Titan America Aktie

Good afternoon, and thank you for joining us. I am Chloe, your conference call operator. Welcome to Titan America's Second Quarter 2026 Conference Call. [Operator Instructions] The conference is being recorded.

I would now like to turn the call over to Michael Bennett, Vice President of Investor Relations.

Thank you, and good afternoon to everyone on the line. Thank you for joining us for Titan America's Second Quarter 2026 Conference Call. I am joined by Bill Zarkalis, President and Chief Executive Officer; and Larry Wilt, Chief Financial Officer.

Before we begin, I would like to remind you that earlier this afternoon, we released Titan America's second quarter 2026 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. 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 those 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 would now like to turn the call over to Bill. Please go ahead.

Thank you, Michael. Good afternoon, and thanks for joining Titan America's Second Quarter 2026 Financial Results Call. I would like to begin on Slide 4 by highlighting a few key messages. Earlier today, we announced our second quarter 2026 financial results. Titan America delivered a solid performance despite continued headwinds in residential with second quarter revenue increasing by 9.6% compared to the same period last year and adjusted EBITDA at 1.3% higher.

Our Mid-Atlantic region delivered strong year-over-year growth in both revenue and adjusted EBITDA during the second quarter. We capitalized on robust project activity in the region, particularly from private nonresidential and public infrastructure investments to drive significant volume growth compared to the prior year. Higher ready-mix concrete pricing contributed positively to results.

In the second quarter, our Florida segment delivered solid results on robust demand from infrastructure and private nonresidential construction markets. Residential construction activity remains subdued with project delays and softer cement demand impacting the region, while pricing across several product lines was relatively softer year-over-year.

Scheduled extended maintenance shutdowns at both our cement and aggregates operations at our Pennsuco plant resulted in longer outages than in the prior year, negatively impacting Florida's second quarter results.

Also, as foreshadowed in our previous results call, in the second quarter, our Florida business was impacted by substantial delays in our cement imports due to disruptions in overseas ports and shipping. We believe these disruptions were temporary in nature, and we expect the logistics conditions to normalize, as we move through the second half of the year.

Let's now turn to Slide 5 to update you on Keystone. During the second quarter, we completed the acquisition of the Keystone Cement Company. This acquisition marks an important milestone in the execution of our long-term growth strategy. Since closing, our integration team has been on site, working closely together with Keystone's experienced and highly knowledgeable colleagues to ensure a smooth and effective integration.

The Keystone acquisition expands our geographic reach in the markets of Pennsylvania, Ohio, Delaware and Maryland. Combined with our existing asset base, Keystone strengthens our vertically integrated footprint in this attractive region, enhancing our ability to serve customers, capture operational run rate synergies and capitalize on the strong long-term secular growth trends supporting these markets.

Looking ahead, we are targeting annual run rate synergies from the Keystone acquisition of at least $30 million by 2029. We believe the targeted synergies will substantially improve the operating margins of the acquired assets. We expect synergy realization to build over the 3-year period rather than phase in evenly with the largest contribution coming in year 3, as our operational, commercial and logistics initiatives take full effect.

Keystone brings together an exceptional team, a strong brand and a respected reputation built over its century-long history. We are excited about the opportunities ahead and look forward to sharing more about our expectations for this asset.

Let's move now to Slide 6 to briefly discuss data centers, one of the growth levers in our Mid-Atlantic markets. Virginia is the world's data center capital with an estimated 30% share in the global hyperscale market. Titan America is capitalizing on the data center investment growth and participating in more than 50% of the data centers currently under construction in our serviceable market area.

In 2026, Titan America participates in 77 data centers out of 148 currently under construction in Virginia. It is estimated that an additional 250 data centers are currently in the preconstruction phase in the state.

Titan America is partnering with leading contractors, operators and hyperscalers to value engineer solutions and create additional products and services to meet their evolving demands.

The investments in data centers act as a multiplier for the demand of construction materials as they usually lead to substantial follow-on investments in power generation, infrastructure and commercial construction.

Turning now to Slide 7 to discuss an investment which enhances [ Titan American's] (sic) [Titan America's] position in the growing market for supplemental cementitious materials. Titan America's subsidiary, Separation Technologies, or ST, entered into an agreement to develop a first-of its-kind fly ash recycling plant at the Brunner Island Steam Electric Station in Pennsylvania.

With this new plant, we are recovering fly ash directly from landfills, which we view as a reliable source of supply for years to come, solving the challenges associated with the retirement of coal-fired power plants.

The newly announced plants will bolt on the Separation Technologies existing fly ash beneficiation facility and we have an annual capacity to handle 600,000 tons of landfill material. It is slated to produce and sell approximately 400,000 tons of concrete grade fly ash per year, complementing the product mix of our newly acquired Keystone plant and creating a one-stop shop of fly ash, cement and aggregates for our customers in Pennsylvania and Ohio. We expect to invest approximately $30 million in this plant, which is already under construction and we expect it to be fully operational in the third quarter of next year.

ST is a recognized leader in fly ash beneficiation with over 30 million tons of fly ash sold under the ProAsh brand since 1995. ProAsh is Titan America's highly quality low-carbon fly ash that allows for better control of concrete mixtures, greater reliability, improved consistency and superior predictable in-place concrete properties. This initiative represents a compelling opportunity for Titan America, as it aligns with our long-term growth strategy.

I will now turn it over to Larry, who will provide a breakdown of our second quarter financial results and business segment performance. Larry?

Thank you, Bill, and good afternoon, everyone. Starting on Slide 8, let me share an overview of our second quarter 2026 financial highlights. Our second quarter results reflect the resilience of our platform with strength in the Mid-Atlantic more than offsetting headwinds in Florida, which absorbed the impacts of an extended scheduled maintenance outage at our Pennsuco cement and aggregate plant, as well as the temporary import logistics challenges resulting from port disruptions in the Mediterranean. Despite the challenges, we were pleased to deliver year-over-year growth in revenue, adjusted EBITDA and operating cash flow in Q2 at the consolidated level.

As indicated on the left-hand side of the slide, in the second quarter, we delivered revenue of $471 million, an increase of 9.6% compared to $429 million in the second quarter of 2025, of which Keystone contributed $20 million.

Adjusted EBITDA for the quarter was $101 million compared to $99 million in the prior year quarter, an increase of 1.3%. Our second quarter adjusted EBITDA margin was 21.4% compared to 23.2% in the second quarter of 2025, a decrease of approximately 180 basis points, reflecting the costs associated with the extended Pennsuco outage. On a year-to-date basis, our adjusted EBITDA margin was 21.1% compared to 21.8% in the first half of 2025.

Net income for the quarter was $43 million compared to $51 million in the prior year quarter with earnings per share of $0.23 compared to $0.28 in the second quarter of 2025. Approximately $0.03 of that $0.05 decline was attributable to the Keystone-related items, including transaction costs and a onetime tax charge associated with the post-acquisition reorganization of the Keystone entities.

As shown on the right-hand side of the slide, operating cash flow for the first half of 2026 was $137 million compared to $108 million in H1 2025, reflecting working capital discipline and lower tax payments.

For the same period, free cash flow was $50 million compared to $26 million in the prior year, driven by improvements in operating cash flow and a modest increase in CapEx investments.

And finally, after accounting for the impacts of the Keystone acquisition, our leverage ratio at the end of Q2 was 1.37x trailing 12 months adjusted EBITDA, up from 0.64x at the beginning of the year. Even with that increase, we remain at a low absolute level of leverage with strong financial flexibility.

Turning to Slide 9. Let me walk you through our Q2 sales volume performance by product line. Our sales volume performance reflects the strong commercial execution in a challenging market.

Cement volumes, including external sales and internal consumption, increased 10% year-over-year. This includes Keystone's initial contribution and the benefits of continued demand for heavy building materials in infrastructure and private nonresidential construction applications. On a like-for-like basis, excluding Keystone, our cement volumes were roughly flat, held back by the impact of import supply chain disruptions in the quarter.

Total aggregate volumes were lower by 1.3% in the quarter when compared to Q2 2025. Growth in external aggregate sales volumes was offset by a decline in internal consumption in Florida, attributable in part to the temporary effects of the scheduled maintenance activities at Pennsuco.

Total fly ash volumes were up approximately 12% on a low base compared to the prior year quarter, while ready-mix concrete volumes increased 2.6% year-over-year, with Mid-Atlantic generating strong growth in nonresidential applications, while Florida volumes were impacted by project delays. Concrete block volumes increased 8.3% compared to the second quarter of 2025, driven by strong alignment with top regional players.

Turning to Slide 10. External pricing was varied, primarily reflecting both geographic and product mix. We maintained strong pricing discipline in a challenging environment, demonstrating the value of our differentiated product portfolio.

On a year-over-year basis, cement pricing declined 1.5% with like-for-like improvements in the Mid-Atlantic, offset by softness in Florida. The decline in aggregate pricing resulted from diverse dynamics and product mix demand across regional markets in Florida.

Fly ash pricing was flat year-over-year, while ready-mix concrete pricing increased 4.4% when compared to Q2 2025, driven partly by focused participation in high-growth, high-value market segments. Concrete block pricing declined 2.6% year-over-year, reflecting channel and customer mix.

Turning to Slides 11 and 12, let me walk you through our second quarter business segment performance. Starting with the Mid-Atlantic on Slide 11, our team delivered strong financial results through focused participation in infrastructure and nonresidential construction activity, which more than compensated for continued softness in residential demand.

Mid-Atlantic external revenue was $214 million in the second quarter, an increase of 27% compared to $168 million in the second quarter of 2025. The increase was driven by approximately $20 million of revenue from Keystone, double-digit growth in ready-mix concrete revenues and strength in our legacy cement operations.

Ready-mix concrete was a primary organic revenue growth driver with strong data center and commercial construction demand, higher unit selling prices and the benefit of new portable plant capacity supporting increased participation in high-value applications.

Adjusted EBITDA for the segment was $53 million compared to $41 million in the prior year quarter, an increase of 30%, reflecting the benefits of favorable project mix, improved pricing and cost discipline, which together more than offset higher raw material and energy costs and the impacts of import disruptions.

