What drove the Aggregates segment results?

Freight-adjusted selling prices increased 12 percent and cash gross profit per ton improved 12 percent to $10.92, which helped expand margins. Shipments decreased 5 percent because of significant rainfall in many key markets, particularly in Texas and across the Southeast, and weather also affected operating efficiencies.

How did management change its 2024 outlook?

Management now expects total Aggregates shipments to decline 4 to 7 percent and freight-adjusted price to improve 10 to 12 percent. It projects Adjusted EBITDA of $2.00 to $2.15 billion and net earnings attributable to Vulcan of $0.95 to $1.07 billion. It also expects capital expenditures of $625 to $675 million and SAG expenses of $550 to $560 million.

How is the company's leverage and capital return position?

Total debt to trailing-twelve-months Adjusted EBITDA was 1.7 times at June 30, 2024, below the company's target range of 2.0 to 2.5 times. In the quarter, Vulcan returned $111 million to shareholders, including $50 million of common stock repurchases and $61 million of dividends.

VMC 8-K: Earnings & Results

Q: How did Vulcan perform in the second quarter of 2024?

Total revenues were $2,014 million, compared with $2,113 million a year earlier. Net earnings attributable to Vulcan were $308 million, versus $309 million, and Adjusted EBITDA increased to $603 million from $595 million. Adjusted diluted EPS from continuing operations was $2.35, compared with $2.29.

01—Abstract

Summary

Summary of the 8-K filed August 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Vulcan Materials Company furnished a press release (Exhibit 99.1) under Item 2.02 reporting results for the second quarter ended June 30, 2024.

Second-quarter total revenues were $2,014 million^a, compared with $2,113 million a year earlier. Net earnings attributable to Vulcan were $308 million, versus $309 million, and Adjusted EBITDA rose to $603 million from $595 million. Adjusted diluted EPS from continuing operations was $2.35, compared with $2.29.

Management attributed the results to Aggregates pricing and operational execution, which offset significant rainfall that reduced shipments. Aggregates shipments decreased 5 percent, while freight-adjusted selling prices increased 12 percent and cash gross profit per ton improved 12 percent to $10.92^b. Management revised its 2024 outlook for Aggregates volume and cost.

It now expects total shipments to decline 4 to 7 percent and freight-adjusted price to improve 10 to 12 percent. It projects Adjusted EBITDA between $2.00^c and $2.15 billion and net earnings attributable to Vulcan of $0.95 to $1.07 billion.

Total debt to trailing-twelve-months Adjusted EBITDA was 1.7 times at June 30, 2024, below the company's 2.0 to 2.5 times target range. During the quarter, the company returned $111 million^d to shareholders through $50 million of stock repurchases and $61 million of dividends.

02—Key points

Key Highlights

Second-quarter total revenues were $2,014 million, down from $2,113 million, and Adjusted EBITDA increased to $603 million from $595 million, with Adjusted EBITDA margin of 29.9 percent versus 28.2 percent.
Aggregates shipments decreased 5 percent due to significant rainfall, particularly in Texas and across the Southeast, while freight-adjusted selling prices increased 12 percent (mix-adjusted 11 percent).
Aggregates cash gross profit per ton improved 12 percent to $10.92, and segment gross profit margin expanded 120 basis points.
Asphalt segment cash gross profit was $70 million, a 7 percent improvement, and Concrete segment cash gross profit was $17 million, with the prior-year period including divested Texas concrete assets.
2024 guidance was revised: total Aggregates shipments are expected to be down 4 to 7 percent, freight-adjusted price up 10 to 12 percent, and Adjusted EBITDA between $2.00 and $2.15 billion.
Total debt to trailing-twelve-months Adjusted EBITDA was 1.7 times, below the 2.0 to 2.5 times target range, and return on invested capital was 16.3 percent, up from 14.7 percent.
The company returned $111 million to shareholders in the quarter through $50 million of share repurchases and $61 million of dividends.

03—Questions

Frequently Asked Questions

How did Vulcan perform in the second quarter of 2024?
Total revenues were $2,014 million, compared with $2,113 million a year earlier. Net earnings attributable to Vulcan were $308 million, versus $309 million, and Adjusted EBITDA increased to $603 million from $595 million. Adjusted diluted EPS from continuing operations was $2.35, compared with $2.29.
What drove the Aggregates segment results?
Freight-adjusted selling prices increased 12 percent and cash gross profit per ton improved 12 percent to $10.92, which helped expand margins. Shipments decreased 5 percent because of significant rainfall in many key markets, particularly in Texas and across the Southeast, and weather also affected operating efficiencies.
How did management change its 2024 outlook?
Management now expects total Aggregates shipments to decline 4 to 7 percent and freight-adjusted price to improve 10 to 12 percent. It projects Adjusted EBITDA of $2.00 to $2.15 billion and net earnings attributable to Vulcan of $0.95 to $1.07 billion. It also expects capital expenditures of $625 to $675 million and SAG expenses of $550 to $560 million.
How is the company's leverage and capital return position?
Total debt to trailing-twelve-months Adjusted EBITDA was 1.7 times at June 30, 2024, below the company's target range of 2.0 to 2.5 times. In the quarter, Vulcan returned $111 million to shareholders, including $50 million of common stock repurchases and $61 million of dividends.

04—Continue

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