Vulcan Materials Company is the largest U.S. supplier of construction aggregates, including crushed stone, sand, and gravel. It also produces asphalt mix and ready-mixed concrete, which are essential materials for building homes, offices, and critical infrastructure like highways and bridges across the U.S.
Business segments
10-K
AggregatesAsphaltConcrete
Recent News
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Earnings call: Q4 2025 2025
Intel
Free
2026-02-??Optimistic
Tom Hill (Chairman and Chief Executive Officer), Suzanne Wood (Senior Vice President and Chief Financial Officer)
Key metrics
The company discussed solid full-year 2025 performance, referencing strong pricing and improved profitability metrics, though specific quarterly figures in the transcript source summary are limited.[8] Management emphasized year-over-year improvement in adjusted EBITDA and margins, supported by pricing gains across aggregates and related businesses
Forward guidance
On the Q4 2025 call, management outlined expectations for continued growth in 2026 driven by infrastructure and nonresidential demand, with residential construction expected to stabilize rather than materially grow.[4][8] They signaled ongoing focus on pricing and cost discipline, positioning the company to expand margins even in a mixed volume env
Notable Q&A
A key Q&A topic involved questions about 2026 volume assumptions by end market; management indicated that public infrastructure should grow, nonresidential should be stable to modestly up, and residential expected to be roughly flat, with pricing remaining the primary earnings driver.[4][8] Another
Surprise items
Analysts appeared somewhat surprised by management’s confidence in margin expansion despite only modest expectations for volume growth, highlighting the company’s pricing power and cost control as key differentiators.[4][8] The emphasis on portfolio optimization, including selective market exits and
Wall Street consensus — sourced weekly via public disclosures
Analyst coverage data sourced from public filings. Xavier analyst thesis summary available after weekly Perplexity scan completes.
Financial summary — Gemini analysis
Signal
Revenue
$7,941.1 million
7.1% YoY
Operating margin
20.4%
Net income
$1,076.7 million
Free cash flow
$1,135.3 million
Dividend / share
$1.96
Total debt
$4,362.1 million
Cash: $183.3 million
CapEx guidance
$750 million to $800 million
Earnings quality:HIGH
Cash conversion:1.7x
Non-recurring items: Pretax net gain of $42.4 million from the sale of asphalt mix and construction paving operations in Houston, Texas., Pretax charges of $0.6 million for divested operations., Pretax charges of $2.0 million associated with non-routine acquisitions., Pretax loss on discontinued operations of $6.1 million.
Confidence 6.0 / 10 · 100% model agreement ·
Scheduled Jun 07, 2026
VMC delivered a strong Q1 2026 beat (EPS $1.35 vs. $1.12 estimate, revenue $1.76B vs. $1.62B consensus) and reaffirmed full-year EBITDA guidance of $2.4B–$2.6B, supported by IIJA tailwinds with only ~45% of public infrastructure funds spent. However, at 33x TTM P/E and trading ~15% below its 52-week high but still well above any reasonable intrinsic value floor (Morningstar fair value ~$123, GuruFocus 11% overvalued at ~$296), the valuation already prices in the bull case, leaving limited margin of safety for a 5-day tactical long.
Strongest bull case
Only ~45% of IIJA public infrastructure funds have been deployed, providing a durable multi-year demand tailwind for aggregates volumes and pricing; Q1 2026 beat with 7.4% revenue growth and 20%+ EPS beat signals operational momentum is intact heading into the peak construction season.
Strongest bear case
At 33x TTM P/E with only ~7% revenue growth and a NEUTRAL/BEARISH macro regime (2 of 4 macro models bearish), the stock is priced for perfection; insider selling (13 open-market sales, zero buys in 6 months) and the stock trading ~15% below its 52-week high with no near-term catalyst in the next 5 trading days create a skewed risk/reward to the downside, particularly with federal spending scrutiny under DOGE posing a non-trivial risk to the public infrastructure funding assumptions baked into consensus.
What the market may be missing
The market is treating IIJA spending as a locked-in tailwind, but with ~55% of funds still unspent and heightened federal budget pressure from DOGE-led spending cuts, there is a real optionality risk that some of these highway dollars face delays or rescissions — a scenario not reflected in the 26x forward P/E multiple the street is assigning.