Segment adjusted EBITDA margin improved to 24.7% from 24.1% in the prior year quarter. On a year-to-date basis, Mid-Atlantic external revenue was $359 million, an increase of 16.7% compared to $308 million in the prior year period, and segment adjusted EBITDA was $65 million compared to $52 million in Q2 2025, an increase of 27% Segment adjusted EBITDA margin improved to 18.2% from 16.7% in the first half of 2025.

Turning to Florida on Slide 12, our quarterly results reflect the impact of temporary headwinds from the extended Pennsuco outage and import disruptions I mentioned earlier.

Florida's external revenue was $257 million in the second quarter, a decrease of 1.6% compared to $261 million in the second quarter of 2025 as lower ready-mix concrete volumes and lower aggregates and concrete block pricing was partially offset by higher concrete block volumes and external aggregate volumes.

Adjusted EBITDA for the Florida segment was $51 million compared to $62 million in the prior year quarter with adjusted EBITDA margin of 19.7% in the second quarter compared to 23.8% in the second quarter of 2025. That decline was driven primarily by the Pennsuco cement and aggregate outages and import supply chain disruptions and the added cost of temporarily sourcing cement and aggregates from third parties during the period. Aggregated together, we estimate the total impact of the short-term headwinds had an adverse direct impact of approximately $7 million in the second quarter.

On a year-to-date basis, Florida's external revenue was $510 million compared to $514 million in the prior year period, and segment adjusted EBITDA was $123 million compared to $133 million in the prior year period. Adjusted EBITDA margin was 24.2% compared to 25.9% in the first half of 2025.

Now turning to our balance sheet and cash flows on Slide 13. As of June 30, 2026, we had $36 million of cash and cash equivalents and a total debt of $574 million for a total net debt position of $538 million. That represents a leverage ratio of 1.37x trailing 12 months adjusted EBITDA compared to 0.64x at the beginning of the year.

With respect to Keystone, the acquisition was funded with a combination of cash on hand and a new term loan issued in April 2026 with a maturity date of February 2031. Our balance sheet, combined with strong cash generation and disciplined capital allocation provides strategic flexibility to support growth and invest in operating efficiencies, while maintaining our commitment to returning capital to shareholders and navigate evolving market conditions.

Slide 14 shows our capital expenditure profile for the first half of 2026. Net capital expenditures were approximately $87 million for the first half of 2026 and remain focused on our previously communicated strategic objectives. increasing our domestic cement and aggregates capacity, improving the efficiency of our logistics network and further enhancing our strong positions in select downstream channels to market.

As the Keystone integration progresses, we expect to make further CapEx investments to deliver operational, commercial and logistics synergies as we incorporate the Keystone assets into our Mid-Atlantic network.

With respect to shareholder returns, earlier today, our Board of Directors approved a new issue premium distribution of $0.04 per share payable on October 9th, 2026, to shareholders of record as of October 1st, 2026.

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

Thanks, Larry. Let me say that in conclusion, despite the short-term challenges that we faced from the disruption of our cement imports, and the extended maintenance outage at our Pennsuco plant, we delivered a solid performance in the second quarter with year-over-year growth in both revenue and adjusted EBITDA. Our teams executed well and the underlying fundamentals of our key markets remain attractive.

Let's turn now to our 2026 outlook on Slide 15. Following the completion of our acquisition of Keystone Cement in the second quarter and given our current visibility into the balance of the year, we have updated our full year 2026 guidance.

We now expect high single-digit revenue growth for the full year 2026 as compared to 2025. We also expect a modest decline in our adjusted EBITDA margin for the year, which reflects the lower starting contribution from Keystone.

Our updated outlook reflects our confidence in our ability to capitalize on the underlying demand growth trends, more specifically in infrastructure and private nonresidential across our markets, the successful integration of Keystone and our ability to continue executing successfully on our strategic growth and cost productivity initiatives.

Before we open the call for questions, I want to express once again my sincere gratitude to our Titan America team members. It is the hard work and continued dedication to safety, operational excellence, the success of our customers and the communities we operate in that makes our company great.

With that, I'll turn the call over to the operator for the Q&A session. Operator?

[Operator Instructions] We'll take our first question from Anthony Pettinari with Citi.

Bill, can you talk a little bit more about cement pricing and you saw some softness in Florida, but you talked about like-for-like improvements in Mid-Atlantic. I'm just wondering what factors maybe caused the softness in Florida. And I wonder if you could talk a little bit also about price cost because it seems like we're seeing higher costs for fuel, electricity. Just wondering if you can give any additional color on pricing in the 2 regions.

We see pricing trends more robust in the Mid-Atlantic regions with growth we witnessed from the demand in commercial, nonresidential applications, data centers, infrastructure and the rest. In Florida, we have resilience price, broadly stable prices. We don't -- we were not successful so far in increasing the prices, but it's been resilient. The main headwind that we face is the softness in the residential sector.

And especially for us in this second quarter of the year, as you heard from Larry and myself, we had scheduled extended shutdowns which, of course, led to some reduced production. But also, we had logistics disruption in Mediterranean ports, who led to -- which led to delays in arrival of shipments of imported cement, stock-outs, which led us to seek third-party supply in order to meet the customer needs. So overall, this quarter was challenged in Florida, especially. So it's not really lending itself for conclusions on pricing dynamics.

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.

Now in relation to price over cost, there have been inflationary pressures from fuel, energy and raw material costs overall. But we've been very successful in relation to the self-help, the operational excellence initiatives that we have applied. So broadly, as you can see, our margins in Mid-Atlantic improved.

Our margins in Florida, when we look at the first half, which includes the maintenance shutdowns is slightly down, but this is taken into account both the extended shutdowns, also the disruptions in imported cement, which were costly, as you heard. So overall, we managed well price over cost and our margins.

Got it. Got it. That's very helpful. And then just one follow-up. The Pennsuco outage and the supply chain issues and the import issues, has that -- is that a headwind in July or 3Q? Or have those issues basically been resolved?

And then maybe just an add-on. I mean, there have been discussions around tariffs on imported Canadian cement. Is that at all impactful to the Mid-Atlantic market or maybe not really?

I think, Anthony, it's Larry. Taking the last one, we'll see how that plays out. I don't think we have clear line of sight to exactly how the tariffs applied to the Canadian product coming into the Northeast U.S. will affect our markets quite yet. So we'll take a wait and see on that one.

On the maintenance outage in Florida, in particular, there were 2 things going on. One had to do with the cement outage and the other was aggregate. So combined 2, it was a scheduled outage. It happened to be by its complexity, a longer duration than one that would typically be there. That's behind us from Q2.

When you look forward, as you know, each of the outages have a second semester element to it, much shorter in duration, typically a week, give or take. That's still ahead of us, but that's normal in that case, nothing different than the normal activities in that case.

So when you look at the impacts combined, I think we said it in the prepared comments, $7 million overall in these direct impacts is what we see. We didn't call out per se some of the energy headwinds in Florida, but energy headwinds in Florida were more significant than were in Mid-Atlantic, partly because of the way we consume diesel fuel in the aggregates facility there and has a heavier impact there than it would in the Mid-Atlantic for us.

We'll move next to Phil Ng with Jefferies.

Just a few cleanup questions, Larry. On the $7 million impact on the scheduled maintenance outage piece, that looks like it's largely behind you in 3Q. Any lingering impact we should be mindful of on the imports from the Mediterranean dynamic that's going to hit in 3Q?

Yes. Look, I think it depends on activities in different geographies, Phil. So we don't currently have any visibility to something that's more disruptive than what's in our past as we see it today, that's not going to be a disruption going forward.

Sea freight rates are higher. As you know, spot rates are higher. I think we've talked about this in the first quarter call that we had. So there could be some sea freight rate issues that come into the second half of the year but a bit higher than they were a year ago.

In relation to the shutdown, Phil, the first part of the question, it was a scheduled shutdown. So there's no lingering effects into the second half.

And then, Larry, I think your import for cement prices in the last quarter, you mentioned there is some hedge dynamic, where your prices don't really move. So I mean, which I think you're alluding to on freight sea rates. Does that pick up a bit in the back half, too, in terms of your import costs?

Yes. We had -- well, import costs were contracted for the year. So roughly, it's slightly higher, not so meaningful higher than a year ago Phil on the cement itself.

On the sea freight rates, what we saw in the last call was that we had contracted through really the second -- first half of the year. As we enter into the second half of the year, we've covered some of those with existing contracts, but there are still some that are exposed that we will contract later in the year as the year progresses.

Okay. Super. And then your guidance, you mentioned that margins were going to be down a little bit on a year-over-year basis. Larry, any chance to give us a little more color in terms of the magnitude? We're talking about 150 basis points, 50 basis points in terms of contraction. Any more color would be helpful.

Phil, in relation to that, this is Bill. You can say it's going to be between 25 basis points to 50 basis points essentially. The impact of the Keystone integration at the starting, let's say, margins of the facility.

Okay. That's actually quite good. So that implicitly implies a nice step-up in the back half. Any color that you're comfortable sharing what's driving some of the improvement? Certainly, that $7 million headwind goes away, but any other things you want to call out for that big step-up in the back half?

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.

Now when it comes to Phil, we've got to realize that we work in a different outside environment, weather can have an impact, all the things that you're aware of for Q3 and Q4 can come into play. But as we see it now, we feel good about what we see in terms of the order book.

Okay. And just one follow-up to that. Your guide for the full year for Keystone, is there any adjustments that we need to be mindful in terms of step-up in terms of the inventory? Did you see that hit already in 2Q? Or is that going to kick in 3Q? Or is it meaningful?

Yes, it already hit. Yes, it already hit in Q2, Phil. It's not that meaningful. It doesn't have that level of inventory. It's not like an aggregate facility with tons and tons and tons later on the ground that you have to deal with. So even small [indiscernible].

We'll move next to Chad Dillard with Bernstein.

So my question is on your guidance change for revenues going from low single digit to high single digits and then also the modest step down in EBITDA. And I was hoping you could parse out what the changes were on the organic side versus what's coming from the impact of including Keystone?

