Vulcan Materials Co. reported its fourth-quarter and year-end 2024 results Tuesday, noting that several quarterly gains were made in its aggregate segment despite a 3 percent decrease in shipments.
According to Vulcan, its fourth-quarter aggregate segment gross profit increased 15 percent to $486 million. The company’s cash gross profit per ton in aggregates improved 16 percent to $11.50 per ton, resulting from continued pricing growth and moderating cost trends.
“Our aggregates-led business delivered a strong finish to the year,” says Tom Hill, chairman and CEO of Vulcan.
Although aggregate shipments were down in the fourth quarter, Vulcan says underlying demand and the weather proved favorable. The pricing environment was also positive, the company says, with freight-adjusted aggregate selling prices increasing 11 percent versus the prior year’s fourth quarter, with all Vulcan markets realizing year-over-year improvement.
“As we look to 2025, the pricing environment remains favorable, and we are focused on our operating disciplines to manage costs and improve efficiencies,” Hill says. “By controlling what we can control, we expect to deliver 19 percent growth in adjusted EBITDA (earnings before interest, tax, depreciation and amortization).”
Hill says Vulcan carries solid momentum into 2025 and that the company is well positioned to deliver another year of strong earnings growth and cash generation. Vulcan management expects 2025 to yield a third consecutive year of double-digit, year-over-year growth in aggregate segment cash gross profit per ton. The company also anticipates aggregate shipment growth of 3 to 5 percent in 2025.
“Continued strength in public construction activity and our recent acquisitions support our expectations for volume growth in 2025,” Hill says. “The pricing environment remains positive, and inflationary pressures continue to moderate. This backdrop, coupled with our ‘Vulcan Way of Selling’ and ‘Vulcan Way of Operating,’ disciplines will lead to further expansion in our industry-leading aggregates cash gross profit per ton and value creation for our shareholders.”
In 2024, Vulcan completed the acquisitions of Wake Stone Corp. in the Carolinas and Superior Ready Mix Concrete in Southern California. The company also completed bolt-on acquisitions in Alabama and Texas.
Related: Weather impacts Vulcan performance in third quarter