Ronnie Pruitt delivered a keynote address to young leaders in the aggregates industry. He shared insights on leadership and company strategy at Vulcan Materials. The event highlighted building winning teams, drawing from industry and executive perspe
CEO letter to shareholders
Signal
Full letter Pro
J. Thomas Hill2022 Annual ReportOPTIMISTIC
Our disciplined approach to enhancing our core though VWO and VWS and expanding our reach through mergers and acquisitions and greenfield development has yielded consistent results and growth throughout the cycle.
Since the launch of our strategic disciplines in 2017—and during a time when construction activity faced the headwinds of a pandemic, labor shortages, supply chain constraints, elevated inflation, and numerous other disruptions—we have improved our Adjusted EBITDA at a compound annual growth rate of 11%. Consistent operational execution, cash generation, and disciplined capital allocation continued to drive our durable growth.
We are fiercely dedicated to continuous improvement, and we are confident in our ability to continue to grow our unit margins regardless of the challenges we may face. We set high expectations at our Investor Day last September: raising the bar from $9 cash gross profit per ton at 230−240 million tons of aggregates to $11−12 cash gross profit per ton when we reach 260−270 million tons.
Our momentum coming into 2023 is outstanding. With the right people, the right products, the right markets, and the right focus, Vulcan is the most compelling investment in the aggregates industry.
Once again, thank you to our employees. Our strong teams are keeping each other safe, harnessing the power of technology and innovation, servicing our customers, and enhancing our core business each and every day.
To our shareholders, we appreciate your confidence and investment in Vulcan Materials Company and look forward to delivering durable growth for years to come.
Xavier analysis
The letter conveys strong confidence and positive outlook through phrases like 'consistent results and growth', 'fiercely dedicated to continuous improvement', 'confident in our ability', 'outstanding momentum', and positioning Vulcan as 'the most compelling investment in the aggregates industry'.
Strategic themes by emphasis
#1Durable Growth (Organic and Inorganic)
#2Operational Excellence & Continuous Improvement
#3Employee Contribution & Safety
#4Disciplined Capital Allocation
3 named projects & initiatives
VWO, VWS, Investor Day last September
2 strategic initiative, 1 other
Forward-looking statements
6 total: 1 quantified, 4 directional, 1 vague
Capital allocation priority
Organic Growth (Core Enhancement via VWO/VWS) → Inorganic Growth (Mergers and Acquisitions, Greenfield Development) → Disciplined Capital Allocation (general)
Key quotes
“We are fiercely dedicated to continuous improvement, and we are confident in our ability to continue to grow our unit margins regardless of the challenges we may face.”
Emphasizes the company's strong commitment to operational efficiency and resilience against market challenges.
“raising the bar from $9 cash gross profit per ton at 230−240 million tons of aggregates to $11−12 cash gross profit per ton when we reach 260−270 million tons.”
Credit Agreement dated as of September 10, 2020 (as amended by Fourth Amendment)
Matures 2027-08-08 · Filed 2022-08-09
Floating · SOFR | Base Rate
Credit$1,000,000,000
Credit Agreement dated as of September 10, 2020 (as amended)
Matures · Filed 2022-05-05
Floating · SOFR | Eurodollar | Base Rate
Credit$1,600,000,000
CREDIT AGREEMENT CONFORMED THROUGH SECOND AMENDMENT
Matures 2026-08-26 · Filed 2022-05-05
Floating · SOFR | Fed Funds | Prime
Unsecured
929159BD2929159BE0
Credit
Credit Agreement dated as of June 30, 2021 (as amended by First Amendment)
Matures · Filed 2021-11-05
10 additional agreements on file
Financial covenants
Maximum Total Leverage Ratio
≤ 3.50x
Total Debt-to-EBITDA
CREDIT AGREEMENT dated as of November 4, 2024
Maximum Total Leverage Ratio
≤ 3.50 to 1.00
Total Debt / EBITDA
CREDIT AGREEMENT CONFORMED THROUGH SECOND AMENDMEN
Limitation on Priority Indebtedness
not to exceed $25,000,000 in the aggregate outstanding at any time
Indebtedness for borrowed money of Subsidiaries
Credit Agreement dated as of June 30, 2021 (as ame
Maximum Total Leverage Ratio
≤ 3.50x (general); ≤ 3.75x (after certain acquisitions)
Total Debt to EBITDA
CREDIT AGREEMENT dated as of September 10, 2020
Minimum Interest Coverage Ratio
≥ 3.00 to 1.00
EBITDA to Interest Expense
364-DAY CREDIT AGREEMENT
Incorporated Covenants from Syndicated Credit Agreement
As defined in the Syndicated Credit Agreement
As defined in the Syndicated Credit Agreement
Term Loan Note
Incorporated Covenants from 2007 Indenture
As defined in the 2007 Indenture
As defined in the 2007 Indenture
Term Loan Note
Maximum Total Leverage Ratio
≤ 3.50x (through September 30, 2016); ≤ 3.25x (thereafter). Special thresholds: ≤ 3.50x after achieving a 5B Rating; ≤ 3.75x for three fiscal quarters after a Permitted Acquisition of $75,000,000 or greater if Borrower has a 5B Rating.
