Vulcan Materials beats Q4 expectations, shares rise over 2% on strong outlook

Published 18/02/2025, 13:46
Vulcan Materials beats Q4 expectations, shares rise over 2% on strong outlook

BIRMINGHAM, Ala. -On Tuesday, Vulcan Materials Company (NYSE:VMC), the nation’s largest producer of construction aggregates, reported fourth-quarter earnings that surpassed analyst estimates, sending shares up 2.79% in pre-market trading.

The company posted adjusted earnings per share of $2.17, beating the consensus estimate of $1.78 by $0.39. Revenue for the quarter came in at $1.85 billion, topping expectations of $1.81 billion.

Vulcan’s fourth-quarter segment gross profit increased 15% to $486 million ($9.02 per ton), with gross profit margin expanding 300 basis points. Cash gross profit per ton improved 16% to $11.50, marking the eleventh consecutive quarter of YoY growth.

"Our aggregates-led business delivered a strong finish to the year," said Tom Hill, Vulcan Materials’ Chairman and CEO. "Adjusted EBITDA in the fourth quarter improved 16%, and Adjusted EBITDA margin expanded 370 basis points."

Looking ahead, Vulcan provided an optimistic outlook for 2025, projecting net earnings of $1.01 to $1.17 billion and Adjusted EBITDA between $2.35 and $2.55 billion. The company expects a third consecutive year of double-digit YoY growth in Aggregates segment cash gross profit per ton.

Hill added, "The pricing environment remains positive, and inflationary pressures continue to moderate. This backdrop, coupled with our Vulcan Way of Selling and Vulcan Way of Operating disciplines will lead to further expansion in our industry-leading aggregates cash gross profit per ton and value creation for our shareholders."

Vulcan anticipates aggregates shipments growth of 3% to 5% in 2025, with freight-adjusted price improvement of 5% to 7%. The company also projects capital spending for maintenance and growth projects of $750 to $800 million.

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