Core Viewpoint - Vulcan Materials Company will host its second quarter 2025 earnings conference call on July 31, 2025, at 10:00 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].

Company Overview - Vulcan is the leading aggregates supplier in the U S [6] - The company shipped 220 million tons of aggregates[7] - Vulcan generated $7 4 billion in revenues[7] - Adjusted EBITDA reached $2 1 billion[8] - Net debt/adjusted EBITDA ratio is 2 3x[8] Market and Strategy - The estimated U S market size for aggregates is approximately 2 5 billion tons or $38 billion[15] - Vulcan states serve 67% of Infrastructure Investment and Jobs Act formula dollars[27] - Vulcan states serve 35 of the top 50 highest-growth metropolitan statistical areas (MSAs)[27, 52] Financial Performance and Capital Allocation - Aggregates cash gross profit per ton increased to $10 61 in 2024[43, 93] - The company has completed almost 40 acquisitions across its top 10 revenue states in the last 10 years[48] - Vulcan's return on invested capital (ROIC) was 16 2% in 2024[95]

Core Viewpoint - Vulcan Materials (VMC) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system focuses on changes in earnings estimates as a key determinant of stock ratings, with the consensus estimate for Vulcan showing an increase of 1.4% over the past three months [2][8]. - For the fiscal year ending December 2025, Vulcan is expected to earn $8.64 per share, reflecting a 14.7% increase from the previous year [8]. Institutional Investor Influence - Changes in earnings estimates are strongly correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates, leading to significant buying or selling activity [4][5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [9][10]. - The upgrade of Vulcan to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - Vulcan Materials (VMC) shares have increased by approximately 0.6% since the last earnings report, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings Report and Market Reaction - The most recent earnings report indicates that estimates have trended downward over the past month [2] - Investors and analysts are closely monitoring the stock's performance as it approaches the next earnings release [1] Group 2: VGM Scores and Investment Strategy - Vulcan has an average Growth Score of C, a Momentum Score of A, and a Value Score of D, placing it in the bottom 40% for the value investment strategy [3] - The aggregate VGM Score for Vulcan is C, which is relevant for investors not focused on a single strategy [3] Group 3: Outlook and Future Expectations - The downward trend in estimates suggests a negative shift in expectations for the stock, with a Zacks Rank of 3 (Hold) indicating an anticipated in-line return in the coming months [4]

Industry Overview - The Zacks Building Products - Concrete & Aggregates industry is experiencing cautious optimism in 2025, primarily driven by public sector demand supported by the Infrastructure Investment and Jobs Act (IIJA) [1] - The residential and private nonresidential sectors are facing challenges due to high interest rates and affordability issues, while the industrial segment, particularly data center and warehouse construction, is stabilizing [1][3] - Companies like Vulcan Materials Company and Martin Marietta Materials are leveraging favorable trends to navigate uncertainties in the macroeconomic landscape, weather-related issues, and increased labor costs [1] Trends Influencing the Industry - The Infrastructure Investment and Jobs Act, along with other legislative measures, signifies a strong commitment to revitalizing American infrastructure, which is expected to provide a solid foundation for growth in construction companies [3] - The industry is focusing on acquisitions and operational efficiency to enhance domestic and international portfolios while maximizing earnings and cash flows [4] - Industry players are facing challenges from fluctuating input prices, weather-related risks, and a shortage of skilled labor, which can impact production schedules and profitability [5] Industry Performance and Valuation - The Zacks Building Products - Concrete & Aggregates industry ranks 96, placing it in the top 39% of over 250 Zacks industries, indicating solid near-term prospects [6][7] - The industry's earnings estimates for 2025 have increased from $2.08 to $2.23 per share, reflecting growing confidence in earnings growth potential [8] - Over the past year, the industry has underperformed the S&P 500 and the broader construction sector, with a collective loss of 7.6% compared to a 10.8% gain in the S&P 500 [10] Current Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 21.4X, slightly below the S&P 500's 21.59X and above the sector's 18.17X [13] - Historically, the industry has traded between a high of 24.39X and a low of 13.86X over the past five years, with a median of 20.08X [13] Company Highlights - **Vulcan Materials Company**: Focuses on strategic initiatives to enhance price performance and operational efficiencies, with a 2025 EPS estimate of $8.63, reflecting a 14.6% growth from the previous year [17][18] - **Martin Marietta**: Capitalizes on strategic acquisitions and robust demand in public infrastructure, with a 2025 EPS estimate of $18.86, indicating a focus on optimizing its portfolio and enhancing margin-generation capabilities [21][22]

Vulcan Materials Company (VMC) reported mixed first-quarter 2025 results, with adjusted earnings surpassing the Zacks Consensus Estimate but revenues missing the same.Vulcan shares rose 1.5% in Wednesday’s pre-market trading following its earnings release, likely reflecting improved investor sentiment driven by the company’s reaffirmed outlook despite ongoing macroeconomic headwinds.Vulcan’s aggregates-driven business model, combined with its disciplined execution of the Vulcan Way of Selling and Operating, ...

