Vulcan Materials Company (VMC)
NYSE:VMC
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Vulcan Materials
(NYSE:VMC)
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Rating:75Outperform
Price Target:
$294.00
▲(5.05% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by improving profitability, strong operating/free cash flow, and better leverage, reinforced by constructive 2026 guidance and backlog commentary. Technicals support the view with a clear uptrend, but the overall rating is capped by a high P/E and low dividend yield, plus macro/mix risks highlighted on the call (notably residential weakness and pricing mix noise).
Positive Factors
Margin Expansion
Vulcan has materially expanded profitability, with net margin rising to ~13.6% and EBITDA margin to ~32.3% in 2025. Sustained margin improvement from pricing discipline and cost control creates a durable earnings base, improving resilience across construction cycles and supporting cash flow.
Negative Factors
Residential Demand Exposure
Vulcan’s downstream volumes and certain market pricing remain tied to single-family housing. Management notes residential weakness may persist absent improvements in rates/affordability. Prolonged housing softness would structurally cap concrete/ready-mix recovery and limit volume upside.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Vulcan has materially expanded profitability, with net margin rising to ~13.6% and EBITDA margin to ~32.3% in 2025. Sustained margin improvement from pricing discipline and cost control creates a durable earnings base, improving resilience across construction cycles and supporting cash flow.
Read all positive factors
Vulcan Materials (VMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.55B
Dividend Yield0.67%
Average Volume (3M)1.52M
Price to Earnings (P/E)34.8
Beta (1Y)0.80
Revenue Growth6.54%
EPS Growth32.48%
CountryUS
Employees11,971
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)1.70
Shares Outstanding130,580,380
10 Day Avg. Volume1,689,136
30 Day Avg. Volume1,521,951
Financial Highlights & Ratios
PEG Ratio1.90
Price to Book (P/B)4.41
Price to Sales (P/S)4.74
P/FCF Ratio33.15
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue5.27
Enterprise Value/Gross Profit19.28
Enterprise Value/Ebitda16.27
Forecast
1Y Price Target
$328.08Price Target Upside17.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)9.33
Revenue Forecast (FY)$8.06B
Vulcan Materials Business Overview & Revenue Model
Company Description
Vulcan 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 ...
How the Company Makes Money
Vulcan makes money primarily by selling construction aggregates (crushed stone, sand, and gravel), which are its largest revenue stream. Revenue is generated by (1) extracting and processing rock and other raw materials at quarries/pits, then sell...
Vulcan Materials Key Performance Indicators (KPIs)
Any
Aggregates Shipped
Measures the volume of aggregates delivered, indicating demand for construction materials and the company’s capacity to meet market needs.
Measures the volume of aggregates delivered, indicating demand for construction materials and the company’s capacity to meet market needs.
Data provided by:
The Fly
The FlyVulcan Materials Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong financial and operational momentum — above-target aggregate cash gross profit per ton ($11.33), robust adjusted EBITDA growth (+13%), margin expansion, meaningful cash generation (+29% operating cash flow) and balance-sheet deleveraging (net debt/EBITDA 1.8x). Management provided constructive 2026 guidance (shipments +1–3%, ASP +4–6%, adjusted EBITDA $2.4–$2.6B) and highlighted a healthy backlog and a large data-center pipeline. Near-term headwinds include weaker single-family housing demand, Q4 timing/weather-related costs and mix-related price pressure from base/fill shipments and prior-year hurricane relief comps. Overall, positives (strong profitability, cash flow, leverage improvement, disciplined cost control and attractive backlog) materially outweigh the identified transitory and macro-dependent challenges.Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA of $2,300,000,000, a 13% increase versus prior year; adjusted EBITDA margin expanded 160 basis points to 29.3%.
Negative Updates
Single-Family Residential Weakness
Single-family residential activity was weaker than anticipated, putting full-year volume and pricing at the lower end of initial expectations; management expects residential to remain limited in 2026 absent improvements in interest rates/affordability, creating risk for concrete/ready-mix recovery.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA of $2,300,000,000, a 13% increase versus prior year; adjusted EBITDA margin expanded 160 basis points to 29.3%.
