The revenue growth story is intact, but the GAAP loss and negative operating cash flow are concerning. Watch for Q3 integration updates on the three acquisitions and whether the company can convert revenue growth into positive free cash flow. The maintained guidance provides a floor, but the stock may trade on execution risk rather than the headline revenue number.
Price Chart
Executive Summary
Suncrete reported Q2 2026 revenue of $97.2M (+146% YoY), well above the $101.5M consensus, but GAAP net loss widened to $37.1M from a $0.3M loss last year, driven by a $26.9M non-cash charge from the business combination and $12.2M in acquisition costs. The company maintained its 2026 revenue guidance of $420M-$480M and Adjusted EBITDA guidance of $68M-$93M, signaling confidence in the acquisition-heavy growth strategy despite GAAP losses.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $97.2M, +146% YoY from $39.5M
- GAAP net loss $37.1M vs $0.3M loss last year, including $26.9M non-cash charge for Class B shares issued to affiliated equity holder
- Adjusted EBITDA $13.5M, up from $7.0M YoY; Supplemental Adj. EBITDA $14.6M vs $7.7M
- 2026 guidance maintained: revenue $420M-$480M, Adj. EBITDA $68M-$93M
- Completed three acquisitions in Q2: Hope Concrete, Nelson Bros., and ABC Block Company
- Cash used in operations $12.4M YTD vs $9.7M provided last year; cash balance $28.6M after $167M PIPE and $57M prepaid forward termination
- Total yards delivered +123% YoY
Financial Impact
Revenue beat consensus by ~$97M vs $101.5M est (in-line), but GAAP loss of $37.1M is a significant miss vs consensus EPS of -$0.02 (actual -$0.06 per Q1 data; Q2 EPS not directly comparable due to business combination). The $26.9M non-cash charge is a one-time item, but the $12.2M acquisition costs are recurring deal-related expenses.
Risk Factors
- Integration of three acquisitions in Q2 may strain operations and margins
- Negative operating cash flow of $12.4M YTD vs positive $9.7M last year
- GAAP net loss widening despite revenue growth; $26.9M non-cash charge is one-time but $12.2M acquisition costs are recurring
- Substantial debt of $218.5M (current + long-term) with interest expense of $4.0M/quarter
- Weather-related disruptions (wet weather noted in Q2) could impact future quarters
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-350558 |
| Document: d156057d8k.htm | 0001193125-26-350558 |
| Document: 0001193125-26-350558-index-headers.html | 0001193125-26-350558 |
| Document: 0001193125-26-350558-index.html | 0001193125-26-350558 |
| Document: 0001193125-26-350558.txt | 0001193125-26-350558 |
| 8-K Data (Synthetic) | 0001193125-26-350558 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | SC 13D/A | $8.98 | awaiting T+5 | — | $9.62 (+7.13%) |
Oct 16, 2026 11d ago | Press Release | $10.13 $8.98 | ▼ −11.35% | ▼ −10.92% | $9.62 (−5.03%) |
Oct 13, 2026 13d ago | SC 13D/A | $10.19 $9.45 | ▼ −7.26% | ▼ −7.72% | $9.62 (−5.59%) |
Oct 9, 2026 18d ago | SC 13G/A | $10.94 $9.80 | ▲ +10.42% | ▲ +8.93% | $9.62 (+12.07%) |
Aug 14, 2026 10w ago | 8-K | $18.47 $17.54 | ▼ −5.04% | ▼ −3.67% | $9.62 (−47.92%) |
Aug 14, 2026 10w ago | Press Release | $18.47 $17.54 | ▲ +5.04% | ▲ +3.67% | $9.62 (+47.92%) |
Jun 12, 2026 19w ago | 8-K | $22.76 $22.92 | ▲ +0.70% | ▲ +2.09% | $9.62 (−57.73%) |
May 26, 2026 22w ago | 8-K | $16.29 $18.02 | ▲ +10.62% | ▲ +10.15% | $9.62 (−40.95%) |
May 15, 2026 23w ago | 8-K | $17.64 $16.06 | ▼ −8.96% | ▼ −9.92% | $9.62 (−45.46%) |
May 15, 2026 23w ago | EFFECT | $17.64 $16.06 | ▲ +8.96% | ▲ +9.92% | $9.62 (+45.46%) |
US Market Status
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