NYSE$VMC

Vulcan Materials Co · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong second quarter results driven by margin expansion across all product lines.

Vulcan Materials Company reported strong second quarter 2023 results, with gross margin expansion across all product lines. The company's consistent execution of its strategic disciplines and the strength of its aggregates-led business drove earnings growth. As a result, the company increased its full-year Adjusted EBITDA outlook by $150 million.

  • Aggregates gross profit margin expanded 230 basis points.
  • Cash gross profit per ton improved 23 percent to $8.98 per ton.
  • Shipments benefited from large industrial projects, and residential construction activity was better than expected.
  • Full-year Adjusted EBITDA is now expected to be $1.9 to $2.0 billion.

Headline financials

Total Revenue

$2.11B

Previous: $1.95B+8.1%
EPS (adj)

$2.29

Previous: $1.53+49.7%
Aggregates Tons Shipped

63.4

Previous: 63.8-0.6%
Aggregates Avg Price

$18.69

Previous: $16.25+15.0%
Asphalt Mix Tons

4.0M

No prior period
Asphalt Avg Price

$75.52

No prior period
Concrete Cubic Yards

2.1M

No prior period
Concrete Avg Price

$163.82

No prior period
Capital Expenditures

-$355M

Previous: -$291M-22.0%
Free Cash Flow

-$46M

Previous: -$103M+55.5%
Net Income

$309M

Previous: $187M+64.8%
Operating Income

$451M

Previous: $308M+46.7%
Gross Profit

$583M

Previous: $446M+30.7%
Cash & Equivalents

$166M

Previous: $121M+37.5%
Total Assets

$14.3B

Previous: $14.2B+1.1%
Stock-Based Comp

$16.1M

Previous: $10.7M+50.5%

Revenue & EPS history

Vulcan Materials · Revenue · Quarterly

$2.11B

Q2 2023+8.1%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Vulcan Materials · $2.26B total across 3 segments · Q2 2023

  • Aggregates
    $1.58B
  • Concrete
    $344M
  • Asphalt
    $337M

Forward guidance

Vulcan Materials increased its full-year earnings expectations to reflect aggregates shipment trends and the earnings momentum in its Asphalt segment. Aggregates shipments are expected to be down 1 to 4 percent. Net earnings attributable to Vulcan are expected to be between $855 and $935 million. Adjusted EBITDA is expected to be between $1.9 and $2.0 billion.

Tailwinds

  • Aggregates shipments have been in line with the upper end of original expectations through the first half of the year.
  • Private non-residential construction activity has remained healthy.
  • Declines in residential activity have been more moderate than anticipated.
  • Asphalt segment is experiencing earnings momentum.
  • Company is well positioned to navigate shifts in demand and deliver attractive earnings growth in 2023.

Headwinds

  • Aggregates shipments are expected to be down 1 to 4 percent.
  • Total Asphalt, Concrete and Calcium segment cash gross profit of approximately $295 million.
  • Concrete segment is reflecting the impact of the weather-challenged first quarter.
  • Forward-looking statements are subject to numerous risks, uncertainties, and assumptions.
  • Actual results, developments, and business decisions may vary significantly from those expressed in or implied by the forward-looking statements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.8%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+0.4%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+20.1%

Q3 2018

Best reaction

-8.3%

Q1 2009

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-1.3%-2.8%
Q4 2025-7.6%-6.8%-21.6%
Q3 2025-1.6%-0.9%+0.8%
Q2 2025+0.7%+3.8%+6.7%
Q1 2025+6.9%+10.1%+8.0%
Q4 2024+0.9%-6.5%-11.7%
Q3 2024+5.5%+3.6%+11.0%
Q2 2024-6.3%-5.1%-9.8%
Q1 2024+1.8%+3.3%-1.5%
Q4 2023+3.7%+4.5%+10.1%
Q3 2023-4.8%-3.4%+4.1%
Q2 2023+1.3%+1.7%-0.1%
Q1 2023+8.4%+8.1%+13.5%
Q4 2022-5.0%-7.6%-17.6%
Q3 2022+2.6%+4.5%+12.0%
Q2 2022+3.5%+2.6%-0.8%
Q1 2022+0.1%-7.9%-6.2%
Q4 2021-0.8%-2.0%-3.0%
Q3 2021+0.5%+5.5%-1.9%
Q2 2021-1.7%+1.3%-0.3%
Q1 2021+5.5%+6.7%+1.8%
Q4 2020-1.6%-0.1%+2.2%
Q3 2020-1.2%+2.7%+7.4%
Q2 2020+7.7%+10.7%+5.4%
Q1 2020-5.4%-10.1%+14.9%
Q4 2019-7.9%-8.9%-38.6%
Q3 2019-2.6%-3.2%+1.8%
Q2 2019-0.5%+2.0%+1.6%
Q1 2019+3.8%+4.9%+0.9%
Q4 2018+6.8%+6.9%+6.3%
Q3 2018+20.1%+20.8%+27.0%
Q2 2018-3.3%-2.3%-4.3%
Q1 2018+8.0%+11.5%+13.8%
Q4 2017-6.7%-8.6%-12.2%
Q3 2017+2.1%+2.3%-0.4%
Q2 2017+0.8%+1.4%+1.7%
Q1 2017+2.3%+3.6%+3.3%
Q4 2016-6.1%-4.3%-8.7%
Q3 2016-1.3%+2.4%+9.9%
Q2 2016-6.0%-4.0%-8.2%
Q1 2016+2.9%
Q4 2015+6.4%
Q3 2015+0.4%
Q2 2015+8.7%
Q1 2015-3.2%
Q4 2014+5.3%
Q3 2014+2.8%
Q2 2014-1.4%
Q1 2014-4.3%
Q4 2013+7.6%
Q3 2013+5.2%
Q2 2013+4.3%
Q1 2013+10.5%
Q4 2012-1.5%
Q3 2012+0.6%
Q2 2012-5.7%
Q4 2011-0.7%
Q1 2012+1.4%
Q3 2011-2.8%
Q2 2011+2.3%
Q1 2011+1.4%
Q4 2010-3.0%
Q3 2010+5.2%
Q4 2007+5.2%
Q2 2010-2.3%
Q1 2009-8.3%
Q1 2010+3.0%
Q4 2009-3.5%
Q4 2008-3.5%
Q3 2009+3.7%
Q3 2008+3.7%
Q2 2008-1.7%
Q2 2009-1.7%

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