Vulcan Materials Company (Holding Company)
VMC · NYSE
Next quarter
Expected to report Feb 16, 2027 — estimated from last year’s reporting date.
Consensus is $2.06 EPS for Dec 2026 across 7 estimates, ranging $1.78 to $2.37.
VMC Sep 2026
- 1.43%
- $2.79
- $2.83
- —
- $2.18B
Reported results
- $2.18B
- 30.47%
- $524.60M
- 24.01%
- $362.30M
- $2.80
Highlights
- EPS beat, modestly: Adjusted diluted EPS was $2.83, 1.4% above the supplied $2.79 consensus; GAAP diluted EPS was $2.80, versus $2.82 a year ago.
- Energy absorbed growth: Adjusted EBITDA was $706.7 million, down 4% year over year, while its margin expanded 20 basis points to 32.3%; management estimated $40 million of third-quarter energy headwinds.
- Aggregates held unit profitability: Shipments fell 3% to 62.7 million tons, but freight-adjusted price rose 3.8% reported (5% mix-adjusted); gross profit per ton held at $9.46 and cash gross profit per ton increased to $11.95 from $11.84.
- Full-year target maintained: Vulcan expects approximately $2.4 billion of 2026 Adjusted EBITDA despite more than $100 million of expected energy headwinds; management put the full-year energy impact at about $120 million.
- 2027 pricing outlook: With demand expected to remain similar to 2026, management forecast mid- to high-single-digit aggregates price growth and continued cash gross profit per ton expansion.
- Strategic expansion: Two bolt-on acquisitions closed in the quarter; 2026 acquisition cash consideration through September was $290.6 million across aggregates operations and a California asphalt business.
- Shareholder returns and leverage: Vulcan returned $417 million in the quarter through $350 million of repurchases and $67 million of dividends; net debt to trailing-twelve-month Adjusted EBITDA was 1.9x.
Analysis
Vulcan delivered a resilient but slightly lower year-over-year quarter: revenue of $2.185 billion declined 5%, operating earnings fell 3% to $524.6 million, and net earnings attributable to Vulcan eased 3% to $362.3 million. Adjusted EBITDA was $706.7 million, down 4%, though the margin improved to 32.3% from 32.1%. Adjusted diluted EPS of $2.83 was modestly ahead of the supplied $2.79 consensus; GAAP diluted EPS was $2.80. Sequentially, revenue rose from $2.16 billion in Q2 and diluted EPS increased from $2.48, reflecting the usual seasonal strength of the third quarter.
The central story was pricing and operating discipline cushioning substantial energy inflation amid softer aggregate volumes. Aggregates shipments declined 3%, but mix-adjusted price gains of 5% kept gross profit per ton flat and lifted cash gross profit per ton modestly despite a 7% increase in unit cash costs, largely from diesel. Management estimated roughly $120 million of full-year energy headwinds, yet kept its 2026 Adjusted EBITDA target at about $2.4 billion. Looking beyond the current year, Vulcan expects broadly similar demand in 2027, mid- to high-single-digit aggregates pricing and further unit-profitability growth. Two quarterly bolt-on acquisitions and continued capital returns rounded out the print.
Aggregates pricing and costs
Aggregates remained the earnings anchor: segment gross profit was $593.4 million and cash gross profit $749.5 million. The price-cost spread was pressured by diesel, but higher selling prices and cost discipline held unit gross profit steady. Excluding diesel, unit cash costs rose only 3%, illustrating the underlying operational performance management emphasized.
- Volume and price: Shipments declined 3% to 62.7 million tons, while freight-adjusted price increased 3.8% reported to $22.84 per ton and 5% on a mix-adjusted basis.
- Unit economics: Gross profit per ton was unchanged at $9.46; cash gross profit per ton rose to $11.95 from $11.84. Freight-adjusted unit cash costs increased 7%, or $0.72 per ton, to $10.89.
