Vulcan(US:VMC)2025-07-31 15:50PART I FINANCIAL INFORMATION This section presents Vulcan Materials Company's unaudited condensed consolidated financial statements and management's discussion and analysis Financial Statements This section presents Vulcan Materials Company's unaudited condensed consolidated financial statements and detailed explanatory notes Condensed Consolidated Balance Sheets 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 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 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 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 potential1516 - In Q2 2025, Aggregates segment sales were $1,649.6 million, Asphalt $368.9 million, and Concrete $220.6 million37 - 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 debt54173 - The company is involved in significant legal matters, including a NAFTA arbitration claim against Mexico for its Calica operations and various environmental litigations6680 Management's Discussion and Analysis of Financial Condition and Results of Operations 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 execution124 - 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 times121 - Known uncertainties include inflationary pressures, labor constraints, and adverse actions by the Mexican government against the company's Calica operations155157 Quantitative and Qualitative Disclosures About Market Risk 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 management198 - A one-percentage-point decline in interest rates would increase the fair value of the company's debt by an estimated $393.4 million200 - 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 assets201 Controls and Procedures 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, 2025201 - 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 2026202 - Integration of the Wake Stone and Superior acquisitions, completed in late 2024, into operations and internal control processes is ongoing203 PART II OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, mine safety, and other regulatory disclosures Legal Proceedings 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 statements204209 Risk Factors 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-K205 Unregistered Sales of Equity Securities and Use of Proceeds 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 2025206 - There were no unregistered sales of equity securities during Q2 2025206 Mine Safety Disclosures 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 report207 Other Information 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 2025208 Exhibits 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 certifications210