Financial Data and Key Metrics Changes - Adjusted EBITDA of $735 million improved 27% compared to the prior year, with an adjusted EBITDA margin expansion of 310 basis points [4][10] - Aggregate shipments increased 12% in the quarter, resulting in a 3% higher year-to-date shipment volume [4][5] - Aggregates cash gross profit per ton grew 9% in the quarter [4] - Free cash flow increased by 31% to over $1 billion, with a conversion rate of 94% [10] Business Line Data and Key Metrics Changes - Aggregates freight-adjusted selling price saw a mix-adjusted pricing improvement of 5% in the quarter and 7% year-to-date [5] - Aggregates freight-adjusted unit cash cost of sales was 2% lower than the prior year in the third quarter [5][10] - The trailing 12 months aggregate cash gross profit per ton was $11.51, 27% higher than two years ago [8] Market Data and Key Metrics Changes - Public contract awards in the company's markets increased by 17% year-over-year [6] - Data center activity remains robust with approximately 60 million sq ft under construction and another 140 million sq ft proposed [6] - Single-family housing starts and permits continue to decelerate across most U.S. markets, while multifamily residential data shows varied growth across geographies [5][6] Company Strategy and Development Direction - The company is focused on enhancing its core through the Vulcan Way of Operating and Selling, with a disciplined approach to acquisitions and portfolio management [8][12] - The recent divestiture of asphalt and construction services assets is aimed at reallocating resources into more attractive growth opportunities [8] - The company anticipates continued growth in public construction activity and improving private non-residential demand, while residential demand remains weak [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to benefit from eventual recovery in single-family residential markets [6] - The company expects organic shipments to return to growth in 2026, with mid-single-digit pricing improvement anticipated [12] - Management highlighted that the public side of construction is strong, with significant federal and state funding yet to be spent [7][12] Other Important Information - The company has maintained an adjusted EBITDA leverage ratio just below the targeted range of 2-2.5x while improving return on invested capital by 40 basis points [10] - Year-to-date capital expenditures are projected to be approximately $700 million, with $442 million already deployed [10] Q&A Session Summary Question: What are Ronnie's top priorities as he transitions into his new role? - Ronnie emphasized continuing to build on the culture established by Tom, focusing on safety and enhancing core operations through disciplined acquisitions and greenfield initiatives [18][19] Question: What are the trends driving the guidance towards the low end for the full year? - Tom noted that while Q3 volumes benefited from favorable weather and pent-up demand, Q4 faces tough comparisons due to strong weather last year [26][28] Question: Can you elaborate on the pricing outlook for 2026? - Tom indicated that pricing is expected to improve due to growing highway demand and improvements in non-residential sectors [33][34] Question: How much of the unit cost reduction was due to the Vulcan Way of Operating? - Tom attributed the cost reduction primarily to the Vulcan Way of Operating, with improved efficiencies and volume benefits contributing as well [36][37] Question: What is the outlook for public infrastructure and contract awards? - Tom highlighted that public contract awards are increasing, with significant federal and state funding still to be utilized, indicating a strong outlook for public infrastructure [92][93]

Financial Data and Key Metrics Changes - Adjusted EBITDA of $735 million improved by 27% compared to the prior year, with an adjusted EBITDA margin expansion of 310 basis points [4] - Aggregate shipments increased by 12% in the quarter, resulting in a 3% higher shipment year-to-date [4] - Aggregates cash gross profit per ton grew by 9% in the quarter [4] - Free cash flow increased by 31% to over $1 billion, with a conversion rate of 94% [10] Business Line Data and Key Metrics Changes - The aggregates unit profitability improvement is foundational to cash generation and overall growth [10] - The trailing 12 months aggregate cash gross profit per ton was $11.51, 27% higher than two years ago [8] - Aggregates freight-adjusted unit cash cost of sales was 2% lower than the prior year in the third quarter [5] Market Data and Key Metrics Changes - Public contract awards in the markets increased by 17% year-over-year [7] - Data center activity remains robust with approximately 60 million square feet under construction and another 140 million square feet proposed [6] - Single-family housing starts and permits continue to decelerate across most U.S. markets [5] Company Strategy and Development Direction - The company is focused on growing profitability through the Vulcan Way of Operating and disciplined M&A [8] - The strategy includes enhancing core operations and expanding reach through aggregate-centric acquisitions and greenfield initiatives [19] - The company plans to redeploy proceeds from divested assets into attractive growth opportunities [8] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued growth in public construction activity and improving private non-residential demand, while residential demand remains weak [5][12] - The company expects full-year shipments to increase approximately 3%, yielding full-year adjusted EBITDA of $2.35 to $2.45 billion, a 17% increase over the prior year at midpoint [7] - Management expressed confidence in the company's positioning to benefit from eventual recovery in single-family residential