01—Abstract
Summary
Summary of the 8-K filed February 18, 2025. Cited figures are marked; the original filing is the authoritative source.
Vulcan Materials Company (NYSE: VMC) filed this Form 8-K on February 18, 2025 to report fourth-quarter and full-year 2024 results (furnished as Exhibit 99.1), announce the redemption of all $400 milliona of its 4.50% notes due 2025 on March 28, 2025, and provide its outlook for 2025.
Full-year 2024 total revenues were $7.42 billionb, down from $7.78 billion in 2023, while gross profit rose to $2.00 billion from $1.95 billion. Net earnings attributable to Vulcan were $912 million for 2024 versus $933 million in 2023. Adjusted EBITDA was $2.06 billion for 2024 compared with $2.01 billion in 2023, and the Company cited aggregates cash gross profit per ton of $11.50 in the fourth quarter and $10.61 for the full year.
The Aggregates segment drove results. Management said the pricing environment remained favorable and that unit profitability improved for the eleventh consecutive quarter. Fourth-quarter freight-adjusted selling prices rose $2.07c per ton, while full-year aggregates shipments fell to 219.9 million tons from 234.6 million.
The Company completed the Wake Stone and Superior Ready Mix Concrete acquisitions in 2024. Full-year cash provided by operating activities was $1.41 billiond, and capital expenditures were $638 million. Total debt rose to $5.31 billion at December 31, 2024, from $3.88 billion a year earlier, and the ratio of total debt to Adjusted EBITDA was 2.6 times.
For 2025, the Company guided to a third consecutive year of double-digit growth in aggregates cash gross profit per ton, shipments growth of 3 to 5 percent, and Adjusted EBITDA between $2.35 and $2.55 billion, including a $150 million contribution from acquisitions. Management also projected net earnings attributable to Vulcan of $1.01 to $1.17 billion and capital spending of $750 to $800 million.
02—Key points
Key Highlights
- Fourth-quarter 2024 total revenues were $1.85 billion, up from $1.83 billion, and Adjusted EBITDA rose to $550 million from $476 million, with Adjusted EBITDA margin of 29.7% versus 26.0%.
- Full-year 2024 net earnings attributable to Vulcan were $912 million, compared with $933 million in 2023; diluted earnings per share from continuing operations were $6.91 versus $7.06.
- Aggregates cash gross profit per ton reached $11.50 in the fourth quarter and $10.61 for full-year 2024, compared with $9.46 in 2023.
- Full-year 2024 shipments were 219.9 million tons, down from 234.6 million tons, while freight-adjusted sales price per ton rose to $21.08 from $19.02.
- The Company will redeem all $400 million of its 4.50% notes due 2025 on March 28, 2025.
- Total debt was $5.31 billion at year-end 2024 versus $3.88 billion a year earlier; the ratio of total debt to Adjusted EBITDA was 2.6 times, or 2.3 times on a net debt basis.
- 2025 guidance calls for Adjusted EBITDA of $2.35 to $2.55 billion and aggregates shipments growth of 3 to 5 percent.
03—Questions
Frequently Asked Questions
Why did Vulcan redeem its 4.50% notes due 2025?
The filing states that the Company elected to redeem all $400 million aggregate principal amount of the notes. Regions Bank, as trustee, mailed the redemption notice on February 13, 2025, and the redemption is scheduled for March 28, 2025. The filing does not state a reason for the redemption.
How did Vulcan's 2024 financial performance compare with 2023?
Total revenues declined to $7.42 billion from $7.78 billion, and net earnings attributable to Vulcan fell to $912 million from $933 million. Gross profit increased to $2.00 billion from $1.95 billion, and Adjusted EBITDA rose to $2.06 billion from $2.01 billion.
What drove profitability improvements in the Aggregates segment?
Management attributed the improvement to a favorable pricing environment and operational execution. Fourth-quarter freight-adjusted selling prices increased $2.07 per ton, and freight-adjusted unit cash cost of sales rose $0.49 per ton, with aggregates cash gross profit per ton up 16 percent in the fourth quarter.
What is Vulcan's outlook for 2025?
Management expects a third consecutive year of double-digit growth in aggregates cash gross profit per ton, shipments growth of 3 to 5 percent, and freight-adjusted price improvement of 5 to 7 percent. It projects Adjusted EBITDA of $2.35 to $2.55 billion, including a $150 million contribution from acquisitions, and net earnings attributable to Vulcan of $1.01 to $1.17 billion.
How leveraged is Vulcan after its 2024 acquisitions and debt issuance?
Total debt was $5.31 billion at December 31, 2024, compared with $3.88 billion a year earlier, and the ratio of total debt to Adjusted EBITDA was 2.6 times. Net debt was $4.71 billion, or 2.3 times Adjusted EBITDA. Long-term debt issuance was $2.00 billion in 2024, and the weighted-average debt maturity was 13 years.
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