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Vulcan Materials
(NYSE:VMC)
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Rating:68Neutral
Price Target:
$339.00
▲(16.21% Upside)
Action:Downgraded
Date:05/12/26
The score is driven primarily by strong underlying profitability and cash generation (expanding margins and solid operating cash flow), supported by a generally positive earnings-call outlook with reaffirmed EBITDA guidance. This is tempered by a weak/mixed technical setup and a demanding valuation (high P/E with a low dividend yield), which increases downside sensitivity if costs or demand weaken.
Positive Factors
Margin Expansion / Profitability
Material margin expansion over the last several years indicates durable pricing power and improved cost structure. Higher gross and net margins enhance earnings resilience across cycles, supporting sustained operating profitability and free cash flow generation over the next 2–6 months.
Negative Factors
Cyclical & Uneven Revenue Patterns
Material cyclicality in construction demand creates uneven revenue and backlog conversion risk. Volatile top-line trends mean earnings and cash flow can swing materially with U.S. infrastructure, residential and commercial cycles, limiting predictability of results over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion / Profitability
Material margin expansion over the last several years indicates durable pricing power and improved cost structure. Higher gross and net margins enhance earnings resilience across cycles, supporting sustained operating profitability and free cash flow generation over the next 2–6 months.
Read all positive factors
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 (VMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.28B
Dividend Yield0.67%
Average Volume (3M)1.21M
Price to Earnings (P/E)34.9
Beta (1Y)0.73
Revenue Growth7.41%
EPS Growth19.13%
CountryUS
Employees11,971
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)8.45
Shares Outstanding129,754,880
10 Day Avg. Volume1,345,173
30 Day Avg. Volume1,206,622
Financial Highlights & Ratios
PEG Ratio1.91
Price to Book (P/B)4.41
Price to Sales (P/S)4.74
P/FCF Ratio33.15
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue5.36
Enterprise Value/Gross Profit19.43
Enterprise Value/Ebitda16.65
Forecast
1Y Price Target
$319.07Price Target Upside9.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)9.23
Revenue Forecast (FY)$8.16B
Vulcan Materials Business Overview & Revenue Model
Company Description
Vulcan Materials Company, alongside its affiliated entities, stands as a prominent producer and distributor of construction aggregates, primarily operating within the United States. The company's activities are organized into four distinct divisio...
How the Company Makes Money
Vulcan makes money primarily by selling construction aggregates—crushed stone, sand, and gravel—which typically represent the company’s largest revenue stream. Revenue is generated on a per-ton basis, with realized earnings driven by shipment volu...
Vulcan Materials Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial picture: Q1 delivered higher adjusted EBITDA (+9%), shipment growth (+5%), improved mix-adjusted pricing (+4%), margin expansion, strong cash generation ($1.8B TTM) and a healthy balance sheet (debt down ~$350M; net leverage 1.9x). Management reaffirmed full-year adjusted EBITDA guidance ($2.4B–$2.6B), highlighted an advantaged footprint with stronger public and data-center driven demand, active M&A/greenfield pipeline and ongoing cost discipline. The primary near-term negatives are energy/diesel-driven cost pressure (estimated ~$25M Q2 impact), modestly lower pricing vs. tougher comps and continued residential weakness. Overall, the balance of material positives (profitability, cash flow, balance sheet, pricing traction and market positioning) outweighs the identified near-term headwinds.Positive Updates
Adjusted EBITDA Growth
Generated $447 million of adjusted EBITDA in Q1, a 9% increase versus the prior year, and reaffirmed full-year adjusted EBITDA guidance of $2.4 billion to $2.6 billion.
Negative Updates
Short-Term Diesel/Energy Cost Headwind
Retail diesel price increase generated an expected near-term headwind of approximately $25 million in Q2; aggregates freight-adjusted unit cash cost of sales increased 4% year-over-year in Q1. Management expects second-quarter costs to be most impacted before pricing actions flow through.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA Growth
Generated $447 million of adjusted EBITDA in Q1, a 9% increase versus the prior year, and reaffirmed full-year adjusted EBITDA guidance of $2.4 billion to $2.6 billion.
