Q1 2024 Vulcan Materials Co Earnings Call Transcript
Key Points
- Vulcan Materials Co (VMC) reported a fourth consecutive year of double-digit adjusted EBITDA growth.
- Despite a 7% decline in year-over-year shipments, the company improved its Aggregates cash gross profit per ton by 10%.
- VMC expanded its adjusted EBITDA margin and generated $323 million of adjusted EBITDA in the quarter.
- The company successfully executed cost deceleration, with a fourth consecutive quarter of trailing 12 months cost deceleration, improving sequentially by another 230 basis points.
- VMC closed on a bolt-on Aggregates and Asphalt acquisition in Alabama, enhancing its growth strategy and market reach.
- The weather was unusually cold and wet across many geographies, impacting the quarter's performance.
- Year-over-year shipments in the Aggregates segment declined by 7% due to weather conditions.
- Weak multifamily residential construction is expected to largely offset the growth in single-family approvals this year.
- Light commercial activity remains weak, which may impact future growth in this sector.
- Continued moderation in warehouse construction is expected to be the biggest headwind to private and nonresidential demand this year.
Good morning, and welcome, everyone, to the Vulcan Materials Company First Quarter 2024 Earnings Call. My name is Jamie, and I will be your conference call coordinator today. Please be reminded that today's call is being recorded and will be available for replay later today at the company's website. (Operator Instructions)
Now I will turn the call over to your host, Mark Warren, Vice President of Investor Relations for Vulcan Materials. Mr. Warren, you may begin.
Thank you, operator, and good morning, everyone. With me today are Tom Hill, Chairman and CEO; and Mary Andrews Carlisle, Senior Vice President and Chief Financial Officer. Today's call is accompanied by a press release and a supplemental presentation posted to our website, vulcanmaterials.com.
Please be reminded that today's discussion may include forward-looking statements, which are subject to risks and uncertainties. These risks, along with other legal disclaimers, are described in detail in the company's earnings release and in
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