RMIX Q3 2026 earnings call transcript, November 13, 2026

Another component of that, some of the integration processes are, I mean, we're still confident about our 12- to 18-month window, playbook, but we see that some of them are going to be closer to 18 months than the 12th. But overall, we still get about 27. Okay. That's helpful. And could you also just, you know, how this plays into your margin profile? Going into the quarter, you serve your acquired company. These have lower margins than legacy. How much of the quarter was just acquired assets and bringing down margins versus pressures in the market? And then also, too, could you just give a little bit more of a color? Because I know that you're working on improving your market mix. So, in other words, you might be willing to give up a little bit more. a little bit of your top line in order to improve overall margins, and give what kind of update what you're seeing with the acquired companies towards that margin improvement goal. Thank you. Well, again, Kevin, I think you kind of hit the nail on the head. It is the acquisitions. And, again, we still feel confident we'll get them to the margins, but it's going to be in that 12- to 18-month window.

Repeat the second part of your question, Larry, for me. Really, how much of the quarter impact was from acquired margins versus seeing margin pressures from the overall market with your legacy business? Well, the legacy businesses are doing well. I mean, again, our margins are still outstanding, and they continue to be that. I think we'll hold those into 27, so, again, it is about bringing up the acquisitions to the legacy margin. Okay, perfect. Excellent. Thank you.

Before we move to the next question, we'd like to quickly correct the number that was in our press release related to our outlet.

Clearly, the massive email outage... Yesterday, it was a challenge to work around. The good news is that the correct numbers are an improvement. And I'll have Tommy walk you through it. Tommy? In the full year 2026 guidance, the numbers for the net loss were overstated. The correct numbers are as follows. A net loss of $43.685 million to a net loss of $39.685 million. And the adjusted net loss should be $16.81 million to adjusted net loss. A net loss of $12.81 million. Revenue, adjusted EBITDA, and supplemental adjusted EBITDA guidance remain the same.

Thank you.

and we'll see you next time. downturn in the residential, and yet we still manage to keep a fairly good diversity of project work from being diversified. We think volumes will be up, revenues will be up, and it will be up in 2020. Okay. But you're not comfortable, like, calling out when that inflection could happen on a year-to-day basis at this point, or margins? Well, We'll see you next time. Bye-bye. We'll provide the outlook for 2027, which we expect significant growth, both equisitably and organically. Okay. Helpful. Was freight and just inflation at large contributed to the margin compression in 3Q? Was your price cost pretty neutral, low compressed, and what's the outlook for the back half, the fourth quarter? And I think you kind of alluded to your... suppliers announcing price increases, i.e. the Agris guys and cement guys I think have price increases broadly. Is that helpful in terms of your cause, in terms of getting price increases through 2027? Kind of how should we think about your ability to take perhaps incremental price and how you're managing that price cost spread? Yes. We're at the time of the year where all those suppliers are putting out their price increase notices, and we systematically... We'll meet with those suppliers and talk about what 2027 looks like. We've been successful. It's something we do every year. Nothing new that happens this time every year. In the markets where we feel like we have the strong ability to pass that through, we'll pass it through. In the markets we think might be a little tighter, we'll negotiate through that. We have been successful.

We've been in for 20 years of maintaining our margins, and the aggregate increases are this time every year. Okay. And was price cost a pinch point in the back half, or this is just mostly demand and just the incremental acquisitions? I'm sorry, you broke up on me there for a little bit. Sure. Was price cost a bad guy in terms of how It's time to get that little bit better in the back half, you know. Margins are going to impact you in 3Q and 4Q, or this is just largely, you know, the deals and perhaps volume is being a little softer. Yeah, it was largely what you just said. Okay. All right. Helpful. Thank you.

Next question comes from Rohit Seth with B. Riley Securities. Please proceed.

We're having a hard time hearing you. Could you ask that again, please? Yes, please. So on the materials margin, it was about 53% in the first half of the year. Did it hold above 52%? This quarter with the full quarter of acquisitions in there? I'm going to hand that off to Tommy. It was down slightly from 9%. It's kind of like you're at a K. It's hard to understand.

Are you not able to hear me? Is that what you're saying? That's much better, Rogan. Yes. All right. So your materials margin, it was about 53% in the first half. Did it hold above 52% in the third quarter with all the acquisitions in there? The acquisitions brought it down slightly. Okay. And then what about on the plant and delivery costs? Those are 24% of sales in the second against 22% in the first. Maybe you can give me a sense of what it was in the third quarter with the acquired fleets in your dispatch system? They were better in the third quarter. Okay. So material margin down, plant and delivery cost better. Okay. And then... On the SG&A, it was about $31 million in 3Q. In August, I think you said it was going to be about $25 million. So what's the right quarterly run rate reshift model going forward? I think $31 million on a quarterly basis. That will slightly increase, but we've got to get prepared for the growth that we're expecting throughout 2027.

Okay. And so your net debt, your leverage is... You got it with your guide. It's going to be out 3.4 times on your performer guide numbers. So are you willing to take leverage up a little bit from here? No. I believe it to stay within the previous range that we've mentioned, three and a half... I'm sorry, two and a half to 3.2 times.