We've updated the guidance to cover the full business here, Chad. It is -- for us, Keystone is integrated into the Mid-Atlantic as a whole, we talked about the synergies that we expect to get as we combine that with the existing fly ash business, the ready-mix business, the Northern Virginia, the business and Essex, obviously, on the import side, but the 2 can back each other up to some degree.

So we don't break it out in that sense, but I think it's fair to say that we wouldn't have adjusted our guidance before for the existing legacy business. I think they would have generally remained unchanged.

And then just second question, just sticking with Keystone. Just trying to better understand the cadence of, I guess, $30 million of synergies out through 2029. Should we be thinking about it on a linear basis? Then maybe you can talk about what are some of the low-hanging fruit that you can execute on as you go into '27?

Yes. I wouldn't say linear because some of them involve some CapEx investments. They're not huge CapEx investments, but they're important at the same time with some investments getting the alternative fuel capabilities increase compared to where they are today. It's good, but we can make it better.

And we have some raw material synergies that we think we can improve there at the facility, the logistics operations. But fundamentally, what we've been focused on in the last couple of months, we've only owned it 3 months today. But really, what we're focused on there is making sure the reliability and the quality of the product is consistent with the rest of the Titan America product that we have.

So getting the plant operating. This is more OpEx at this point than it is CapEx, but we'll come to the point where we have to make some targeted CapEx investments to do that. Those are best executed during a planned shutdown when you have the duration to do something like that. So we make incremental progress every month, but this is really about reliability, throughput, consistency and the ability to serve customers.

We'll move next to Brian Brophy with Stifel.

Appreciate you taking the question. I guess just following up on the Keystone synergies, point of clarification, are all of these cost synergies? Or do you have some revenue synergies in there as well?

There are -- Brian, it's Bill. There are substantial revenue synergies that come from reliability, which allows us really to produce more out of the plant and therefore, sales more. There are also commercial synergies in relation to logistics and network synergies across Pennsylvania, Ohio and our existing Mid-Atlantic operations.

On top of that, we have operational excellence synergies, obviously, in relation to cost of raw materials, cost of operations. And on top of that, we're going to see synergies as we increase our sales of aggregates.

As we have mentioned in the past, there are substantial high-quality DOT quality aggregate reserves, and we intend to increase our sales into the market. This will happen gradually. That's why we gave a run rate of at least $30 million of synergies by 2029.

That's helpful. And just as a follow-up to that, you talked about almost $100 million of revenue that Keystone was previously generating. How should we think about where revenue could go as you improve plant capacity and utilization?

We haven't given a guide on that one, Brian. I think let's come back to you in due time and give some more -- some more guidance on that as we come to understand the asset a little bit better and make some of the improvements I was describing here as well.

Brian, we have promised that we're going to come back with more details later in the year.

At this time, there are no further questions in queue. I will now turn the meeting back to Bill Zarkalis for any additional or closing remarks.

Thank you, Chloe. We appreciate your help. And thank you all for your time today. We appreciate your interest in Titan America. We look forward to updating you on our progress on our third quarter call. Have a great rest of your day. Thank you all. Take care.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Good morning, and thank you for joining us. I am Erica, your conference call operator. Welcome to Titan America's First Quarter 2026 Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions]

I would now like to turn the call over to Michael Bennett, Vice President of Investor Relations.

Thank you, operator, and good morning to everyone on the line. Thank you for joining us for Titan America's First Quarter 2026 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, yesterday afternoon, we released Titan America's first quarter 2026 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 measure 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 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 those 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 would now like to turn the call over to Bill. Please go ahead.

Thank you, Michael, and good morning, everyone. Thank you for joining us today for Titan America's First Quarter 2026 Financial Results Call.

Yesterday, we announced our financial results for the first quarter. I would like to begin on Slide 4 by highlighting a few key messages. The first quarter is usually the weakest quarter of the year. It was a quarter that started slowly, affected by continued softness in the residential market and harsh winter weather in our Mid-Atlantic region.

In March, the conflict in Iran exacerbated the geopolitical uncertainty, triggered inflationary pressures with increasing fuel and energy costs. Against this backdrop, Titan America once again delivered a solid first quarter performance with year-over-year improvement in our results, showcasing once again the resilience of our vertically integrated business model, the benefits from our ongoing strategic initiatives and the agility of our teams to execute in a challenging environment of mixed end market demand trends and increased uncertainty.

First quarter revenue increased by 1.5%, while adjusted EBITDA was 3.4% higher than the same quarter of last year. In the first quarter, our Florida segment delivered robust performance, underpinned by strong participation in infrastructure and private nonresidential construction. We saw meaningful volume growth in aggregates, concrete block and fly ash that was partially offset by softer demand for cement and ready-mix concrete in the residential sector. Prices in Florida were modestly higher sequentially when compared to the fourth quarter of last year.

The Mid-Atlantic region delivered strong year-over-year improvement in the first quarter, trimmed down by the impact of adverse winter weather on demand in the region. We are encouraged by the strong performance, which was partly driven by the start of substantial projects in the region, including data centers and public infrastructure. In addition, the quarter included benefits from both year-over-year and sequential growth in cement and ready-mix concrete pricing as well as operating efficiencies that drove adjusted EBITDA margins higher.

On May 1, we completed the acquisition of the Keystone Cement Company. This investment represents an important milestone in our growth strategy, and we are very pleased to welcome the Keystone team to the Titan America family.

Despite the challenges following our first quarter results and taking into consideration our current visibility for the year, we are reaffirming our full year 2026 outlook. We'll discuss our guidance at the end of the presentation.

Let's move now to Slide 5. As communicated, as of May 1, we have concluded the acquisition of the Keystone Cement Company. We have now expanded our geographic reach in the markets of Pennsylvania, Ohio, Delaware and Maryland. In combination with our existing assets, we have strengthened our vertically integrated footprint in this region and are better positioned to capitalize on the strong secular trends.

As a reminder, Keystone is a modern cement facility with approximately 990,000 short tons of current clinker capacity and serves a greater than 6 billion short ton addressable market. In 2025, Keystone generated revenue of approximately $97 million with an EBITDA margin of approximately 10%.

We believe that we can deliver game-changing synergies for the acquired Keystone assets that will substantially grow both its top line and its margins. We expect to grow the output of the assets by significantly improving reliability with our proprietary real-time optimizers and predictive maintenance capabilities. We will drive strong benefits from raw material cost optimization, more efficient energy consumption and increased use of alternative fuels.

In parallel, we expect to target the infrastructure segment in the region by capitalizing on the high-quality aggregates of Keystone. Our integration team is already on site, working together with experienced and knowledgeable Keystone colleagues. We look forward to updating you on our progress in the future.

Let's move now to Slide 6 to discuss a recent exciting development for Titan America. In April, we announced the grand opening of the Titan America Innovation Hub in Miami. This collaborative center is designed to accelerate the development and scale-up of advanced materials, digital technologies and construction solutions, bringing together the most creative minds in construction, design, academics and sustainability.

Through the innovation hub, we continue to innovate and expand product offerings focused on meeting the evolving needs of our customers for sustainable, high-performance products, services and solutions. There are major transformational themes in our industry such as resilient urbanization, digitalization and the need for smart materials, novel construction technologies and circularity. These trends create new value pools of high growth and high margins.

As part of our strategy, we invest in innovation in order to tap these high-growth, high-value pools. Consider, for example, data centers. As someone said, the cloud is built of concrete, and we serve Virginia's data center alley, the largest concentration of data centers in the world. We do this with our proprietary AI-engineered concrete mixes, incorporating and enabling new levels of performance and sustainability.

We capitalize on industrial reshoring by providing smart materials to enable fast-track construction for the next generation of manufacturing and logistics infrastructure. We incorporate circularity in our offerings, including expanded use of valuable supplementary cementitious materials like fly ash beneficiated with our proprietary electrostatic technology.

We also offer ultra-durable marine-grade concrete and supply innovative blue-grade solutions inspired by nature such as patented 3D-printed concrete for the next generation of seawalls and reefs. Our hub is already operational, and you are welcome to visit and learn more about our innovative products and solutions. You can find more about the hub also on our website.

I will now turn it over to Larry, who will provide a more detailed breakdown of our first quarter financial results and business segment performance. Larry?

Thank you, Bill, and good morning, everyone. Moving to Slide 7. Let me share an overview of our first quarter 2026 financial highlights.

The first quarter saw a mixed operating environment. Winter weather disruptions in the Mid-Atlantic region weighed on volumes during the quarter, while the macroeconomic backdrop introduced incremental uncertainty as the quarter progressed.

Against that backdrop, we were pleased to deliver solid financial performance with year-over-year improvement in revenue, adjusted EBITDA and operating cash flow. For the quarter, we delivered revenue of $398 million, an increase of 1.5% compared to $392 million in the first quarter of 2025.

Adjusted EBITDA for the quarter was $83 million compared to $80 million in the prior year quarter, an increase of 3.4%. Our first quarter adjusted EBITDA margin was 20.7%, an improvement of 40 basis points compared to 20.3% in the first quarter of 2025, reflecting the benefits of our vertically integrated model, pricing discipline and ongoing cost management efforts.

Net income for the quarter was $33 million, consistent with the prior year quarter with earnings per share reflecting the impact of incremental shares outstanding from our 2025 initial public offering.

Operating cash flow for the quarter was $62 million compared to $35 million in the prior year quarter, having benefited from lower levels of working capital and lower income tax payments. Free cash flow was $30 million in Q1 2026, reflecting the improvements in operating cash flow and steady year-over-year CapEx investments. And finally, our leverage ratio further improved to 0.58x at the end of Q1 2026.

Turning to Slide 8. Let me walk you through our sales volume performance by product line. Total cement volumes, including external sales and internal consumption, were broadly stable, down less than 1% year-over-year with winter weather-related impacts in the Mid-Atlantic region and persistent softness in the residential sector generally offset by continued demand strength from infrastructure and private nonresidential construction.

Total aggregates volumes grew 1.8% in the quarter, benefiting from the expanded production capacity in Florida, the strength of which was partially offset by lower volumes from our Mid-Atlantic sand sources.

