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1. Company Snapshot

1.a. Company Description

Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States.It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium.The Aggregates segment provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities.


The Asphalt Mix segment offers asphalt mix in Alabama, Arizona, California, New Mexico, Tennessee, and Texas, as well as engages in the asphalt construction paving activity in Alabama, Tennessee, and Texas.The Concrete segment provides ready-mixed concrete in California, Maryland, New Jersey, New York, Oklahoma, Pennsylvania, Texas and Virginia, and Washington D.C. The Calcium segment mines, produces, and sells calcium products for the animal feed, plastics, and water treatment industries.The company was formerly known as Virginia Holdco, Inc.


and changed its name to Vulcan Materials Company.Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.

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1.b. Last Insights on VMC

Vulcan Materials Company's recent performance was driven by its pricing power and acquisitions, which helped mitigate the impact of weather and cost inflation. The company's Q2 2025 earnings report revealed continued earnings growth and margin expansion, driven by price discipline and strong execution in its aggregates business. Additionally, Vulcan's upgraded ranking to a Zacks Rank #2 (Buy) reflects growing optimism about its earnings prospects. The company's quarterly dividend of $0.49 per share on its common stock also underscores its commitment to shareholder value.

1.c. Company Highlights

2. Vulcan Materials' Q3 2025 Earnings: A Strong Performance

Vulcan Materials Company reported a robust third quarter 2025, with adjusted EBITDA of $735 million, a 27% improvement compared to the prior year. The company's gross margin and unit profitability expanded in each segment, and adjusted EBITDA margin expanded 310 basis points. Earnings per share (EPS) came in at $2.84, beating analyst estimates of $2.73. Revenue growth was driven by a double-digit increase in volumes, primarily due to pent-up demand from the first half of the year and strong public demand. The company's trailing 12 months aggregate cash gross profit per ton was $11.51, 27% higher than just 2 years ago, as noted by Ronnie Pruitt, Chief Operating Officer.

Publication Date: Nov -01

📋 Highlights
  • Adjusted EBITDA Surge: Adjusted EBITDA hit $735M, a 27% leap YoY, driven by 310 bps margin expansion.
  • Unit Profitability Growth: Aggregate cash gross profit per ton rose 27% to $11.51 over two years.
  • Capital Deployment: $442M spent on maintenance/growth capex YTD, with $700M planned for 2025 full-year.
  • 2026 Pricing Outlook: Mid-single-digit price growth anticipated, with 5% target for aggregates due to public/private nonres demand.
  • Public Infrastructure Momentum: Highway starts in Vulcan states surged 17% YoY, aligned with IIJA funding execution.

Segment Performance and Outlook

The company's segments performed well, with significant growth in public demand and improving nonresidential demand. Tom Hill, Chairman and CEO, noted that weather cooperated in the third quarter, contributing to the strong volume growth. Looking ahead, the company anticipates organic shipments to return to growth in 2026, with mid-single-digit pricing improvement. Ronnie Pruitt mentioned that public infrastructure is accelerating, with widespread growth in key markets, and the top 10 DOTs are all up for fiscal year 2026.

Valuation and Growth Prospects

With a P/E Ratio of 34.22 and an EV/EBITDA of 29.52, the market is pricing in significant growth prospects for Vulcan Materials. Analysts estimate revenue growth at 7.0% for next year. The company's commitment to its aggregate-led strategy and the Vulcan Way of Operating is expected to drive margin growth and expansion. The dividend yield stands at 0.67%, and the free cash flow yield is 2.76%, indicating a reasonable return for investors.

Operational Efficiency and Cost Management

Vulcan Materials has made significant progress in cost per ton, with technology investments and process improvements driving efficiency gains. James Hill noted that the company is still in the early innings of its cost-reduction efforts, and they expect continued momentum in 2026. The company's focus on safety and financial performance is expected to continue, with a strong list of targets for M&A opportunities.

Future Growth Strategy

Ronnie Pruitt emphasized that Vulcan will continue to enhance its core through the Vulcan Way of Operating and Selling, driving margin growth. The company will stay aggregate-focused and expand its reach geographically, with a disciplined growth strategy. The M&A pipeline is still active, with greenfields being a key strategy for growth, driven by the seller's readiness and market conditions.

3. NewsRoom

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Rapala VMC Corporation to Redeem its Outstanding Hybrid Capital Securities Issued in 2023

Nov -27

Source: globenewswire.com

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Advisors Asset Management Inc. Lowers Stake in Vulcan Materials Company $VMC

Nov -26

Source: defenseworld.net

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Rapala VMC Announces Final Tender Offer Results for its Outstanding Capital Securities Issued in 2023

Nov -24

Source: globenewswire.com

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Vulcan Materials: 2026 Looks Attractive With Clear Growth Visibility And Margin Upside

Nov -24

Source: seekingalpha.com

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CX or VMC: Which Is the Better Value Stock Right Now?