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Vulcan Materials Company for Q1 2025, including Balance Sheets, Statements of Comprehensive Income, and Statements of Cash Flows, with detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, **total assets** decreased to **$16.71 billion**, **total liabilities** decreased to **$8.55 billion** due to **debt repayment**, and **total equity** slightly increased to **$8.16 billion** Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,925.9 | $2,265.7 | | Cash and cash equivalents | $181.3 | $559.7 | | **Total Assets** | **$16,712.1** | **$17,104.8** | | **Total Current Liabilities** | $796.9 | $1,239.1 | | Current maturities of long-term debt | $0.5 | $400.5 | | **Total Liabilities** | **$8,553.6** | **$8,962.3** | | **Total Equity** | **$8,158.5** | **$8,142.5** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the three months ended March 31, **Q1 2025**, **total revenues** increased **5.7%** year-over-year to **$1.63 billion**, with **net earnings attributable to Vulcan** rising **25.5%** to **$128.9 million**, resulting in a **diluted EPS** of **$0.97** Q1 2025 vs Q1 2024 Income Statement (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $1,634.6 | $1,545.7 | | Gross profit | $365.3 | $304.9 | | Operating earnings | $226.4 | $172.9 | | Net earnings attributable to Vulcan | $128.9 | $102.7 | | Diluted EPS | $0.97 | $0.77 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first three months of **Q1 2025**, **net cash provided by operating activities** increased to **$251.5 million**, while **net cash used for financing activities** was **$532.9 million**, primarily for **$400.4 million debt repayment** and **$66.0 million in dividends**, resulting in a **net decrease in cash** of **$407.9 million** Q1 2025 vs Q1 2024 Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $251.5 | $173.4 | | Net cash used for investing activities | $(126.5) | $(163.8) | | Net cash used for financing activities | $(532.9) | $(658.7) | | **Net decrease in cash** | **$(407.9)** | **$(649.1)** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the **accounting policies** and financial data presented in the **unaudited condensed consolidated financial statements**, covering **revenue recognition**, **debt structure**, **leases**, **segment performance**, **legal contingencies**, **acquisitions**, and **goodwill** [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's **Q1 2025** **operating earnings** and **margin expansion**, driven by the **aggregates business**, reaffirms the **full-year outlook**, analyzes **liquidity and capital resources**, reconciles **non-GAAP measures**, and addresses **inflationary pressures** and **challenges in Mexico** [Executive Summary](index=28&type=section&id=Executive%20Summary) The company reported strong **Q1 2025** results with a **27% increase** in **Adjusted EBITDA** and a **420 basis point margin expansion**, driven by a **19% improvement** in **Aggregates gross profit per ton**, returned **$104.1 million** to **shareholders**, redeemed **$400 million** in **notes**, and reiterated its **full-year Adjusted EBITDA outlook** of **$2,350 million** to **$2,550 million** Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,634.6M | $1,545.7M | +6% | | Gross Profit | $365.3M | $304.9M | +20% | | Operating Earnings | $226.4M | $172.9M | +31% | | Adjusted EBITDA | $410.9M | $323.5M | +27% | | Diluted EPS (Continuing Ops) | $0.98 | $0.78 | +25.6% | - The company reaffirmed its **full-year 2025 outlook** for **Adjusted EBITDA** to be between **$2,350 million** and **$2,550 million**[119](index=119&type=chunk) - Returned **$104.1 million** to **shareholders** in **Q1 2025**, consisting of **$66.0 million** in **dividends** and **$38.1 million** in **share repurchases**[115](index=115&type=chunk)[120](index=120&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) **Q1 2025 total revenues** increased **6%** year-over-year to **$1.63 billion**, primarily driven by the **Aggregates segment**, which saw **gross profit** up **18%** to **$357.3 million** and **gross profit per ton** up **19%** to **$7.48**, benefiting from a **7.0% increase** in **freight-adjusted selling prices** - **Aggregates segment gross profit** increased by **18%** to **$357.3 million**, with **gross profit per ton** rising **19%** to **$7.48**[126](index=126&type=chunk) - **Aggregates freight-adjusted selling prices** increased **7.0%** year-over-year, while **shipments** saw a slight **decrease** of **1%**[127](index=127&type=chunk)[128](index=128&type=chunk) - **Concrete segment gross profit** improved by **$6.3 million** to **$3.2 million**, while **Asphalt segment gross profit** was **flat** at **$4.8 million**[124](index=124&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) [Known Trends or Uncertainties](index=31&type=section&id=Known%20Trends%20or%20Uncertainties) The company identifies ongoing **inflationary pressures**, **labor constraints**, and the impact of **global trade policies** as key uncertainties, with a significant risk from adverse actions by the **Mexican government** which shut down the **Calica operations** and declared the property a "**Natural Protected Area**" - The company is facing adverse