Core Insights - The Zacks Building Products - Concrete & Aggregates industry is experiencing cautious optimism due to strong infrastructure demand, supported by funding from the Infrastructure Investment and Jobs Act (IIJA) and state-level initiatives [1][4] - Industrial demand is strengthening, particularly in data center expansion, semiconductor manufacturing, and new energy generation projects, despite challenges such as weather disruptions and labor costs [2] - The industry is focusing on acquisitions and operating efficiency to enhance earnings and cash flows while managing costs effectively [5] Industry Overview - The industry comprises manufacturers, distributors, and sellers of construction materials, including aggregates, concrete, and related items for various markets [3] - Key trends include a focus on reviving infrastructure through significant legislative investments aimed at enhancing American competitiveness and revitalizing infrastructure [4] Challenges - Industry players face challenges from rising input prices, labor shortages, and weather-related disruptions that can affect production and profitability [6] Market Position - The Zacks Building Products - Concrete & Aggregates industry ranks 98, placing it in the top 40% of over 250 Zacks industries, indicating solid near-term prospects [7][8] - The industry's earnings estimates for 2025 have increased from $2.09 to $2.18 per share, reflecting growing analyst confidence [9] Performance Metrics - Over the past year, the industry has underperformed the S&P 500, with a collective loss of 15.4% compared to the S&P 500's gain of 16.1% [11] - The industry is currently trading at a forward P/E ratio of 24.03X, higher than the S&P 500's 22.86X and the sector's 19.91X [14] Company Highlights - **Vulcan Materials Company**: Benefits from federal and state funding under the IIJA, with a focus on public infrastructure and industrial nonresidential demand. The company has seen an 18.7% stock gain over the past year and a projected 12% EPS growth for 2025 [18][19] - **Martin Marietta**: Driven by aggregates strength and favorable pricing dynamics, the company has gained 12.8% over the past year, although its 2025 EPS estimate shows a 42% decline [21][22]

Core Viewpoint - Vulcan Materials Company (VMC) reported lower-than-expected second-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate but showing year-over-year growth [1][3]. Financial Performance - Adjusted earnings per share (EPS) for the quarter were $2.45, missing the Zacks Consensus Estimate of $2.55 by 3.9%, but increased 4.3% year over year from $2.35 [3][9]. - Total revenues reached $2.1 billion, falling short of the consensus mark of $2.19 billion by 4%, yet grew 4.4% year over year [3][9]. - Adjusted EBITDA increased by 9.5% year over year to $660 million, with an adjusted EBITDA margin expanding 150 basis points to 31.4% [10]. Segment Performance - **Aggregates Segment**: Revenues increased to $1.65 billion from $1.61 billion year over year, despite a 1.3% decline in shipments to 59.3 million tons [4]. Freight-adjusted average sales price rose to $22.11 per ton from $21 [5]. - **Asphalt Segment**: Revenues were $368.9 million, up 12.1% year over year, with a slight decline in volumes to 3.9 million tons [6]. - **Concrete Segment**: Revenues surged 31.9% year over year to $220.6 million, with shipments growing to 1.2 million cubic yards [7]. Operational Highlights - Gross profit for the aggregates segment was $559.5 million, up from $528.5 million year over year, with gross margin expanding 110 basis points to 33.9% [5][9]. - Selling, administrative, and general (SAG) expenses as a percentage of total revenues increased by 20 basis points to 6.9% [10]. Financial Position - As of June 30, 2025, cash and cash equivalents were $347.4 million, down from $559.7 million at the end of 2024, while long-term debt decreased slightly to $4.36 billion [11]. - Net cash provided by operating activities for the first six months of 2025 was $593.2 million, up from $374.5 million a year ago [11]. Guidance for 2025 - Vulcan expects double-digit year-over-year growth in cash gross profit per ton for the aggregates segment, with shipment growth projected between 3% and 5% [12]. - Total Asphalt and Concrete segment's cash gross profit is anticipated to be around $360 million compared to $272 million in 2024 [13]. - Capital expenditures are expected to be between $750 million and $800 million for maintenance and growth projects [14].

