Group 1 - Vulcan Materials Company's revenue is expected to benefit from strong public infrastructure markets, data centers, and heavy manufacturing [1] - The warehousing market is nearing the bottom and showing signs of recovery, which will further support the company's performance [1] Group 2 - The analysis reflects a medium-term investment strategy focusing on catalysts that can unlock value and drive upside [1] - The analyst has a background in industrial, consumer, and technology sectors, indicating a higher conviction in these areas for investment [1]

Vulcan Materials (VMC) shares soared 5.8% in the last trading session to close at $239.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% gain over the past four weeks.Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Vulcan  shares soared, reflecting renewed investor optimism.This construction materials company is expected to post quarterly earnings of $0.80 per share in its up ...

Core Viewpoint - Vulcan Materials Company will host its first quarter 2025 earnings conference call on April 30, 2025, at 9:00 a.m. CT, with financial results released before the NYSE market opens [1]. Company Information - Vulcan Materials Company is the largest supplier of construction aggregates in the United States, primarily providing crushed stone, sand, and gravel [3]. - The company is also a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete [3]. - Vulcan is a member of the S&P 500 index and is headquartered in Birmingham, Alabama [3].

Vulcan Materials Company (NYSE: VMC ) is a construction aggregates supplier that holds #1 and #2 market positions in 90% of the markets it serves, operating a quasi-monopoly business that holds significant pricing power. Through this pricing power, Vulcan Materials can often increase prices exceeding theI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined cap ...

Core Viewpoint - Vulcan Materials (VMC) shares have declined approximately 9% over the past month, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Estimates Movement - Consensus estimates for Vulcan Materials have decreased by 17.66% over the past month, indicating a downward trend in expectations [2] VGM Scores - Vulcan Materials holds a Growth Score of B but has a poor Momentum Score of F and a Value Score of F, placing it in the bottom 20% quintile for the value investment strategy. The overall aggregate VGM Score is D, which is significant for investors not focused on a single strategy [3] Outlook - The downward trend in estimates suggests a negative outlook for Vulcan Materials, reflected in its Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [4]

Company Overview - Vulcan Materials Company is the largest supplier of construction aggregates in the U.S., with 423 active aggregates facilities as of December 31, 2024[20]. - The company employs 11,436 people in the U.S. as of January 1, 2025, with 1,092 represented by labor unions[88]. - The company has approximately $5.3 billion in debt with maturities between 2025 and 2054, and plans to finance acquisitions through a mix of cash flows, additional debt, and/or equity[116]. - The headquarters is located in Birmingham, Alabama, with an office space of approximately 184,000 square feet, leased at an annual cost of $4.4 million[162]. Financial Performance - Total revenues decreased by $364.2 million, or 5%, to $7,417.7 million[187]. - Net earnings attributable to Vulcan for 2024 were $911.9 million ($6.85 per diluted share), compared to $933.2 million ($6.98 per diluted share) in 2023[219]. - Adjusted diluted EPS from continuing operations increased to $7.53 per share in 2024, compared to $7.00 per share in 2023[219]. - Adjusted EBITDA increased by $45.9 million, or 2%, to $2,057.2 million[187]. - EBITDA for 2024 was $1,963.2 million, down from $2,025.4 million in 2023[218]. - The effective tax rate from continuing operations improved to 21.4% in 2024, down from 24.0% in 2023[218]. - The company reported a comparative total return of $186.59 for Vulcan Materials Company from December 31, 2019, to December 31, 2024, compared to $197.03 for the S&P 500[96]. Market Position and Strategy - The top ten revenue-producing states accounted for 89% of 2024 revenues, with the top five states contributing 63%[22]. - The company has 16.5 billion tons of proven and probable aggregates reserves, strategically located to serve high-growth areas in the U.S.[28]. - The U.S. aggregates industry is highly fragmented, with over 5,800 companies operating approximately 11,100 facilities, presenting opportunities for consolidation[53]. - The company serves both public and private sectors, with privately funded construction accounting for approximately 60% of total aggregates shipments in 2024[64]. - The company has strengthened its asphalt position in California and Texas through acquisitions in 2022 and 2024[70]. Operational Highlights - In 2024, Vulcan completed two bolt-on acquisitions in Alabama and Texas, strengthening its position in two of its top ten revenue states[37]. - The company operates a total of 418 active aggregates facilities, including 244 production stage mining properties and 109 sales yards[160]. - The company has established interim goals related to Scope 1 and 2 GHG emissions and is working on a Scope 3 GHG emissions inventory project in 2024[80]. - The company has mining properties in 23 states and serves markets expected to experience significant growth in population, households, and employment[141]. Sustainability and Environmental Efforts - Vulcan reused 2.1 million tons of recycled asphalt pavement and recycled 1.7 million tons of concrete in 2024, contributing to sustainability efforts[46]. - The company is committed to reducing greenhouse gas emissions and has voluntarily reported GHG emissions since 2018[80]. - The company is committed to expanding its renewable energy strategy, with two additional solar projects planned for 2025[45]. - The company is exploring battery storage installation for electricity to minimize peak load usage, which could reduce GHG emissions[84]. Industry Trends and Challenges - The construction aggregates industry is highly competitive, with numerous independent local producers and large companies, which could lead to lower prices and sales volumes[109]. - Climate change and related legislation may adversely impact the company’s operations and costs, necessitating additional investments in facilities and equipment[123]. - The use of recycled concrete and asphalt as substitutes for aggregates is expanding, particularly in urban markets, potentially reducing demand for traditional aggregates[110]. - The company faces risks from international operations, including potential disruptions from political and economic changes, particularly in Mexico where recent government actions have adversely affected operations[108]. Future Outlook - Expected net earnings attributable to Vulcan for 2025 are projected between $1,010 million and $1,170 million[193]. - Anticipated adjusted EBITDA for 2025 is between $2,350 million and $2,550 million, including a $150 million contribution from acquisitions[193]. - The company expects approximately 19% growth in Adjusted EBITDA for 2025, driven by a favorable pricing environment and operational efficiencies[185].

