Oct 29, 2026 earnings call — Pricing gains and updated guidance
Company updated 2026 revenue outlook to $12.2 billion to $12.4 billion and EBITDA to $2.95 billion to $3.05 billion.
Revenue $3.8B (est $3.8B) · EPS $1.02 (est $1.03) · Next-quarter revenue outlook $12.2B–$12.4B
Key quotes
"In total, price accounted for a $78 million tailwind in the quarter which excludes additional contributions from surcharges across the majority of our business lines."
"Importantly, we expanded our margins in Building Materials by 30 basis points."
"We executed on $262 million of CapEx in the quarter, focused on attractive growth projects to expand production and improve efficiency and best serve our customers."
Analyst Q&A 9
pricing in cement and aggregates
Q (Anthony Pettinari · Citi): They asked what pricing actions are needed in cement and aggregates for 2027 to recover costs and how confident management is in cost recovery if demand is softer or more volatile.
A: Management said cost inflation accelerated from Q2 into Q3 and it's hard to predict next year. They will revisit details in Q4, but they expect 2027 to be a year of growth and that price momentum should continue.
"And fundamentally, we expect 2027 to be a year of growth for us." — Jan Jenisch (CEO·CHAIR)
wider cost inflation and timing
Q (Ethan Roberts · Stephens): They asked how much cost inflation goes beyond freight and energy, and when Building Envelope will be price-over-cost positive (seasonal timing).
A: Management said cost inflation went beyond transportation to include petrochemicals, hurting residential and commercial roofing. They increased prices and surcharges, expect Building Materials to be price-over-cost positive in Q4, but said inflation is outside their control.
"The one thing not in our control is the inflationary environment." — Jan Jenisch (CEO·CHAIR)
quantify Building Envelope impact
Q (Bryan Blair · Oppenheimer): They asked for dollar or margin impact in Q3 for Building Envelope and what is assumed in Q4 guidance ahead of aiming parity in 2027.
A: Management declined to share that specific data but said they have scenarios for Q4 and 2027. They described Building Envelope as volatile with a low Q4 comparison last year and several current challenges affecting volumes and pricing.
"We obviously have our scenarios what can happen in Q4 and then also importantly, into the next year 2027." — Jan Jenisch (CEO·CHAIR)
Materials price-over-cost in Q4
Q (Cedar Ekblom · Morgan Stanley): They asked whether Building Materials will have negative price-over-cost in Q4 or if the challenge is mainly in Building Envelope.
A: Management said they are confident in Building Materials. They praised the team's pricing, surcharges, and cost mitigation and said they guide for positive price-over-cost in the fourth quarter.
"I think we have somewhere in the documentation, we also guide for positive price over cost for the fourth quarter, and this is what I'm expecting." — Jan Jenisch (CEO·CHAIR)
M&A strategy and pipeline
Q (Garrett Samuel Greenblatt · JPMorgan): They asked how management views M&A opportunities into 2027—more bolt-on deals in materials or potentially larger transformative buys.
A: Management said they have a track record and expect to continue M&A. They described two recent bolt-on deals (PB Materials and Rapid Redi-Mix) that are earnings accretive and said they have a very solid pipeline they work on daily.
"Our pipeline is, I would say, we have a very solid pipeline of future M&A, and we're working on it on a daily basis, and I hope we can report more action here in the months to come." — Jan Jenisch (CEO·CHAIR)
lessons from midyear pricing
Q (David S. MacGregor · Longbow): They asked what management learned from midyear pricing and how demand for aggregates and cement is changing.
A: Management said they focused strongly on pricing all year and executed planned April increases, driving aggregates to 6.9% in Q3 and cement to 1.8% in Q3. They also noted $23 million of surcharges in Q3 and credited weekly follow-ups and team execution for the results.
"I tell you, we had a very strong focus on the pricing this year." — Jan Jenisch (CEO·CHAIR)
what hurt Materials volumes
Q (Julian Radlinger · UBS): They asked what caused Q3 softness in Building Materials volumes—weather, weaker residential, or slowing commercial/infra—and whether 2027 can be a growth year.
A: Management said Materials had weather effects in some regions (especially Texas) but overall they are not worried. They noted Building Materials had been growing since mid-last year, expect normalized volumes into Q4 and next year, but flagged interest rate risk as outside their control.
"For Materials, I think it's nothing to really worry about." — Jan Jenisch (CEO·CHAIR)
free cash flow conversion outlook
Q (Martin Huesler · ZKB): They asked what free cash flow conversion they might expect in the last quarter given higher CapEx this year and the 50% midterm target.
A: Management said the business is seasonal with most cash flow late in the year and maintenance done in the low season. The CFO said collections in Q4 are good but they expect cash conversion to be below 50% this year because they are investing more into the business.
"I would still expect that we are a bit lower on cash conversion." — Samuel Poletti (CFO)
cement imports and domestic strategy
Q (Yassine Touahri · On Field Investment): They asked for the current import run rate for cement, expectations for next year, and whether producers might price to discourage importers.
A: Management said their strategy is not to import and they are strengthening domestic supply chains with CapEx in flagship plants. They said they have almost no cement imports this year and are certifying plants as made in America/Canada as part of a local-for-local strategy.
"We have almost no cement imports this year because that's not our strategy." — Jan Jenisch (CEO·CHAIR)