the for the products that we sell

Asher Sonen: Hi, this is Asher Sonen on for Anthony Pettinari. Thanks for taking my question. I was just wondering if you could walk through in a little more detail some of the puts and takes driving the guide for 2026. I mean, you talked already about the pushout of kind of a resi recovery into 2027. Just on the infrastructure and private non-res side of the business, how would you compare your expectations, you know, now versus three months ago? Then also, are you maybe able to break out the guide for revenue between like price and volume?

Asher Sonnen: Hi, this is Asher Sonen on for Anthony Pettinari. Thanks for taking my question. I was just wondering if you could walk through in a little more detail some of the puts and takes driving the guide for 2026. I mean, you talked already about the pushout of kind of a resi recovery into 2027. Just on the infrastructure and private non-res side of the business, how would you compare your expectations, you know, now versus three months ago? Then also, are you maybe able to break out the guide for revenue between like price and volume?

Speaker #6: That's super helpful . And then just another question for you guys on , on the margin cadence , you guys are getting to a expansion in EBITDA margins .

Speaker #6: How should we think about it from the standpoint? On one hand, you have the current headwinds that probably anniversary towards the point of the year.

Speaker #6: On the other hand , you have the the cost and the price increase to offset that . Just trying to level set just how to think about that as we move through the quarter .

Bill Zarkalis: Yeah. I'm afraid our phone went out here just for a minute. If you don't mind, could you just repeat the question? Sorry. Very sorry about that.

Speaker #1: We participate. We have deep penetration into infrastructure projects and major projects like data centers. And you saw the example that we brought in of what we do in the Space Coast in Florida.

Asher Sonen: Yeah. I was just asking about the puts and takes driving the guide. You talked about the resi recovery getting pushed to 2027. I was wondering if you could talk about your expectations now versus three months ago for the private side and the infrastructure side. Within the revenue guidance for 2026, is there like a breakout between price and volume?

Asher Sonnen: Yeah. I was just asking about the puts and takes driving the guide. You talked about the resi recovery getting pushed to 2027. I was wondering if you could talk about your expectations now versus three months ago for the private side and the infrastructure side. Within the revenue guidance for 2026, is there like a breakout between price and volume?

Speaker #1: These are projects that require large scale , proprietary technical capabilities , ultra high performance products . That gives us an advantage in order to participate in a high value projects .

Speaker #1: For the customers and also for ourselves , which allows us really to to manage our margins successfully . And on top of that , like we've been discussing , we have in progress operational excellence and cost reduction initiatives .

Bill Zarkalis: Yeah. We don't see any major change in relation to infrastructure and the private non-residential side. It will continue strong. As we know from the statistics, about 50% of the IIJA funds have been spent, so we expect the rest to be spent in the next three years. We expect the momentum to continue either with renewal of the IIJA this year in September or with a continuing resolution. We see positive trends in certain parts of private non-residential, as you know, data centers, logistics infrastructure, health, and other elements like warehousing, the space center in Florida. Overall, we're very confident and optimistic about the non-resi elements.

Speaker #1: You're very well aware . About our investment in digital transportation transformation , our real time optimizers . I believe many analysts have visited in Pensacola , which allows us to improve reliability to world class levels , to increase our throughput and our production rates , and also optimize the use of raw materials and energy .

Speaker #1: All this leads to lower costs and margin expansion on top of that , we have our proprietary maintenance . The predictive maintenance tools , which are digital tools with machine learning that allow us to improve reliability , increase production , but also decrease our maintenance costs , which again , add to margins .

Bill Zarkalis: In relation to residential, there was anticipation that potentially the second half of 2026, we're gonna see the inflection point we all are awaiting. Of course, the recent geopolitical events with inflationary pressures potentially fueled by the high oil prices and of course the high energy prices, it seems unlikely that the Fed will proceed with reduction of the policy rates. We see many analysts projecting mortgage rates to stay at or around 6%, so above the level that we were hoping will ease the affordability issues about housing and will trigger the inflection point. That's why we said that it seems likely that the inflection point is being pushed towards 2027.

Speaker #1: And as we announced last year, we introduced a proprietary digital logistics technology, both in Florida and in the Mid-Atlantic, which allows us to reduce our logistics costs and also improve our productivity in relation to cubic yards that deliver a drive.