Total fly ash volumes were up 12.3% compared to the prior year quarter on higher utility generation and increased commercial push, while ready-mix concrete volumes decreased 2.1% year-over-year with delays in project starts in Florida only partially offset by sustained volumes from data center construction in the Mid-Atlantic.

Concrete block volumes increased 9.7% compared to Q1 2025, driven higher by improved contribution from remodeling and renovation channels as well as shell contractor demand in select regional markets.

Turning to Slide 9. External pricing improved sequentially from Q4 2025 across all product lines. On a year-over-year basis, cement pricing was flat, while aggregates and fly ash pricing, which were impacted by product and regional mix declined by 0.6% and 2.4%, respectively. Ready-mix concrete prices improved year-over-year, benefiting from a larger proportion of value-added product sales. On a year-over-year basis, concrete block pricing declined 2.1%, reflecting customer and end market mix as well as the softness experienced in residential demand during 2025.

Turning to Slide 10. Let me focus your attention on our Q1 business segment performance. In Florida, we delivered strong results in a challenging market. Florida's external revenue was $253 million in the first quarter, essentially flat compared to the first quarter of 2025 as revenue growth from aggregates, concrete block and cement were offset by a lower contribution from ready-mix concrete.

Adjusted EBITDA for the Florida segment was $73 million, an increase of 2.5% compared to $71 million in the prior year quarter. Adjusted EBITDA margin expanded to 28.6% in Q1 2026, up from 27.9% in the first quarter of 2025 as cost discipline offset headwinds from higher energy costs and tariffs.

In the Mid-Atlantic, we delivered meaningful year-over-year improvement during the quarter, consistent with the constructive 2026 outlook we communicated during our fourth quarter call. Despite winter weather that got disruptions and suppressed volumes in the Mid-Atlantic region in January and February, our team executed well and delivered strong financial results and improved pricing in ready-mix concrete and cement were amplified by operating efficiencies, which more than offset the impact of tariffs and higher import costs.

Mid-Atlantic external revenue was $145 million in the first quarter, an increase of 4.2% compared to $139 million in the first quarter of 2025. The revenue improvement was primarily driven by strong ready-mix concrete participation in regional commercial construction projects, including data centers.

Adjusted EBITDA for the segment was $13 million compared to $11 million in the prior year quarter, an increase of 16% and segment adjusted EBITDA margin improved to 8.7% from 7.8% in the prior year quarter. As a reminder, the first quarter in the Mid-Atlantic segment included the impact of our Roanoke Cement plant's annual major maintenance campaign in both 2026 and 2025.

Now turning to our balance sheet and cash flows on Slides 11 and 12. As of March 31, 2026, we had $228 million of cash and cash equivalents and total debt of $455 million. Our net debt position was $227 million, representing a leverage ratio of 0.58x trailing 12 months adjusted EBITDA, a further improvement from 0.64x at the end of 2025.

Our strong leverage profile provides significant balance sheet capacity to pursue strategic growth opportunities such as the recent Keystone acquisition, while maintaining our commitment to returning capital to shareholders.

With respect to Keystone, the acquisition was funded with a combination of cash on hand and a new term loan issued in April 2026 with a maturity date of February 2031.

Slide 13 shows our capital expenditure profile for the first quarter of 2026. Net capital expenditures in the first quarter were approximately $32 million and remain focused on our previously communicated strategic objectives. These include increasing our domestic cement and aggregates capacity, improving the efficiency of our logistics networks and further enhancing our strong positions in select downstream channels to market.

On Slide 14, I will remind you of our capital allocation strategy. As mentioned in our previous calls, we are focused on 3 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.

During our fourth quarter conference call, I discussed our organic growth priorities for 2026. These remain unchanged. Now that we've closed the Keystone acquisition, we expect to make further investments to deliver operational, commercial and logistics synergies as we incorporate the Keystone assets into our Mid-Atlantic network.

With respect to shareholder returns, I would also like to announce that yesterday, our Board of Directors approved an issue premium distribution of $0.04 per share payable on July 7, 2026, to shareholders of record on June 18, 2026.

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

Thank you, Larry. In conclusion, the first quarter demonstrated the resilience and quality of Titan America's business model in a stubbornly challenging operating environment. Despite winter weather headwinds, macroeconomic uncertainty and continued softness in the residential sector, we grew revenue and adjusted EBITDA, expanded margins and generated substantially stronger operating and free cash flow compared to the prior year period. Our teams executed well and the underlying fundamentals of our key markets remain constructive.

Turning now to our 2026 outlook on Slide 15. As we mentioned during our fourth quarter financial results call, the recent surge in oil and energy prices due to the conflict in Iran has introduced additional risks in an already complex and uncertain economic backdrop. We expect softness in the residential sector to continue through the remainder of the year with a much anticipated inflection point potentially delayed to 2027.

Despite the challenges, following our first quarter results and taking into consideration our current visibility for the year, we are reaffirming our full year 2026 outlook. On a like-for-like basis, we continue to anticipate low single-digit revenue growth compared to last year, with modest expansion in our adjusted EBITDA margins. This outlook reflects our confidence in the underlying demand trends in our markets, especially as we move into the seasonally stronger middle part of the year as well as our ability to execute and deliver benefits from our previous and ongoing strategic initiatives.

It is worth noting that this guidance does not include the contribution from Keystone as we focus on integrating the acquisition and building out its full commercial potential.

Before we open the call for questions, I want to express my sincere gratitude to all of our Titan America team members, and extend a warm welcome to our new colleagues from the Keystone Cement Company, whom we are proud to have now as part of the Titan America family.

With that, I'll turn the call over to the operator for the Q&A session. Operator?

[Operator Instructions] We'll take our first question from Philip Ng with Jefferies.

Congrats on a really strong quarter in a choppy environment. So great execution from the team. Larry -- I guess, Bill, to kind of kick things off, the Keystone acquisition, quite exciting. 10% EBITDA margins would certainly be much lower than I would have thought. Best-in-class cement assets, I think, are probably closer to 30% EBITDA margins. And I suspect your business is probably not too far from that. So what needs to happen to kind of get that? I mean, one, is there anything structural with the asset or the market? Or this is just we need to deploy the Titan America playbook in terms of capital deployment and bringing that business in-house? So just kind of give us some color in terms of what that profit profile could look like and if there's anything structural with the business.

Absolutely. I think that element represents also the reason why we say that we're going to implement game-changing synergies in this asset, bringing the profitability up to norm for how we perform overall with our own assets. As we have explained, this is a value-accretive opportunity for Titan America. It's expanding and strengthening our geographic reach and our leadership position in the East Coast, adding important geographies like Pennsylvania, Ohio, Delaware, Maryland. We will expand and extend our integrated model.

Also very important is to think that it's an acquisition of important aggregates assets, both for production of clinker, but also of infrastructure-grade aggregates. So it is a very important lever. And last, in relation to your question, we see game-changing synergies, as we said, in relation to optimizing and improving the margins, of course, by reducing the cost, improving overall logistics, energy consumption and bringing all the digitalization and elements of operational excellence that Titan America has been delivering for years. So a great opportunity for us, starting from that point that you mentioned.

Bill, like how quickly can you get this to a good margin profile? And is the assumption based on what you said, you can get this asset to something that we're accustomed to for the legacy Titan Cement assets from a profitability standpoint?

Thanks, Philip. Good question. Let me just say that we have our integration team working already from the phase that we were doing the due diligence. And as soon as we start -- we signed the SPA, and we were ready to move in and start cooperating with our new colleagues at Keystone from day 1, and our teams are implementing already the synergies.

In relation to specifics, if you allow me, we'd like really to be there for a couple of months. So we anticipate that in our upcoming second quarter analyst call, we're going to give you details in relation to synergies that we intend to implement and provide the necessary details that you need also for your models.

Okay. That's helpful. Question for Larry. Impressive, you reiterate the guidance, particularly margin expansion in a pretty inflationary backdrop. Can you remind us what are some of the inflation that you could see that could be impactful? I believe you've got pass-throughs for freight, which is helpful. And then certainly, on the pricing side, any update that you have out there in terms of the cement price increases, the ready-mix price increases and aggregates price increase that's out there for April? Do you need those price increases to stick to kind of offset inflation and drive the margin expansion you're calling for?

Look, I think we operate in a year where we have some mixed environments, Phil. So if you look at what we put into our own internal thinking on this, there'll be some ZIP code area differences on these kind of things. So we do see opportunities on both price and volume, depending on where we are. And beginning in April, in those markets where the markets were stronger beginning in April, we've begun to pass through some of those prices that we're talking about.

You mentioned pass-throughs on the cost side when you talk about pricing, for example, sort of the cost element of that on the energy side. Those, as you recall, are not as significant for us as you might imagine. They're 8% of our total cost of sales. And with that, we have fuel flexibility when we talk about energy costs at our cement plants. I think we've described that a couple of times in terms of the multiple fuels that we are able to burn there and the increased use of alternative fuels through those same facilities.

We have implemented some capital projects. I think I described that in the last call as well coming out of Q1 out of the outage in Roanoke. We have a different and more flexible burner system there. And then Florida, where we've got an alternative fuels project that will enable us to bring further alternative fuels and bring down the cost in a further period, so beginning in Q2, Q3, for example. So we're optimistic on that front.

Now the pass-through, as you described, you're right. We have -- for the diesel fuel that we consume within our business, about 2/3 of that is used in the delivery of ready-mix concrete, about 1/3 is used within the facilities themselves. One obviously has a direct opportunity for pass-through in the fuel surcharge. The other is reliant on price improvement to cover that to the extent that it continues.

Every day brings different news. You saw today's news. Things may not be as grim as we had feared they may be in terms of longevity. So we'll take it day by day, but that's what's in our guidance.

And we'll take our next question from Anna Schumacher with BNP Paribas.

I have 2. So firstly, on aggregates, how significant are your aggregates ambitions? And what makes Titan the partner of choice in this industry? And secondly, on -- again on cement, has there been any change in the cement import situation this year? Are they still disruptive in either of your markets? And if you can share your pricing expectations for '26, that would be great.