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by 9% year-over-year to $660 million despite lower aggregate shipments [8][14] - Adjusted EBITDA margin expanded by 260 basis points, and cash gross profit per ton increased by 13% [7][19] - Year-to-date cash gross profit per ton reached $11.25, over 50% higher than three years ago [19] Business Line Data and Key Metrics Changes - Aggregate shipments were impacted by an estimated 2 to 3 million tons due to extreme weather conditions [9][22] - Freight-adjusted average selling prices improved by 5%, with mix-adjusted prices up by 8% [10][19] - Residential construction activity remains weak, accounting for about 20% of shipments, but multifamily starts are showing signs of improvement [11][12] Market Data and Key Metrics Changes - Public infrastructure contract awards in Vulcan markets increased by over 20% year-over-year [13][37] - Data center activity is a bright spot, with discussions on projects totaling over $35 billion [13][72] - Private non-residential construction is beginning to recover, with positive trends in data centers and warehouses [12][56] Company Strategy and Development Direction - The company is focused on a two-pronged growth strategy: improving organic profitability and adding strategic assets [8][19] - Continued investment in maintenance and growth capital expenditures is expected to reach approximately $700 million for the full year [18][45] - The company aims to deliver between $2.35 billion and $2.55 billion of adjusted EBITDA for the year [18][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year due to improving weather conditions and strong backlogs [24][72] - The company is optimistic about the recovery in private non-residential demand and the acceleration of public infrastructure spending [12][37] - Management noted that the underlying demand is improving, which supports the reaffirmation of full-year guidance [24][14] Other Important Information - Free cash flow on a trailing twelve-month basis surpassed $1 billion, enabling disciplined capital allocation [15][109] - The company reclassified $550 million of commercial paper borrowings from long-term to short-term debt [16][17] - The company is actively discussing potential M&A opportunities to enhance growth [110][111] Q&A Session Summary Question: What gives confidence in reaffirming EBITDA guidance despite a tough first half? - Management highlighted strong pricing and unit margins despite volume declines, indicating quality earnings [22][23] Question: Are project timelines stretching or improving? - Management noted that project timelines are improving, with increased bookings and backlogs across all end markets except single-family housing [30][31] Question: How is the infrastructure spending trend? - Management confirmed that infrastructure spending is strong, with significant increases in contract awards and bookings [36][37] Question: What is the outlook for capital expenditures? - Management expects full-year capital expenditures to be around $700 million, lower than the initial guidance due to weather impacts [45][18] Question: How will pricing be affected in 2026? - Management anticipates strong visibility in highway work and potential pricing growth, especially if private demand improves [106][107] Question: What is the expected free cash flow baseline moving forward? - Management indicated that the new baseline for free cash flow is around $1 billion, which may influence capital allocation strategies [109][110]

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by 9% year-over-year to $660 million despite lower aggregate shipments [6][12] - Adjusted EBITDA margin expanded by 260 basis points, and cash gross profit per ton increased by 13% [6][12] - Year-to-date cash gross profit per ton reached $11.25, over 50% higher than three years ago [17] Business Line Data and Key Metrics Changes - Aggregate shipments were impacted by an estimated 2 to 3 million tons due to extreme weather conditions [7][20] - Freight-adjusted average selling prices improved by 5%, with mix-adjusted prices up by 8% [8] - Cash gross profit per ton for aggregates increased by 9% despite lower volumes [7][46] Market Data and Key Metrics Changes - Residential construction activity remains weak, with single-family housing starts and permits continuing to decline [9] - Private non-residential construction is showing signs of recovery, particularly in data centers, with over $35 billion in projects being discussed [11][12] - Public infrastructure contract awards increased by over 20% year-over-year, indicating strong demand [12][35] Company Strategy and Development Direction - The company is focused on a two-pronged growth strategy: improving organic profitability and acquiring strategic assets [6] - Continued investment in maintenance and growth capital expenditures is expected to reach approximately $700 million for the full year [15][43] - The company anticipates a strong second half of 2025, supported by improving private and public demand [16][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaffirming the full-year adjusted EBITDA