Speaker #1: Our . All these have had an impact in a very difficult backdrop . In 2025 . So the improvement in margins and we expect the same to take place in 2026 as we continue our self-help initiatives in order to continue improving our margins .

Speaker #6: Great. Thanks, guys. I'll pass it on.

Speaker #1: Thank you .

Speaker #3: Our next question comes from Brian Brophy with Stifel. You may proceed with your question.

Speaker #7: Yeah . Thank you . Good afternoon everybody . Thanks for taking the question . You mentioned increasing domestic cement capacity this year . Is that in relation to one T or something else driving that And any color you can provide on how much you expect to grow capacity by .

Speaker #7: Thanks

Speaker #2: Yeah, it's a—it's two things. One is,

Asher Sonen: Thanks. That's helpful. Switching gears, I wanted to ask about you know, the Ohio and Pennsylvania markets that you're entering with Keystone. What makes those markets attractive? Can you just kinda compare and contrast those markets with your two existing markets?

Asher Sonnen: Thanks. That's helpful. Switching gears, I wanted to ask about you know, the Ohio and Pennsylvania markets that you're entering with Keystone. What makes those markets attractive? Can you just kinda compare and contrast those markets with your two existing markets?

Speaker #3: Ladies and gentlemen, please stand by. Ladies and gentlemen, thank you for your patience. We will be resuming shortly. Ladies and gentlemen, thank you once again for your patience. Larry, you may proceed.

Larry Wilt: Okay. I think, you know, it's a territory that we're familiar with. We operate the fly ash part of our businesses there. You can see them on the map. I think we've scattered them on there in some slides that we've presented. We deal with some of those customers today through that element, not through the cement element. When you look at manufacturing, reshoring, you know, Ohio, Pennsylvania are places of attraction, and is a place that we see good growth opportunities ahead. The plant is well set up to fix that to serve both of those markets.

Larry Wilt: As we said in the opening comments, that facility also has the benefit of serving our Washington DC area, and we can take then some of that logistics synergies into our business as well as we connect those two together.

Asher Sonen: Great. That's helpful. I'll turn it over. Thank you.

Asher Sonnen: Great. That's helpful. I'll turn it over. Thank you.

Larry Wilt: Thank you.

Bill Zarkalis: Thank you.

Operator: Our next question comes from Phil Ng with Jefferies. You may proceed.

[Analyst] (Jefferies): Hey, guys. It's Jesse on for Phil. I just wanted to start with cement on pricing. There was a little bit of sequential decline. Just curious if that was kinda more of the mix pressures. If you could kinda remind us what you announced for 2026 and how those conversations are progressing. Thanks.

Bill Zarkalis: I think it's a safe assumption to say this is into the mix. As you recall, we report across the areas of Titan America. There are elements of geography mix and also elements of packaging mix and delivery mix, whether it is pickup, customer pickup or delivery. There is an element of mix. Still, of course, on a like-for-like element, you will see price increases in the low single digits. Now in relation to our announcements, we have announced $12 per ton across the areas where we operate for cement. We have announced $10 per cubic yard across the areas we operate for ready-mix concrete, and $3 for aggregates finished goods.

Speaker #2: Yeah . It's . Sorry . It's Larry here . We're going to go with a bill , and I have it in Brussels .

[Analyst] (Jefferies): Were all those increases for January, or were they spread out between January and April?

Speaker #2: We had our board meeting here today, so apparently something is wrong with the fixed line. So we'll try it the old-fashioned way here with a cell phone.

Larry Wilt: Yeah. I mean, I think. Well, they were for January. You know, just based on the market, Jesse, we largely push those increases into April. That's, I think the recent events in the war in Ukraine, for example, may, you know, give some additional impetus to increase those. But I think largely what we'd expect up, absent then is to see price increases that would generally be in line with some of the increases that we have seen over the last year or so. Perhaps more in aggregates, more in ready-mix, and, you know, a little less perhaps in cement. But we still are developing some of those internally.

Speaker #2: So, hopefully you can hear us. Brian, I'm not sure you heard me. The answer—

Speaker #7: You just started answering .

Speaker #2: Yes. So your question was around the capacity expansion. Where does that come from? So, it's the combination of a couple of things.

