Financial Data and Key Metrics Changes - In 2025, the company delivered $2.3 billion of Adjusted EBITDA, a 13% increase over the prior year, with an Adjusted EBITDA margin expanding 160 basis points to 29.3% [4][10] - Aggregates cash gross profit per ton grew to $11.33, achieving the target of $11-$12, driving operating cash flow of over $1.8 billion, a 29% increase over the prior year [5][10] - SG&A expenses for the full year were $564 million, 10 basis points lower than the prior year as a percentage of revenue at 7.1% [11] Business Line Data and Key Metrics Changes - Aggregate shipments of approximately 227 million tons increased 3% for the full year, with growth driven by prior year acquisitions [7] - Same-store aggregate shipments for the full year were slightly lower than the prior year, with a 2% increase in the fourth quarter compared to the prior year [7][8] - Aggregates mix adjusted price improved 6% for the full year and 5% in the fourth quarter [8] Market Data and Key Metrics Changes - Public non-highway infrastructure investments continued to grow, with starts in Vulcan markets for water, sewer, and other infrastructure projects increasing double digits in 2025 [15] - Highway starts in Vulcan markets continue to grow at three times the rate compared to the U.S. overall [13] - In California, highway starts were up 47% in 2025 versus 2024, indicating strong demand in key markets [56] Company Strategy and Development Direction - The company is committed to improving its underlying business and expanding its industry-leading aggregates franchise in both current and new geographies [4] - In 2026, the company plans to continue its track record of compounding growth, expecting aggregate shipments to grow between 1% and 3% and freight adjusted average selling prices to increase between 4% and 6% [16] - The company anticipates further expansion in Adjusted EBITDA margin and return on invested capital with the closing of the pending ready-mix divestiture [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in leveraging demand growth and a healthy pricing environment for 2026, with expectations of steady public growth and potential recovery in private demand [21][22] - The company expects residential activity to be limited in 2026 but is monitoring for improving opportunities in the second half of the year [15] - Management highlighted the importance of the IIJA funding, with over 50% of the funding yet to be spent, providing a tailwind for future growth [14][56] Other Important Information - The company returned $260 million to shareholders through dividends and $438 million through share repurchases [10] - The company plans to reinvest in its franchise through capital expenditures of $750 million to $800 million in 2026 [18] Q&A Session Summary Question: Can you talk about your confidence levels regarding end market demand and expectations around pricing and profitability for 2026? - Management indicated strong execution and a healthy pricing environment, expecting steady public growth and some recovery in private demand, particularly in industrial categories and data centers [21][22] Question: Can you clarify the pricing impacts and the mix issues affecting your fourth quarter results? - Management confirmed a "triple whammy" impact on pricing due to geographic mix, acquisition impacts, and product mix, with expectations for pricing to improve as demand recovers [36][37] Question: What gives you confidence in keeping costs down in 2026? - Management attributed confidence to the Vulcan Way of Operating, which focuses on efficiency and cost control, expecting low single-digit cost increases [46][49] Question: How is the IIJA reauthorization impacting your guidance? - Management expects a new bill to be passed, with historical trends indicating it will be higher than the previous bill, and noted that 50% of IIJA funding remains unspent [54][56] Question: What is the outlook for data centers and their impact on margins? - Management indicated that while base pricing for data centers is lower than clean stone products, the overall margin impact is manageable, with expectations for a more uniform mix as projects mature [62][65]

Financial Data and Key Metrics Changes - In 2025, the company delivered $2.3 billion of adjusted EBITDA, a 13% increase over the prior year, with an adjusted EBITDA margin expanding by 160 basis points to 29.3% [3][4] - Aggregates cash gross profit per ton grew to $11.33, achieving the target of $11-$12, driving operating cash flow of over $1.8 billion, a 29% increase over the prior year [4][6] - Free cash flow increased by over 40% after reinvesting $678 million in capital expenditures [8] Business Line Data and Key Metrics Changes - Aggregate shipments of approximately 227 million tons increased by 3% for the full year, with fourth-quarter shipments increasing by 2% compared to the prior year [5][6] - Same-store aggregate shipments for the full year were slightly lower than the prior year, impacted by weaker single-family residential activity [4][5] - Aggregates mix adjusted price improved by 6% for the full year and 5% in the fourth quarter [6] Market Data and Key Metrics Changes - Public non-highway infrastructure investments grew, with starts in Vulcan markets for water, sewer, and other infrastructure projects increasing double digits in 2025 [11][12] - Highway starts in Vulcan markets continue to grow at three times the rate compared to the U.S. overall [11] - The company expects aggregate shipments to grow between 1% and 3% in 2026, with freight adjusted average selling prices expected to increase between 4% and 6% [13] Company Strategy and Development Direction - The company is committed to improving its underlying business and expanding its industry-leading aggregates franchise in current and new geographies [3] - The focus remains on leveraging demand growth and maintaining a healthy pricing environment for 2026 [19] - The company anticipates further expansion in adjusted EBITDA margin and return on invested capital, driven by strategic portfolio optimization [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing profitability and driving cash gross profit in 2026, supported by improving public and private demand [19][21] - The company expects modest overall growth in 2026, with a focus on monitoring residential activity for potential improvements in the second half of the year [12][19] - Management highlighted the importance of the Infrastructure Investment and Jobs Act (IIJA) funding, with over 50% of the funding yet to be spent [11][12] Other Important Information - The company returned $260 million to shareholders through dividends and $438 million through share repurchases [9] - SAG expenses for the full year were $564 million, 10 basis points lower than the prior year as a percentage of revenue [9] - The company plans to reinvest $750 million to $800 million in capital expenditures for operating and maintenance needs in 2026 [15] Q&A Session Summary Question: Insights on Q4 performance and 2026 outlook - Management noted that Q4 performance was impacted by weaker residential activity, weather conditions, and timing costs, but expressed confidence in a healthy pricing environment for 2026 [18][22] Question: Pricing dynamics and mix impacts - Management acknowledged a "triple whammy" effect on pricing due to geographic mix, acquisitions, and product mix, and anticipated pricing to be lower in the first half of 2026, improving later in the year [31][34] Question: Confidence in cost control for 2026 - Management attributed confidence in controlling costs to the Vulcan Way of Operating, which focuses on efficiency and labor management [43][46] Question: Impact of IIJA reauthorization on guidance - Management expects a reauthorization bill to be completed, with historical trends indicating higher funding levels, and noted that 50% of IIJA funding remains unspent [49][50] Question: Data center projects and their impact on margins - Management indicated that data center projects currently represent a significant portion of private demand, with base pricing lower than clean stone products, but overall margins remain stable [60][62] Question: M&A pipeline and opportunities - Management expressed optimism about a healthy M&A pipeline for 2026, focusing on aggregates-led opportunities while maintaining discipline in acquisitions [70][72]

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]