Vulcan Materials Company (Holding Company)
VMC · NYSE
Next quarter
Reports Oct 29, 2026.
Consensus is $2.98 EPS for Sep 2026 across 7 estimates, ranging $2.84 to $3.16.
VMC Jun 2026
- 3.60%
- -4.47%
- $2.50
- $2.59
- —
- —
Highlights
- Earnings beat: Adjusted diluted EPS was $2.59, 3.6% above the $2.50 consensus and up from $2.45 a year ago; GAAP diluted EPS was $2.48 versus $2.42.
- Aggregates execution: Aggregates gross profit rose 1% to $567.3 million despite weather and energy inflation, while cash gross profit per ton reached $12.02 from $11.88.
- Pricing and volume: Aggregates shipments increased 1% to 59.9 million tons, while freight-adjusted price rose 3.9% to $22.97 per ton.
- Mixed consolidated result: Revenue increased 3% to $2.156 billion, but operating earnings fell 3% to $455.5 million and adjusted EBITDA declined 1% to $654.0 million.
- Downstream pressure: Asphalt gross profit fell 13% to $49.8 million and non-aggregates gross profit declined 11% to $58.2 million, reflecting weather, higher liquid asphalt costs and divestitures.
- Portfolio reshaping: Vulcan sold its California ready-mixed concrete and U.S. Virgin Islands operations for $722.1 million of total proceeds and acquired aggregates operations in Colorado and Texas for $75.0 million.
- Capital returns and leverage: The company returned $318 million in the quarter through $250 million of repurchases and $68 million of dividends; total debt was 1.9 times trailing-twelve-month adjusted EBITDA.
- Outlook unchanged: Management reaffirmed 2026 adjusted EBITDA guidance of $2.4 billion to $2.6 billion, citing continued aggregates price growth, large projects and public construction activity.
Analysis
Vulcan’s second quarter was a modest earnings beat driven by aggregates discipline rather than broad-based volume growth. Adjusted diluted EPS of $2.59 exceeded the $2.50 consensus by 3.6% and increased 6% from $2.45 a year ago, while GAAP diluted EPS rose to $2.48 from $2.42. Revenue grew 3% year over year to $2.156 billion, but operating earnings fell 3% to $455.5 million and adjusted EBITDA slipped 1% to $654.0 million as downstream businesses and divestiture-related items weighed on the consolidated result.
The quarter improved sharply from the seasonally weaker first quarter: revenue rose from $1.76 billion, operating income from $265.4 million and net income from $165.5 million. The defining feature was aggregates profitability. Shipments rose 1% to 59.9 million tons, freight-adjusted pricing increased 3.9% to $22.97 per ton and cash gross profit per ton reached $12.02 despite rainfall in Texas and the Southeast and higher diesel costs. Vulcan also continued its aggregates-led portfolio shift, completing $722.1 million of divestitures and $75.0 million of acquisitions. Full-year adjusted EBITDA guidance of $2.4 billion to $2.6 billion was reaffirmed.
Quarterly results
The second quarter combined a small earnings beat with broadly stable operating profit. Adjusted diluted EPS increased to $2.59 from $2.45 a year earlier, helped by lower interest expense and a lower continuing-operations tax rate of 20.1% versus 22.0%. GAAP operating earnings declined because the prior-year period included a $1.2 million gain on asset and business sales, while 2026 included an $11.3 million loss. Adjusted EBITDA margin was 30.3%, down from 31.4%.
- Year over year: Revenue rose 3% to $2,155.8 million, gross profit was essentially flat at $625.5 million and net earnings attributable to Vulcan increased 1% to $323.4 million.
- Sequentially: Revenue increased 22% from $1.76 billion in Q1, operating earnings rose 72% from $265.4 million and net income rose 95% from $165.5 million, consistent with Vulcan’s seasonal pattern of stronger second- and third-quarter results.
- First half: Revenue reached $3.912 billion versus $3.737 billion, while adjusted diluted EPS was $3.93 versus $3.45 and adjusted EBITDA was $1.101 billion versus $1.070 billion.
Aggregates profitability
Aggregates remained the core of the print and absorbed significant operating pressure. Segment gross profit increased $7.8 million to $567.3 million even as rainfall disrupted Texas and Southeastern shipments and energy inflation lifted costs. Management’s emphasis was on compounding unit profitability through pricing discipline, cost control and operating execution.
- Volume: Shipments increased 1% to 59.9 million tons, supported by public construction activity and large projects.
- Price: Freight-adjusted sales price rose 3.9% on a reported basis to $22.97 per ton, or 4.7% on a mix-adjusted basis.
- Unit profit: Gross profit per ton improved to $9.47 from $9.44, while cash gross profit per ton increased to $12.02 from $11.88.
- Cost pressure: Freight-adjusted unit cash cost of sales increased 7%, or $0.72 per ton; excluding diesel, cash cost increased 3%.
Downstream portfolio
Asphalt and concrete were a drag on the consolidated quarter, although much of the year-over-year comparison reflects Vulcan’s deliberate exit from less strategic operations. Non-aggregates gross profit declined 11% to $58.2 million. Asphalt remained profitable but faced lower shipments, weather disruption and higher liquid asphalt costs, while concrete included only two months of the California ready-mixed business before its sale in early June.
- Asphalt: Revenue fell to $330.0 million from $368.9 million and gross profit declined 13% to $49.8 million; gross margin remained a strong 15%.
- Concrete: Revenue declined to $186.8 million from $220.6 million and gross profit was $8.4 million versus $8.5 million, with depreciation suspended while the California assets were held for sale.
- Portfolio actions: The California ready-mixed concrete and U.S. Virgin Islands divestitures generated $722.1 million of proceeds, including $572.1 million in cash and a $150.0 million note due in December 2027.
Capital allocation
Vulcan used proceeds and operating cash generation to fund investment, acquisitions and shareholder returns while maintaining balance-sheet flexibility. It acquired aggregates operations in Colorado and Texas for $75.0 million, including a southern Colorado quarry and a Dallas-Fort Worth rail yard, strengthening its aggregates footprint and distribution network.
- Shareholder returns: The company repurchased $250.3 million of stock and paid $67.5 million of dividends in the quarter, compared with no repurchases and $64.7 million of dividends a year earlier.
- Investment: Second-quarter capital expenditures were $176.3 million; first-half capital expenditures were $370.4 million versus $270.9 million a year earlier.
- Cash flow: First-half operating cash flow was $584.6 million, slightly below $593.2 million in the prior-year period because of working-capital and deferred-tax effects.
- Balance sheet: Total debt was $4.364 billion, cash and restricted cash were $288.7 million, and total debt to trailing-twelve-month adjusted EBITDA improved to 1.9 times from 2.2 times a year earlier.
Outlook and uncertainties
Vulcan reaffirmed its full-year adjusted EBITDA outlook of $2.4 billion to $2.6 billion. Management expects continued aggregates price growth and volume growth from large projects and public construction. The main operating offsets remain weather, energy costs, labor constraints and the cyclicality of private construction. The quarter also brought a negative legal update: the NAFTA tribunal found that Mexico violated NAFTA but awarded Vulcan negligible monetary damages, with no material accounting impact.
- Tax benefit: The continuing-operations tax rate benefited from remeasurement of deferred tax liabilities following the California ready-mixed divestiture.
- Legal exposure: Vulcan said a material loss related to LADWP’s potential contribution claim over the Hewitt Landfill remediation could become estimable in the near term, although no range was recorded at quarter-end.
- Operational target: Management continues to prioritize aggregates unit profitability and cash generation rather than expanding the downstream portfolio.