guidance of $2.35 billion to $2.55 billion, citing strong backlogs and booking pace [13][22] - The company noted that improvements in both private and public demand are translating into accelerating bookings and growing backlogs [12][13] - Management highlighted the importance of weather conditions in the Southeast for future performance, with July showing normal weather patterns leading to strong shipments [21][22] Other Important Information - The company generated over $1 billion in free cash flow on a trailing twelve-month basis, which is expected to support long-term value creation for shareholders [15][106] - The company reclassified $550 million of commercial paper borrowings from long-term to short-term debt, indicating a strategy to reduce interest expenses [15] Q&A Session Summary Question: What gives confidence in reaffirming EBITDA guidance despite a tough first half? - Management noted that despite weather impacts, prices and unit margins improved, indicating strong underlying performance and confidence in the second half [20][21] Question: Are project timelines stretching out or is customer confidence improving? - Management confirmed that project timelines are improving, with backlogs and booking pace increasing across all end markets except single-family housing [28][29] Question: How is the infrastructure spending trend impacting the company? - Management indicated that infrastructure spending is strong, with significant increases in contract awards and bookings, particularly in Southeastern states [35][36] Question: What is the outlook for capital expenditures for the full year? - Management expects full-year capital expenditures to be around $700 million, lower than the initial guidance due to weather-related delays [43] Question: How does the company view pricing and profitability in the second half? - Management expressed optimism about maintaining pricing momentum and improving unit margins, despite potential impacts from product mix [55][56] Question: What is the expected impact of the proposed Union Pacific and Norfolk Southern merger? - Management does not foresee significant impacts from the merger, as the company primarily operates within local markets [62] Question: How does the recent tax legislation affect the company? - Management expects a cash tax benefit of over $40 million for the year due to new tax legislation, with potential benefits approaching $100 million [90] Question: What is the outlook for free cash flow and capital allocation? - Management indicated that strong cash generation will allow for returning cash to shareholders while maintaining flexibility for growth opportunities [106][107]

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents Vulcan Materials Company's unaudited condensed consolidated financial statements and management's discussion and analysis [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Vulcan Materials Company's unaudited condensed consolidated financial statements and detailed explanatory notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased slightly to **$16,974.7 million** as of June 30, 2025, while total equity increased to **$8,429.7 million** Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $2,243.5 | $2,265.7 | | **Property, plant & equipment, net** | $8,336.8 | $8,461.5 | | **Total assets** | **$16,974.7** | **$17,104.8** | | **Total current liabilities** | $1,341.9 | $1,239.1 | | **Long-term debt** | $4,359.2 | $4,906.9 | | **Total liabilities** | **$8,545.0** | **$8,962.3** | | **Total equity** | **$8,429.7** | **$8,142.5** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2025 total revenues increased to **$2,102.4 million**, with net earnings attributable to Vulcan growing to **$320.9 million** Q2 and Six Months Ended June 30 Performance (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $2,102.4 | $2,014.4 | $3,737.0 | $3,560.1 | | **Gross profit** | $625.2 | $592.2 | $990.5 | $897.2 | | **Operating earnings** | $471.0 | $453.6 | $697.4 | $626.5 | | **Net earnings attributable to Vulcan** | $320.9 | $308.0 | $449.8 | $410.6 | | **Diluted EPS (Continuing Operations)** | $2.43 | $2.33 | $3.41 | $3.11 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$593.2 million** for the six months ended June 30, 2025 Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $593.2 | $374.5 | | **Net cash used for investing activities** | $(236.9) | $(533.8) | | **Net cash used for financing activities** | $(606.1) | $(678.3) | | **Net decrease in cash** | $(249.8) | $(837.6) | | **Cash and restricted cash at end of period** | $351.0 | $111.6 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies, revenue recognition, debt structure, legal proceedings, segment performance, and acquisition details - The company's primary business is **construction aggregates**, serving U.S. metropolitan markets with high growth potential[15](index=15&type=chunk)[16](index=16&type=chunk) - In Q2 2025, **Aggregates segment sales were $1,649.6 million**, **Asphalt $368.9 million**, and **Concrete $220.6 million**[37](index=37&type=chunk) - As of June 30, 2025, total debt was **$4,909.7 