actions from the **Mexican government**, which has shut down its **Calica operations** and declared the property a "**Natural Protected Area**," prohibiting material extraction[139](index=139&type=chunk) - The company is pursuing a claim against Mexico under **NAFTA**, with a decision from the **arbitration tribunal** expected during **2025**[77](index=77&type=chunk)[139](index=139&type=chunk) - Ongoing **risks** include **inflationary pressures**, **labor constraints**, and uncertainty from **global trade policies** which may impact **shipment volumes**[137](index=137&type=chunk)[138](index=138&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=32&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations for key **non-GAAP metrics** used by management, including **Aggregates Segment Freight-Adjusted Revenues**, **Cash Gross Profit**, **EBITDA** and **Adjusted EBITDA**, **Adjusted Diluted EPS**, **Net Debt to Adjusted EBITDA**, and **Return on Invested Capital**, to offer a clearer view of **operating performance** by excluding certain **non-cash or non-recurring items** Adjusted EBITDA Reconciliation (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net earnings attributable to Vulcan | $128.9 | $102.7 | | Income tax expense | $33.4 | $28.3 | | Interest expense, net | $59.7 | $39.1 | | DDA&A | $186.4 | $150.9 | | **EBITDA** | **$408.4** | **$321.0** | | Adjustments (Discontinued ops, etc.) | $2.5 | $2.5 | | **Adjusted EBITDA** | **$410.9** | **$323.5** | Aggregates Cash Gross Profit per Ton | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross profit per ton | $7.48 | $6.30 | | **Cash gross profit per ton** | **$10.63** | **$8.86** | [Liquidity and Financial Resources](index=36&type=section&id=Liquidity%20and%20Financial%20Resources) The company maintains a strong **liquidity position** with primary sources from **operating cash flow**, a **$1.6 billion line of credit**, and a **commercial paper program**, having redeemed **$400 million** in **senior notes** in **Q1 2025**, bringing its **total debt** to **$4.9 billion**, with a **total debt to trailing-twelve months Adjusted EBITDA ratio** of **2.3 times** - **Primary liquidity sources** are **operating cash flow**, a **$1.6 billion commercial paper program**, and a **$1.6 billion unsecured line of credit** maturing in November **2029**[148](index=148&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - In March **2025**, the company redeemed **$400.0 million** of **senior notes** due April **2025** using cash on hand[159](index=159&type=chunk) Key Debt Metrics (as of March 31, 2025) | Metric | Value | | :--- | :--- | | Total Debt | $4,908.4 million | | Total Debt as a % of Total Capital | 37.6% | | Total Debt to TTM Adjusted EBITDA | 2.3x | | Net Debt to TTM Adjusted EBITDA | 2.2x | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to **market risks**, primarily **interest rate risk** on its **debt** and **economic risks** related to its **pension and postretirement benefit plans**, with **89%** of its **debt** being **fixed-rate** as of March 31, **2025** - The company's **primary market risks** are **interest rate fluctuations** and **economic factors** affecting **pension plan assets and liabilities**[180](index=180&type=chunk)[183](index=183&type=chunk) - A **1% decline** in **interest rates** would **increase** the **fair value of its debt** by an estimated **$395.7 million** as of March 31, **2025**[182](index=182&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the **CEO and CFO**, concluded that the company's **disclosure controls and procedures** were effective as of March 31, **2025**, following the replacement of its **financial consolidation system** in **Q1 2025** and ongoing implementation of a new **enterprise performance management system** and integration of **internal controls** for recently acquired businesses - The **CEO and CFO** concluded that **disclosure controls and procedures** were effective as of March 31, **2025**[183](index=183&type=chunk) - In **Q1 2025**, the company replaced its legacy **financial consolidation system** and is implementing a new **enterprise performance management system**, expected to be complete in **Q4 2025**[184](index=184&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to **Note 8** of the **unaudited condensed consolidated financial statements** for a detailed discussion of recent developments in the company's **legal proceedings** - For updates on **legal proceedings**, the report directs readers to **Note 8** of the **financial statements**[187](index=187&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company states that there were no **material changes** to the **risk factors** previously disclosed in its **Annual Report on Form 10-K** for the year ended December 31, **2024** - There have been no **material changes** to the company's **risk factors** since the last **Annual Report on Form 10-K**[188](index=188&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of **Q1 2025**, the company repurchased **170,000 shares** of its **common stock** for a **total of $38.1 million**, at an **average price** of **$224.36 per share**, with **6,647,118 shares** remaining available for purchase under the current **board authorization**, and