Titan America S.A.

Titan reported first-quarter 2026 revenue of $398 million, up 1.5% from $392 million a year ago. Adjusted EBITDA was $83 million, up 3.4% from $80 million, and adjusted EBITDA margin improved to 20.7% from 20.3% (+40 bps). Net income was $33 million, consistent with the prior-year quarter, while operating cash flow rose to $62 million from $35 million and free cash flow was $30 million. Segmentally, Florida external revenue was $253 million with adjusted EBITDA of $73 million and a 28.6% margin; Mid-Atlantic external revenue was $145 million with adjusted EBITDA of $13 million and an 8.7% margin. Management reaffirmed full-year 2026 outlook for low single-digit revenue growth and modest adjusted EBITDA margin expansion on a like-for-like basis, explicitly excluding Keystone’s contribution.

Bill Zarkalis framed Q1 as a solid result in a difficult environment, citing winter weather, residential softness, and inflation tied to higher fuel and energy costs. He emphasized the resilience of Titan’s vertically integrated model, the strength of infrastructure and private nonresidential demand, and the strategic importance of the Keystone acquisition and the new Miami innovation hub. His tone was constructive and confident, but still cautious on residential demand, which he said may not inflect until 2027.

Larry Wilt highlighted the hard numbers: revenue of $398 million, adjusted EBITDA of $83 million, 20.7% adjusted EBITDA margin, net income of $33 million, operating cash flow of $62 million, free cash flow of $30 million, and leverage of 0.58x. He said cash and cash equivalents were $228 million, total debt was $455 million, and Keystone was funded with cash on hand plus a new term loan due February 2031. He also noted net capital expenditures of about $32 million in Q1 and said the Board approved an issue premium distribution of $0.04 per share payable July 7, 2026.

Analysts focused heavily on Keystone’s low reported 2025 EBITDA margin of about 10%, the apparent underutilization of its nearly 990,000 short tons of clinker capacity, and how quickly Titan can improve profitability. Management said the asset’s issue is not just the market, but reliability and capacity utilization, and said Titan expects meaningful synergies through better logistics, energy use, alternative fuels, and digital optimization; detailed synergy timing will be discussed on the Q2 call. Questions also probed inflation, price increases, aggregates ambitions, cement imports, and capex for Keystone; management said April price increases are being passed through in stronger markets, imports remain part of a flexible model, and Keystone synergy capex should not be highly capital intensive.