million**, comprising **$550.0 million** in short-term commercial paper and **$4,359.2 million** in long-term debt[54](index=54&type=chunk)[173](index=173&type=chunk) - The company is involved in significant legal matters, including a **NAFTA arbitration claim against Mexico** for its Calica operations and various environmental litigations[66](index=66&type=chunk)[80](index=80&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 performance, highlighting a **4% revenue increase** and maintaining the **full-year Adjusted EBITDA outlook** Q2 2025 vs Q2 2024 Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $2,102.4M | $2,014.4M | +4% | | **Gross Profit** | $625.2M | $592.2M | +6% | | **Aggregates Gross Profit** | $559.5M | $528.5M | +6% | | **Net Earnings Attributable to Vulcan** | $320.9M | $308.0M | +4% | | **Adjusted EBITDA** | $659.5M | $603.1M | +9% | | **Adjusted Diluted EPS** | $2.45 | $2.35 | +4.3% | - The company maintains its full-year 2025 outlook for **Adjusted EBITDA between $2,350 million and $2,550 million**, supported by strong first-half execution[124](index=124&type=chunk) - As of June 30, 2025, the **total debt to trailing-twelve months Adjusted EBITDA ratio was 2.2 times**, within the target range of 2.0 to 2.5 times[121](index=121&type=chunk) - Known uncertainties include **inflationary pressures**, **labor constraints**, and adverse actions by the Mexican government against the company's Calica operations[155](index=155&type=chunk)[157](index=157&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks primarily from interest rate fluctuations on debt and economic risks related to pension plans - The company is exposed to market risks from **interest rates**, **foreign currency exchange**, and **commodity prices**, potentially using derivative instruments for management[198](index=198&type=chunk) - A **one-percentage-point decline in interest rates** would increase the fair value of the company's debt by an estimated **$393.4 million**[200](index=200&type=chunk) - The company is exposed to economic risks related to its **pension and other postretirement benefit plans**, including changes in discount rates and expected returns on plan assets[201](index=201&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective as of June 30, 2025, with ongoing system implementation and acquisition integration - The **CEO and CFO concluded that disclosure controls and procedures were effective** as of June 30, 2025[201](index=201&type=chunk) - The company is implementing a new enterprise performance management system, with the financial reporting phase completed in **Q1 2025** and other phases by **end of 2026**[202](index=202&type=chunk) - Integration of the **Wake Stone and Superior acquisitions**, completed in late 2024, into operations and internal control processes is ongoing[203](index=203&type=chunk) [PART II OTHER INFORMATION](index=44&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, mine safety, and other regulatory disclosures [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Updates on legal proceedings, including environmental cases and NAFTA arbitration, are detailed in Note 8 of the financial statements - For updates on legal proceedings, the report refers to **Note 8 of the condensed consolidated financial statements**[204](index=204&type=chunk)[209](index=209&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K - There were **no material changes to the risk factors** previously disclosed in the company's 2024 Annual Report on Form 10-K[205](index=205&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No equity securities were purchased or unregistered sales made by the company during Q2 2025 - The company did not purchase any of its equity securities during **Q2 2025**[206](index=206&type=chunk) - There were **no unregistered sales of equity securities** during **Q2 2025**[206](index=206&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety violations and regulatory matters are detailed in Exhibit 95 of this quarterly report - Information concerning **mine safety violations and other regulatory matters** is included in **Exhibit 95** of the report[207](index=207&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) No Section 16 officers or directors adopted or terminated Rule 10b5-1 trading arrangements in Q2 2025 - **No Section 16 officers or directors adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement** in **Q2 2025**[208](index=208&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits including incentive plans, award agreements, and Sarbanes-Oxley Act certifications - The report includes exhibits such as the **2025 Omnibus Long-Term Incentive Plan**, award agreement forms, and **Sarbanes-Oxley Act certifications**[210](index=210&type=chunk)

Durable Growth, The Vulcan Way 2Q 2025 SUPPLEMENTAL INFORMATION July 31, 2025 Safe Harbor and Non-GAAP Financial Measures This presentation contains certain non-GAAP financial terms, which are defined in the Appendix. Reconciliations of non-GAAP terms to the closest GAAP terms are also provided in the Appendix. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forwa ...

