Core Viewpoint - Vulcan Materials Company (VMC) is set to release its first-quarter 2025 results on April 30, with expectations of revenue growth driven by strong pricing and stable demand despite challenges in certain segments [1][3]. Financial Performance - In the last reported quarter, Vulcan's adjusted earnings and revenues exceeded the Zacks Consensus Estimate by 23.3% and 1.4%, respectively, with year-over-year increases of 48.6% and 1.1% [1]. - The Zacks Consensus Estimate for VMC's first-quarter earnings per share is 80 cents, unchanged over the past 30 days, indicating no year-over-year change. Revenue is estimated at $1.68 billion, reflecting an 8.7% year-over-year increase [2]. Revenue Drivers - Anticipated revenue growth in the first quarter is attributed to strong pricing gains across product lines, recent acquisitions, and stable demand in the legacy business. Public construction activity is expected to offset a decline in private construction [3]. - The Aggregates business, which includes crushed stone, sand, and gravel, is projected to contribute significantly to revenue, with net sales expected to grow 10.8% to $1.43 billion. Aggregates volumes and prices are anticipated to increase by 3.9% and 6.8%, respectively [5]. - The Asphalt Mix segment is expected to see net sales of $195.5 million, indicating a 5% growth year-over-year, with volumes and prices projected to grow by 2.2% and 2.8%, respectively [6]. - Conversely, the Concrete segment is expected to decline by 10.9% to $132.1 million, with volumes down 12.2% but prices up by 1.5% [7]. Operational Challenges - Higher cost inflation, skilled labor shortages, and rising wage expenses are anticipated to impact VMC's margins in the first quarter. The company is focused on improving operational efficiencies through its Vulcan Way of Operating [8]. Earnings Prediction - The current model does not predict an earnings beat for Vulcan, with an Earnings ESP of -5.39% and a Zacks Rank of 3 (Hold) [9][10].

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]

Group 1 - Vulcan Materials (VMC) shares increased by 5.8% to close at $239.53, supported by higher trading volume compared to normal sessions [1] - The stock's performance contrasts with a modest 0.8% gain over the past four weeks, indicating a significant short-term boost [1] - The surge in Vulcan's shares followed President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, which has renewed investor optimism [1] Group 2 - Vulcan is expected to report quarterly earnings of $0.80 per share, unchanged from the same quarter last year, with revenues projected at $1.69 billion, reflecting a 9.3% increase year-over-year [2] - The consensus EPS estimate for Vulcan has been revised 1.7% lower in the last 30 days, suggesting a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [3] - Vulcan currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook compared to other stocks in the same industry [3] Group 3 - Vulcan is part of the Zacks Building Products - Concrete and Aggregates industry, which includes other companies like Pacasmayo (CPAC) [3] - Pacasmayo's consensus EPS estimate remains at $0.14, representing a 12.5% decrease compared to the previous year, and it currently has a Zacks Rank of 4 (Sell) [4]

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].

