On this page of StockholderLetter.com we present the latest annual shareholder letter from Summit Materials, Inc. — ticker symbol SUM. Reading current and past SUM letters to shareholders can bring important insights into the investment thesis.

 •  4/8/2024 Letter Continued (Full PDF)
 •  4/10/2023 SUM Stockholder Letter
 •  More "Construction Materials & Machinery" Category Stockholder Letters
 •  SUM Benford's Law Stock Score = 99

SUM Shareholder/Stockholder Letter Transcript:

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To our valued stakeholders:
In 2023, Summit Materials    Board had a busy and
SroduFtiYe year as our &omSany deliYered reFord   nanFial
performance and embarked upon the transformational
combination with Argos USA to create a materials-led
enterprise with national scale  'espite the signi  cant effort
involved in a transformational deal, the team never lost
sight of its objectives, and Summit reported record annual
net revenue and pro  tability, maintained a strong balance
sheet, and allocated capital in alignment with the highest
potential for growth and shareholder value creation.
We were delighted that the Argos transaction was
overwhelmingly approved by an over 98% vote of our
shareholders. We believe that support re  ects the strong
strategic and   nancial rationale of the combination. 2ur
improved geographic diversi  cation will enhance our
ability to meet customer demand for cement in a capacityconstrained domestic market.
Subsequent to the transaction, we expanded our roster
of Independent Directors. Their individual strengths and
unique backgrounds together with a shared commitment to
our mission and values will be invaluable as we integrate
Argos USA into the Summit family and pursue our growth
and return objectives. Please join me in welcoming Jorge
Mario Velasquez, Irene Moshouris, and Juan Esteban Calle
Restrepo to the Summit Materials Board of Directors, who
joined on January 12, 2024. Following these appointments,
and together with the retirement of John Murphy, the Board
consists of 11 directors, 10 of whom are independent.
I wish to thank John Murphy, who retired from the Summit
Board after 12 years of service to the Company, including
service as Chairman of the Audit Committee. John   s
disciplined counsel on capital allocation matters helped set
the stage for Summit   s success.
From a governance perspective, we strive to balance
agility with foresight, which are both essential for strategic
execution. Over the last three years, Summit has increased
its Return on Invested Capital (ROIC) by 240 basis points
and increased its quality of earnings with a 17% higher
contribution of materials to its   nancial performance. We
continue to support prudent capital allocation decisions
that maximize   exibility to pursue additional growth
opportunities, particularly in aggregates. Our strong
balance sheet and manageable leverage pro  le prompted
the recent credit rating upgrade to BB+ from S&P Global.
As a Board, we pride ourselves on upholding
governance best practices. This includes:




Separate Independent Chairman and Chief Executive
Of  cer
Fully Declassi  ed Board (approved by shareholders
in 2021)
NYSE-Compliant Clawback Policy
55% of Board Members are Female
90% of Directors are Independent
Age diversity on the Board; short average tenure; no
over-boarded directors
Amended Corporate Governance Guidelines and
Governance and Sustainability Committee   s charter to
formally adopt a policy to require any candidate pool
assembled to   ll a vacancy of the Board to include
candidates who are diverse in terms of ethnicity and/
or gender
We believe that operating a lower cost, lower emission
business will translate into sustainable competitive
advantage. We were recognized in that effort by receiving
an ESG rating of    AAA    from MSCI for the second year in
a row, placing Summit in the top 5% of global issuers. In
addition to commending our use of alternative fuels and
reduction in diesel consumption, the report noted,    Summit
Materials leads most global peers in corporate governance
practices.   
As Chairman of the Board, I sincerely appreciate the
trust and faith you have instilled in us. Thank you for your
continued support, and I hope you are as excited as I am
about the opportunities ahead with the continued execution
of our Elevate Strategy.
Sincerely,
+2:$5' /  /$1&(  
Chairman of the Board of Directors
Summit Materials, Inc.

/(77(5 )520 7+( &(2
To our valued stakeholders:
In 2023, Summit Materials demonstrated the transformative
power of our Elevate Strategy. Our team achieved record
  nancial performance with 18% EBITDA growth and record
adjusted EBITDA margins . We continued our intentional
shift towards high-margin upstream businesses. We
established a new high watermark for Return on Invested
Capital (ROIC) by scrutinizing every asset against our
return and margin criteria. Our balance sheet continues
to re  ect a disciplined and growth-oriented approach to
capital allocation.
With the addition of Argos USA, our business is now
materials-led with roughly  8 out of every  10 EBITDA
dollars coming from either aggregates or cement. We
are building signi  cant scale in our industry as we have
become the largest US-domiciled cement producer and
the sixth largest aggregates producer in the US with a
presence in many high growth, year-around construction
markets.
Over the last year we   ve continued to grow
our high value aggregates position as we entered into
the high growth Phoenix market and completed several
bolt-on aggregates acquisitions in targeted geographies.
Our efforts to opportunistically divest subscale assets
in non-strategic markets at attractive multiples provides
additional dry powder for future aggregates opportunities.
The increased free cash   ow conversion from larger scale
cement operations will accelerate our aggregates growth
ambitions.
The foundation of our success is rooted in our core values
of safety, sustainability, integrity, and inclusivity. We
expect zero harm and prioritize the health and well-being
of our employees and our communities at the forefront of
everything we do. We achieved MSCI   s highest ESG rating
of AAA for the second year in a row, improving our score
from 2022 and placing us in the top 5% of global issuers.
Our efforts to align and engage with all stakeholders,
including employees, customers, shareholders and
community members, are a source of pride and motivation.
We extend our thanks to the teammates who deliver ready
mix concrete to new factories and housing developments,
who pave our roads as part of a construction crew, who
operate our quarries, our cement plants, ready mix and
asphalt operations. Summit teammates work outdoors in
our communities, and they directly contribute to the growth
of our economy. They embody our mission to lay the
foundation that connects our communities to build a better
tomorrow.
I wish to thank our Board of Directors for their counsel
during a very busy and productive 2023. To our customers
and communities, I extend my sincere gratitude for your
commitment and support. To our investors, I express my
appreciation for the resounding endorsement of the Argos
transaction, which received over 98% approval. We do not
take your support for granted and we continuously aim to
earn your trust each and every day.
6peci  call\, in      we delivered:




Sincerely,
Continued focus on safety, including zero recordable
incidents in the East Region
Annual records for net revenue of $2.4 billion, adjusted
gross pro  t of $757 million, and adjusted EBITDA of
$578 million, up 10%, 17%, and 18%, respectively,
versus the prior year
Double-digit pricing growth in all lines of business
Improved quality of earnings with ~80% materials
contribution to Adjusted EBITDA
A return on invested capital (ROIC) of 10.4%, up from
8% in 2020
A low debt ratio at 2.1; net debt to Adjusted EBITDA
at year end, down from 3.2x in 2020
*This is a non-GAAP measure, please see the reconciliations at the back of this report.
$11( 1221$1
Chief ([ecutiYe 2f  cer
Summit Materials, Inc.




 4/8/2024 Letter Continued (Full PDF)