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[VULCAN Q2 2025 Earnings Release](index=1&type=section&id=VULCAN%20REPORTS%20SECOND%20QUARTER%202025%20RESULTS) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Vulcan Materials reported strong Q2 2025 results with earnings growth and margin expansion driven by pricing and cost management Q2 2025 Key Financial Metrics (YoY) | Metric | Q2 2025 | Q2 2024 | Change | Year-to-Date 2025 | Year-to-Date 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $2,102M | $2,014M | +4.4% | $3,737M | $3,560M | +5.0% | | Gross Profit | $625M | $592M | +5.6% | $991M | $897M | +10.5% | | Net Earnings | $321M | $308M | +4.2% | $450M | $411M | +9.5% | | Adjusted EBITDA | $660M | $603M | +9.5% | $1,070M | $927M | +15.4% | | Adjusted EBITDA Margin | 31.4% | 29.9% | +150 bps | 28.6% | 26.0% | +260 bps | | Diluted EPS (Continuing Ops) | $2.43 | $2.33 | +4.3% | $3.41 | $3.11 | +9.6% | - CEO Tom Hill highlighted that strong execution led to a **13% increase in aggregates cash gross profit per ton** and a **16% improvement in Adjusted EBITDA** through the first half of the year[2](index=2&type=chunk) [Second Quarter Segment Results](index=2&type=section&id=Second%20Quarter%20Segment%20Results) The Aggregates segment drove earnings growth through strong pricing and execution, offsetting a weather-related shipment decline [Aggregates](index=2&type=section&id=Aggregates) The segment's gross profit grew due to a 5% increase in selling prices, which offset a 1% weather-related shipment decrease Aggregates Segment Performance - Q2 2025 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | $560M | $528.5M (implied) | +6.0% | | Gross Profit per Ton | $9.44 | $8.79 | +7.4% | | Cash Gross Profit per Ton | $11.88 | $10.92 | +8.8% | | Shipments (million tons) | 59.3 | 60.1 | -1.3% | | Freight-Adjusted Selling Price | $22.11 | $21.00 | +5.3% | - Freight-adjusted unit cash cost of sales saw a modest increase of only **1% ($0.15 per ton)**, demonstrating continued operating cost discipline[4](index=4&type=chunk) - On a trailing-twelve months basis, cash gross profit per ton increased **13%**, marking the tenth consecutive quarter of double-digit improvement in unit profitability[3](index=3&type=chunk) [Asphalt and Concrete](index=2&type=section&id=Asphalt%20and%20Concrete) Both segments improved unit profitability, with the Concrete segment's growth notably driven by contributions from recent acquisitions - Asphalt segment gross profit was **$57 million**, with unit cash gross profit improving by **5%**[5](index=5&type=chunk) - Concrete segment gross profit was **$8 million**, with unit cash gross profit increasing by **30%**, mainly due to acquired operations[5](index=5&type=chunk) [Operating Expenses](index=2&type=section&id=Selling%2C%20Administrative%20and%20General%20(SAG)) Selling, Administrative and General (SAG) expenses were 6.9% of total revenues, showing improved cost management on a TTM basis SAG Expense Analysis | Period | SAG Expense | As % of Total Revenues | | :--- | :--- | :--- | | Q2 2025 | $144M | 6.9% | | TTM Ended Q2 2025 | $550M | 7.2% | [Financial Position and Capital Allocation](index=2&type=section&id=Financial%20Position%2C%20Liquidity%20and%20Capital%20Allocation) The company maintained a strong balance sheet with debt within its target range while investing in capex and increasing dividends - The ratio of total debt to TTM Adjusted EBITDA was **2.2 times (2.1 times on a net debt basis)**, within the company's target range of 2.0 to 2.5 times[8](index=8&type=chunk) - Capital expenditures for maintenance and growth