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Vulcan Materials Q3 earnings and revenue fall short of estimastes; Shares rise

EditorRachael Rajan
Published 10/30/2024, 08:26 AM
VMC
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BIRMINGHAM, Ala. - Vulcan Materials Company (NYSE:VMC) reported third quarter earnings and revenue that missed analyst estimates. The company's shares rose 2.68% following the release.

The nation's largest producer of construction aggregates posted adjusted earnings per share of $2.22, falling short of the $2.33 consensus estimate. Revenue came in at $2 billion, edging past analyst projections of $2.02 billion.

Vulcan's third quarter results were impacted by significant weather disruptions, including heavy rainfall and hurricanes, which affected shipments across the Southeast. Aggregates shipments decreased 10% compared to the prior year quarter.

Despite lower volumes, the company saw improvements in unit profitability. Cash gross profit per ton in the aggregates segment increased 10% to $10.89, driven by higher pricing and operational efficiencies. Freight-adjusted selling prices rose 10% YoY.

"Results and activities in the third quarter evidence the consistent execution of our two-pronged strategy to generate durable growth," said Tom Hill, Vulcan's Chairman and CEO. He noted the company's aggregates cash gross profit per ton has grown by double-digits for eight consecutive quarters.

Looking ahead, Vulcan lowered its full-year 2024 adjusted EBITDA guidance to approximately $2 billion, citing the decline in shipments and continued weather events so far in the fourth quarter.

For 2025, the company expects aggregates pricing to improve high-single digits and volume growth driven by increased public construction activity and an improving private demand environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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