Core Insights - Vulcan Materials Company (NYSE: VMC) is a leading supplier of construction aggregates, holding the 1 and 2 market positions in 90% of the markets it serves, indicating a quasi-monopoly status with significant pricing power [1] Company Overview - The company operates in a market where it can often increase prices beyond the general market trends, leveraging its strong market position [1]

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]

Part I [Business Overview](index=6&type=section&id=Item%201.%20Business) Vulcan Materials is the largest U.S. supplier of construction aggregates, asphalt, and concrete, primarily operating in high-growth U.S. metropolitan areas - Vulcan is the largest U.S. supplier of construction aggregates, also producing asphalt mix and ready-mixed concrete[20](index=20&type=chunk) - As of December 31, 2024, the company operated **423** active aggregates, **70** asphalt, and **74** concrete facilities[20](index=20&type=chunk)[21](index=21&type=chunk) - The company's top ten revenue-producing states, including California, Texas, and Georgia, accounted for **89%** of 2024 revenues[22](index=22&type=chunk)[24](index=24&type=chunk) [Business Strategy](index=7&type=section&id=Business%20Strategy) The company's strategy focuses on aggregates, durable growth, land management, and environmental commitment - The company's strategy centers on four pillars: aggregates focus, durable growth, holistic land management, and commitment to safety, health, and environment[25](index=25&type=chunk) - Vulcan emphasizes its aggregates business due to high barriers to entry and favorable pricing, holding **16.5 billion tons** of proven and probable reserves in high-growth areas[26](index=26&type=chunk)[28](index=28&type=chunk) - Growth is pursued organically and through acquisitions, with aggregates gross profit per ton increasing **39% to $8.26** and cash gross profit per ton increasing **36% to $10.61** from 2022 to 2024[31](index=31&type=chunk)[33](index=33&type=chunk) - The company manages its **310,000-acre** land portfolio through its life cycle, generating a **$36.7 million** pretax gain from a real estate sale in 2024[39](index=39&type=chunk)[40](index=40&type=chunk) - Vulcan is committed to environmental stewardship, reusing **2.1 million tons** of recycled asphalt pavement and **1.7 million tons** of recycled concrete in 2024[46](index=46&type=chunk) [Product Lines and Segments](index=11&type=section&id=Product%20Lines%20and%20Segments) The company operates three reportable segments: Aggregates, Asphalt, and Concrete, with Aggregates being the primary contributor to revenues and gross profit - The company operates three reportable segments: Aggregates, Asphalt, and Concrete, with Aggregates being the primary contributor to 2024 total revenues and gross profit[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The Aggregates segment benefits from high transportation costs, limited substitutes, and a fragmented industry structure offering consolidation opportunities[52](index=52&type=chunk)[53](index=53&type=chunk) - The Asphalt segment produces asphalt mix, with aggregates comprising approximately **95%** of its weight, primarily sourced internally[69](index=69&type=chunk)[70](index=70&type=chunk) - The Concrete segment produces ready-mixed concrete, with aggregates comprising approximately **80%** of its weight, also primarily sourced internally[69](index=69&type=chunk)[72](index=72&type=chunk) [Markets and Customers](index=12&type=section&id=Markets%20and%20Customers) Demand is driven by public and private construction, with public sector supported by federal funding and private sector by economic factors - Demand is driven by public and private construction, with public accounting for approximately **40%** and private for approximately **60%** of 2024 aggregates shipments[58](index=58&type=chunk)[64](index=64&type=chunk) - Public sector demand is supported by the Infrastructure Investment and Jobs Act (IIJA) and state/local ballot measures, providing federal highway funding reauthorization[59](index=59&type=chunk)[62](index=62&type=chunk) - Private sector demand is driven by nonresidential and residential construction, influenced by job growth, household formations, and financing costs[67](index=67&type=chunk) - The company has a diversified customer base, with no single customer accounting for more than **3%** and the five largest accounting for approximately **8%** of 2024 total revenues[78](index=78&type=chunk) [Human