Vulcan Materials Co. reported decreases in total revenue, gross profit, aggregate shipments, aggregate revenue and aggregate gross profit in the third quarter.
Amid those declines, aggregate gross profit per ton grew 8.5 percent in the quarter to $8.63 per ton. Aggregate pricing also increased, up 10 percent to $21.27 per ton.
Vulcan’s total revenue was down 8.3 percent to $2 billion, and gross profit fell 4.4 percent to $565 million.
Within the company’s aggregate segment, shipments were down 9.8 percent to 57.7 million tons; revenue was down 3.4 percent to $1.57 billion; and gross profit was down 2 percent to $498.5 million.
Vulcan attributed these declines, in part, to inclement weather throughout the quarter, which included hurricanes and severe storms in August and September. According to Vulcan, last year’s third quarter had fewer severe weather events.
“Results and activities in the third quarter evidence the consistent execution of our two-pronged strategy to generate durable growth,” says Tom Hill, chairman and CEO of Vulcan. “We continue to enhance our core through expansion of our industry-leading aggregates cash gross profit per ton, which increased 10 percent in the third quarter and has grown by double-digits for eight consecutive quarters.
“We also recently announced the acquisition of Wake Stone Corp., a leading pure-play aggregates producer, that will expand our reach in high-growth geographies in the Carolinas,” Hill adds. “Our Vulcan way of selling and Vulcan way of operating disciplines remain fundamental to compounding profitability across our franchise and successfully integrating new operations.”
Despite the negative impact of severe weather in the quarter, Hill’s outlook for the rest of the year and into 2025 is positive.
“While significant weather disruptions have impacted construction activity through the first nine months of the year, overall demand fundamentals continue to underpin long-term growth,” Hill says. “The pricing environment remains positive, and we continue to execute well. Given the decline in shipments to date and continued weather events so far in the fourth quarter, we now expect full-year adjusted EBITDA of approximately $2 billion.
“As we look to 2025, we expect aggregates price to improve high-single digits, costs to benefit from our Vulcan way of operating disciplines and moderating inflation, and, most importantly, cash gross profit per ton to continue expanding at double-digit levels,” Hill adds. “A demand backdrop underpinned by growth in public construction activity and an improving private demand environment should lead to volume growth in 2025. Our steadfast focus to execute at the highest level – both commercially and operationally – positions us well to capitalize on improving volume and grow earnings.”