Read all positive updates
Company Guidance
Vulcan reiterated full‑year adjusted EBITDA guidance of $2.4–$2.6 billion after a solid Q1: adjusted EBITDA was $447 million (up 9% YoY), aggregate shipments rose 5% and mix‑adjusted aggregates freight‑adjusted price improved 4% while aggregates freight‑adjusted unit cash cost of sales increased 4%; trailing 12‑month aggregate cash gross profit per ton was $11.38 (management target $20/ton). Management expects 2026 shipments growth and accelerating pricing (midyear increases underway), sees a near‑term diesel headwind of roughly $25 million in Q2 (≈57 million gallons burned annually) that could push Q2 cash costs toward the high‑single‑digit YoY range but still expects low‑single‑digit cost growth for the full year; trailing 12‑month cash from operations was $1.8 billion, TTM capex $686 million (≈70% maintenance, 30% growth), capital returns >$800 million (dividends $262M, buybacks $550M including $149M in Q1), total debt $4.6 billion (≈$350M lower YoY) with net debt/adjusted EBITDA ~1.9x, TTM SG&A $562M (7% of revenue, down 20 bps) and trailing‑12‑month ROIC 16% (up 30 bps), while trailing‑12‑month highway awards in their markets are +12% and public infrastructure awards +17%, and ~60% of large projects sit within 50 miles of a Vulcan facility.Vulcan Materials Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.05B | 7.93B | 7.42B | 7.78B | 7.32B | 5.55B |
| Gross Profit | 2.22B | 2.17B | 2.00B | 1.95B | 1.56B | 1.37B |
| EBITDA | 2.59B | 2.57B | 1.98B | 2.04B | 1.53B | 1.47B |
| Net Income | 1.12B | 1.08B | 911.90M | 933.20M | 575.60M | 670.80M |
Balance Sheet | ||||||
| Total Assets | 16.67B | 16.70B | 17.10B | 14.55B | 14.23B | 13.68B |
| Cash, Cash Equivalents and Short-Term Investments | 140.20M | 183.30M | 559.70M | 931.10M | 161.40M | 235.00M |
| Total Debt | 5.09B | 5.41B | 5.83B | 4.39B | 4.52B | 4.52B |
| Total Liabilities | 8.20B | 8.15B | 8.96B | 7.04B | 7.28B | 7.11B |
| Stockholders Equity | 8.45B | 8.53B | 8.12B | 7.48B | 6.93B | 6.54B |
Cash Flow | ||||||
| Free Cash Flow | 1.12B | 1.14B | 806.10M | 664.20M | 535.60M | 560.60M |
| Operating Cash Flow | 1.80B | 1.81B | 1.41B | 1.54B | 1.15B | 1.01B |
| Investing Cash Flow | -577.60M | -529.20M | -2.81B | -163.50M | -1.05B | -1.87B |
| Financing Cash Flow | -1.27B | -1.70B | 1.06B | -585.60M | -175.20M | -94.30M |
Vulcan Materials Technical Analysis
Positive
291.71
Price Trends
285.89
Positive
287.20
Positive
290.84
Positive
Market Momentum
8.09
Negative
65.32
Neutral
81.09
Negative
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 291.71 is below the 20-day moving average (MA) of 292.26, above the 50-day MA of 285.89, and above the 200-day MA of 290.84, indicating a bullish trend. The MACD of 8.09 indicates Negative momentum. The RSI at 65.32 is Neutral, neither overbought nor oversold. The STOCH value of 81.09 is Negative, 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 46 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 | $34.63B | 13.77 | 25.07% | 0.51% | -1.28% | 140.98% | |
75 Outperform | $71.50B | 18.33 | 23.51% | ― | 6.33% | 14.09% | |
70 Outperform | $18.13B | 37.01 | 3.40% | 0.74% | 5.01% | -67.33% | |
68 Neutral | $38.28B | 34.89 | 13.10% | 0.67% | 7.41% | 19.13% | |
65 Neutral | $6.94B | 16.59 | 28.27% | 0.47% | 2.13% | -4.85% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $4.75B | 32.29 | 9.35% | ― | 9.57% | -18.90% |
* Basic Materials Sector Average
VMC
Vulcan Materials
295.01
31.22
11.83%
CX
Cemex SAB
12.00
4.89
68.85%
EXP
Eagle Materials
225.00
12.26
5.76%
MLM
Martin Marietta Materials
576.70
21.00
3.78%
CRH
CRH plc
107.00
13.84
14.85%
KNF
Knife River Corporation
83.65
2.44
3.00%
Vulcan Materials Corporate Events
Executive/Board ChangesShareholder Meetings
Vulcan Materials President Announces Upcoming Retirement Transition
Positive
May 11, 2026
Vulcan Materials Company announced that President Thompson S. Baker II notified the company on May 11, 2026, that he will retire from his role effective July 15, 2026, marking an upcoming leadership transition at the construction materials produce...
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.