Yes. I think on the aggregates question, you'll see obviously in our public documents, we are a well-positioned aggregates producer in some of our markets. We have ambitions to be bigger in some of our markets as well. But when you look at Florida, we are a good participant down there with good cost structure in our facility in the Pennsuco location, for example, I think Corkscrew is the one on the West Coast for us. So we see good opportunity for there.

On the other calls, Anna, we may have described -- maybe perhaps you didn't have a chance to listen in. But on some of the other calls, we described some of the additional opportunities we have, taking advantage of newer mining technologies to bring some product up, liberated from what was remnant mining in effect from periods gone by. So that's a good opportunity ahead for us. We're investing to be able to do that.

I think with respect to cement imports, -- and sorry, just as a follow-up comment here on Keystone as well, we have good opportunities in Keystone, as Bill was describing before, going into that new market, but our teams are just getting oriented around that location this week.

Now when we go back to the cement imports you described, I think if your question was around patterns of cement imports, I think one of the challenges that we are going to face is some of the ocean freight, perhaps some of the war impact has had some delays on some of the loading of ships at some of the location points and some of that disruption perhaps coming in and the volatility perhaps in ocean freight is something that we have on our radar screen. So we are looking at that.

But generally, the import strategy is no different than it was in the past. We have a flexible import model where we combine this local production that we have combined with the imports to give us the channels to market to our internal and external customers. That's the plan.

And we'll take our next question from Wesley Brooks with HSBC.

So yes, a couple of questions from me. I guess first one, just coming back to Keystone. Just looking at that revenue number, what's it, $97 million in revenue on almost 1 million tons of clinker. It just seems like a very low realized price. So I wondered if -- is this because they just sell the clinker? I'm interested to understand that. I mean you're making about $160 a ton in your Mid-Atlantic region. So can you help us understand what's going on there? And is that a big part of the opportunity that, that is not doing something well there?

The key issue here, Wesley, is not -- the clinker capacity is one thing. The important element is the reliability at which these assets are being run, and also certain limitations that reduce capacity utilization. And that's a great opportunity for us to improve capacity utilization and therefore, have a bigger output and more reliable output, which will allow us to increase top line. And of course, on the other side, as we mentioned, address unit cost and improve margins. So the roughly 1 million tons in capacity of clinker that we mentioned doesn't mean that actually this plant operates at this rate.

Yes, that makes sense. Okay. And then I guess, yes, my next question, following up again on the energy cost. As you say, you have alternative options for fuel, but the broader market, I think, has a higher exposure to energy costs in cement production. So I'm wondering, is this something that you think could be an impetus for further pricing actions that maybe are more sustainable? I mean, if we think of what happened during the pandemic, we had a lot of cost inflation. You guys -- I mean, that was really a positive for the market and for margins for cement players for longer term. Is this something that could be similar? Or do you think the market is broadly looking at more short-term, as you say, kind of surcharges and things like that?

As we mentioned, our margin expansion and our results [ incorporate ] both our strong execution in the marketplace, capitalizing on positive trends in infrastructure and private commercial like data centers, logistic infrastructure, manufacturing, reshoring, power assets, hospitals, water systems, elements like this. But also a good part was our operational excellence and our ability to manage cost, including energy and fuels.

Now to your broad question, whether this is an opportunity, clearly, the industry is faced with tremendous inflationary pressure, which clearly necessitate a price increase in the market in order to face these pressures, independent of what we do internally in order to manage it. So you're right, this environment, this backdrop against which we operate necessitates price increases.

That's why Larry mentioned that we -- coming into the high season now, as of April, we implement price increases that were delayed in the first quarter, especially in the areas where we see growth momentum. And in the other areas, of course, trying to capitalize on the supply and demand situation.

And we'll take our next question from Brian Brophy with Stifel.

Just thoughts or intentions you guys have on potentially building out downstream assets around Keystone? Any color there?

Okay. I think what we've said, Brian, is that we have existing assets in the area. So if you look at our broader business in the Mid-Atlantic, we have the fly ash businesses where some of the same customers are called upon by our current fly ash business, as is Keystone, serving on the cement side.

We have now this ability to integrate and provide this bookended sourcing points that we described for the Mid-Atlantic and Florida -- the rest of the Mid-Atlantic and Florida with the Essex import terminal providing backstop reliability for Keystone as well, right? So this is a nice additional synergy that we get there.

I think the thing that we said in the document is we have, nearby to this plant, just as close it is to Roanoke, our Northern Virginia ready-mix business, which is a big part of our ready-mix portfolio in the Mid-Atlantic. And that integrates nicely by itself with the acquisition that we have. Now I think we said we'll integrate where we think it makes sense, and this is something that will be considered.

And it's a good question, Brian. I mean, like Larry mentioned, of course, we're going to capitalize and serve most likely from Keystone because it's better logistics and therefore, a better opportunity to serve our customers in North Virginia and Washington D.C. from that side. So there's going to be an immediate integrated model served from Keystone.

We have strong positions with downstream customers in New York and New Jersey. And our Keystone business unit -- our Keystone colleagues have built strong relationships in Pennsylvania and Ohio. We have also positions there with our fly ash. So our first priority will be to capitalize on our upstream integration, with now cement, aggregates and fly ash, a different type of offering as compared to Keystone alone and capitalize on this virtual integration as we have with long-term relationships from our Keystone colleagues with downstream customers.

So our first step will be to enhance our relationship with these customers to offer them more products and more solutions and create, as a first step, this virtual integration.

Yes. That's really helpful. And then just as kind of a follow-up. Do you guys have any sense yet for how much CapEx is needed to execute on the synergies discussed for Keystone? Or do you just have a general sense for the capital intensity of executing on some of these?

We have a good understanding that we developed through the due diligence and also the phase between the SPA and finally closing, detailed plans. As I mentioned, we will come with more details in our second quarter call so that you have more granularity. We want to take advantage of this in the next month to go deeper in our plans and provide more details.

So -- but I can say that -- as a general comment that we don't expect high capital intensity in relation to our investments. We have the ways and the combination between the existing assets that we have and the assets from Keystone to synergize. So we don't expect high capital investments in order to deliver the synergies.

At this time, we have no further questions. I'd like to turn it back over to Bill Zarkalis for any closing remarks.

Thank you, Erica, and thank you all for your time today. We appreciate your interest in Titan America and look forward to updating you on our progress on our second quarter call. Thank you for joining, and have a great day ahead. All the best.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Greetings. Welcome to Titan America's Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] 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.

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. 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 fourth quarter 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. 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.

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 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 you on the team.

If you turn to Slide 4 of the presentation, I'd like to begin by highlighting what rendered 2025, a historic transformative year for Titan America marked by strategic milestones. In 2025, Titan America joined the roster of companies that trade on 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 the 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. 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 nonresidential construction, particularly in data centers, manufacturing, logistics facilities and energy projects supported our performance. 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 continue to represent the largest hyperscale data center market in the world. In the fourth quarter, 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 point improvement in our adjusted EBITDA margin, demonstrating the inherent benefit of our vertical 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 nonresidential construction demand, offsetting a soft residential end market. Our investments in increased aggregates capabilities and across 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 nonresidential investments 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. 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.

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 fits squarely within our growth playbook. The logistics and customer service network synergies with our existing operations are compelling. The Keystone plant is approximately 75 miles from our Essex Marine hub and approximately 200 miles from the Metro D.C. 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. That [indiscernible] is actually 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 6 now. It's showcases a selection of key projects we participated in during the fourth quarter 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-storey 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 cannabis space complex supporting next-generation starship missions, including a new launch tower and a dual [indiscernible] facility. The expansion will establish the Florida space cost as a major operational hub for starship missions, significantly increasing capacity for commercial and government space missions. The multiyear project is expected to require approximately 120,000 cubic yards of concrete, supporting substantial [indiscernible] 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 [indiscernible] projects.

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

Thank you, Bill, and good afternoon, everyone. Moving to Slide 7. Let me share an overview of our fourth quarter 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 fourth quarter results also benefited from favorable comparison to the hurricane-disrupted fourth quarter of 2024. For the fourth quarter, 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.

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-mixed 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.

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. 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.

Turning to Slide 8. Let me walk you through our sales volume performance by product line. The 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 the fourth quarter of 2024 and reflecting improvements in Florida driven by strong private nonresidential 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.

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 nonresidential construction, including data centers and commercial development. We also saw a stronger performance in our other product lines with aggregate 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-mixed concrete volumes grew modestly by 0.2%. Concrete block volumes declined 2.1% year-over-year.

Turning to Slide 9. Cement pricing in the fourth quarter was essentially flat, while aggregates increased 2.1% year-over-year. Ready-mix concrete pricing improved 0.9% and 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-mixed 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 the fourth quarter and record performance for the year. Fourth quarter external revenue was $247 million, an increase of 5.1% compared to $235 million in the fourth quarter of 2024, driven by higher volumes in cement and aggregates. Concrete block volumes also improved from 2024 hurricane affected quarter the Florida segment, adjusted EBITDA was $65 million in the fourth quarter, an increase of 22.5% compared to $53 million in the fourth quarter of 2024. The 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 the fourth quarter of 2024. 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.

On Slide 11, 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 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. 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 3 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.

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 December 31, 2025, we had $211.8 million of cash and cash equivalents and total debt of $462.4 million. Our net debt position was $250.7 million, representing a leverage ratio of 0.64x 2025 adjusted EBITDA and an improvement from the 0.71x at the end of the third quarter 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, a our next meaningful debt maturity is in July 2027.

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-mixed 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 Ronak cement plant and 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. In 2026, our planned organic growth investments include innovative mining approaches and our aggregate production facility in Miami, development, permitting and construction of our previously announced precast rental 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 and our vertically integrated investments in ready-mixed 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 May 8, 2026, to shareholders of record on April 20, 2026.

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

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. 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 new print in the years ahead.

As we look to 2026 and beyond, we are excited about the strong growth opportunities ahead. 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.

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?

[Operator Instructions] Our first question comes from Anthony Pettinari with Citigroup.

