Vulcan Materials Co. reported a series of financial gains in the first quarter despite a 1 percent decrease in aggregate shipments.
The gross profit in Vulcan’s aggregate segment increased 18 percent to $357 million, and gross profit margin expanded 320 basis points to 26.7 percent.
Also in aggregates, cash gross profit per ton increased 20 percent to $10.63 per ton. This resulted from geographically widespread pricing growth and improving operational efficiencies, according to Vulcan.
Although aggregate shipments dropped 1 percent in the quarter versus the prior-year period, Vulcan says shipments from acquisitions partially offset one less shipping day in the quarter and challenging weather – particularly in February.
Aggregate price increases that Vulcan implemented at the beginning of 2025 produced another quarter of attractive growth, the company adds. Vulcan says freight-adjusted selling prices increased 7 percent versus the prior year. Freight-adjusted unit cash cost of sales decreased 3 percent, however, due to continued operational cost discipline and moderating inflationary pressures.
“The combination of our aggregates-led business and our consistent focus on our ‘Vulcan Way of Selling’ and ‘Vulcan Way of Operating’ disciplines resulted in strong earnings growth and margin expansion in the first quarter,” says Tom Hill, chairman and CEO of Vulcan Materials. “Adjusted EBITDA increased 27 percent, and adjusted EBITDA margin expanded 420 basis points over the prior year.
“Aggregates cash gross profit per ton improved 20 percent with widespread improvements across our footprint,” Hill adds. “Our commercial and operational execution support our full-year outlook to deliver another year of earnings growth in 2025.”
Hill says Vulcan continues to monitor factors such as trade policy and the trajectory of interest rates, as these impact the overall economy.
“As always, we are focused on the things we can control,” Hill says. “Our continued execution of our strategic disciplines has and will continue to lead to attractive cash generation and value creation for our shareholders regardless of external headwinds.”
Related: How Martin Marietta fared in the first quarter of 2025