Financial Data and Key Metrics Changes - The company reported $550 million of adjusted EBITDA in Q4 2024, a 16% improvement over the prior year [9][42] - Adjusted EBITDA margin improved for the eighth consecutive quarter [9][42] - Cash gross profit per ton in the Aggregated segment expanded 16% to $11.50 [10][43] - Full-year adjusted EBITDA for 2024 was $2.1 billion, with a margin expansion of 190 basis points [24][56] - The net debt to adjusted EBITDA leverage at year-end was 2.3 times [54] Business Line Data and Key Metrics Changes - In the Aggregated segment, cash gross profit per ton grew by 12% to $10.61, demonstrating the durable compounding nature of the aggregates business [25][57] - The asphalt segment is expected to contribute approximately two-thirds of the $360 million cash gross profit from downstream businesses in 2025 [29][61] Market Data and Key Metrics Changes - Aggregate freight-adjusted price improved 11% in Q4, consistent with full-year results [10][43] - Aggregate shipments are expected to increase between 3% and 5% in 2025, driven by recent acquisitions and stable demand for legacy business [14][47] - Highway starts increased by $7 billion to $122 billion over the last year, supporting ongoing growth in highway shipments [15][48] Company Strategy and Development Direction - The company is focused on a two-pronged growth strategy of enhancing core operations and expanding reach through acquisitions [7][40] - The company plans to capitalize on solid momentum and deliver attractive earnings growth again in 2025 [8][41] - The company anticipates another year of attractive margin expansion and earnings growth, with disciplined capital allocation [28][60] Management's Comments on Operating Environment and Future Outlook - Management expects continued growth in public construction activity to offset modest contraction in private activity [16][50] - Inflationary cost pressures are moderating, and the company is making progress in operating process intelligence adoption [14][46] - The company expects to deliver between $2.35 billion and $2.55 billion of adjusted EBITDA in 2025 [20][52] Other Important Information - The company deployed approximately $2.3 billion towards strategic acquisitions in 2024 [21][53] - The company plans to reinvest between $750 million and $800 million in operating and maintenance capital expenditures in 2025 [30][62] Q&A Session All Questions and Answers Question: Can you talk about aggregates pricing and the timing of increases? - Management indicated that Q4 pricing was up 11%, allowing for good momentum into the new year, with guidance of 5% to 7% for 2025, negatively impacted by acquisitions [70][71] Question: What is the expectation for organic volumes in 2025? - Management confirmed that public construction growth is expected to offset challenges in private construction, with a slow start in January and February due to weather [81][82] Question: Can you elaborate on the record gross margins in Q4? - Management attributed the record margins to improved efficiencies, better weather, and less negative volume impacts compared to previous quarters [88][90] Question: Have you seen any pressure from policy decisions on project starts? - Management stated that there is no significant impact from policy on public demand, and they expect continued support for infrastructure spending [96][97] Question: What is the outlook for private non-residential construction? - Management expects non-residential construction shipments to be down in 2025 but anticipates gradual improvement as the year progresses [112][114] Question: How do you view the impact of tariffs on your business? - Management indicated that tariffs have a negligible impact on their operations and they are confident in navigating any challenges [98][159] Question: What is the company's approach to recent acquisitions? - Management stated that they will evaluate acquisitions based on performance and returns, retaining those that fit their strategy [130][131] Question: What is the expected contribution from downstream businesses in 2025? - Management expects approximately $360 million in cash gross profit from downstream businesses, with a significant portion coming from recent acquisitions [29][61]