projects totaled **$102 million** in Q2[7](index=7&type=chunk) - The company returned **$65 million** to shareholders via dividends, representing a **6% increase** compared to the prior year[7](index=7&type=chunk) - Return on average invested capital was **15.9%** on a TTM basis[8](index=8&type=chunk) [Business Outlook](index=2&type=section&id=Outlook) The company reaffirmed its full-year 2025 Adjusted EBITDA guidance, supported by strong first-half performance and highway demand - The company reaffirmed its full-year outlook to deliver **$2.35 to $2.55 billion of Adjusted EBITDA**[9](index=9&type=chunk) - The positive outlook is supported by strong first-half performance and an acceleration in new highway construction activity in its markets[9](index=9&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated Statements of Earnings, Balance Sheets, and Cash Flows for the period [Consolidated Statements of Earnings](index=5&type=section&id=Consolidated%20Statements%20of%20Earnings) Total revenues grew to $2.10 billion, and net earnings increased to $320.9 million, resulting in a diluted EPS of $2.43 Q2 2025 Statement of Earnings Highlights (in millions) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $2,102.4 | $2,014.4 | | Gross Profit | $625.2 | $592.2 | | Operating Earnings | $471.0 | $453.6 | | Net Earnings Attributable to Vulcan | $320.9 | $308.0 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets stood at $16.97 billion, with total equity growing to $8.43 billion year-over-year Balance Sheet Highlights (in millions) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Current Assets | $2,243.5 | $1,976.5 | | Total Assets | $16,974.7 | $14,216.4 | | Total Current Liabilities | $1,341.9 | $796.8 | | Long-term Debt | $4,359.2 | $3,331.7 | | Total Equity | $8,429.7 | $7,730.4 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the first six months increased significantly to $593.2 million from $374.5 million YoY Six-Month Cash Flow Summary (in millions) | Activity | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $593.2 | $374.5 | | Net Cash used for Investing Activities | $(236.9) | $(533.8) | | Net Cash used for Financing Activities | $(606.1) | $(678.3) | | Net Decrease in Cash | $(249.8) | $(837.6) | [Segment and Product Data](index=8&type=section&id=Segment%20and%20Product%20Data) This section provides detailed financial and operational metrics for each business segment, led by the Aggregates segment Q2 2025 Segment Gross Profit (in millions) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Aggregates | $559.5 | $528.5 | | Asphalt | $57.2 | $59.0 | | Concrete | $8.5 | $4.7 | Q2 2025 Unit Shipments & Sales Price | Product | Unit Shipments | Avg. Sales Price | | :--- | :--- | :--- | | Aggregates | 59.3M tons | $22.11/ton (Freight-adj.) | | Asphalt Mix | 3.9M tons | $81.29/ton | | Ready-mixed concrete | 1.2M cubic yards | $186.60/cubic yard | [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides reconciliations for key non-GAAP metrics like Adjusted EBITDA and Net Debt to their closest GAAP counterparts [Aggregates Segment Freight-Adjusted Revenues](index=9&type=section&id=Aggregates%20Segment%20Freight-Adjusted%20Revenues) The reconciliation shows freight-adjusted revenues, which exclude freight costs, increased to $1.31 billion in Q2 2025 Q2 Aggregates Revenue Reconciliation (in millions) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Segment Sales | $1,649.6 | $1,613.5 | | Less: Freight & Delivery | $(310.9) | $(324.5) | | Less: Other Revenues | $(28.8) | $(26.4) | | **Freight-Adjusted Revenues** | **$1,310.1** | **$1,262.6** | [Cash