VMC just reported Q1 2026 results (April 29) showing 9% adjusted EBITDA growth and reiterated its $2...
$299.48
Sched.
Apr 12, 2026
BULLISH
6.6/10
75%
VMC is trading roughly 11% below its 52-week high and about 10% below the average analyst price targ...
$295.48
Sched.
Apr 12, 2026
BULLISH
6.7/10
75%
VMC is trading roughly 10% below its consensus fair value ahead of a Q1 2026 earnings report on Apri...
$295.48
Sched.
Apr 12, 2026
BULLISH
6.5/10
50%
VMC is trading ~10% below its 52-week high and roughly 9% below the consensus analyst price target o...
$295.48
Sched.
Apr 12, 2026
NEUTRAL
5.0/10
0%
Insufficient model responses to form consensus.
$295.48
Sched.
Showing last 11 signals
VMCVulcan Materials Company
Signal
FY2026 annual report (10-K filed 2026-02-19)
INCOME STATEMENT
?Revenue
$7,941.1 million7.1% YoY
Total sales from chemicals, mining, construction materials, and specialty materials. Up 7.1% from last year. Management has guided capital spending of $750 million to $800 million.
?Operating income
$1,619.6 million
What remains after subtracting all operating costs — salaries, materials, rent, R&D — from revenue. This is the profit from actually running the business, before interest and taxes. Operating margin is 20.4%, meaning 20 cents of every dollar of revenue becomes operating profit.
?Net income
$1,076.7 million
The bottom line — what the company actually earned after all expenses, interest, and taxes. This is the number that gets divided by shares outstanding to calculate earnings per share (EPS), which directly affects the stock price. Net margin is 9.4%. Note: results include non-recurring items (pretax net gain of $42.4 million from the sale of asphalt mix and construction paving operations in houston, texas., pretax charges of $0.6 million for divested operations.) that may not repeat.
?Free cash flow
$1,135.3 million
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of financial health.
?EPS (diluted)
$1.26
Earnings per share — net income divided by total shares outstanding (including stock options and convertible bonds that could become shares). This is the single number most investors watch because it directly connects company profits to your ownership stake.
?Dividend per share
$1.96
Cash paid to shareholders each year for every share they own. Materials dividends are tied to commodity cycles and construction activity.
BALANCE SHEET
?Total assets
$16.7B
Everything the company owns — cash, factories, equipment, patents, inventory, investments. Includes mines, quarries, chemical plants, and mineral reserves.
?Cash & equivalents
$183.3 million
Money available right now — bank accounts, money market funds, short-term government bonds. This is the company's financial cushion. More cash means more flexibility to invest, acquire, or survive a downturn without borrowing.
?Total debt
$4,362.1 million
All money the company owes — bonds, bank loans, credit facilities. Compare this to cash to understand the net debt position. The company holds $183.3 million in cash against this debt.
?Shares outstanding
132.7 million shares
Total number of shares that exist — owned by all investors, insiders, and institutions combined. When the company reports EPS, this is the denominator. Share buybacks reduce this number, which increases EPS even without earnings growth.
?Debt-to-equity ratio
0.5%
How much debt the company uses for every dollar of shareholder equity. Under 100% means more equity than debt (conservative). Over 200% means heavy leverage. Banks and utilities naturally run higher ratios.
CASH FLOW
?Operating cash flow
$241M
Actual cash generated from running the business — not accounting profits, real money coming in the door. This is more trustworthy than net income because it's harder to manipulate. A company can report profits but still run out of cash.
?Capital expenditure
$176M
Money spent on long-term assets — mining equipment, quarries, chemical plants, and processing facilities. This is the cost of maintaining and growing the business. Management has guided $750 million to $800 million for capital spending.