no **unregistered sales of equity securities** Q1 2025 Share Repurchases | Metric | Value | | :--- | :--- | | Total Shares Purchased | 170,000 | | Average Price Paid Per Share | $224.36 | | Total Purchase Price | $38.1 million | - As of March 31, **2025**, **6,647,118 shares** may still be purchased under the existing **board authorization**[190](index=190&type=chunk) [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding **mine safety violations** and other regulatory matters as required by the **Dodd-Frank Act** is included in **Exhibit 95** of this report - **Mine safety disclosures** are provided in **Exhibit 95** of the Form 10-Q[191](index=191&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) The company reports that none of its **Section 16 officers or directors** adopted or terminated a **Rule 10b5-1** or **non-Rule 10b5-1 trading arrangement** during the first quarter of **Q1 2025** - No **Section 16 officers or directors** adopted or terminated a **Rule 10b5-1 trading plan** in **Q1 2025**[192](index=192&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists the **exhibits** filed with the Form 10-Q, including **CEO and CFO certifications** (**Exhibits 31, 32**), **mine safety disclosures** (**Exhibit 95**), and **financial statements** formatted in **iXBRL** (**Exhibit 101**) - Lists required **exhibits**, including **Sarbanes-Oxley certifications**, **MSHA citations**, and **iXBRL data files**[194](index=194&type=chunk)

Core Insights - Vulcan Materials (VMC) reported revenue of $1.63 billion for the quarter ended March 2025, reflecting a year-over-year increase of 5.8% [1] - The earnings per share (EPS) was $1.00, up from $0.80 in the same quarter last year, resulting in an EPS surprise of +26.58% against the consensus estimate of $0.79 [1] Financial Performance Metrics - Revenue was below the Zacks Consensus Estimate of $1.68 billion by -2.56% [1] - Average unit sales price per ton for Aggregates was $22.03, slightly above the estimated $21.93 [4] - Unit shipments for Aggregates were reported at 47,800 KTon, lower than the average estimate of 48,615.59 KTon [4] - Net sales for Aggregates reached $1.34 billion, compared to the average estimate of $1.37 billion, marking a year-over-year increase of +3.5% [4] - Net sales for Asphalt were $208.70 million, exceeding the average estimate of $197.61 million, with a year-over-year change of +12.1% [4] - Net sales for Concrete were $177 million, below the average estimate of $186.98 million, but reflecting a year-over-year increase of +19.4% [4] Stock Performance - Vulcan's shares returned +3.4% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company reported a 20% year-over-year improvement in cash gross profit per ton, contributing to a 27% increase in adjusted EBITDA and a 420 basis points expansion in adjusted EBITDA margin [5][6][12] - Free cash flow generated over the last twelve months was $869 million, representing a 93% conversion of net earnings [12] - The net debt to adjusted EBITDA leverage ratio was 2.2 times, with over $190 million in cash on hand [13] Business Line Data and Key Metrics Changes - Aggregates shipments were 1% lower than the prior year, but the freight adjusted price improved by 7% year-over-year [6][7] - Cash unit profitability in asphalt and concrete expanded by 19% and 77% respectively, with total cash gross profit improving by over 50% [8] - The aggregates cash gross profit grew to $10.99 per ton, nearing the company's goal of $11 to $12 per ton [7] Market Data and Key Metrics Changes - Private demand is expected to face challenges, while public demand remains strong, particularly in highway and non-highway infrastructure [9][10] - Capital plans in nine of the top ten states are increasing, with $45 billion in transportation spending initiatives passed in key states [11] - The company noted that warehouse activity appears to be stabilizing, and data center activity continues to accelerate [10] Company Strategy and Development Direction - The company is focused on compounding profitability through organic growth and strategic acquisitions [5] - The management emphasized the importance of maintaining operational discipline and executing the "Vulcan Way" to navigate macroeconomic volatility [16] - The company expects to deliver between $2.35 billion and $2.55 billion of adjusted EBITDA in 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute despite challenges in private demand, citing healthy public demand as a counterbalance [9][10] - The company is closely monitoring local market conditions and is well-positioned to respond to changes [11] - Management indicated that while tariffs may cause some inflationary pressures, they do not anticipate a material effect on earnings [14] Other Important Information - Capital expenditures for the quarter were $105 million, with expectations to spend between $750 million and $800 million for the full year [14] - The company is evaluating the potential impacts of tariffs on its business but does not foresee significant effects at this time [14][78] Q&A Session Summary Question: Thoughts on mid-year price increases and cost cadence - Management noted strong momentum with prices up 7% and mix adjusted up 8.5%, with discussions