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Dec 31, 2023
Vulcan Materials Q4 2023 Earnings Report
Vulcan Materials reported strong earnings and margin expansion, underpinned by uniquely positioned aggregates business.
Key Takeaways
Vulcan Materials reported an exceptional year in 2023, generating over $2 billion in Adjusted EBITDA, a 24 percent increase over the prior year, and expanded EBITDA margin by 360 basis points. The company's industry leading aggregates cash gross profit per ton increased each quarter on a year-over-year basis and was $9.46 per ton for the full year, a 21 percent improvement over the prior year.
Fourth quarter earnings per share increased 89%.
Gross profit margin expanded 550 bps.
Earnings growth expected again in 2024.
Aggregates segment gross profit increased 30 percent to $424 million, and gross profit margin expanded 400 basis points.
Vulcan Materials
Vulcan Materials
Vulcan Materials Revenue by Segment
Revenue by Segment
Aggregates Revenue
CapyFin.comAsphalt Revenue
CapyFin.comConcrete Revenue
CapyFin.com Forward Guidance
Vulcan Materials expects another year of earnings growth and strong cash generation in 2024, with a positive pricing environment and attractive expansion in aggregates unit profitability.
Positive Outlook
- Continued improvement in Aggregates segment cash gross profit per ton ($9.46 in 2023)
- Total shipments flat to down 4 percent (234.3 million tons in 2023)
- Freight-adjusted price improvement of 10 to 12 percent ($19.00 in 2023)
- Mid-single digit increase in freight-adjusted cash cost (freight-adjusted price less segment cash gross profit per ton; $9.54 in 2023)
- Net earnings attributable to Vulcan of $1.07 to $1.19 billion
Challenges Ahead
- Total Asphalt, Concrete and Calcium segment cash gross profit of approximately $275 million ($323 million in 2023; which included approximately 4 million cubic yards from concrete operations divested in late 2023)
- Selling, Administrative and General expenses of $550 to $560 million ($543 million in 2023)
- Interest expense of approximately $155 million
- Depreciation, depletion, accretion and amortization expense of approximately $610 million
- Adjusted EBITDA between $2.15 and $2.30 billion
Revenue & Expenses
Visualization of income flow from segment revenue to net income