Q2 2024 Vulcan Materials Co Earnings Call Transcript
Key Points
- Vulcan Materials Co (VMC) achieved a seventh consecutive quarter of double-digit year-over-year improvement in aggregates unit profitability.
- The company generated $603 million of adjusted EBITDA and expanded its adjusted EBITDA margin by 170 basis points despite a 5% decline in aggregates shipments.
- Freight-adjusted average selling prices improved by 12% or $2.29 per ton compared to the previous year.
- Vulcan Materials Co (VMC) closed two strategic bolt-on acquisitions in Alabama and Texas, enhancing both aggregates production and distribution capabilities.
- The company returned $111 million to shareholders through quarterly dividends and common stock repurchases.
- Unfavorable weather conditions significantly impacted shipments and operating efficiencies, particularly in key markets like Nashville and Dallas-Fort Worth.
- Aggregate shipments are expected to decline between 4% and 7% for the full year due to weather-related disruptions.
- Unit freight-adjusted cash cost of sales increased by 13% or $1.13 per ton, driven by weather-driven inefficiencies.
- The growth in single-family housing demand is slower than initially anticipated, impacting overall volume expectations.
- The company raised its guidance for cost inflation from mid-single digits to high single digits, reflecting volume deleverage and weather-related inefficiencies.
Good morning. Welcome, everyone, to the Vulcan Materials Company second-quarter 2024 earnings call. My name is Todd. 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, Mr. 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
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