Capital](index=18&type=section&id=Human%20Capital) Vulcan employs over 11,000 people in the U.S. and internationally, emphasizing employee development programs - As of January 1, 2025, Vulcan employed **11,436** people in the United States, with approximately **9.5%** represented by labor unions[88](index=88&type=chunk) - The company also employed **535** people internationally, with **248** represented by labor unions[88](index=88&type=chunk) - Vulcan emphasizes employee development through programs such as tuition reimbursement, mentoring, leadership, and technical skills training[92](index=92&type=chunk)[94](index=94&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) The company identifies key risks including economic cycles, reliance on government funding, international operations, intense competition, securing new reserves, and cybersecurity threats - **Economic/Political Risks:** Business is highly dependent on the cyclical U.S. construction industry and relies on federal, state, and local infrastructure funding[106](index=106&type=chunk)[107](index=107&type=chunk) - **International Risks:** The company faces risks from international operations, including adverse actions by the Mexican government such as arbitrary shutdown orders of its Calica operations[108](index=108&type=chunk) - **Operational Risks:** The industry is highly competitive and fragmented, with long-term success dependent on securing and permitting new aggregates reserves, which is increasingly difficult[109](index=109&type=chunk)[111](index=111&type=chunk) - **Financial/Accounting Risks:** The capital-intensive business has earnings sensitive to shipment volumes and relies on significant estimates for goodwill impairment, business combinations, and pensions[115](index=115&type=chunk)[118](index=118&type=chunk) - **Cybersecurity Risks:** The company's dependence on IT systems poses risks of unauthorized access or sabotage, potentially disrupting operations and damaging reputation[128](index=128&type=chunk) [Cybersecurity](index=26&type=section&id=Item%201C.%20Cybersecurity) Vulcan manages cybersecurity risk through a NIST-based program with Board oversight, regular assessments, and third-party testing - The company's cybersecurity risk management program is based on the National Institute of Standards and Technology (NIST) framework, covering identification, protection, detection, response, and recovery[136](index=136&type=chunk) - The Audit Committee and Board of Directors actively oversee the cybersecurity program, receiving regular updates from the Chief Information Officer[139](index=139&type=chunk) - The company uses layered defenses, conducts annual risk assessments, performs quarterly employee phishing tests, and engages third-party experts for penetration and maturity testing[137](index=137&type=chunk)[138](index=138&type=chunk) [Properties, Reserves, and Resources](index=27&type=section&id=Item%202.%20Properties) As of December 31, 2024, Vulcan holds 16.5 billion tons of proven and probable aggregates reserves and 11.3 billion tons of measured and indicated resources across its strategic properties Aggregates Resources by Division (as of Dec 31, 2024, millions of tons) | Division | Measured (M) | Indicated (I) | Total (M+I) | Inferred | | :--- | :--- | :--- | :--- | :--- | | Central | 629.1 | 1,163.3 | 1,805.1 | 580.5 | | East | 2,644.2 | 748.5 | 3,392.7 | 295.3 | | International | 0.0 | 61.1 | 61.1 | 0.0 | | Northeast | 855.0 | 15.9 | 902.7 | 19.2 | | South | 558.7 | 497.2 | 1,140.8 | 384.4 | | Southern Gulf Coast | 671.6 | 175.1 | 888.7 | 218.4 | | Southwest | 478.5 | 38.9 | 669.2 | 500.0 | | Western | 476.4 | 875.8 | 2,449.9 | 962.3 | | **Total** | **6,313.5** | **3,575.8** | **11,310.2** | **2,960.1** | Aggregates Reserves and Production by Division (as of Dec 31, 2024, millions of tons) | Division | Proven | Probable | Total Reserves | 2024 Production | | :--- | :--- | :--- | :--- | :--- | | Central | 1,984.0 | 1,020.3 | 3,013.1 | 33.0 | | East | 3,233.8 | 1,106.8 | 4,340.6 | 48.7 | | International | 471.1 | 0.0 | 471.1 | 1.7 | | Northeast | 1,364.2 | 503.5 | 1,975.6 | 25.3 | | South | 853.6 | 359.1 | 1,413.6 | 30.3 | | Southern Gulf Coast | 1,864.3 | 117.5 | 1,981.8 | 24.6 | | Southwest | 1,159.6 | 105.0 | 1,421.1 | 27.7 | | Western | 815.9 | 108.4 | 1,837.3 | 32.9 | | **Total** | **11,746.5** | **3,320.6** | **16,454.2** | **224.2** | - Total proven and probable reserves increased by **0.8 billion tons** from the prior year, primarily due to acquisitions, with **63%** on owned land and **37%** on leased land[155](index=155&type=chunk)[157](index=157&type=chunk) - The company's land portfolio consists of approximately **310,000 acres**[157](index=157&type=chunk) [Legal Proceedings](index=32&type=section&id=Item%203.