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Sep 30, 2023

Vulcan Materials Q3 2023 Earnings Report

Reported strong earnings growth driven by sales and operating execution, with margin expansion in all product lines.

Key Takeaways

Vulcan Materials reported strong third-quarter results with sales and operating execution driving earnings growth and margin expansion in all product lines. Adjusted EBITDA has improved 23 percent over the prior year, and aggregates cash gross profit per ton has improved 21 percent and now exceeds $9 per ton.

Adjusted EBITDA has improved 23 percent over the prior year.

Margin has expanded 340 basis points year to date.

Aggregates cash gross profit per ton has improved 21 percent and now exceeds $9 per ton.

Full-year Adjusted EBITDA is now expected to be $1.95 to $2.00 billion for 2023.

Total Revenue
$2.19B
Previous year: $2.09B
+4.7%
EPS
$2.29
Previous year: $1.78
+28.7%
Aggregates tons shipped
63.9
Previous year: 65.4
-2.3%
Aggregates avg. sales price
$19.3
Previous year: $16.8
+14.9%
Asphalt Mix tons shipped
4M
Previous year: 3.6M
+11.1%
Gross Profit
$591M
Previous year: $493M
+19.9%
Cash and Equivalents
$340M
Previous year: $122M
+177.8%
Free Cash Flow
$233M
Previous year: $263M
-11.6%
Total Assets
$14.6B
Previous year: $14.6B
+0.0%

Vulcan Materials

Vulcan Materials

Vulcan Materials Revenue by Segment

Forward Guidance

Vulcan expects 2024 to be another year of earnings growth and strong cash generation.

Positive Outlook

  • Leading indicators remain supportive of continued growth in public construction activity.
  • Vulcan is well positioned in high growth markets where the need is greatest.
  • Recovery in single-family construction activity and healthy shipment levels to large industrial-related projects, particularly manufacturing, will help partially offset continued softness in multi-family construction as well as other categories of nonresidential.
  • The overall pricing environment remains positive, and the company carries good momentum into 2024.
  • Continued execution on our operating and commercial disciplines will lead to another year of earnings growth in 2024.

Challenges Ahead

  • Softness in multi-family construction.
  • Softness in other categories of nonresidential construction.
  • General economic and business conditions
  • Domestic and global political, economic or diplomatic developments
  • A pandemic, epidemic or other public health emergency, such as the COVID-19 outbreak

Revenue & Expenses

Visualization of income flow from segment revenue to net income