Gross Profit](index=9&type=section&id=Cash%20Gross%20Profit) Cash gross profit for the Aggregates segment was $703.8 million, resulting in a cash gross profit per ton of $11.88 Q2 2025 Cash Gross Profit (in millions) | Segment | Gross Profit | DDAA | Cash Gross Profit | | :--- | :--- | :--- | :--- | | Aggregates | $559.5 | $144.3 | $703.8 | | Asphalt | $57.2 | $14.0 | $71.2 | | Concrete | $8.5 | $19.0 | $27.5 | [EBITDA and Adjusted EBITDA](index=10&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA increased to $659.5 million in Q2 2025, with the corresponding margin expanding to 31.4% Q2 Adjusted EBITDA Reconciliation (in millions) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Earnings Attributable to Vulcan | $320.9 | $308.0 | | Interest, Taxes, DDAA | +$335.3 | +$290.7 | | EBITDA | $656.1 | $598.7 | | Adjustments | +$3.4 | +$4.5 | | **Adjusted EBITDA** | **$659.5** | **$603.1** | [Adjusted Diluted EPS](index=10&type=section&id=Adjusted%20Diluted%20EPS) Adjusted Diluted EPS from continuing operations for Q2 2025 increased to $2.45 from $2.35 in the prior-year quarter Adjusted Diluted EPS Reconciliation | Period | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Earnings per Share | $2.42 | $2.31 | | Adjustments (net of tax) | +$0.03 | +$0.04 | | **Adjusted Diluted EPS** | **$2.45** | **$2.35** | [Net Debt to Adjusted EBITDA](index=12&type=section&id=Net%20Debt%20to%20Adjusted%20EBITDA) The company's leverage ratios remained healthy, with a net debt to TTM Adjusted EBITDA ratio of 2.1x as of June 30, 2025 Leverage Ratios as of June 30, 2025 | Metric | Value | | :--- | :--- | | Total Debt | $4,909.7M | | Net Debt | $4,558.7M | | TTM Adjusted EBITDA | $2,201.1M | | **Total Debt to TTM Adj. EBITDA** | **2.2x** | | **Net Debt to TTM Adj. EBITDA** | **2.1x** | [Return on Invested Capital (ROIC)](index=12&type=section&id=Return%20on%20Invested%20Capital%20(ROIC)) The company's Return on Invested Capital was 15.9% for the trailing-twelve months ending June 30, 2025 - The company's **Return on Invested Capital (ROIC)** for the trailing-twelve months ended June 30, 2025, was **15.9%**[32](index=32&type=chunk) [Legal Disclaimers](index=3&type=section&id=FORWARD-LOOKING%20STATEMENT%20DISCLAIMER) This section contains a forward-looking statement disclaimer and notes that reconciliations for forward-looking non-GAAP measures are not provided - The report contains forward-looking statements concerning future financial performance and business plans, which are subject to numerous risks and uncertainties[13](index=13&type=chunk)[15](index=15&type=chunk) - Reconciliations for forward-looking non-GAAP financial measures are not provided because the necessary information is not accessible without unreasonable effort[12](index=12&type=chunk)

Core Insights - Vulcan Materials Company reported strong earnings growth and margin expansion driven by pricing discipline and cost performance, despite facing weather challenges and lower shipments in the aggregates segment [1][2][3] Financial Performance - Total revenues for Q2 2025 were $2,102 million, a 4.4% increase from $2,014 million in Q2 2024 [2] - Gross profit increased to $625 million from $592 million year-over-year [2] - Net earnings attributable to Vulcan rose to $321 million, compared to $308 million in the same quarter last year [2] - Adjusted EBITDA for the quarter was $660 million, up from $603 million, reflecting a 9.5% increase [2][29] - Adjusted EBITDA margin improved to 31.4% from 29.9% year-over-year [2][29] Segment Performance - The aggregates segment generated a gross profit of $560 