%20Legal%20Proceedings) Vulcan is involved in various legal proceedings, including environmental matters and a NAFTA arbitration claim against Mexico regarding its Calica quarry operations - The company is subject to various lawsuits and governmental proceedings, with material legal proceedings detailed in Note 12 of the financial statements[164](index=164&type=chunk)[166](index=166&type=chunk) Part II [Stock Performance and Shareholder Matters](index=34&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Vulcan's common stock trades on the NYSE under VMC, with 132.1 million shares outstanding and a performance graph showing relative returns - As of February 13, 2025, there were **132,109,660** shares of common stock outstanding and **1,977** shareholders of record[10](index=10&type=chunk)[180](index=180&type=chunk) Shareholder Return Performance (2019-2024) | Year | Vulcan Materials | S&P 500 | S&P 500 Materials | | :--- | :--- | :--- | :--- | | 2019 | $100.00 | $100.00 | $100.00 | | 2020 | $104.20 | $118.40 | $120.70 | | 2021 | $147.03 | $152.38 | $153.65 | | 2022 | $125.12 | $124.80 | $134.75 | | 2023 | $163.53 | $157.62 | $151.60 | | 2024 | $186.59 | $197.03 | $151.60 | [Management's Discussion and Analysis (MD&A)](index=35&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Vulcan's 2024 revenues decreased 5% to **$7.4 billion**, while gross profit increased 3% to **$2.0 billion** and Adjusted EBITDA rose 2% to **$2.06 billion**, with 2025 Adjusted EBITDA projected between **$2.35 billion** and **$2.55 billion** 2024 Financial Summary vs. 2023 | Metric | 2024 | Change vs. 2023 | | :--- | :--- | :--- | | Total Revenues ($M) | $7,417.7 | -5% | | Gross Profit ($M) | $1,999.6 | +3% | | Net Earnings Attributable to Vulcan ($M) | $911.9 | -2% | | Adjusted EBITDA ($M) | $2,057.2 | +2% | | Diluted EPS (Continuing Ops) ($) | $6.91 | -2.1% | | Adjusted Diluted EPS (Continuing Ops) ($) | $7.53 | +7.6% | | Aggregates Shipments (M tons) | 219.9 | -6% | | Aggregates Freight-Adjusted Price ($/ton) | $21.08 | +10.8% | - The company invested **$2.3 billion** in six business acquisitions in 2024, including Wake Stone Corporation and Superior Ready Mix, L.P., to expand its presence in key growth states[189](index=189&type=chunk) - Capital returned to shareholders in 2024 included **$244.4 million** in dividends and **$68.8 million** in share repurchases[187](index=187&type=chunk)[190](index=190&type=chunk) [Market Developments and Outlook for 2025](index=36&type=section&id=Market%20Developments%20and%20Outlook) Vulcan projects 2025 Adjusted EBITDA between $2.35 billion and $2.55 billion, with continued aggregates pricing strength and volume growth 2025 Full-Year Outlook | Metric | 2025 Guidance | | :--- | :--- | | Net Earnings Attributable to Vulcan ($M) | $1,010 M - $1,170 M | | Adjusted EBITDA ($M) | $2,350 M - $2,550 M | | Aggregates Shipments Growth (%) | +3% to +5% | | Aggregates Freight-Adjusted Price Growth (%) | +5% to +7% | | Capital Spending ($M) | $750 M - $800 M | - The company expects a third consecutive year of double-digit growth in Aggregates cash gross profit per ton and a low to mid-single digit increase in freight-adjusted unit cash cost[193](index=193&type=chunk) [Results of Operations by Segment](index=44&type=section&id=Results%20of%20Operations%20by%20Segment) Aggregates gross profit increased 5% despite shipment decline, while Asphalt gross profit rose and Concrete gross profit decreased due to divestiture - **Aggregates:** Shipments decreased **6%** in 2024, but a **10.8%** increase in freight-adjusted price drove segment gross profit up **5% to $1.82 billion**, with cash gross profit per ton increasing **12% to $10.61**[224](index=224&type=chunk)[226](index=226&type=chunk)[228](index=228&type=chunk) - **Asphalt:** Gross profit increased by **$20.5 million** to **$170.1 million** in 2024, with slight shipment increases and a **5.7%** rise in average sales price[230](index=230&type=chunk) - **Concrete:** Gross profit decreased by **$49.3 million** to **$12.8 million**, largely due to Texas operations divestiture, while average sales price increased **9.6%**[238](index=238&type=chunk) [Liquidity and Financial Resources](index=55&type=section&id=Liquidity%20and%20Financial%20Resources) Vulcan's liquidity is supported by cash from operations, a $1.6 billion credit