10-Q - Vulcan Materials CO (0001396009) (Filer)

Wed, Apr 30, 4:24 PM (15 days ago)

**Vulcan Materials Company (VMC, Ticker: VMC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,634.6 million, up 6% YoY. - **Gross Profit:** $365.3 million, up 20% YoY. - **Operating Earnings:** $226.4 million, up 31% YoY. - **Net Earnings:** $128.9 million, up 26% YoY. - **EPS:** $0.97, up from $0.77 YoY. - **Adjusted EBITDA:** $410.9 million, up 27% YoY. **Profit Margins:** - **Gross Margin:** 22.3%, up from 19.7% YoY. - **Operating Margin:** 13.8%, up from 11.2% YoY. - **Net Margin:** 7.9%, up from 6.6% YoY. **Cash Flow:** - **Operating Cash Flow:** $251.5 million, up 45% YoY. - **Capital Expenditures:** $105.3 million, down from $107.8 million YoY. - **Free Cash Flow:** $146.2 million, up from $65.6 million YoY. **Earnings Changes:** - **Revenue Growth:** Driven by a 6% increase in total revenues. - **Cost Management:** Effective cost control led to a 20% increase in gross profit. - **Operational Efficiency:** Improved operational efficiencies contributed to higher margins. **Quarterly Performance Discussion:** - **Aggregates Segment:** Sales increased by 3%, with a 6% increase in freight-adjusted revenues. Shipments decreased by 1%, but freight-adjusted sales price increased by 7%. - **Asphalt and Concrete Segments:** Combined gross profit increased by $6.4 million. - **Selling, Administrative, and General Expenses:** Increased by $8.6 million but remained at 8.5% of total revenues. - **Interest Expense:** Increased by $20.6 million due to higher debt levels from November 2024 notes issuances. **Trends and Uncertainties:** - **Economic Uncertainty:** Monitoring impact on economic activity from trade policy and interest rate trajectories. - **Labor Constraints:** Potential delays and inefficiencies due to labor shortages. - **Legal and Environmental Matters:** Ongoing legal proceedings and environmental remediation costs. **Future Operations Impact:** - **Capital Expenditures:** Expect to spend between $750 million and $800 million on maintenance and growth projects in 2025. - **Debt Management:** Total debt to trailing-twelve months Adjusted EBITDA is 2.3 times (2.2 times on a net debt basis). - **Shareholder Returns:** Returned $104.1 million to shareholders through dividends and share repurchases. **Outlook:** - **Full-Year Outlook:** Reiterated outlook to deliver $2,350 million to $2,550 million of Adjusted EBITDA. - **Liquidity and Financial Resources:** Strong liquidity position and balance sheet profile.