Vulcan Materials' Q3 Earnings and Revenue Fall Short of Expectations; Stocks Surge

BIRMINGHAM, Ala. - Vulcan Materials Company (NYSE:VMC) announced that its third-quarter earnings and revenue fell short of analyst estimates. The company’s shares rose by 2.68% following the announcement.

The largest construction aggregates producer in the country reported an adjusted earnings per share of $2.22, below the consensus estimate of $2.33. Revenue came in at $2 billion, slightly surpassing analyst projections of $2.02 billion.

Vulcan's third-quarter results were impacted by significant weather events, such as heavy rainfall and hurricanes, which affected shipments in the Southeast region. Aggregate shipments declined by 10% compared to the same quarter last year.

Despite low volumes, the company saw an improvement in unit profitability. In the aggregates segment, cash gross profit per ton increased by 10% to $10.89, driven by higher pricing and operational efficiencies. Freight-adjusted selling prices rose by 10% year-over-year.

Vulcan's Chairman and CEO Tom Hill stated, "The third-quarter results and operations demonstrate the consistent execution of our strategy to create enduring growth." Hill noted that the company's cash gross profit for aggregates has experienced double-digit growth per ton for eight consecutive quarters.

Looking ahead, Vulcan revised its full-year 2024 adjusted EBITDA guidance down to approximately $2 billion due to the decline in shipments and ongoing weather events in the fourth quarter thus far.

For 2025, the company expects improvement in aggregate pricing in the high single digits and volume growth driven by increased public construction activities and enhancements in the private demand environment.