facility, and a commercial paper program, with total debt increasing to $5.31 billion in 2024 due to acquisitions - Primary liquidity sources include cash from operations, a **$1.6 billion** credit facility, and a commercial paper program, with available liquidity of **$2.06 billion** as of December 31, 2024[269](index=269&type=chunk)[207](index=207&type=chunk) Cash Flow Summary (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash from Operating | $1,409.6 | $1,536.8 | | Net Cash for Investing | $(2,814.9) | $(163.5) | | Net Cash from/(for) Financing | $1,056.9 | $(585.6) | - Total debt increased to **$5.31 billion** at year-end 2024 from **$3.88 billion** in 2023, primarily for acquisitions, resulting in a total debt to Adjusted EBITDA ratio of **2.6x**[283](index=283&type=chunk) - In November 2024, the company issued **$2.0 billion** in senior notes maturing in 2029, 2034, and 2054 to repay a term loan for acquisitions and provide liquidity[288](index=288&type=chunk)[289](index=289&type=chunk) [Critical Accounting Policies](index=60&type=section&id=Critical%20Accounting%20Policies) The company identifies critical accounting policies requiring significant judgment, including goodwill impairment, business combinations, and pension benefits - The company identifies several critical accounting policies requiring significant judgment and estimates, including Goodwill impairment, Impairment of long-lived assets, Business combinations, Pension benefits, Environmental costs, Claims and litigation, and Income taxes[297](index=297&type=chunk)[301](index=301&type=chunk) - In 2024, the company recorded an **$86.6 million** noncash goodwill impairment charge related to a concrete reporting unit acquired in 2021[304](index=304&type=chunk) [Financial Statements and Supplementary Data](index=66&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for 2022-2024, including detailed notes, showing total assets of $17.1 billion and total equity of $8.1 billion at year-end 2024 Consolidated Financial Highlights (in millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Income Statement** | | | | Total Revenues ($) | $7,417.7 | $7,781.9 | | Gross Profit ($) | $1,999.6 | $1,948.5 | | Operating Earnings ($) | $1,364.5 | $1,427.4 | | Net Earnings Attributable to Vulcan ($) | $911.9 | $933.2 | | **Balance Sheet (Year-End)** | | | | Total Assets ($) | $17,104.8 | $14,545.7 | | Total Liabilities ($) | $8,962.3 | $7,037.8 | | Total Equity ($) | $8,142.5 | $7,507.9 | [Note 12: Commitments and Contingencies](index=101&type=section&id=Note%2012%3A%20Commitments%20and%20Contingencies) The company has commitments for purchases and mineral leases, and is involved in NAFTA arbitration against Mexico and environmental cleanup matters - As of December 31, 2024, the company has commitments for property, plant & equipment purchases of **$78.2 million** and noncapital purchases of **$146.8 million**[532](index=532&type=chunk) - Minimum royalty commitments under mineral leases total **$237.6 million**[533](index=533&type=chunk) - **NAFTA Arbitration:** The company filed a claim against Mexico in 2018 over its Calica quarry, which was shut down by Mexican officials in May 2022, with an arbitration decision expected in the first half of 2025[554](index=554&type=chunk)[556](index=556&type=chunk) - **Hewitt Landfill Matter:** A subsidiary is involved in cleanup and abatement orders for a former Los Angeles landfill, accruing for anticipated on-site costs but unable to estimate potential off-site contribution claims[548](index=548&type=chunk)[554](index=554&type=chunk) [Note 19: Acquisitions and Divestitures](index=112&type=section&id=Note%2019%3A%20Acquisitions%20and%20Divestitures) In 2024, Vulcan acquired operations for $2.30 billion, including material acquisitions of Wake Stone and Superior, and divested Texas concrete operations in 2023 - In 2024, Vulcan acquired operations in Alabama, California, North Carolina, South Carolina, and Texas for total consideration of **$2.30 billion**[583](index=583&type=chunk)[584](index=584&type=chunk) - The acquisitions of Wake Stone and Superior were collectively material, adding **$334.4 million** in goodwill and **$275.5 million** in identifiable intangible assets based on preliminary purchase price allocation[586](index=586&type=chunk) - In 2023, the company divested its concrete operations in Texas, resulting in a **$28.3 million** impairment charge and a **$13.8 million** loss on sale[589](index=589&type=chunk)

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 ...