The jobs that went... They're really just a couple. The rest of them are all proceeding. But we did see a couple just in the last 30 days. And we really attributed mostly to the election. Okay. So we think those have come back. But, you know, we just had the election. So, you know, we might find out next week. Everything's back. But those wouldn't impact us. They're not material in our total volume picture. Okay. Again, we see a lot of robust jobs coming through Oklahoma. Data centers are still a big deal in Oklahoma. And we think they'll come back in other regions we're in also.

Hoping that you would comment on what you would expect here in the next three or six month period in terms of cash inflows. Just want to make sure that all the integration is able to deliver the working capital as it unwinds here. It looks like there's been some injections certainly here in the quarter, which would be expected. But it's always hard to know how much, given that the company's profile and acquisitions have changed it so much. So I want to just get your sense or your comments on how and what we should expect here. And the next, really in the nearer term, for cash. Thank you. Well, Andy, Calvin's kind of on the front line on that, so I'm going to defer that to Calvin. Andy, good morning. What you see in this business is cash flow conversion is really good. This business converts a lot of its EBITDA into free cash flow, and you see we've got roughly $50 million of cash today. You're right. We did sink some working capital into those deals that we did. Q2 throughout Q3, but there were working capital true-ups, many of which came through in Q4. So I would not expect the business to burn cash outside of M&A during Q4. Okay, so I'm glad you answered the question that way, so I just want to make sure I understand this correctly. When you guys have done these acquisitions, are you not buying their working capital so that you have to refill basically that working capital in addition to their cash purchase price?

I know that in the early days it constructed.

That's right. We are acquiring working capital, of course, at various levels depending on the business, and we have the right working capital targets for those businesses which are addressed through the post-close, through-up process.

That makes sense. I want to do a clarification. for everyone's benefit. You had the comment that in 2027, you expect $200 to $250 million of revenue from the acquisitions, again, in 2027. I think those are the acquisitions starting with Hope and then onwards, stuff from Louisiana, Nelson Brothers, ABC Block. That's not the contribution from any other deals. It's just those, I guess, those handful of deals. Is that correct? I just want to make sure that we're all kind of... working off the same numbers as we kind of refine our 27 numbers. Yes, that's correct. Okay.

Okay. I think I'll leave it there. Thank you.

Thank you, Andy.

And then maybe you could update us also. So on the North Texas acquisitions, how that integration's going, and kind of what inning are they in in terms of getting that combined business where you want it? Well, again, we are making progress, as you can see, quarter over quarter. We still have plenty to make. We've got a good plan. We're implementing it, but it's going to take a little bit of time. So we feel confident we will get them up to our... our standards. But it's, you know, we, as you know, Adam, we've got various examples where some of them we could, we got them up there within six months. But, you know, this is a little more challenging, but we've identified and we've got a playbook and we're implementing it. So we will get it there within the 18 months, we believe.

Hey, Adam, this is Ned.

And then on the commercial piece, the project you called out, are you – we've been able to maintain our lives at all. I'm confident that those will just shift into 2027. It's just sort of a delay and not sort of a situation where some of those might get canceled. Yes. Again, it was just one or two projects. There's several large projects that are, again, about to kick off and that we've already secured. Keep in mind, we're well positioned to get those types of large jobs. Other people don't have the resources. They don't have the equipment. They don't have the personnel. So, we'll continue to get those large-scale jobs. Keep in mind, we had a 10% programming increase in Q3. Now, probably about two-thirds of that is volume and a third of it is price. So, yeah, it's good for several daily growth.

And that answered my last question there. So, I'll pass it back. Well, great, Michael. Thanks.

Well, we think pricing will vary by market. Some markets have more latitude to accept the price increase than others. And so our goal is just to maintain our market. And we've been successful with that for 20 years. You know, there are, I could go back 35 years in this business. There are years where the market may not be right for price. Price increase. But then you just have to successfully manage your cost impacts. And if you can't pass them on, you have to try to maintain what they are. And we've just done, I think we've been very successful that year over the year. And that's what we'll continue to do. And then was there any abnormal weather impact in the quarter? You know, October is... Historically, it can be one of your biggest months in concrete. But October can be a very rainy month, too. So it's a... This October was fairly rainy, but I don't think we're going to blame... It didn't harm us. It just didn't turn out where we had... October was the biggest month of the year. If you go back, though, speaking of weather, some of the... Where we pushed revenue, the change of guidance. You don't lose that yard of concrete that day, but... The day it rains, or the two or three days of rain, where we had all this abnormal excessive rain pattern in the second quarter, there's also... That also retards the ability to do all the dirt work for these large-scale projects. Of course, that's a massive task, and nothing gets done until that's done.

So, part of why we're pushing some... things into 27, is we didn't lose those yards, but there's a point where that push doesn't just get caught up by the end of that fiscal or calendar year. So, it'll just be reflected in the next year. So, we have seen some of that. We are feeling some of that, because, again, the second quarter was abnormal, and they're just... People are behind on their projects, time-wise, but they're still out there. They're still moving forward, and they'll still get the full volume of concrete.

Very helpful. Thank you.