Core Insights - Vulcan Materials Company (VMC) reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [1][4]. Financial Performance - Adjusted earnings per share (EPS) for Q4 were $2.17, surpassing the Zacks Consensus Estimate of $1.76 by 23.3%, and up from $1.46 in the same quarter last year [4]. - Total revenues reached $1.85 billion, exceeding the consensus estimate of $1.83 billion by 1.4% and growing 1.1% year over year [4]. - For the full year 2024, total revenues were $7.42 billion, down from $7.78 billion in 2023, while gross profit increased 2.6% year over year to $2 billion [11]. Segment Performance - Aggregates segment revenues increased to $1.47 billion from $1.41 billion year over year, despite a 3% decline in shipments to 53.9 million tons [5]. - Asphalt segment revenues were $327.1 million, up 9.8% year over year, with a gross profit increase of 27% [7]. - Concrete segment revenues decreased to $163.5 million from $256 million year over year, with gross profit dropping to $4.6 million [8]. Operational Highlights - Gross profit for the aggregates segment was $486.5 million, up from $424.5 million, with a gross margin expansion of 300 basis points [6]. - Selling, administrative, and general (SAG) expenses as a percentage of total revenues decreased by 30 basis points to 7.5% [10]. - Adjusted EBITDA margin improved by 370 basis points year over year to 29.7% [10]. Future Outlook - For 2025, VMC anticipates double-digit year-over-year growth in cash gross profit per ton, with shipment growth expected between 3% and 5% [13]. - The total cash gross profit for the Asphalt and Concrete segments is projected to be around $360 million, compared to $272 million in 2024 [14]. - Adjusted EBITDA for 2025 is projected to be between $2.35 billion and $2.55 billion, including a $150 million contribution from acquisitions [14].

Enhancing Our Core, Expanding Our Reach 4Q 2024 SUPPLEMENTAL INFORMATION FEBRUARY 18, 2025 Safe Harbor and Non-GAAP Financial Measures This presentation contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business plans or strategies, projected or anticipated revenues, expenses, earnings (including E ...

Core Insights - Vulcan Materials (VMC) reported revenue of $1.85 billion for the quarter ended December 2024, reflecting a 1.1% increase year-over-year, with EPS at $2.17 compared to $1.46 in the same quarter last year, indicating strong earnings growth [1] - The revenue exceeded the Zacks Consensus Estimate of $1.83 billion by 1.42%, and the EPS surpassed the consensus estimate of $1.76 by 23.30% [1] Financial Performance Metrics - Average unit sales price per ton for Aggregates was $21.41, slightly above the estimated $21.31 [4] - Unit shipments for Aggregates were 53,900 KTon, exceeding the estimated 53,380.82 KTon [4] - Unit shipments for Asphalt mix were 3,400 KTon, slightly below the estimated 3,388.29 KTon [4] - Unit shipments for Ready-mixed concrete were 900 KCuYd, below the estimated 951.63 KCuYd [4] - Average unit sales price per ton for Asphalt mix was $82.11, above the estimated $80.70 [4] - Average unit sales price per cubic yard for Ready-mixed concrete was $183.07, below the estimated $186.58 [4] - Net sales for Aggregates were $1.47 billion, matching the estimate and representing a 4.3% increase year-over-year [4] - Net sales for Concrete were $163.50 million, above the estimate but showing a significant decline of 36.1% year-over-year [4] - Net sales for Asphalt were $327.10 million, exceeding the estimate and reflecting a 14.2% increase year-over-year [4] - Gross profit for Aggregates was $486.50 million, surpassing the estimate of $469.51 million [4] - Gross profit for Asphalt was $46.10 million, above the estimate of $42.93 million [4] Stock Performance - Vulcan's shares returned +0.1% over the past month, underperforming the Zacks S&P 500 composite's +4.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]