Vulcan Materials Company (VMC), headquartered in Birmingham, Alabama, is the largest producer of construction aggregates in the U.S., specializing in crushed stone, sand, and gravel. The company, valued at $38.9 billion by market cap, operates over 400 facilities across 22 states, as well as in Canada, Mexico, the Bahamas, and the U.S. Virgin Islands. Companies worth $10 billion or more are generally described as “large-cap stocks,” and Vulcan fits the bill perfectly. It has a strong presence in high-grow ...

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]