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- **Record Profit Growth**: Adjusted EBITDA up 27% YoY to $735 million, driven by 9% unit margin expansion and 2% cost reductions.
- **Demand Diversification**: Public construction (highways, data centers) offsetting single-family residential weakness, with private nonres starts up 8% YoY.
- **Operational Excellence**: Early-stage efficiency gains from Vulcan Way of Operating expected to accelerate in 2026, with unit margin growth exceeding historical averages.
- **Strategic Focus**: Divestiture of non-core assets and disciplined M&A pipeline support long-term aggregates-led growth.


**【CEO Summary Section】**
- **Revenue Growth**: Full year shipments expected to increase 3% year-over-year, driven by public construction and private nonresidential demand. Third-quarter adjusted EBITDA of $735 million, up 27% YoY.
- **Unit Profitability**: Aggregates cash gross profit per ton improved 9% in Q3, with cost reductions of 2% YoY due to operational efficiency and lower inflation.
- **Demand Trends**: Public construction (highways, data centers) strong, while single-family residential remains weak. Private nonresidential starts up 8% YoY in trailing 3 months.
- **Strategic Moves**: Divested asphalt and construction services assets to focus on aggregates-led growth. Greenfield projects and M&A pipeline remains active in high-demand markets.

**【CFO Financial Commentary】**
- **Cash Flow**: Free cash flow of $1.0 billion (94% conversion) for trailing 12 months, with $700 million in capex for 2025. Return on invested capital improved 40 bps YoY.
- **Leverage**: Debt-to-EBITDA ratio maintained below 2.5x target range. Share buybacks and dividends returned $300 million to shareholders.
- **Cost Control**: SAG expenses stable at 7.2% of revenue, benefiting from operational efficiency and lower fuel costs.

**【Q&A Highlights】**
- **2026 Outlook**: Modest volume growth (~3%), 5%+ pricing improvement driven by public infrastructure and private nonres demand. Single-family housing recovery expected in 2026H2.
- **Operational Efficiency**: Early stages of Vulcan Way of Operating (technology, labor optimization) expected to drive further cost reductions in 2026+. Unit margin growth to exceed historical averages.
- **M&A Strategy**: Aggregate-led acquisitions and greenfield projects focused on high-demand geographies (SE U.S., data center hubs). No immediate plans for large-scale M&A, but pipeline remains active.
- **Risk Factors**: Single-family residential weakness could persist, but public construction tailwinds (IIJA funding) provide resilience.


Vulcan Materials Company (VMC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

VMC

VMC fundamentals

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