on mid-year price increases already underway [19][20] Question: Update on organic rock volumes for 2025 - Management maintained guidance of 3% to 5% growth, with challenges on the private side but healthy growth on the public side [25][26] Question: Impact of administrative policy on project starts - Management reported no significant impact from administrative policy changes, with IIJ funds flowing as expected [32][33] Question: Cost performance outlook - Management attributed a 3% decline in costs to improved operating efficiencies and controlled spending, with a cautious outlook for the rest of the year [39][40] Question: Insights on project cancellations or delays - Management indicated that projects that have started are not being canceled or put on hold, with healthy backlogs [45][46] Question: Pricing dynamics in the current environment - Management stated that pricing is based on market demand rather than costs, and they expect to maintain pricing discipline [92] Question: Asphalt pricing and cost implications - Management highlighted a 24% increase in cash gross profit for asphalt, with expectations for continued strong performance [96] Question: Future of power generation projects - Management anticipates significant aggregate demand from power generation projects, particularly in gas generation [108]

Financial Data and Key Metrics Changes - The company reported a 20% year-over-year improvement in cash gross profit per ton, leading to a 27% increase in adjusted EBITDA and a 420 basis points expansion in adjusted EBITDA margin [6][7] - Free cash flow generated over the last twelve months was $869 million, representing a 93% conversion of net earnings [14] - The net debt to adjusted EBITDA leverage ratio was 2.2 times, with over $190 million in cash on hand [15] Business Line Data and Key Metrics Changes - Aggregates shipments were 1% lower than the prior year, but the freight adjusted price improved by 7% year-over-year [8][9] - Cash unit profitability in asphalt and concrete expanded by 19% and 77% respectively, contributing to a total cash gross profit improvement of over 50% [10] - The aggregates cash gross profit grew to $10.99 per ton, nearing the company's goal of $11 to $12 per ton [9] Market Data and Key Metrics Changes - Private demand is expected to face challenges, while public demand remains strong, particularly in highway and non-highway infrastructure [11][12] - Capital plans in nine of the top ten states are increasing, with $45 billion in transportation spending initiatives passed in key states [13] - The company noted that warehouse activity appears to be stabilizing, and data center activity continues to accelerate [12] Company Strategy and Development Direction - The company is focused on compounding profitability through organic growth and strategic acquisitions, maintaining a disciplined approach to capital allocation [6][14] - The Vulcan Way of selling and operating is emphasized as a key driver for performance, allowing the company to navigate macroeconomic volatility [18] - The company expects to deliver between $2.35 billion and $2.55 billion of adjusted EBITDA in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute despite increasing macroeconomic volatility driven by trade policy uncertainty and interest rate trajectories [10][11] - The company anticipates that the timing of interest rate reductions will influence the return of residential construction activity [11] - Management noted that while private non-residential demand is varied, public construction is poised for steady demand growth [12] Other Important Information - Capital expenditures for the quarter were $105 million, with expectations to spend between $750 million and $800 million for the full year [16] - The company is closely monitoring the impacts of tariffs but does not anticipate a material effect on earnings [16] Q&A Session Summary Question: Thoughts on mid-year price increases and cost cadence - Management indicated strong momentum with prices up 7% and mix adjusted up 8.5%, maintaining guidance of 5% to 7% for mid-year price increases [22][23] Question: Update on organic rock volumes - Management expects a guidance of 3% to 5% for organic volumes, with challenges on the private side but healthy growth on the public side [30] Question: Impact of administrative policy on project starts - Management reported no significant impact from administrative policy changes, with highway funding flowing as expected [38] Question: Outlook on costs for the rest of the year - Management noted a 3% decrease in costs for the quarter, attributing it to improved operating efficiencies and controlled spending [41][42] Question: Insights on project delays or cancellations - Management stated that projects that have started are not being canceled or put on hold, indicating a healthy backlog [50] Question: Impact of tariffs on the business - Management does not foresee a significant impact from tariffs on the business, emphasizing their ability to offset cost volatility [86][88] Question: Update on plant automation initiatives - Management indicated that instrumentation has been implemented in top plants, with full efficiencies expected to be realized over the next year [131]