Executive Summary

Q4 2024 delivered margin-led growth: Adjusted EBITDA rose to $550.1M (+16% YoY) and Adjusted EBITDA margin expanded 370 bps to 29.7% on strong pricing and moderating cost trends, while total revenue was $1,853.6M (+1% YoY) and diluted EPS (cont. ops) was $2.23 .
Aggregates pricing remained robust (+11% YoY); unit cash cost increased 5% YoY; shipments fell 3% YoY as public end-markets offset softer private activity; aggregates cash gross profit per ton reached $11.50 (+16% YoY) .
2025 guidance implies double‑digit earnings growth: Adjusted EBITDA $2.35–$2.55B (incl. ~$150M from acquisitions), net income $1.01–$1.17B, aggregates shipments +3–5% and price +5–7% (with >100 bps adverse mix from acquisitions), SAG $550–$560M, capex $750–$800M, tax 22–23% .
Capital and shareholder returns: net debt/TTM Adjusted EBITDA 2.3x with $600.8M cash; Board raised the quarterly dividend 7% to $0.49 (8th straight increase), reinforcing confidence in 2025 outlook .

What Went Well and What Went Wrong

What Went Well

Pricing power and cost discipline: Aggregates freight‑adjusted price +11% YoY; unit cash cost +5% YoY; aggregates cash gross profit/ton +16% to $11.50, marking the 11th consecutive YoY increase; Adjusted EBITDA margin +370 bps YoY .
Management execution and outlook: “We expect to deliver 19 percent growth in Adjusted EBITDA” in 2025, underpinned by healthy pricing and moderating inflation; formal Adjusted EBITDA guidance $2.35–$2.55B .
Public end‑market strength and storm‑rebuild tailwinds: Ongoing IIJA/state funding and robust data center activity (about 7% of proposed data centers within 20 miles of a Vulcan facility) support demand into 2025 .

What Went Wrong

Volume softness: Aggregates shipments down 3% YoY in Q4 as private construction remained a headwind; Concrete gross profit declined YoY given prior-year divestiture comp and lower volumes ($4.6M vs. $11.4M) .
Mixed costs and charges: Other operating expense rose to $45.8M in Q4 (vs. $13.4M) from a $17M charge on previously divested operations and ~$8M acquisition costs; GAAP earnings benefited from $47.7M gain on sale of assets .
Early 2025 weather and cadence: Management indicated a slow start to Q1 shipments due to cold/snow; 2025 volume growth likely back‑half weighted, with private nonresidential still expected down for the year before a potential 2H stabilization .

Financial Results

Key financials – sequential view (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$2,014.4	$2,003.9	$1,853.6
Adjusted EBITDA ($M)	$603.1	$580.6	$550.1
Adjusted EBITDA Margin (%)	29.9%	29.0%	29.7%
Diluted EPS – Cont. Ops ($)	$2.33	$1.57	$2.23
Adjusted Diluted EPS – Cont. Ops ($)	$2.35	$2.22	$2.17

Year-over-year comparison (Q4 2024 vs Q4 2023)

Metric	Q4 2023	Q4 2024
Revenue ($USD Millions)	$1,834.3	$1,853.6
Adjusted EBITDA ($M)	$476.1	$550.1
Adjusted EBITDA Margin (%)	26.0%	29.7%
Diluted EPS – Cont. Ops ($)	$1.72	$2.23
Adjusted Diluted EPS – Cont. Ops ($)	$1.46	$2.17

Segment breakdown – Q4 2024 vs Q4 2023

Segment	Revenues Q4’23 ($M)	Revenues Q4’24 ($M)	Gross Profit Q4’23 ($M)	Gross Profit Q4’24 ($M)
Aggregates	$1,413.0	$1,472.3	$424.5	$486.5
Asphalt	$286.4	$327.1	$36.3	$46.1
Concrete	$256.0	$163.5	$11.4	$4.6

KPIs – pricing, volumes, unit profits (Q4 YoY)

KPI (Aggregates unless noted)	Q4 2023	Q4 2024
Shipments (tons, M)	55.3	53.9
Freight‑adjusted sales price/ton ($)	19.34	21.41
Gross profit per ton ($)	7.67	9.02
Cash gross profit per ton ($)	9.92	11.50
Asphalt mix – tons (M)	3.3	3.4
Asphalt mix – sales price ($/ton)	76.92	82.11
Ready‑mix – yards (M)	1.5	0.9
Ready‑mix – sales price ($/yd)	173.83	183.07

Notes on non‑GAAP: Adjusted EBITDA excludes items including loss on discontinued operations, net gains on sale of assets, charges tied to divested operations, acquisition‑related charges, and impairments; Adjusted diluted EPS reconciles accordingly .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA	FY 2025	Preliminary commentary: “expect aggregates price to improve high single digits, volume growth in 2025” (no formal range)	$2.35–$2.55B; includes ~$150M from acquisitions	Formalized range; explicit M&A contribution
Net earnings attributable to Vulcan	FY 2025	N/A	$1.01–$1.17B	New
Aggregates shipments	FY 2025	“Volume growth in 2025” (no % given)	+3% to +5% (vs. 219.9M tons in 2024)	Clarified to 3–5%
Aggregates price	FY 2025	High single‑digit improvement	+5% to +7%, includes >100 bps negative mix from acquisitions	Slightly lower midpoint due to mix
Aggregates unit cash cost	FY 2025	Costs to moderate via Vulcan Way of Operating (no figure)	Low‑to‑mid single‑digit increase	Quantified
Asphalt & Concrete cash GP	FY 2025	N/A	~$360M; ~2/3 Asphalt, ~1/3 Concrete	New
SAG	FY 2025	$550–$560M (2024 FY expectation)	$550–$560M	Maintained
Interest expense	FY 2025	~$155M (2024 FY)	~$245M	Higher on new debt
Capex	FY 2025	$625–$675M (2024 FY)	$750–$800M	Raised for plant rebuilds and acquisitions
D, D&A and accretion	FY 2025	~$610M (2024 FY)	~ $800M	Higher on larger asset base
Effective tax rate	FY 2025	22–23% (2024)	22–23%	Maintained
Dividend	Ongoing	$0.46/qtr prior	$0.49/qtr (+7%)	Increased