Nov -21

Source: zacks.com

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Vulcan Materials Company (NYSE:VMC) Given Consensus Recommendation of “Moderate Buy” by Analysts

Nov -15

Source: defenseworld.net

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Vulcan Materials: A Good Company To Own, But Not At Current Valuations

Nov -13

Source: seekingalpha.com

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Vulcan's Q3 Earnings & Revenues Top, Adjusted EBITDA Margin Up Y/Y

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.53%)

6. Segments

Aggregates (Incl. Calcium)

Expected Growth: 7.2%

Vulcan Materials' Aggregates (incl. Calcium) segment growth of 7.2% is driven by increased demand for construction materials, favorable pricing, and strategic acquisitions. The company's strong position in the market, particularly in the US, enables it to capitalize on infrastructure projects and residential construction growth, leading to higher sales volumes and revenue growth.

Asphalt

Expected Growth: 8.5%

Vulcan Materials Company's asphalt segment growth of 8.5% is driven by increased construction activity, government infrastructure spending, and a recovering housing market. Strong demand for asphalt, a key component in road construction and maintenance, has led to higher volumes and prices, contributing to the segment's growth.

Concrete

Expected Growth: 8.0%

The 8.0% growth in Concrete from Vulcan Materials Company is driven by increased demand for infrastructure projects, favorable pricing, and operational efficiency. Strong residential and commercial construction activity, coupled with government investments in public works, have boosted volumes. Additionally, the company's strategic acquisitions and cost-saving initiatives have contributed to margin expansion, driving growth in the Concrete segment.

Intersegment Sales

Expected Growth: 6.5%

Intersegment sales growth of 6.5% for Vulcan Materials Company is driven by increased demand for construction materials, favorable pricing, and operational efficiencies. Strong residential and commercial construction activity, coupled with government's infrastructure spending, contribute to the growth. Additionally, the company's strategic acquisitions and improved supply chain management have likely enhanced its sales performance.

7. Detailed Products

Aggregates

Vulcan Materials Company produces a range of aggregates, including crushed stone, gravel, and sand. These materials are used in construction, infrastructure projects, and as raw materials for other industries.

Asphalt

Vulcan Materials Company produces asphalt, a mixture of aggregates and bitumen, used for paving and construction projects.

Ready-Mixed Concrete

Vulcan Materials Company produces ready-mixed concrete, a pre-mixed blend of cement, aggregates, and water, used for construction projects.

Provenance Materials

Vulcan Materials Company produces provenance materials, including cement, concrete, and aggregates, used for specialized construction projects.

Concrete Products

Vulcan Materials Company produces a range of concrete products, including concrete blocks, pavers, and precast concrete products.

8. Vulcan Materials Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Vulcan Materials Company operates in the construction materials industry, specifically in the production of aggregates, asphalt, and concrete. The threat of substitutes is relatively low as these materials are essential for construction projects and have limited substitutes. Other materials like recycled materials or alternative aggregates might be used in some cases, but they are not widely available or suitable for all projects.

Bargaining Power Of Customers

The customers of Vulcan Materials Company, primarily construction companies and government agencies, have some bargaining power due to the large volume of purchases they make. However, the company's products are essential for construction projects, which limits the customers' ability to negotiate prices. The customers also have limited alternatives for sourcing these materials, which gives Vulcan some pricing power.

Bargaining Power Of Suppliers

The suppliers of Vulcan Materials Company, primarily mining and quarrying companies, have relatively low bargaining power. Vulcan has a large number of suppliers, which reduces the bargaining power of individual suppliers. Additionally, Vulcan's large size and market share give it significant negotiating power with its suppliers.

Threat Of New Entrants

The threat of new entrants in the construction materials industry is relatively low due to high barriers to entry. The industry requires significant investments in mining and quarrying operations, transportation infrastructure, and equipment. Additionally, Vulcan Materials Company has a strong brand reputation and long-standing relationships with its customers, which makes it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry in the construction materials industry is high due to the presence of several large players, including Martin Marietta Materials, Inc., Cemex, S.A.B. de C.V., and LafargeHolcim Ltd. These companies compete aggressively on price and quality, which puts pressure on Vulcan Materials Company to maintain its market share and profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.79%
Debt Cost 4.32%
Equity Weight 58.21%
Equity Cost 8.45%
WACC 6.72%
Leverage 71.80%

11. Quality Control: Vulcan Materials Company passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vulcan Materials

A-Score: 5.4/10

Value: 1.6

Growth: 6.7

Quality: 5.7

Yield: 1.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
US Lime & Minerals

A-Score: 5.3/10

Value: 1.6

Growth: 8.2

Quality: 8.5

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Nucor

A-Score: 5.1/10

Value: 6.5

Growth: 5.9

Quality: 4.7

Yield: 4.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Boise Cascade

A-Score: 5.1/10

Value: 6.8

Growth: 5.8

Quality: 5.6

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Martin Marietta Materials

A-Score: 5.1/10

Value: 1.9

Growth: 7.0

Quality: 5.8

Yield: 0.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
LyondellBasell

A-Score: 4.2/10

Value: 4.0

Growth: 2.7

Quality: 2.6

Yield: 10.0

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

293.33$

Current Price

293.33$

Potential

-0.00%

Expected Cash-Flows