This is Asher Semanen on for Anthony. I was just wondering if you could walk through in a little more detail some of the puts and takes driving the guide for '26. I mean you talked already about the push out of kind of a resi recovery into 2027. But just on the infrastructure and private non-res side of the business, how would you compare your expectations now versus 3 months ago? And then also, are you may be able to break out the guide for revenue between like price and volumes?

Yes. 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.

Yes. So I was just asking about the puts and takes driving the guide. You talked about the resi recovery getting pushed to 2027, but I was wondering if you could talk about your expectations now versus 3 months ago for the private side and the infrastructure side. And then also within the revenue guidance for 2026, is there like a breakout between price and volume?

Yes. We don't see any major change in relation to infrastructure and the private nonresidential side, it will continue strong. As we know from the statistics, about 50% of the IIJA funds can be spent. So we expect the rest to be spent in the next 3 years. And also, we expect the momentum to continue, either with renewal of the IIJA this year in September or with a continuing resolution. And also, we see positive strength in certain parts of private nonresidential as you know, data centers, logistics, infrastructure, health and other elements like warehousing, the Space Center in Florida. So overall, we're very confident and optimistic about the non-resi elements.

In relation to residential, there was anticipation that potentially in the second half of 2026, we're going to see the inflection point 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, 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 affordability issues about housing and will trigger the inflection point. That's why we said that it seems likely that the inflection point has been pushed towards 2027.

That's helpful. And then switching gears, I wanted to ask about the Ohio and Pennsylvania markets that you're entering with Keystone. What makes those markets attractive. Can you just kind of compare and contrast those markets with your two existing markets?

Okay. I think it's a territory that we're familiar with. We operate the Fly Ash part of our business is there. You can see them on the map. I think we've scattered them on there in some slides that we've presented. So we deal with some of those customers today through that one, not through the cement element. When you look at manufacturing, reshoring, Ohio, Pennsylvania are places of attraction and is a place that we see good growth opportunities ahead. The plan is well set up to fix -- to serve both of those markets. And as we said in the opening comments, that facility also has the benefit of serving our Washington, D.C. area, and we can take then some of that logistics synergies into our business as well as we connect those two together.

next question comes from Phil Ng with Jefferies.

It's Jessie 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 kind of more of the mix pressures. And then if you could kind of remind us what you announced for 2026, and how those conversations are progressing?

I think safe assumption to say this is into the mix. As you recall, we report across the areas of Titan America. So there are elements of geography mix and also elements of packaging mix and delivery mix, whether it is pickup, customer pickup or delivery. 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. 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-mixed concrete and $3 for aggregates finished goods.

And were all those increases for January, or were they spread out between January and April?

Yes. I mean I think -- well, they were for January. And just based on the market, Jessie, we largely pushed those increases into April. That's I think the recent events in the war in Iran, for example, may give some additional impetus to increase those. But I think largely, what we'd 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. So perhaps more in aggregates, more in ready mix and a little less perhaps into [ network. ] But we still are developing some of those internally, but that's what we would see today.

Our next question comes from Chad Dillard with Bernstein.

So my question is on fuel cost. What share of that does that represent for your cost of sales? And then, I guess, how much of the price of oil is embedded in your guide? Or is this something that might potentially change as we need to mark to market?

Yes. 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 closed out last year. You break that down between its components. Obviously, the kiln fuel has a pace, electricity has a piece, and what you referred to it at the end there, liquid fuel, has a piece as well. Each of them have their own characteristics. 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 Pennsuco. 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, when we're at $5 per gallon today, this is public information. You can see it from EIA as registered every week. That's higher equivalent than it was at this time a year ago. For those things that are externally facing things like ready-mixed concrete, they are built in fuel surcharge mechanisms that would generally cover some of those cost increases that we would see. And then on the aggregate side, for example, that's a smaller piece of the overall total, call it, a third than those things we address as we go along, perhaps the price increases that would be supported by those energy cost increases, as we were saying before.

So fundamentally, Chad, in relation to the energy be all together, 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. And we have recently invested in during the maintenance iron, we installed our new state-of-the-art dual burner in order to increase our capability to bear multiple feeds and different types of fuel. And we are completing within April, our investment in new capabilities for alternative fuels in Pennsuco, which is going to grow the use of alternative fuels by 50%. So multiple levers here to face an increase in cost. And 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.

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

We participate -- 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 space cost 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. And on top of that, like we've been discussing, we have in progress, operational excellence and cost reduction initiatives. You are 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 cost 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, increased production, but also decrease our maintenance costs, which again add to the margins. And 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 this had an impact in a very difficult backdrop in 2025, as you saw 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.

Our next question comes from Brian Brophy with Stifel.

You mentioned increasing domestic cement capacity this year. Is that in relation to 1T, or is something else driving that? And any color you can provide on how much you expect to grow capacity by?

Yes, it's two things. One is...

[Technical Difficulty]

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.

Thanks, operator. It's -- sorry, it's Larry here. We're going to go with a cellphone. Bill and I happen to be in Brussels. We had a board meeting here today. So generally something wrong with the fixed lines here. So we'll try it the old fashioned way here with a sofa. So hopefully, you can hear us. Brian, I'm not sure you've heard the answer here.

Yes, you just started answering.

Yes. So your question was around the capacity expansion, where does it come from, right? So there'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 that have come into place as well. These are the two main things that drive the increased production for this year.

Okay. And then I guess a 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. And you also mentioned some innovative mining approaches driving CapEx this year in the deck on the [indiscernible] side? Just any more color on what you were referring to there.

[Audio gap]

Updating you on their progress as the first quarter call comes around in the early part of May. So thanks, have a great rest of your day. Appreciate it.

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

Greetings, and welcome to Titan America's Third Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Daniel Scott. Thank you, and you may proceed, Daniel.

Thank you, operator, and good afternoon to everyone on the line. Thank you for joining us for Titan America's Third Quarter 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 third quarter financial 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. 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 would now like to turn the call over to Bill. Please go ahead, Bill.

Thank you, Dan. Good afternoon, everyone, and thank you for joining us today for our third quarter 2025 financial results call. If you turn to Slide 4 in the presentation, I'd like to begin by highlighting our key messages for the quarter.

We delivered solid performance in the third quarter, including 6% revenue growth with adjusted EBITDA and net income growing faster at 18% and 45%, respectively. Additionally, free cash flow reached $68 million in the quarter. These results reflect the strategic benefits of our vertically integrated business model and our ability to execute effectively in a challenging environment.

Our Florida segment produced outstanding operating results, driven by our strong presence in the infrastructure and private nonresidential end markets as well as robust aggregates performance, where our recent investments in additional capacity enabled both volume growth and margin expansion.

In the Mid-Atlantic region, we are pleased to report a return to growth in the quarter, supported by a release of project backlogs, improved pricing, and more favorable weather conditions. Pricing across our markets remained resilient on a like-for-like basis, moderated by mix impacts and residential softness.

Operational efficiencies and cost management initiatives also contributed to margin expansion. We believe that our strategic investments in plant capacity and efficiency, logistics infrastructure, and digital capabilities position us to capitalize on the secular growth trends ahead.

As we approach the end of the year and based on our results through the third quarter, we are updating our 2025 outlook. We now expect full year revenue growth in the 2 to 3 percentage range, and continue to expect modest improvement in adjusted EBITDA margins compared to 2024.

Turning now to Slide 5. Let me provide some context on the market environment and the factors that we believe position us well for continued success. The markets we serve remain resilient, supported by robust investments in infrastructure and private nonresidential construction as well as ongoing manufacturing reshoring and reindustrialization trends across our key geographies. Most importantly, our order book remains strong across these segments. However, residential markets continue to be challenged by elevated mortgage rates and housing affordability with a rebound in single-family construction not expected before second half of 2026.

Let's turn now to Slide 6. Recently, we announced an important strategic milestone for our entry in the precast lintel market, which are the structural beams above doors and windows in every building. Titan America received certification for our own lintel designs, meeting the most rigorous structural resilience standards in our market. This achievement paves the way for Titan America to expand its precast solutions beyond concrete block, enhancing our vertical integration model, and accelerating growth through new adjacent channels.

Leveraging our technology, product development, logistics, and downstream customer relationships, we believe Titan America is uniquely positioned to scale quickly in this new market while achieving attractive margins and quality of earnings. Currently, Titan America is in the engineering phase for site development and facility design for its first state-of-the-art lintel manufacturing plant.

Now on Slide 7. We show a sample of key projects we are participating in our 2 business segments. These projects demonstrate both the breadth of our market reach and our technical capabilities in providing specialized solutions across diverse construction sectors.

Let me describe 2 in more detail. In Virginia, QTS is expanding its data center presence with major developments in both Richmond and Manassas. In Richmond, QTS is building a 622-acre campus with phase construction expected to be completed in 2026 and 2027. The site could ultimately support up to 13 data centers and 280 megawatts of capacity. In Northern Virginia, its Manassas campus currently includes 5 data centers with room for 4 more and a total projected capacity of 280 megawatts.

In Florida now, the state has embarked on one of the most significant environmental restoration efforts in its history, the Everglades Agricultural Area Reservoir. Using Titan America cement, the project is located south of Lake Okeechobee, and aims to capture, store and treat excess freshwater that would otherwise flow east and west and instead redirect it south into the Everglades. The system includes a massive 240,000 acre foot reservoir and a 6,500 acres storm water treatment area, designed to remove nutrients before the water reaches the ecosystem.

Managed by the U.S. Army Corps of Engineers and the South Florida Water Management District, the project is a cornerstone of the comprehensive Everglades restoration plan, and is expected to improve water quality, restore natural flow patterns, and protect both the Everglades and Florida's coastal estuaries.

Before I hand it over to Larry for a financial review, I want to recognize the outstanding performance of our team members across all our operations. Their dedication to operational excellence, safety, and customer service continues to drive our success, and I'm grateful for their contributions to these strong results.

Larry will now provide a more detailed breakdown of our financial results and segment performance. Larry?

Thank you, Bill, and good afternoon, everyone. Moving to Slide 8. Let me share an overview of our third quarter 2025 financial highlights.

We delivered strong financial results in the third quarter with revenue of $437 million, up 6% compared to $411 million in the third quarter of 2024. This revenue growth was driven primarily by higher volumes across our aggregates, cement and ready-mix businesses, supported by favorable weather conditions compared to the prior year quarter.