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Pricing cadence	Successful mid‑year pricing; set foundation for 2025; 10–12% FY price increase expected	2025 aggregates price +5–7%; >100 bps negative mix from recent acquisitions; mid‑years to be announced, not in guide	Normalization from double-digit to high‑single digits with mix headwind
Aggregates unit profitability	Cash GP/ton up double‑digit for 7–8 straight quarters; targeting $11–$12/ton	$11.50 in Q4; 3rd consecutive year of double‑digit YoY expansion expected in 2025	Sustained double‑digit unit margin growth
Public/IIJA funding	Steady multi‑year growth; record state funding; strong backlog conversion	No policy headwind; continued public strength; storm rebuild supports volumes	Positive, multi‑year
Private nonresidential	Warehouse down; manufacturing/data centers a tailwind	2025 private nonresidential still down overall, with improving trends 2H; data centers robust	Bottoming by mid‑2025; selective strength
Residential	Single‑family improving; multifamily weak; pace depends on rates/affordability	Single‑family modest growth; multifamily still declining; overall back‑half volume support	Gradual improvement, rate‑sensitive
Cost inflation/operations tech	High‑single digit unit cash cost for 2024; expanding “Vulcan Way of Operating”	2025 unit cash cost low‑to‑mid single digit; diesel slightly up, wages mid‑single digit, electricity high‑single digit; efficiency offsets	Cost moderation with efficiency gains
M&A/portfolio	Active pipeline; bolt‑ons closed; Wake Stone announced	Wake Stone and Superior Ready Mix add reserves and downstream; ~60% of 2025 EBITDA contribution from Aggregates, 40% downstream	Accretive, mix headwind near‑term on price
Tariffs/regulatory	N/A	Tariff impact negligible; Mexico arbitration pending	Limited direct impact

Management Commentary

“Adjusted EBITDA in the fourth quarter improved 16 percent, and Adjusted EBITDA margin expanded 370 basis points… exiting 2024 with aggregates cash gross profit per ton at $11.50.” – Tom Hill, CEO .
“We expect freight‑adjusted aggregate price to grow between 5% and 7% in 2025… includes an over 100 basis point negative mix impact from recent acquisitions.” – Tom Hill .
“We estimate that recent acquisitions will contribute approximately $150 million of adjusted EBITDA in 2025… we forecast SAG $550–$560M, D,D&A ~ $800M, interest ~ $245M, tax 22–23%.” – Mary Andrews Carlisle, CFO .
“We will absolutely announce midyear price increases… not included in our guide… better impact on 2026 than 2025.” – Tom Hill .
“Diesel up slightly, wages mid-single-digit, electricity up high single digit… partially offset by improved operating efficiencies.” – Tom Hill .

Q&A Highlights

Pricing and cadence: 2025 price +5–7% despite >100 bps mix drag; mid‑year increases to be announced and could set up 2026; January 1 actions remain the majority .
Volumes and seasonality: Early 2025 cold/snow; full‑year volume +3–5% with back‑half lift as private nonresidential bottoms; public steady .
Cost outlook: No broad deflation; diesel/wages/power up modestly; low‑to‑mid single‑digit unit cash cost increase expected with efficiency offsets .
Acquisitions and downstream: ~60% of 2025 EBITDA contribution from acquisitions in Aggregates, ~40% in downstream; portfolio will be managed for returns, potential divestitures if value higher elsewhere .
Tariffs/policy: Minimal direct tariff impact; IIJA funding protected and supportive of public activity .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS/Revenue/EBITDA was unavailable due to a temporary data limit, so we cannot provide a definitive beat/miss analysis at this time. Values retrieved from S&P Global were unavailable due to daily request limit.
Contextually, actual Q4 Adjusted EBITDA was $550.1M and Adjusted Diluted EPS was $2.17; revenue was $1,853.6M, with Adjusted EBITDA margin at 29.7% .

Key Takeaways for Investors

Pricing durability remains intact; even with acquisition mix headwinds, management expects 5–7% aggregates price growth and another year of double‑digit unit margin expansion in 2025 .
2025 guide is robust and de‑risked by public funding and recent M&A: Adjusted EBITDA $2.35–$2.55B incl. ~$150M from acquisitions; shipment +3–5%; SAG disciplined at $550–$560M .
Near‑term watch items: 1H weather and private nonresidential cadence; management frames 2025 volumes as back‑half weighted with improving 2H private trends (warehouse stabilization, data centers strong) .
Cost outlook manageable: expect low‑to‑mid single‑digit unit cost increases with efficiencies (Vulcan Way of Operating) offsetting energy/wage inflation .
Capital allocation supports growth and returns: elevated capex ($750–$800M) for plant rebuilds and integration, dividend up 7% to $0.49, leverage at 2.3x net debt/TTM Adj. EBITDA .
Strategic narrative: aggregates‑led compounding via price discipline and operating efficiency; downstream supports local market presence but will be optimized for returns .
Potential stock catalysts: sustained margin expansion, execution against 2025 guide, successful integration and pricing normalization of acquired assets, and visibility on private nonresidential recovery in 2H 2025 .

Vulcan Materials CO (VMC)·Q4 2024 Earnings Summary