On August 6, 2024, Vulcan Materials Co (VMC, Financial) released its 8-K filing for the quarter ended June 30, 2024. Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2023, Vulcan sold 234.3 million tons of aggregates, 13.4 million tons of asphalt mix, and 7.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.
Performance Overview
Vulcan Materials Co (VMC, Financial) reported total revenues of $2,014 million for Q2 2024, a decrease from $2,113 million in Q2 2023. Despite the revenue decline, the company maintained its net earnings attributable to Vulcan at $308 million, consistent with the same period last year. Earnings per diluted share from continuing operations were $2.33, below the analyst estimate of $2.56.
Financial Achievements and Challenges
Gross profit for the quarter increased to $592 million from $583 million in the previous year, driven by strong performance in the aggregates segment. The aggregates segment saw a 6% increase in gross profit to $529 million, with a gross profit margin expansion of 120 basis points. However, aggregates shipments decreased by 5% due to significant rainfall in key markets, particularly in Texas and the Southeast.
Tom Hill, Vulcan Materials’ Chairman and Chief Executive Officer, stated, “Our aggregates-led business delivered another quarter of earnings growth and margin expansion. Even with significant rainfall disrupting construction activity and operating efficiencies, our aggregates cash gross profit per ton increased 12 percent. Gross profit margin expanded 120 basis points. These results demonstrate our consistent execution and the durable characteristics of our business.”
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $2,014 million | $2,113 million |
| Gross Profit | $592 million | $583 million |
| Net Earnings Attributable to Vulcan | $308 million | $309 million |
| Earnings per Diluted Share | $2.33 | $2.33 |
Balance Sheet and Cash Flow
As of June 30, 2024, Vulcan Materials reported total assets of $14,216 million, a slight decrease from $14,546 million at the end of 2023. The company maintained a strong liquidity position with cash and cash equivalents of $111 million. Capital expenditures for the quarter were $195 million, contributing to a year-to-date total of $298 million. Vulcan Materials also returned $111 million to shareholders through stock repurchases and dividends.
Segment Performance
The aggregates segment continued to be the primary driver of Vulcan Materials' performance. Despite lower shipments due to adverse weather conditions, the segment achieved a 12% increase in cash gross profit per ton. The asphalt segment reported a gross profit of $59 million, with a 7% improvement in cash gross profit. The concrete segment, however, saw a decline in gross profit due to the divestiture of concrete assets in Texas.
Outlook
Looking ahead, Vulcan Materials remains optimistic about the pricing environment and overall demand fundamentals. The company expects continued growth in aggregates cash gross profit per ton for the remainder of the year, despite the challenges posed by weather disruptions.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Vulcan Materials Co for further details.
