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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

Breaking News: Vulcan Materials Company reported Q4 2025 earnings of $1.7 per share, missing the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $2.17 per share a year ago. The company's revenues also missed estimates, although the top line increased year-over-year. Operating cash flow increased 29 percent to $1.8 billion. The company anticipates aggregates demand growth and an attractive price environment to support continued earnings growth in 2026. Multiple analysts have reiterated their hold recommendations on the stock.

1.c. Company Highlights

2. Vulcan Materials' 2025 Earnings: A Strong Year for Aggregates

Vulcan Materials Company reported a robust financial performance in 2025, with adjusted EBITDA reaching $2,300,000,000, a 13% increase over the prior year. The adjusted EBITDA margin expanded 160 basis points to 29.3%. Aggregate cash gross profit per ton grew to $11.33, achieving the target of $11 to $12. The company's operating cash flow was over $1,800,000,000, a 29% increase over the prior year. However, the actual EPS came out at $1.7, lower than the estimated $2.11.

Publication Date: Feb -18

📋 Highlights
  • Adjusted EBITDA Surge: Achieved $2,300,000,000 (13% YoY) with margin expansion to 29.3% (+160 bps).
  • Operating Cash Flow Growth: Surpassed $1,800,000,000 (29% YoY increase).
  • Aggregate Shipments & Pricing: Shipments rose 3% to 227M tons; mix-adjusted prices improved 6% annually.
  • Shareholder Returns: Distributed $260M in dividends and $438M in share buybacks in 2025.
  • 2026 Guidance: EBITDA projected at $2,400M–$2,600M, with 4–6% price hikes and 1–3% shipment growth.

Revenue and Shipments Growth

In 2025, aggregate shipments increased 3% to approximately 227 million tons, driven by prior-year acquisitions. The aggregates mix-adjusted price improved 6% for the full year and 5% in the fourth quarter. The company's revenue growth was supported by these factors, and it returned $260,000,000 to shareholders through dividends and $438,000,000 through share repurchases.

Outlook for 2026

For 2026, Vulcan expects continued growth in public demand, complemented by improving private demand, resulting in modest overall growth. The company anticipates aggregate shipments to grow between 1–3%, aggregates freight-adjusted average selling prices to increase between 4–6%, and aggregates units cash cost of sales to increase by low single-digit percentage. This is expected to drive another year of at least high single-digit expansion of aggregates cash gross profit per ton, with adjusted EBITDA between $2,400,000,000 and $2,600,000,000.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 6.4%. With a current P/E Ratio of 36.89 and EV/EBITDA of 17.43, the market is pricing in a certain level of growth. The company's ROIC is 8.02%, and ROE is 12.79%, indicating a reasonable return on capital. Vulcan's balance sheet is well-positioned for M&A opportunities, with a healthy pipeline and disciplined approach.

Key Drivers and Risks

The company's public end market is expected to see continued growth, driven by the Infrastructure Investment and Jobs Act (IIJA). Data centers are a significant growth opportunity for Vulcan, but are expected to create a mix impact. Private demand is expected to improve, driven by data centers and other manufacturing projects. Management expressed confidence in their ability to deliver on price/cost spread, expecting another year of cash gross profit per ton growth at the high single-digit percentage level.

3. NewsRoom

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Steve Mandel's Strategic Moves: Meta Platforms Inc. Exit Impacts Portfolio by -7.07%

Feb -17

Source: gurufocus.com

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Vulcan Materials Company (VMC) Q4 2025 Earnings Call Transcript

Feb -17

Source: seekingalpha.com

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Vulcan Stock Down as Q4 Earnings & Revenues Miss Estimates

Feb -17

Source: zacks.com

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Here's What Key Metrics Tell Us About Vulcan (VMC) Q4 Earnings

Feb -17

Source: zacks.com

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Vulcan Materials (VMC) Q4 Earnings and Revenues Lag Estimates

Feb -17

Source: zacks.com

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First Look: WBD waiver; Ackman's Meta bet; Ford-China JV

Feb -17

Source: gurufocus.com

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VULCAN REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Feb -17

Source: prnewswire.com

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What's in Store For These 5 Construction Stocks This Earnings Season?

Feb -16

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

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Nucor

A-Score: 5.5/10

Value: 6.6

Growth: 5.8

Quality: 4.7

Yield: 4.0

Momentum: 5.5

Volatility: 6.7

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Vulcan Materials

A-Score: 5.2/10

Value: 1.9

Growth: 6.7

Quality: 6.1

Yield: 1.0

Momentum: 6.0

Volatility: 9.3

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Boise Cascade

A-Score: 5.1/10

Value: 6.9

Growth: 5.8

Quality: 5.4

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

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Martin Marietta Materials

A-Score: 5.1/10

Value: 1.9

Growth: 7.0

Quality: 5.8

Yield: 0.0

Momentum: 6.5

Volatility: 9.3

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LyondellBasell

A-Score: 4.6/10

Value: 6.8

Growth: 2.6

Quality: 1.9

Yield: 10.0

Momentum: 0.5

Volatility: 6.0

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US Lime & Minerals

A-Score: 4.6/10

Value: 1.8

Growth: 8.2

Quality: 8.4

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

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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

299.36$

Current Price

299.36$

Potential

-0.00%

Expected Cash-Flows