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Jun 30, 2023
Vulcan Materials Q2 2023 Earnings Report
Reported strong second quarter results driven by margin expansion across all product lines.
Key Takeaways
Vulcan Materials Company reported strong second quarter 2023 results, with gross margin expansion across all product lines. The company's consistent execution of its strategic disciplines and the strength of its aggregates-led business drove earnings growth. As a result, the company increased its full-year Adjusted EBITDA outlook by $150 million.
Aggregates gross profit margin expanded 230 basis points.
Cash gross profit per ton improved 23 percent to $8.98 per ton.
Shipments benefited from large industrial projects, and residential construction activity was better than expected.
Full-year Adjusted EBITDA is now expected to be $1.9 to $2.0 billion.
Revenue by Segment
Forward Guidance
Vulcan Materials increased its full-year earnings expectations to reflect aggregates shipment trends and the earnings momentum in its Asphalt segment. Aggregates shipments are expected to be down 1 to 4 percent. Net earnings attributable to Vulcan are expected to be between $855 and $935 million. Adjusted EBITDA is expected to be between $1.9 and $2.0 billion.
Positive Outlook
- Aggregates shipments have been in line with the upper end of original expectations through the first half of the year.
- Private non-residential construction activity has remained healthy.
- Declines in residential activity have been more moderate than anticipated.
- Asphalt segment is experiencing earnings momentum.
- Company is well positioned to navigate shifts in demand and deliver attractive earnings growth in 2023.
Challenges Ahead
- Aggregates shipments are expected to be down 1 to 4 percent.
- Total Asphalt, Concrete and Calcium segment cash gross profit of approximately $295 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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