?Free cash flow
$65M
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of a company's financial health.
?Depreciation & amortization
$170M
A non-cash expense that spreads the cost of mining assets, chemical processing equipment, and quarry reserves over their useful life. This reduces reported income but no cash actually leaves the company — that's why it gets added back to calculate EBITDA and operating cash flow.
EARNINGS QUALITY
?Accrual quality
HIGH
Measures how well reported earnings match actual cash generation. HIGH means earnings are backed by real cash. LOW means the company may be using accounting techniques to inflate reported numbers. Professional investors check this before trusting EPS.
?Cash conversion
1.7x
Operating cash flow divided by net income. Above 1.0x means the company generates more cash than it reports in profits — a sign of high-quality earnings. At 1.7x, the company is generating significantly more cash than reported profits — very healthy.
?Non-recurring items
5 identified
One-time items that affect the bottom line but won't repeat: pretax net gain of $42.4 million from the sale of asphalt mix and construction paving operations in houston, texas., pretax charges of $0.6 million for divested operations., pretax charges of $2.0 million associated with non-routine acquisitions., pretax loss on discontinued operations of $6.1 million.. When evaluating the company's true earning power, investors strip these out to see what the business earns on a normal basis.
?Management tone
Cautious Optimistic
How management sounds in their SEC filings — are they confident, cautious, or defensive? This is analyzed from the actual language used in the 10-K annual report. A shift in tone from prior years can signal changing conditions before the numbers reflect it.
?Top risk factor
Increasing
Arbitrary and illegal actions by the Mexican government affecting the Calica operations, including unexpected shutdowns and expropriation, which creates significant uncertainty and potential financial loss. Risk trend: increasing. This is the single biggest threat to the company's future earnings as identified in their SEC filing.
Click any row to expand the plain-English explanation. Source: SEC EDGAR XBRL filings.
Capital intelligence
Signal
Weighted Average Cost of Capital · Return on Invested Capital · Economic Value Added
ROIC
10.02%
WACC
9.04%
🟡 NEUTRAL — EVA Spread: 0.97%
?WACC
9.04%
Weighted Average Cost of Capital — the minimum return Vulcan Materials Company must earn on its investments to satisfy both debt holders and shareholders. Computed from a 89.25% equity / 10.75% debt capital structure. If the company earns less than 9.04% on its invested capital, it is destroying shareholder value.
?Cost of equity
10.03%
The return shareholders demand for holding VMC stock instead of a risk-free Treasury bond. Computed using the Capital Asset Pricing Model: Risk-Free Rate (4.25%) + Beta (1.05) × Equity Risk Premium (5.50%). A beta of 1.05 means VMC is more volatile than the overall market.
?Cost of debt (after-tax)
0.89%
What Vulcan Materials Company effectively pays on its borrowed money after the tax deduction on interest. Interest is tax-deductible, so the true cost is lower than the stated rate. Effective tax rate used: 22.26%.
?Capital structure
E: 89.25% / D: 10.75%
How Vulcan Materials Company finances its operations — the split between equity (stock market value: $37.9B) and debt (total borrowings: $4.6B). More debt means more leverage — higher potential returns but higher risk.
?ROIC
10.02%
Return on Invested Capital — how efficiently Vulcan Materials Company turns its total invested capital into after-tax operating profit. NOPAT ($1.3B) ÷ Invested Capital ($12.9B). This exceeds WACC, meaning the company creates value for shareholders.
?EVA
$125M
Economic Value Added — the dollar amount of value Vulcan Materials Company created (or destroyed) above its cost of capital. NOPAT ($1.3B) minus the capital charge (Invested Capital × WACC = $1.2B). Positive EVA means every dollar of capital is earning more than it costs.
?NOPAT
$1.3B
Net Operating Profit After Tax — operating income adjusted for taxes, ignoring how the company is financed. Operating Income ($1.7B) × (1 - Tax Rate 22.26%). This isolates the company's core business profitability from its financing decisions.
Xavier consensus signals are intelligence outputs, not investment advice. All signals are generated by a multi-model AI system and reflect public information at time of generation. Past signal accuracy does not guarantee future performance. Wall Street analyst consensus sourced from public disclosures, summarized weekly. Financial data sourced from SEC EDGAR and yfinance. Insider transactions sourced from SEC EDGAR Form 4 filings. Updated Jun 07, 2026.