Vulcan(VMC)2025-02-20 17:35Company Overview - Vulcan Materials Company is the largest supplier of construction aggregates in the U.S., with 423 active aggregates facilities as of December 31, 2024[20]. - The company employs 11,436 people in the U.S. as of January 1, 2025, with 1,092 represented by labor unions[88]. - The company has approximately 4.4 million[162]. Financial Performance - Total revenues decreased by 7,417.7 million[187]. - Net earnings attributable to Vulcan for 2024 were 6.85 per diluted share), compared to 6.98 per diluted share) in 2023[219]. - Adjusted diluted EPS from continuing operations increased to 7.00 per share in 2023[219]. - Adjusted EBITDA increased by 2,057.2 million[187]. - EBITDA for 2024 was 2,025.4 million in 2023[218]. - The effective tax rate from continuing operations improved to 21.4% in 2024, down from 24.0% in 2023[218]. - The company reported a comparative total return of 197.03 for the S&P 500[96]. Market Position and Strategy - The top ten revenue-producing states accounted for 89% of 2024 revenues, with the top five states contributing 63%[22]. - The company has 16.5 billion tons of proven and probable aggregates reserves, strategically located to serve high-growth areas in the U.S.[28]. - The U.S. aggregates industry is highly fragmented, with over 5,800 companies operating approximately 11,100 facilities, presenting opportunities for consolidation[53]. - The company serves both public and private sectors, with privately funded construction accounting for approximately 60% of total aggregates shipments in 2024[64]. - The company has strengthened its asphalt position in California and Texas through acquisitions in 2022 and 2024[70]. Operational Highlights - In 2024, Vulcan completed two bolt-on acquisitions in Alabama and Texas, strengthening its position in two of its top ten revenue states[37]. - The company operates a total of 418 active aggregates facilities, including 244 production stage mining properties and 109 sales yards[160]. - The company has established interim goals related to Scope 1 and 2 GHG emissions and is working on a Scope 3 GHG emissions inventory project in 2024[80]. - The company has mining properties in 23 states and serves markets expected to experience significant growth in population, households, and employment[141]. Sustainability and Environmental Efforts - Vulcan reused 2.1 million tons of recycled asphalt pavement and recycled 1.7 million tons of concrete in 2024, contributing to sustainability efforts[46]. - The company is committed to reducing greenhouse gas emissions and has voluntarily reported GHG emissions since 2018[80]. - The company is committed to expanding its renewable energy strategy, with two additional solar projects planned for 2025[45]. - The company is exploring battery storage installation for electricity to minimize peak load usage, which could reduce GHG emissions[84]. Industry Trends and Challenges - The construction aggregates industry is highly competitive, with numerous independent local producers and large companies, which could lead to lower prices and sales volumes[109]. - Climate change and related legislation may adversely impact the company’s operations and costs, necessitating additional investments in facilities and equipment[123]. - The use of recycled concrete and asphalt as substitutes for aggregates is expanding, particularly in urban markets, potentially reducing demand for traditional aggregates[110]. - The company faces risks from international operations, including potential disruptions from political and economic changes, particularly in Mexico where recent government actions have adversely affected operations[108]. Future Outlook - Expected net earnings attributable to Vulcan for 2025 are projected between 1,170 million[193]. - Anticipated adjusted EBITDA for 2025 is between 2,550 million, including a $150 million contribution from acquisitions[193]. - The company expects approximately 19% growth in Adjusted EBITDA for 2025, driven by a favorable pricing environment and operational efficiencies[185].