Vulcan Materials Company Beats Market Expectations with $2.17 Adj. EPS in Q4 2024

Vulcan Materials Company, the largest producer of construction aggregates in the United States, has reported robust financial results for the quarter ending December 31, 2024.

The company’s total revenues reached $1.854 billion, marking an increase from $1.834 billion in the same period last year. Gross profit also saw a significant rise, reaching $537 million compared to $472 million in the previous year. This growth was driven by a favorable pricing environment and effective operational execution, leading to a 16% improvement in adjusted EBITDA, which stood at $550 million for the quarter. The aggregates segment, a key component of Vulcan’s operations, reported a 15% increase in gross profit, totaling $486 million.

Although shipments decreased by 3%, the freight-adjusted sales price per ton rose by 11% to $21.41, indicating strong demand and strategic pricing adjustments. The asphalt segment also performed well, with a 29% improvement in cash gross profit over the prior year. The concrete segment, however, experienced a decline in gross profit due to lower volumes, despite a 5% improvement in unit cash gross profit

Vulcan Reported Better than Expected Results for Quarter Ending December

Vulcan’s performance for the quarter surpassed market expectations. Analysts had anticipated earnings per share (EPS) of $1.78, but the company delivered an EPS of $2.23, significantly exceeding forecasts. This impressive result was attributed to the company’s ability to leverage a favorable pricing environment and maintain cost efficiency.

Revenue expectations were also surpassed, with actual revenues of $1.854 billion compared to the anticipated $1.81 billion. The company’s adjusted earnings per share from continuing operations stood at $2.17, up from $1.46 in the previous year, highlighting Vulcan’s strong operational performance. The aggregates segment’s cash gross profit per ton reached $11.50, a 16% increase from the prior year, demonstrating Vulcan’s success in capitalizing on pricing growth and moderating cost trends.

The asphalt segment’s cash gross profit improved by 29%, while the concrete segment faced challenges due to divestitures in Texas.

Join our Telegram group and never miss a breaking digital asset story.

Vulcan Materials Company Optimistic on Growth Prospects in 2025

Looking ahead to 2025, Vulcan Materials Company is optimistic about its growth prospects. The company expects to achieve double-digit earnings growth, with adjusted EBITDA projected to increase by 19%.

Vulcan anticipates a 3% to 5% growth in aggregates shipments, supported by continued strength in public construction activity and recent strategic acquisitions. The pricing environment is expected to remain positive, with freight-adjusted price improvements of 5% to 7% anticipated. Vulcan’s management remains focused on controlling operational costs and improving efficiencies to drive further profitability.

The company projects total asphalt and concrete segment cash gross profit of approximately $360 million, with the asphalt segment contributing about two-thirds of this total. Selling, administrative, and general expenses are expected to range between $550 million and $560 million, reflecting a disciplined approach to cost management. Capital spending for maintenance and growth projects is projected to be between $750 million and $800 million, underscoring Vulcan’s commitment to strategic investments.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.