million, with a gross profit margin of 33.9% [3][19] - Shipments in the aggregates segment decreased by 1% year-over-year, attributed to significant rainfall in key Southeastern markets [4] - Freight-adjusted sales price per ton for aggregates increased by 5% to $22.11, while cash gross profit per ton rose by 9% to $11.88 [4][20] Cost Management - Selling, Administrative and General (SAG) expenses were $144 million, representing 6.9% of total revenues, slightly up from 6.7% in the previous year [6] - Freight-adjusted unit cash cost of sales increased by only 1% despite challenging weather conditions [4] Capital Allocation and Financial Position - Capital expenditures for maintenance and growth projects were $102 million in Q2 2025 [8] - The company returned $65 million to shareholders through dividends, marking a 6% increase compared to the prior year [8] - As of June 30, 2025, the total debt to trailing-twelve months Adjusted EBITDA ratio was 2.2 times, within the company's target range [8] Outlook - The company expects to deliver between $2.35 billion and $2.55 billion of Adjusted EBITDA for the full year, supported by strong execution and an acceleration in highway construction activity [9]

Core Viewpoint - Vulcan Materials Company (VMC) is expected to report second-quarter 2025 results on July 31, with anticipated year-over-year growth in both revenues and earnings per share (EPS) driven by strong pricing, acquisitions, and stable public demand [1][9]. Financial Performance - In the last reported quarter, VMC's adjusted earnings exceeded the Zacks Consensus Estimate by 26.6% and increased by 25% year over year, while revenues fell short of the consensus by 2.5% but grew by 5.8% year over year [1]. - The Zacks Consensus Estimate for VMC's second-quarter EPS has decreased to $2.59 from $2.66 over the past 30 days, indicating a 10.2% rise from the same quarter last year. Revenue estimates are pegged at $2.2 billion, reflecting a 9.2% year-over-year increase [3]. Revenue Drivers - VMC's revenue and earnings growth in Q2 are expected to be supported by strong pricing gains across product lines, accretive acquisitions, and stable demand in the legacy business. Increased infrastructure spending and public construction activity are anticipated to offset declines in private construction [4]. - The Aggregates business, which includes crushed stone, sand, and gravel, is projected to contribute significantly to revenue growth, with net sales expected to rise by 10% to $1.78 billion. Volumes and prices in this segment are expected to increase by 4.2% and 5.6%, respectively [6]. - The Asphalt Mix segment is expected to see net sales of $368.6 million, a 5% increase year over year, with volumes and prices projected to grow by 1.8% and 3.1%, respectively. The Concrete segment is anticipated to grow by 24.8% to $208.8 million, with volumes and prices expected to rise by 22.6% and 1.8% [7]. Challenges - VMC's top line may be impacted by adverse weather conditions, a decline in private non-residential construction, and some slowdown in housing. Additionally, price and cost challenges in the Cement segment, along with higher natural gas prices, are expected to pose headwinds [8]. - Higher cost inflation, a shortage of skilled labor, and rising wage expenses are likely to affect VMC's second-quarter margins, with gross profit margin anticipated to decline by 120 basis points year over year to 28.2% [9][10]. Earnings Prediction - The current model does not predict a definitive earnings beat for VMC, as it has an Earnings ESP of -1.69% and a Zacks Rank of 4 (Sell) [11][12].