Speaker #2: One , grinding capacity that we've talked about investing in the facilities like we mentioned that in the prepared remarks and the reliability factors that come into place as well .

Speaker #2: These are the two main things that drive the increased production for this year.

Speaker #7: Okay , thanks . And then I guess similar question on the aggregate capacity side , obviously , that would be helpful . Driver last year How are you thinking about opportunities to grow capacity there again this year .

Larry Wilt: That's what we would see today.

Speaker #7: You also mentioned some innovative mining approaches driving CapEx this year in DAC on the side. Any more color on what you were referring to there?

[Analyst] (Jefferies): Yep, that makes sense. Thank you. Very helpful. I'll turn it over.

Operator: Our next question comes from Chad Dillard with Bernstein. You may proceed.

Speaker #7: Thanks

Speaker #1: We're going to see an increase in capacity and sales this year. Not at the same level as last year, but we can see continued growth.

Chad Dillard: Hey, good afternoon, guys.

Bill Zarkalis: Hi.

Chad Dillard: My question is on fuel costs. What share of that does that represent for your cost of sales? I guess, how much of the $100 price of oil is embedded in your guide? Is this something that might potentially change as we need to mark to market?

Speaker #1: Whereas the investment that we have this year is going to give us a next step, the next wave of increased capacity, most likely towards the second half of 2027.

Speaker #7: Okay. Thank you. I'll pass it on. Appreciate it.

Speaker #1: Thank you

Larry Wilt: Yep. You know, to answer the first question, fuel energy broadly represents about 8% of the cost of goods sold that we have, slightly more than that as we close out last year. You break that down between its components, obviously, the kiln fuel has a piece, electricity has a piece, and what you referred to at the end there, liquid fuel, has a piece as well. Each of them have their own characteristics. You know, we've invested, for example, in our capabilities for alternative fuels. We've invested in the capabilities to have multi-fuel sourcing, whether solid or natural gas at both cement plants in Roanoke and at Pennsuco. So we have some initiatives that we've taken to help mitigate some of those costs that you described.

Speaker #3: There are no further questions at this time. This now concludes our question and answer session. I’d like to turn the call back over to Larry for closing comments.

Speaker #2: Yeah , thanks . Operator . Again , apologies for the difficulty we had with the telephones here . Thank you for your patience on that .

Speaker #2: And thank you for your time today. Obviously, we appreciate the interest in Titan America and look forward to updating you on our progress.

Speaker #2: As first quarter comes around, in the early part of May. So thanks, and have a great rest of your day. Appreciate it.

Larry Wilt: Having said that, when you look at liquid fuel, for example, we're at $5 per gallon today. This is public information. You can see it, you know, from EIA, as registered every week. That's higher clearly than it was at this time a year ago. For those things that are externally facing, things like ready-mix concrete, there are built in fuel surcharge mechanisms that would generally cover some of those cost increases that we would see. Then on the aggregate side, for example, that's a smaller piece of the overall total, call it a third, then those things we address as we go along, perhaps through price increases that would be supported by those energy cost increases, as we were saying before.

Bill Zarkalis: Fundamentally, Chad, in relation to the energy bill altogether, I mean, in relation to the fuel, which is the biggest part for our plants. In cement, we have the capability to burn gas, coal, and alternative fuels. We have recently invested in during the maintenance in Roanoke. We install our new state-of-the-art dual burner in order to increase our capability to burn multiple feeds and different types of fuel. We are completing within April our investment in new capabilities for alternative fuels in Pennsuco, which is gonna grow the use of alternative fuels by 50%. Multiple levers here to face any increase in cost.

Bill Zarkalis: As Larry said, the other important element, which is the diesel cost for moving our products, we have automatic surcharges, which are included in our contracts for the products that we sell.

Chad Dillard: Okay. That's super helpful. And then just another question for you guys on margin cadence. You guys are guiding to a modest expansion in EBITDA margins. How should we think about that from a seasonality standpoint? You know, on one hand you have the tariff headwinds that probably anniversary towards the midpoint of the year. On the other hand, you have the, you know, I guess, the fuel costs and the price increases to offset that. Just trying to level set just how to think about that, as we move through quarter to quarter.