Read all positive updates
Company Guidance
For 2026 Vulcan guided to modest volume growth and healthy pricing: aggregate shipments are expected to rise 1–3%, freight‑adjusted average selling prices to increase 4–6%, and aggregates units cash cost of sales to increase low single‑digits, driving at least a high‑single‑digit gain in aggregates cash gross profit per ton and supporting adjusted EBITDA of $2.4–$2.6 billion (with further expansion in adjusted EBITDA margin). Management also expects downstream cash gross profit of roughly $290 million (about 85% from asphalt), SG&A of $580–$590 million, DD&A&A of ~ $700 million, interest expense of ~ $225 million, an effective tax rate of 22–23%, and operating/maintenance plus internal growth CapEx of $750–$800 million (including ~ $50 million shifted from 2025).Vulcan Materials Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.93B | 7.42B | 7.78B | 7.32B | 5.55B |
| Gross Profit | 2.17B | 2.00B | 1.95B | 1.56B | 1.37B |
| EBITDA | 2.57B | 1.98B | 2.04B | 1.53B | 1.47B |
| Net Income | 1.08B | 911.90M | 933.20M | 575.60M | 670.80M |
Balance Sheet | |||||
| Total Assets | 16.70B | 17.10B | 14.55B | 14.23B | 13.68B |
| Cash, Cash Equivalents and Short-Term Investments | 183.30M | 559.70M | 931.10M | 161.40M | 235.00M |
| Total Debt | 5.41B | 5.83B | 4.39B | 4.52B | 4.52B |
| Total Liabilities | 8.15B | 8.96B | 7.04B | 7.28B | 7.11B |
| Stockholders Equity | 8.53B | 8.12B | 7.48B | 6.93B | 6.54B |
Cash Flow | |||||
| Free Cash Flow | 1.14B | 806.10M | 664.20M | 535.60M | 560.60M |
| Operating Cash Flow | 1.81B | 1.41B | 1.54B | 1.15B | 1.01B |
| Investing Cash Flow | -529.20M | -2.81B | -163.50M | -1.05B | -1.87B |
| Financing Cash Flow | -1.70B | 1.06B | -585.60M | -175.20M | -94.30M |
Vulcan Materials Technical Analysis
Negative
279.88
Price Trends
291.51
Negative
292.23
Negative
288.11
Negative
Market Momentum
-4.96
Negative
52.98
Neutral
89.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMC, the sentiment is Negative. The current price of 279.88 is above the 20-day moving average (MA) of 267.43, below the 50-day MA of 291.51, and below the 200-day MA of 288.11, indicating a neutral trend. The MACD of -4.96 indicates Negative momentum. The RSI at 52.98 is Neutral, neither overbought nor oversold. The STOCH value of 89.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $36.55B | 34.81 | 12.79% | 0.67% | 6.54% | 32.48% | |
73 Outperform | $17.63B | 1.73 | 10.45% | 0.74% | -6.34% | 210.97% | |
72 Outperform | $36.02B | 33.02 | 11.90% | 0.51% | 1.99% | -41.08% | |
70 Outperform | $5.91B | 16.19 | 28.78% | 0.47% | 1.50% | -4.44% | |
70 Outperform | $69.92B | 10.17 | 15.21% | 1.17% | 4.28% | 0.39% | |
65 Neutral | $4.19B | 25.39 | 9.71% | ― | 5.52% | -25.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
VMC
Vulcan Materials
279.88
52.96
23.34%
CX
Cemex SAB
11.23
6.17
121.89%
EXP
Eagle Materials
187.96
-23.14
-10.96%
MLM
Martin Marietta Materials
597.18
139.81
30.57%
CRH
CRH plc
104.63
24.55
30.66%
KNF
Knife River Corporation
73.91
-10.78
-12.73%
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.