markets [6] Other Important Information - The company completed the disposition of its asphalt and construction services assets in early October [8] - Investments in technology and talent are yielding positive results in the business [11] Q&A Session Summary Question: What are Ronnie's top priorities as he transitions into his new role? - Ronnie emphasized continuing to build on the culture established by Tom, focusing on safety and enhancing core operations through the Vulcan Way of Operating and Selling [19] Question: What are the trends driving towards the low end of the full-year guidance? - Tom noted that the third quarter benefited from strong public demand and pent-up demand, but Q4 faces tough comparisons due to good weather last year [28] Question: Can you provide more detail on pricing expectations for 2026? - Tom indicated that pricing is expected to improve due to growing highway demand and improvements in non-residential sectors [32] Question: How much of the unit cost reduction was due to the Vulcan Way of Operating? - Tom attributed the cost reduction primarily to the Vulcan Way of Operating, with improved efficiencies and volume benefits contributing as well [35] Question: What are the key geographies showing growth? - Tom highlighted that the Southeast is the healthiest market, with strong growth in non-residential sectors, particularly data centers [41] Question: How does the company view its portfolio shaping going forward? - Ronnie stated that the company will continue to focus on aggregate-led businesses and evaluate potential acquisitions based on strategic fit [52] Question: What is the outlook for cash gross profit per ton growth? - Ronnie expressed confidence that cash gross profit will continue above historical norms, supported by demand recovery and operational efficiencies [64]

Financial Data and Key Metrics Changes - Adjusted EBITDA of $735 million improved 27% compared to the prior year, with an adjusted EBITDA margin expansion of 310 basis points [3][4] - Aggregate shipments increased 12% in the quarter, resulting in a 3% higher shipment year-to-date [3][4] - Aggregates cash gross profit per ton grew 9% in the quarter [3][4] - Free cash flow increased by 31% to over $1 billion, with a conversion rate of 94% [10] Business Line Data and Key Metrics Changes - The aggregates unit profitability improvement is foundational to cash generation and overall growth [10] - The trailing 12 months aggregate cash gross profit per ton was $11.51, 27% higher than two years ago [8] - Aggregates freight-adjusted unit cash cost of sales was 2% lower than the prior year in the third quarter [4] Market Data and Key Metrics Changes - Public contract awards in the company's markets are up 17% year-over-year [5][6] - Data center activity remains robust with approximately 60 million square feet under construction and another 140 million square feet proposed [5] - The Southeast region is noted as the healthiest market, benefiting from higher unit margins [52] Company Strategy and Development Direction - The company is focused on enhancing its core through the Vulcan Way of Operating and Selling, with a disciplined approach to acquisitions and portfolio management [8][22] - The company completed the disposition of its asphalt and construction services assets to redeploy proceeds into attractive growth opportunities [8] - The company anticipates organic shipments to return to growth in 2026, with mid-single-digit pricing improvement expected [12][41] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in public construction activity and improving private non-residential demand, while residential demand remains weak [4][5] - The company expects full-year shipments to increase approximately 3%, yielding full-year adjusted EBITDA of $2.35 to $2.45 billion, a 17% increase over the prior year at midpoint [6][7] - Management expressed confidence in the company's ability to continue delivering growth and profitability improvements [12][13] Other Important Information - The company has deployed $442 million toward maintenance and growth capital expenditures year-to-date and plans to spend approximately $700 million for the full year [10][11] - The company maintains an adjusted EBITDA leverage ratio just below the targeted range of 2 to 2.5x [10] Q&A Session Summary Question: What are Ronnie's top priorities as he transitions into his new role? - Ronnie emphasized continuing to build on the culture established by Tom, focusing on safety and enhancing core operations through disciplined acquisitions and greenfield initiatives [22] Question: Can you discuss trends into Q4 and the outlook for 2026? - Management noted that Q4 weather conditions were expected to be tough compared to the previous year, but they anticipate continued growth in public and private non-residential sectors [32][33] Question: What is driving the pricing outlook for 2026? - Management indicated that improving demand in public and private non-residential sectors will support pricing in 2026, with ongoing conversations about price increases [41][42] Question: How is the company addressing unit costs and inflation? - Management highlighted that the Vulcan Way of Operating has been key in maintaining cost efficiencies, despite ongoing inflationary pressures [45][46] Question: Can you provide insights on key geographies and market performance? - Management reported widespread growth across markets, particularly in the Southeast, with strong performance in non-residential sectors driven by data centers and public demand [52][53] Question: What is the company's approach to M&A and future growth? - Ronnie stated that the company has a strong list of M&A targets and is actively pursuing opportunities that align with their aggregate-led strategy [74][75]