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Vulcan Materials Company (VMC)
NYSE:VMC
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Vulcan Materials (VMC) AI Stock Analysis

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VMC

Vulcan Materials

(NYSE:VMC)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
$328.00
▲(8.24% Upside)
Vulcan Materials demonstrates strong financial performance and resilience in challenging conditions, supported by robust earnings and cash flow growth. The technical indicators suggest a bullish trend, though caution is advised due to potential overvaluation and overbought signals. The positive outlook in public infrastructure demand further supports the stock's potential, despite challenges in residential construction.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial stability.
Cash Flow Generation
Robust cash flow generation enhances financial flexibility, enabling strategic investments and debt management, crucial for sustained growth.
Public Infrastructure Demand
Increased infrastructure spending, driven by legislative support, provides a stable demand base, benefiting Vulcan's core aggregates business.
Negative Factors
Rising Liabilities
Increased liabilities can strain financial resources, potentially impacting future investment capacity and financial health.
Residential Construction Weakness
Weakness in residential construction could limit growth opportunities in this segment, affecting revenue diversification.
EBITDA Margin Decline
A declining EBITDA margin suggests rising operational costs or reduced pricing power, potentially impacting profitability.

Vulcan Materials (VMC) vs. SPDR S&P 500 ETF (SPY)

Vulcan Materials Business Overview & Revenue Model

Company DescriptionVulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The Aggregates segment provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. The Asphalt Mix segment offers asphalt mix in Alabama, Arizona, California, New Mexico, Tennessee, and Texas, as well as engages in the asphalt construction paving activity in Alabama, Tennessee, and Texas. The Concrete segment provides ready-mixed concrete in California, Maryland, New Jersey, New York, Oklahoma, Pennsylvania, Texas and Virginia, and Washington D.C. The Calcium segment mines, produces, and sells calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.
How the Company Makes MoneyVulcan Materials generates revenue primarily through the sale of construction aggregates, which account for a significant portion of its income. The company has a diversified customer base that includes contractors, government agencies, and industrial customers, allowing for stable demand across various sectors. Additional revenue is derived from its Concrete and Asphalt segment, which complements its aggregates business. Vulcan also engages in strategic partnerships and acquisitions to expand its market presence and operational efficiency. Factors contributing to its earnings include infrastructure spending, housing market trends, and regional economic growth, as well as the company's ability to leverage its extensive network of production facilities and distribution channels.

Vulcan Materials Key Performance Indicators (KPIs)

Any
Any
Aggregates Shipped
Aggregates Shipped
Chart Insights
Data provided by:Main Street Data

Vulcan Materials Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
Despite significant weather-related challenges and ongoing softness in residential construction, Vulcan Materials demonstrated resilience with improvements in EBITDA, cash flow, and pricing. The public infrastructure sector showed strong growth potential, bolstered by recent legislative funding, providing a positive outlook for future performance.
Q2-2025 Updates
Positive Updates
Adjusted EBITDA Improvement
Achieved a 9% improvement in adjusted EBITDA, totaling $660 million despite lower aggregate shipments.
Increased Cash Gross Profit Per Ton
Aggregate cash gross profit per ton grew by 13% amid challenging conditions.
Strong Cash Flow Performance
Operating cash flow improved by 58%, and free cash flow surpassed $1 billion on a trailing 12-month basis.
Price Improvements
Freight-adjusted average selling prices improved by 5%, and on a mix-adjusted basis, average selling prices improved by 8%.
Public Infrastructure Growth
Highway contract awards in Vulcan markets increased by over 20% year-over-year, supported by IIJA funding.
Negative Updates
Weather Impact on Shipments
Extreme weather conditions, including record rainfall, led to a reduction in aggregate shipments by 2 to 3 million tons in key markets.
Residential Construction Weakness
Residential construction activity remains weak, particularly in single-family housing due to persistent affordability challenges.
Challenges in Ready-Mix Business
The ready-mix business was impacted by softer private demand and weather conditions, though price improvements were noted.
Company Guidance
During the Vulcan Materials Company Second Quarter 2025 Earnings Call, the company provided detailed guidance for the remainder of the year. They expect to achieve between $2.35 billion and $2.55 billion in adjusted EBITDA, despite a challenging first half impacted by extreme weather conditions. Adjusted EBITDA for the quarter reached $660 million, a 9% increase over the previous year, even with lower aggregate shipments. The company's aggregate cash gross profit per ton increased by 13%, and margins expanded by 260 basis points. Price improvements were broad, with a 5% increase in freight-adjusted average selling prices and an 8% increase on a mix-adjusted basis. Vulcan highlighted strong performance in their aggregate cash gross profit, now over $11.25 per ton, up more than 50% from three years ago. Despite persistent affordability challenges in residential construction, multifamily starts showed signs of improvement. Trailing 12-month highway contract awards in Vulcan's markets surged over 20% by the end of June, supported by IIJA funding. The company also reported a 58% improvement in operating cash flow and expects full-year maintenance and capital expenditures to total approximately $700 million, with an acceleration in the second half.