Bill Zarkalis: We participate, you know, we have deep penetration into infrastructure projects and major projects like data center. I mean, you saw the example that we brought in terms of what we do in the Space Coast in Florida. These are projects that require large-scale proprietary technical capabilities, ultra-high performance products that gives us an advantage in order to participate in high-value projects for the customers and also for ourselves, which allows us really to manage our margins successfully. On top of that, like we've been discussing, we have in progress operational excellence and cost reduction initiatives.

Bill Zarkalis: You're very well aware about our investment in digital transformation, our real-time optimizers. I believe many analysts have visited in Pennsuco, which allows us to improve reliability to world-class levels, to increase our throughput and our production rates, and also optimize the use of raw materials and energy. All this leads to lower costs and margin expansion. On top of that, we have our proprietary predictive maintenance tools, which are digital tools with machine learning that allow us to improve reliability, increase production, but also decrease our maintenance costs, which again add to the margins.

Bill Zarkalis: As we announced last year, we introduced our proprietary digital logistics technology both in Florida and in Mid-Atlantic, which allows us to reduce our logistics costs and also improve our productivity in relation to cubic yards that we deliver per driver hour. All these have had an impact in a very difficult backdrop in 2025, as you saw with our improvement in margins, and we expect the same to take place in 2026 as we continue our self-help initiatives in order to continue improving our margins.

Chad Dillard: Great. Thanks, guys. I'll pass it on.

Bill Zarkalis: Thank you.

Operator: Our next question comes from Brian Brophy with Stifel. You may proceed with your question.

Brian Brophy: Yeah. Thanks. Good afternoon, everybody. Thanks for taking the question. You mentioned increasing domestic cement capacity this year. Is that in relation to 1Q or is something else driving that? Any color you can provide on how much you expect to grow capacity by? Thanks.

Bill Zarkalis: Yeah. It's two things. Yeah. Well, one is.

Larry Wilt: Yeah. It's two things. Yeah. Well, one is.

Operator: Ladies and gentlemen, please stand by. Ladies and gentlemen, thank you for your patience. We will be resuming shortly.

Operator: Ladies and gentlemen, thank you once again for your patience. Larry and Bill, you may proceed.

Larry Wilt: Yeah. Thanks, operator. Sorry, it's Larry here. We're gonna go with the cell phone. Bill and I happen to be in Brussels. We had our board meeting here today, so apparently something wrong with the fixed lines here. We'll try it the old-fashioned way here with a cell phone. Hopefully you can hear us. Brian, I'm not sure you heard the answer here.

Brian Brophy: You just started answering.

Larry Wilt: Yeah. Your question was around the grinding capacity expansion, where does it come from, right? It's a combination of a couple of things. One, grinding capacity that we've talked about investing in the facilities like Pennsuco. We mentioned that in the prepared remarks and the reliability factors come into place as well. These are the two main things that drive the increased production for this year.

Brian Brophy: Okay, thanks. I guess similar question on the aggregate capacity side. Obviously, that was a pretty helpful driver last year. How are you thinking about opportunities to grow capacity there again this year? You also mentioned some innovative mining approaches driving CapEx this year in the deck on the aggregate side. Just any more color on what you were referring to there? Thanks.

Bill Zarkalis: We're gonna see, Brian, an increase in capacity and sales in this year, not to the same levels as last year, but we're gonna see continuous growth. Whereas the investment we have this year is gonna give us a next step. The next wave will increase capacity, most likely towards the second half of 2027.

Brian Brophy: Okay. Thank you. I'll pass it on. Appreciate it.

Bill Zarkalis: Thank you, Brian.

Operator: There are no further questions at this time. This now concludes our question and answer session. I'd like to turn the call back over to Larry for closing comments.

Operator: There are no further questions at this time. This now concludes our Q&A session. I'd like to turn the call back over to Larry for closing comments.

Larry Wilt: Yeah. Thanks, operator. Again, apologies for the difficulties we had with the telephones here. Thank you for your patience on that. Thank you for your time today. Obviously, we appreciate the interest in Titan America. Look forward, obviously, to updating you on the progress as the Q1 call comes around in the early part of May. Thanks, and have a great rest of your day. Appreciate it.

Operator: Ladies and gentlemen, thank you for your participation. This concludes today's conference. You may disconnect your lines and have a wonderful day.

Q4 2025 Titan America SA Earnings Call

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