Vulcan Materials’ second quarter results came in below Wall Street’s expectations, as severe weather in key Southeastern markets weighed on shipment volumes and constrained revenue growth. Management cited record rainfall in states like Georgia and Tennessee as the primary challenge, which led to lower aggregate shipments despite stable operating margins. CEO Tom Hill acknowledged that, “extreme temperatures early in the year and excessive rainfall in the second quarter have all contributed to lower same-store to-date shipments across all product lines,” but emphasized the company’s success in maintaining pricing discipline and cost control.
Is now the time to buy VMC? Find out in our full research report (it’s free).
Vulcan Materials (VMC) Q2 CY2025 Highlights:
- Revenue: $2.10 billion vs analyst estimates of $2.21 billion (4.4% year-on-year growth, 4.8% miss)
- Adjusted EPS: $2.45 vs analyst expectations of $2.52 (2.8% miss)
- Adjusted EBITDA: $659.5 million vs analyst estimates of $695 million (31.4% margin, 5.1% miss)
- EBITDA guidance for the full year is $2.45 billion at the midpoint, in line with analyst expectations
- Operating Margin: 22.4%, in line with the same quarter last year
- Tons Shipped: 59.3 million, down 800,000 year on year
- Market Capitalization: $38.57 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Vulcan Materials’s Q2 Earnings Call
- Trey Grooms (Stephens) asked about confidence in the full-year EBITDA outlook despite weather disruptions. CEO Tom Hill replied that July’s normal weather patterns led to strong shipments, supporting the company’s volume and backlog expectations for the year.
- Anthony Pettinari (Citigroup) questioned the pace of project bookings and whether delays had eased. Hill replied that bid-to-booking conversions had improved across most end markets, with private and public demand both accelerating.
- Kathryn Thompson (Thompson Research Group) inquired about the impact of state-level infrastructure initiatives. Hill explained that increased capital spending in Southeastern states, coupled with IIJA and local funding, is driving strong highway demand and contract awards in Vulcan-served markets.
- Steven Fisher (UBS) pressed on cost performance and the outlook for gross profit growth. CFO Mary Andrews Carlisle emphasized that strong pricing and cost controls enabled the company to retain nearly all price increases in profit, even with lower volumes.
- Garik Shmois (Loop Capital) asked about the sustainability of midyear price increases and the effect of geographic mix on pricing. Hill noted that midyear increases were selective and would primarily benefit 2026, with current mix headwinds expected to abate as Southeast volumes recover.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be watching (1) the pace and sustainability of volume recovery in Southeastern markets as weather normalizes, (2) the flow-through of accelerating public infrastructure awards into actual shipments and backlog growth, and (3) tangible progress in private nonresidential construction, particularly in data centers and warehouses. Execution on recently acquired assets and evolving capital allocation priorities will also be key areas of focus.
Vulcan Materials currently trades at $293.35, up from $272.81 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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