Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$203.37Last close (Oct 25, 2023)
Post-Earnings Price$199.19Open (Oct 26, 2023)
Price Change
$-4.18(-2.06%)
- Vulcan Materials expects strong pricing momentum and operating disciplines in aggregates, aiming for a very strong year in 2024, with improving cash gross profit per ton as the biggest growth engine.
- The company anticipates strategic bolt-on acquisitions and a marked increase in greenfield projects over the next two years, enhancing growth opportunities and expansion in their footprint.
- Their strategic advantage in logistics services has contributed to a 10% compounded annual growth rate in profitability over the past 10 years, allowing them to service large, complex projects efficiently, providing both price and volume advantages.
- The company anticipates high single-digit cost inflation next year, particularly in diesel and energy costs, which may pressure margins. They note that costs have been more "stubborn than we would have anticipated" and are seeing "everything is sequentially staying up".
- There is uncertainty surrounding the Mexican quarry operations, with a pending NAFTA tribunal decision expected next year. The company cannot provide details but acknowledges the need to "protect our ownership of our land in Mexico". This unresolved issue may have financial implications.
- The company expresses concerns about volatility in private demand, especially in the residential construction sector, which has led to "challenged" volumes in the concrete segment. They state it's "a little early to call" for next year due to this volatility, indicating potential risks to future volumes and profitability in this segment.