Vulcan's Q3 Earnings & Revenues Top, Adjusted EBITDA Margin Up Y/Y

Core Insights - Vulcan Materials Company (VMC) reported strong third-quarter 2025 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate and showing year-over-year growth [1][3][8] - The company's performance was bolstered by its aggregates-led business and effective operational execution, benefiting from public infrastructure spending trends despite economic uncertainties [1][2] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $2.84, surpassing the Zacks Consensus Estimate of $2.68 by 6% and reflecting a 27.9% increase from the previous year's adjusted EPS of $2.22 [3][8] - Total revenues reached $2.29 billion, exceeding the consensus mark of $2.25 billion by 1.7% and growing 14.4% year over year [3][8] Segment Performance - Aggregates Segment: Revenues increased 14% to $1.79 billion, with shipments growing 12.1% year over year to 64.7 million tons [4][8] - Asphalt Segment: Revenues were $416.1 million, up 9.2% year over year, with gross profit rising to $71 million [6][8] - Concrete Segment: Revenues surged 36.2% year over year to $237.5 million, with gross profit increasing 116.9% to $14.1 million [7][8] Operational Highlights - Adjusted EBITDA for the quarter increased 26.5% year over year to $735 million, with the adjusted EBITDA margin expanding 310 basis points to 32.1% [9][8] - Selling, administrative, and general (SAG) expenses as a percentage of total revenues decreased by 10 basis points to 6.3% [9] Financial Position - As of September 30, 2025, cash and cash equivalents were $191.3 million, down from $559.7 million at the end of 2024, while long-term debt decreased to $4.36 billion from $4.91 billion [10] - Net cash provided by operating activities for the first nine months of 2025 was $1.27 billion, up from $969.5 million a year ago [10] Future Outlook - VMC remains optimistic about demand in public construction and private nonresidential activities, projecting double-digit year-over-year growth in cash gross profit per ton for the Aggregates segment [2][11] - Shipment growth is expected to be around 3% year over year, with freight-adjusted price improvements projected between 5% and 7% [11][12]