Research Analyst at Jefferies Financial Group Inc.
Jesse Barone, CFA, is Vice President of Equity Research at Jefferies Financial Group Inc. in New York, where he specializes in coverage of infrastructure, building materials, and closely follows companies such as Vulcan Materials. With a research career spanning both Jefferies and a prior role as Equity Research Associate at Seaport Research Partners from 2023 to 2024, Barone is recognized for his rigorous financial analysis and sector expertise. His analytical performance and equity calls have contributed to competitive insights for institutional investors, leveraging strong credentials including the Chartered Financial Analyst (CFA) designation. Barone’s professional background demonstrates a trajectory of increasing responsibility and expertise in equities research within leading financial firms.
Jesse Barone asked about Vulcan's M&A pipeline, considering its dry powder post-divestitures, and any particular target geographies.
Ronnie Pruitt, COO, noted ongoing greenfield initiatives and a strong list of M&A targets, though the year has been quiet due to market uncertainties. He assured that Vulcan remains active, with M&A opportunities continuing to be aggregate-led.
Jesse Barone, on for Philip Ng at Jefferies, asked about the asphalt business, specifically how falling oil prices translate into Vulcan's pricing and costs, and what the associated time lags are.
CEO James Hill reported a strong quarter for the asphalt business, with cash gross profit up 24% despite cold weather. He acknowledged about $3 million in savings from lower liquid asphalt costs. Hill stated that the segment continues to perform very well, supported by the strong public demand growth which benefits both the asphalt business and its aggregate component.
Jesse Barone, on behalf of Philip Ng, asked for details on the puts and takes for the 2025 EBITDA margin guidance, including internal initiatives and cost pressures. He also inquired about any expected variance between margins on imported versus domestically produced cement.
CFO Lawrence Wilt identified offsetting energy cost trends (natural gas up, diesel down) and the management of labor inflation as key factors. CEO Vassilios Zarkalis highlighted the company's strategy of using its flexible model to capture growth while leveraging logistics and digitalization investments to manage costs and expand margins. Regarding import margins, Wilt reiterated that the company takes an integrated approach, optimizing the total cost of materials and logistics to serve customers, with no specific variance to call out.
Performance on expert-authored financial analysis tasks