Adjusted EBITDA of $117 million, increased 18% compared to $99 million in the third quarter of 2024. Importantly, our adjusted EBITDA margin expanded to 26.7%, up 250 basis points from the prior year quarter. This margin expansion reflects the positive operating leverage in our business model, combined with cost management, operational efficiencies, and price gains in selected products and geographies.

Overall, our third quarter performance was driven by strong execution across our business and the benefits of our strategic capacity investments.

We delivered robust volume growth in aggregates, cement, fly ash, and ready-mix concrete with our aggregates performance driven by the continued ramp-up of our expanded Pennsuco capacity. While residential end markets remain soft, robust demand from infrastructure and private nonresidential construction supported our revenue and margin growth.

Turning to Slide 9. Let me walk you through our third quarter 2025 volume performance by product line. Overall, our results reflect the strong year-over-year performance in the quarter across our integrated platform. Total cement volume increased 2.6%, ready-mix concrete volumes grew 4.1%, and total fly ash volumes increased 23.7% year-over-year. Our total aggregates volumes increased 11.9% year-over-year, benefiting from our strategic investments in Florida production capacity.

Concrete block volumes declined by 0.7%, reflecting the ongoing softness in the residential market, though we continue to see better demand from the repair and remodel sector through the retail channels.

On Slide 10, our pricing trends reflect the competitive nature of our markets while demonstrating our ability to maintain value in a dynamic environment. For the third quarter, cement pricing remained resilient on a like-for-like basis, impacted primarily by unfavorable product and geography mix.

Aggregates pricing increased 3.3% per ton, while ready-mix pricing improved 1.1% per cubic yard. Fly ash pricing decreased 2.6% per ton on geographic mix, and concrete block pricing declined 1.7% per unit, impacted by the softness in the single-family residential market. Our pricing performance demonstrates our disciplined approach in a challenging environment and the value we believe we provide as a long-term supplier of choice in our markets.

Turning to our segment performance on Slides 11 and 12. In our Florida segment, we delivered strong performance with revenue growth of 4.3% to $263 million in the third quarter compared to $252 million in the prior year quarter. Segment adjusted EBITDA increased 16.2% to $81 million compared to $70 million in the third quarter of 2024.

For the 9 months ended September 30, 2025, Florida segment revenue was $777 million, up 2% from the prior year period with segment adjusted EBITDA of $214 million, up 8.7% compared to $197 million in the prior year period, with segment adjusted EBITDA margin improving to 27.5% from 25.8% in the prior year period.

Our Florida segment performance was driven by the benefits of our strategic capacity investments, particularly the expanded aggregate production at Pennsuco, which generated significant volume growth and strong operating leverage. The margin expansion we achieved reflects improved cost management at our cement operations and the benefits of our vertically integrated business model.

The Florida market continues to benefit from strong underlying fundamentals with population growth and business migration driving long-term construction demand. While single-family residential construction remains challenged by affordability concerns, we continue to see solid demand from commercial development, industrial projects and infrastructure modernization across the state.

On Slide 12, let me discuss our Mid-Atlantic segment performance. For the third quarter, revenue grew 9.4% to $174 million compared to $159 million in the prior year quarter, while segment adjusted EBITDA was $37 million, up 10.6% from $33 million in Q3 2024. Year-to-date, the Mid-Atlantic segment revenue was $481 million, flat compared to the prior year period, while segment adjusted EBITDA was $88 million compared to $101 million in the 9 months ended September 30, 2024, with segment adjusted EBITDA margin of 18.3% compared to 20.9% in the year ago period.

The improved Mid-Atlantic performance during the third quarter reflects higher volumes across cement, fly ash, and ready-mix concrete, given solid underlying demand from infrastructure and private nonresidential construction projects and improved weather conditions compared to the hurricane disrupted prior year quarter. Despite the year-to-date headwinds, the Mid-Atlantic market fundamentals remain positive. The region continues to benefit from above-average population growth, particularly in the Carolinas and Greater Washington, D.C. metro area.

Data center construction in Virginia remains robust with the state representing the largest hyperscale data center market in the world. Infrastructure investment across the region, including highway modernization, bridge replacements and airport expansions continues to drive steady demand for our products.

Now turning to our balance sheet and cash flows on Slides 13 through 15. As of September 30, 2025, we had $196 million of cash and cash equivalents and total debt of $464 million. Our net debt position was $269 million, representing a ratio of 0.71x trailing 12-month adjusted EBITDA, an improvement from 0.89x at the end of the second quarter and 1.21x at the end of 2024. This strong leverage profile provides us with significant capacity to pursue strategic growth opportunities while maintaining our disciplined approach to capital allocation. Our next meaningful debt maturity is in July 2027, providing us with excellent financial stability.

For the 9 months ended September 30, 2025, cash flows provided by operating activities was $214.8 million, net capital expenditures were $120.4 million, resulting in free cash flow of $94.4 million for the first 9 months of the year. Our capital spending year-to-date is focused on strategic capacity expansions, investments to ensure reliability and efficiency, and digital transformation initiatives that enhance customer experience.

Through Q3 2025, our CapEx investments have focused on several key areas: 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 at our Roanoke cement plant and additional dragline investments in Florida, driving reliability and operational excellence.

Looking ahead, we expect full year 2025 capital expenditures to be generally consistent with our year-to-date investment pace. This level of investment supports our growth initiatives and commitment to returning capital to shareholders through our regular share premium distribution program while maintaining our strong cash generation profile.

On Slide 16, I'll remind you of our capital allocation approach. We remain focused on 3 key priorities. First, continuing to invest in organic growth opportunities, including capacity expansions and greenfield projects that enhance our market-leading positions. Our investments are focused on enhancing aggregate production capacity to accelerate sales growth, vertically integrated investments in ready-mix concrete and concrete block facilities that support upstream volumes and returns and investments in high-performance, low-carbon product capabilities that we believe position us well for the future.

Second, pursuing strategic M&A opportunities that either build upon or expand our existing positions or provide access to adjacent value chain opportunities, all while maintaining a healthy net leverage profile.

And third, providing returns to shareholders through our regular quarterly share premium distributions. To that point, our Board of Directors on October 29 approved a distribution of $0.04 per share payable on December 29 to shareholders of record as of December 17.

With that, I'll turn it back to Bill for his closing comments.

Thank you very much, Larry. Let's go to Slide 17. And let me say first that our third quarter results demonstrate the strength of our vertically integrated business model and our team's ability to execute effectively in a dynamic market environment. The strategic investments we made in expanded aggregate capacity, improved plant reliability, enhanced logistics infrastructure, and digital capabilities are delivering tangible results in the form of volume growth, margin expansion, and strong cash generation.

Before we move to the Q&A portion of our call, I want to address our outlook for the remainder of 2025. As shown on the slide, we are updating our full year 2025 revenue growth guidance. We now expect 2025 revenue growth to be in the range of 2% to 3% when compared to the prior year. We continue to expect modest improvement in adjusted EBITDA margins compared to full year 2024. This adjustment to our revenue growth rate reflects our year-to-date results with first half weather impacts and delays in residential demand recovery more than offsetting our strong Q3 results and outlook into the balance of the year.

Looking ahead, we have announced price increases that will be effective January 1, 2026, across all our product lines in both our Florida and Mid-Atlantic regions. While we are not yet in a position to provide guidance for 2026, directionally, we expect improved conditions across our key markets. However, still at this time, it remains a question whether the single-family housing market will reach an inflection point within 2026. We look forward to providing more details on our 2026 outlook when we report fourth quarter and full year 2025 results.

I must say that we remain excited about the opportunities in front of us. The markets we serve are beneficiaries of powerful long-term trends, including infrastructure modernization, urbanization and population growth in the Sun Belt, expansion of data centers and advanced manufacturing facilities and ongoing investment in climate resiliency and sustainable infrastructure.

Our strategic positioning along the Eastern Seaboard, combined with our comprehensive product portfolio and logistics capabilities, we believe, position us well to capitalize on these secular growth drivers. We look forward to building on this momentum in the fourth quarter and into 2026.

With that, I'll turn the call over to the operator for the Q&A session. Operator?

[Operator Instructions] First question comes from Anthony Pettinari from Citigroup.

This is [ Ashish ] on for Anthony. I think you talked about the release of some project backlogs in the Mid-Atlantic. So can you just talk about what project backlogs look like today across your footprint more broadly? And then anecdotally, is there still some kind of uncertainty weighing preventing some projects from getting released still? Or is that kind of largely lifted?

Yes, it's Ash, it's Larry. Look, I think on the project backlog, if you think back to what we described in Q2 and what we described in the first half of the year, what we've said is that the second half of the year was expected to be better given what we thought would be better comparables. And that's, in fact, what happened in the third quarter for 2024. Your question was specifically about Mid-Atlantic. This really is the realization of some of those things that we were describing. So without getting into specifics of individual projects, you heard the general comments about some of the data centers coming through from some of those portable plant investments we made, some of the major infrastructure projects, whether it's some of the things we featured in some of the slides that you saw on the screen for roadways, bridges, that sort of activity as well as some airport type work that we're doing also in the Mid-Atlantic region. So, this is what we describe when we describe release of backlogs.

Got it. And then switching gears, are you guys able to walk through maybe the cadence of cement and aggregates volumes through the quarter? And then just sort of remind us what weather cond maybe looks like in 4Q compared to 3Q?

Yes. I think if you mean by cadence, you're describing the cyclicality of the business. Obviously, it's more cyclical in the Mid-Atlantic than it would be in Florida, although both have their elements, rainy season in Florida coming in the summer typically, but in Mid-Atlantic, obviously, a cold weather and the occasional storm activities that you would see. But in terms of importance of quarters generally for us, we would say 3, 2, 4, 1 in terms of profitability and revenue given the weather impacts of the Mid-Atlantic region in particular.

