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Jun 30, 2024
Vulcan Materials Q2 2024 Earnings Report
Vulcan Materials reported second quarter earnings growth and margin expansion, underpinned by execution in aggregates.
Key Takeaways
Vulcan Materials Company reported its second quarter 2024 results, showing earnings growth and margin expansion driven by its aggregates business. Despite weather disruptions, aggregates cash gross profit per ton increased by 12 percent, and gross profit margin expanded by 120 basis points.
Aggregates segment gross profit increased 6 percent to $529 million ($8.79 per ton), with gross profit margin expanding 120 basis points.
Cash gross profit per ton improved 12 percent to $10.92 per ton in the aggregates segment.
Freight-adjusted selling prices for aggregates increased 12 percent year-over-year.
The company completed bolt-on acquisitions in Alabama and Texas and returned $111 million to shareholders through stock repurchases and dividends.
Revenue by Segment
Forward Guidance
Management expects continued improvement in aggregates segment cash gross profit per ton. Total shipments are expected to be down 4 to 7 percent. Freight-adjusted price improvement of 10 to 12 percent is anticipated. Total Asphalt and Concrete segment cash gross profit of approximately $275 million. Selling, Administrative and General expenses of $550 to $560 million. Interest expense of approximately $155 million. Depreciation, depletion, accretion and amortization expense of approximately $610 million. An effective tax rate of 22 to 23 percent. Net earnings attributable to Vulcan of $0.95 to $1.07 billion. Adjusted EBITDA between $2.00 and $2.15 billion
Positive Outlook
- Continued improvement in Aggregates segment cash gross profit per ton
- Freight-adjusted price improvement of 10 to 12 percent
- Positive pricing environment
- Overall demand fundamentals continue to underpin long-term growth
- Company remains well positioned for continued growth with a strong liquidity position and balance sheet profile
Challenges Ahead
- Significant weather disruptions throughout the first half of the year impacted both construction activity and operating efficiencies
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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