Vulcan Materials Financial Statement Overview

Summary
Vulcan Materials maintains a strong financial position with consistent revenue growth and profitability. The company shows effective operational efficiency and a solid balance sheet, evidenced by manageable debt levels and strong returns on equity. Cash flow generation is robust, though attention to rising liabilities and capital expenditures is warranted to maintain financial health.
Income Statement
85
Very Positive
Vulcan Materials demonstrates robust revenue growth with a TTM revenue increase of 2.38% compared to the previous year. The gross profit margin is strong at 27.55%, and the net profit margin is healthy at 12.52%. EBIT margin stands at 18.90%, indicating solid operational efficiency. However, EBITDA margin declined in the TTM to 16.60% from a higher value in the previous year, suggesting potential increased operating expenses or lower non-operating income.
Balance Sheet
80
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.58, which is manageable for the industry. The equity ratio is 49.53%, indicating a balanced spread between equity and total assets. Return on equity is strong at 11.31%, reflecting effective use of shareholders’ funds. However, the company's total liabilities increased, which could indicate growing leverage.
Cash Flow
78
Positive
Vulcan Materials shows a significant free cash flow growth rate of 36.23% in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio of 1.71 suggests healthy cash flow relative to net income. However, the free cash flow to net income ratio is 1.15, indicating a slight decrease when compared to the previous year, suggesting increased capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.59B7.42B7.78B7.32B5.55B4.86B
Gross Profit2.09B2.00B1.95B1.56B1.37B1.28B
EBITDA2.12B1.98B2.04B1.53B1.47B1.28B
Net Income951.10M911.90M933.20M575.60M670.80M584.50M
Balance Sheet
Total Assets16.97B17.10B14.55B14.23B13.68B11.69B
Cash, Cash Equivalents and Short-Term Investments347.40M559.70M931.10M161.40M235.00M1.20B
Total Debt5.45B5.83B4.39B4.52B4.52B3.69B
Total Liabilities8.54B8.96B7.04B7.28B7.11B5.66B
Stockholders Equity8.41B8.12B7.48B6.93B6.54B6.03B
Cash Flow
Free Cash Flow1.10B806.10M664.20M535.60M560.60M708.16M
Operating Cash Flow1.63B1.41B1.54B1.15B1.01B1.07B
Investing Cash Flow-2.52B-2.81B-163.50M-1.05B-1.87B-381.51M
Financing Cash Flow1.13B1.06B-585.60M-175.20M-94.30M234.66M

Vulcan Materials Technical Analysis

Technical Analysis Sentiment
Positive
Last Price303.02
Price Trends
50DMA
287.91
Positive
100DMA
276.48
Positive
200DMA
264.53
Positive
Market Momentum
MACD
3.04
Positive
RSI
62.36
Neutral
STOCH
71.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMC, the sentiment is Positive. The current price of 303.02 is above the 20-day moving average (MA) of 295.60, above the 50-day MA of 287.91, and above the 200-day MA of 264.53, indicating a bullish trend. The MACD of 3.04 indicates Positive momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 71.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VMC.

Vulcan Materials Risk Analysis

Vulcan Materials disclosed 23 risk factors in its most recent earnings report. Vulcan Materials reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Vulcan Materials Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$76.46B23.7615.46%1.28%3.85%-0.93%
76
Outperform
$39.54B41.8411.89%0.64%0.19%4.33%
76
Outperform
$7.54B17.1130.36%0.43%0.88%-4.17%
76
Outperform
$37.01B34.0011.76%0.52%1.02%-45.31%
73
Outperform
$13.66B8.777.71%0.96%-9.62%795.20%
63
Neutral
$4.17B27.3610.49%2.64%-22.49%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VMC
Vulcan Materials
303.02
57.35
23.34%
CX
Cemex SAB
9.05
3.21
54.97%
EXP
Eagle Materials
233.01
-49.60
-17.55%
MLM
Martin Marietta Materials
621.25
89.33
16.79%
CRH
CRH plc
114.59
25.07
28.01%
KNF
Knife River Corporation
73.98
-14.51
-16.40%

Vulcan Materials Corporate Events

Executive/Board ChangesShareholder Meetings
Vulcan Materials Holds Annual Shareholder Meeting
Neutral
May 12, 2025

On May 9, 2025, Vulcan Materials held its Annual Meeting where shareholders voted on several key proposals. The election of directors resulted in the appointment of Lydia H. Kennard, Kathleen L. Quirk, David P. Steiner, and Lee J. Styslinger, III to three-year terms. Additionally, the 2025 Omnibus Long-Term Incentive Plan was approved, as well as an advisory vote on executive compensation. The appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 was also ratified.

The most recent analyst rating on (VMC) stock is a Buy with a $297.00 price target. To see the full list of analyst forecasts on Vulcan Materials stock, see the VMC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025