- Weather comparison: The prior-year quarter benefited from favorable weather after severe winter conditions and rainfall had delayed construction earlier in 2025, making the year-over-year shipment comparison tougher.
Earnings and energy headwinds
Higher energy costs and lower shipments outweighed aggregates pricing and lower overhead in the year-over-year earnings comparison. Management said the quarter included approximately $40 million of energy headwinds, with diesel and liquid asphalt contributing. Adjusted EBITDA nevertheless grew 5% on an underlying same-store basis after adjusting for energy and prior-year downstream divestitures.
- Reported results: Revenue was $2.185 billion versus $2.292 billion a year ago; gross profit was $665.6 million versus $697.2 million, and operating earnings were $524.6 million versus $543.2 million.
- Adjusted profitability: Adjusted EBITDA of $706.7 million compared with $735.2 million; its margin expanded to 32.3% from 32.1%. Adjusted diluted EPS was $2.83 versus $2.84 a year ago.
- Expense discipline: SAG expense declined to $137 million from $145 million and remained 6.3% of revenue. Trailing-twelve-month SAG was 6.9% of revenue, 30 basis points lower year over year.
Demand and pricing outlook
Management described current demand as mixed by end market, but expects a broadly similar backdrop in 2027. Public construction remains supported by state activity and the remaining infrastructure funding pipeline; private nonresidential work includes data centers, manufacturing and energy projects. Residential construction remains constrained by affordability and interest rates. Vulcan expects its footprint to outperform the broader market, but did not provide a detailed 2027 shipment forecast.
- 2026 outlook: Full-year Adjusted EBITDA is expected to be approximately $2.4 billion. Management estimated energy headwinds of about $120 million for the year, including roughly $40 million in Q3 and a similar amount expected in Q4; full-year volume is expected to grow very modestly.
- 2027 pricing: Management expects mid- to high-single-digit aggregates price growth, inclusive of mix, and continued expansion in cash gross profit per ton. Diesel is assumed to remain elevated into 2027, with any easing potentially later in the year.
- Demand indicators: Approximately 35% of IIJA funds remain unspent. Trailing-twelve-month contract awards were up 2% in Vulcan markets compared with 1% nationally, according to management.
Portfolio and capital allocation
Vulcan continued to rotate capital toward its aggregates-led strategy while returning substantial cash to shareholders. It closed two bolt-on acquisitions during the quarter, adding to 2026 purchases in aggregates and asphalt; management said the pipeline remained active and anticipated additional transactions. The balance sheet leaves room for continued investment, though operating cash flow was lower year to date.
- Acquisitions and divestitures: Cash consideration for 2026 acquisitions through September was $290.6 million across operations in Colorado and Texas, California, Kentucky and Tennessee. The California concrete and U.S. Virgin Islands divestitures generated $572.1 million of cash proceeds, with another $150 million receivable due in December 2027.
- Capital returns: Q3 repurchases were $350 million and dividends were $66.9 million, or $0.52 per share. For the first nine months, shareholder returns totaled $952.1 million, including $749.8 million of share repurchases.
- Funding capacity: Net debt to trailing-twelve-month Adjusted EBITDA was 1.9x, while total debt to Adjusted EBITDA was 2.0x. Nine-month operating cash flow was $971 million, down from $1.27 billion a year earlier, primarily reflecting working-capital and deferred-tax cash-flow changes.
Downstream mix and divestitures
The downstream segments contributed less gross profit than in the prior-year quarter, with comparisons affected by the exits from Houston asphalt and California concrete. Asphalt retained a solid margin despite lower shipments and higher liquid asphalt costs; concrete’s sharply lower volumes largely reflect the California asset sale rather than a like-for-like demand comparison.
- Asphalt: Segment gross profit was $64.2 million, down 9%, on shipments 10% lower; gross margin remained 17%. The prior-year period included the Houston asphalt and construction business, sold in Q4 2025.
- Concrete: Gross profit was $8.0 million and margin expanded to 9%, while shipments fell 61%. The prior-year comparison included California concrete assets sold in June 2026.