Now, last year -- I think the second question was how many days were impacted, right? It's difficult to assess days, but we would say weather impacted events. And if you remember last year's fourth quarter, we had several hurricanes come through. The most meaningful one for Florida was Milton, which happened in the third quarter -- sorry, fourth quarter last year, and the most meaningful ones in Mid-Atlantic, a combination of Helene and then Bonnie that came before that. So big impacts, obviously, in the third quarter. This is why you saw, in part, some of that increase in Mid-Atlantic you didn't see in Florida for the third quarter. We expect strong improvement in the fourth quarter in Florida given the impacts last year.

The next question comes from Philip Ng from Jefferies.

Strong quarter. The margins were impressive, good operating leverage. How much of that is just cost deflation, or it's really driven by some of the operational excellence and just pricing and all that good stuff you guys are working on to kind of drive profitability?

Okay. I mean just in general terms on cost inflation, Phil, cost inflation-deflation, I think there's some offsetting things that go on there, right? If you think about what makes up our cost, labor, energy, fuel, et cetera, some of those things have pluses and minuses, including tariffs, right, that come through and impact the year-over-year looks. So when you see the improvement, what you see is the work that we do to mitigate those impacts. So you see the cost improvements coming through that way.

Got it. Okay. That's helpful. And then on your full year guidance, you trimmed the full year outlook from a top-line perspective, certainly tougher first half weather and housing. Any perspective on how that momentum has looked in the fourth quarter? I know [ conds ] were a little easy from a weather standpoint. So any color on that momentum going into the fourth quarter?

And then the full year EBITDA guidance, I think, was a margin commentary given the strong operational improvement on the margin side. Was the margins enough to offset that, so your EBITDA dollar impact is largely unchanged? Or actually that's going to be impacted as well, just given the tougher first half?

Yes. I think a couple of parts perhaps to that question. So first part of it is how is the fourth quarter going, I think, is what you're getting at. So October is all we know about, right? We know about what's on the order books, what we expect to happen. But what has happened has been October, a good month in October in terms of revenue growth, double-digit revenue growth overall, stronger in Florida than in Mid-Atlantic as we would see it for the month of October.

Now coming to the second part of the question, at least in the Mid-Atlantic, this is where it gets more challenging for us because of weather and the holidays can have some big impacts and be disproportionately affected one year to the other. So we're cautious, I think, in that sense, but I think we give you a sensible look at what we think the revenue growth would look like given what we know right now.

On the margin side, again, given the impacts of some of the volume impact that can be particularly in the Mid-Atlantic in the fourth quarter, that margin will be less certainly than it was either year-to-date or in the third quarter itself on average for the company.

The next question comes from Chad Dillard from Bernstein.

So I was hoping if you can give more color on the product ramp for the precast lintel. So when is the plant going to be operational? How are you thinking about the growth outlook for the product line over the next, like, 3 years? How big could this business be? And then just how to think about the profitability contribution?

Yes. We are at -- as you noticed, we have approved our 40 different designs of products, which is a major milestone for us. Now we are on the engineering phase. We expect that we're going to have our first state-of-the-art plant towards the end of 2026 or the very beginning of '27, if I were to put some kind of time line behind it.

We expect a fast scale-up because we have the technology, we have the locations, we have complementary products. We have the channels to market. And we expect that this is going to be an addition to our vertically-integrated comprehensive portfolio and complementary product mix strategy because these products -- the lentils are going to be added to our concrete block, stucco and masonry products. And we address the same customers we address today, so one car in the parking lot added these products. Also, we expect these downstream products to usher in more sales of our upstream products overall.

So overall, we expect a substantial improvement overall in our revenue and our profitability when you look at this in the context of all the complementary products and the synergies that this will give us. But we're thinking, in the long run, obviously, in the depth of time as an -- overall as in even starting in '27 and moving into the years forward.

That's helpful. And then second question, just on tariffs. Could you quantify the impact in the third quarter? And what are you embedding as we go into 4Q?

Yes. I think what we would see year-to-date through the third quarter, probably in the order of $6 million, give or take, and when you look for the full year, something in the $7.5 million, $8 million is what we would expect coming through on the P&L side for this year. And obviously, the tariffs, as you know, have gone from 0 to 10 to 15 during the course of the year. So the run rate gets a little stronger as we go in, although the seasonal impact comes down, right, because the demand is lower in the fourth quarter.

And Chad, if you allow me because there was a question before, and Larry addressed it very well, just to address it from a different angle. In terms of cost headwinds this year, we had the impact from natural gas. We had the impact -- headwinds from labor and of course, headwinds from tariffs. What is very important, however, to say is that we managed to mitigate theses impacts and also to expand our margins, not only mitigate but expand our margins on the basis of our operational excellence and cost reduction initiatives based on our initiatives in digitalization, but overall, also in investments in logistics and improvement overall of our costs. So a success story there in terms of mitigating headwinds from costs, but also improving our margins on the basis of self-help.

The next question comes from Sherif El-Sabbahy from Bank of America.

So looking at incremental margins, they were quite strong in the third quarter. And based on your guidance, it looks to be similar in the fourth quarter. What should we think about as a normalized flow-through going forward in 2026 and beyond given that we'll be lapping some of these spin-off items?

Yes. Look, it's Larry again. Sorry, I don't think I implied that it would be the similar flow-through coming into Q4. Q4 is always going to have a slightly different profile of margin relative to Q3, which is obviously the strongest quarter. It moderates coming into the fourth quarter. Now, we do expect, as we said in the guidance, to have uplifted year-over-year margin improvement. And you can see that in the commentary that we made.

And just how should we think about flow-through on a normalized basis just as a framework going forward?

You need to clarify that for me.

What do you mean flow-through, Sherif?

In terms of just incremental margins on an annual basis.

I think we said modest year-over-year margin growth. You can put that in the 30 basis point range, something like this.

Sherif, on the qualitative approach here, when we talk about normalized margins, right, we are operating the last 3 years in a softness in the residential markets, right? And overall, on average across the U.S., residential part of the industry represents roughly 1/3, right? So 1 of the 3 wheels of this industry is operating under recessionary conditions, very soft, as you know, right?

So right now, our margins are being compressed by the fact that the residential wheel is not operating as it is expected. As we've said many times, we have the infrastructure, and we have the private nonresidential markets being strong and the support and underpin the demand. Once residential kicks in gear as well, one should expect that price momentum, both in the heavy construction upstream materials, but also in the downstream materials is going to resume just like we had in '21 and '22. So I think when you ask about normalize, we have to expect some substantial margin expansion, but this is going to be contingent on the rebound of the residential sector.

[Operator Instructions] The next question comes from Wesley Brooks from HSBC.

Good quarter. So a couple of questions from me. First, I just want to come back to the segment margins and particularly on Florida, you called that aggregates expansion plan. I just wanted to get a sense of how much further there is to go on that, both in terms of the expansion and kind of how far you are through it, but also in terms of the additional margin benefits you could get from that?

On the -- let me just take this question in relation to the aggregates expansion. I think you're going to see it stepwise, Wesley. We increased our capacity in aggregates with our investments, especially in Pennsuco. And we managed really to move this product in the marketplace immediately, increasing our sales volume and increasing our market share. So the next increment is going to be, again, step-wise. It can depend on an acquisition. But in relation to organic growth, we expect to see the next incremental margin around 2027. As we have discussed before, as part of our strategy, we are investing in a project, a substantial project to increase our reserves in Pennsuco by 125 million tons by investing in our capability to beneficiate reserves that we have there. So this is really the plan and what we should expect.

Okay. So sort of -- we're kind of there for now and then we wait a couple of years to get another leg up in the margin there?

Unless there is inorganic initiative.

Yes. Okay. And then my other question, you mentioned the price increases that you've sent letters. I don't know if you'd be willing to give us some indication of the level that you guys are asking for. And also, at the beginning of this year, obviously, there was a delay in getting those price increases through. I don't know if you shave any insights on what some of your competitors are doing and if there's a risk to getting those through at the beginning of January.

In terms of our announcements in the markets, we have announced for cement across all areas where we operate, so Florida, Virginia, North Carolina, New York, New Jersey, everywhere, $12 per ton as of January 1. For ready-mix concrete, we have announced between $10 and $12 per cubic yard. For aggregates, $3 per ton. And that's really some key elements. Fly ash about $6 per metric -- per ton -- per short ton. So these are really some of the indications for -- block, we have announced for common block, $0.08 per block.

In relation to the success, obviously, it will depend a lot on the -- first, we are confident about the continued trends in demand in relation to infrastructure and private nonresidential. And this obviously is going to support the momentum and the resiliency of our prices. A key factor will be the rebound, as I mentioned before, of residential, which will allow for more momentum. But at this point in time, it's hard to make any prediction.

Great. Yes. I mean those are impressive starting points even if you get close to that. So yes.

Thanks, Wesley.

The next question comes from Brian Brophy from Stifel.

Just one big picture one from us. It's been about a year since you guys first talked about some of the green cement targets to the Street and some of the adoption expectations there. Just curious how you're seeing adoption unfold relative to some of those initial expectations.

We are proceeding according to our plan, and we're very proud about the progress we've made. As we have mentioned in the previous call, we have already qualified through the Department of Transportation, 1T cement with different cementitious materials and for different applications. I can say that, right now, in relation to our production, we are approaching a level between 3% and 5% of our total production on an annualized basis that is coming from 1P. We are utilizing these products as we have done in the past as we were the first to introduce and the first to be 100% shifting into 1L cement. We are utilizing these types of cement on our high-performance concrete products, and we're testing them across different high-performance applications in the marketplace. But fundamentally, the adoption is happening on the end-use level through our downstream products as we're testing these new innovations and this -- the ability really to produce ultra -- high-performance and ultra-high-performance products with unique capabilities and properties. And some of them or the concrete and the other downstream products that we produce with this green cement are having strong adoption in the marketplace. So overall, good progress according to plan.

Thank you very much. At this time, there are no further questions. I'd like to turn the floor back over to the CFO, Mr. Larry Wilt. Thank you, Larry.

Okay. Thank you very much, and thank you for your time today. We appreciate the interest in Titan America, and look forward to updating you during our call for the fourth quarter. And have a great rest of your day. Thank you very much.

Thank you. Ladies and gentlemen, that does conclude today's call. Thank you very much for joining us, and you may now disconnect your lines.