Vulcan Materials Company (VMC) Bundle
A Brief History of Vulcan Materials Company
Vulcan Materials Company, a leading producer of construction aggregates, has a rich history marked by strategic growth and adaptation to market conditions. As of 2024, the company continues to focus on expanding its operational footprint and optimizing its financial performance.
Financial Performance in 2024
In the third quarter of 2024, Vulcan reported total revenues of $2,003.9 million, a decrease of 8% from the prior year. The company's gross profit for the quarter was $565.2 million, reflecting a 4% decline from $591.0 million in Q3 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $2,003.9 million | $2,185.8 million | -8% |
| Gross Profit | $565.2 million | $591.0 million | -4% |
| Net Earnings | $207.6 million | $276.5 million | -25% |
| Diluted EPS | $1.56 | $2.07 | -25% |
For the nine months ending September 30, 2024, total revenues reached $5,564.0 million, down from $5,947.6 million in the same period of 2023. Net earnings for the nine-month period were $618.2 million compared to $705.8 million a year earlier, marking a decrease of 12.4%.
Segment Performance
The aggregates segment, which forms the core of Vulcan's operations, generated revenues of $1,572.4 million in Q3 2024, a decrease of 3% from $1,628.4 million in Q3 2023. The gross profit in this segment was $498.5 million, slightly down from $509.1 million.
| Segment Performance | Q3 2024 Revenues | Q3 2023 Revenues | Change |
|---|---|---|---|
| Aggregates | $1,572.4 million | $1,628.4 million | -3% |
| Asphalt | $381.1 million | $347.2 million | +9.8% |
| Concrete | $174.4 million | $364.6 million | -52% |
Acquisitions and Strategic Initiatives
In 2024, Vulcan continued its strategy of growth through acquisitions, notably the planned acquisition of Wake Stone Corporation, a key player in the aggregates market in the Carolinas. This acquisition is expected to bolster Vulcan's presence in high-growth regions.
Debt and Capital Structure
As of September 30, 2024, Vulcan's total debt stood at $3,329.7 million, with a debt-to-capital ratio of 29.7%. The company has maintained a robust liquidity position with available borrowing capacity under its line of credit at $1,504.8 million.
| Debt Metrics | As of September 30, 2024 |
|---|---|
| Total Debt | $3,329.7 million |
| Total Equity | $7,893.1 million |
| Debt to Capital Ratio | 29.7% |
| Available Borrowing Capacity | $1,504.8 million |
In conclusion, Vulcan Materials Company remains a key player in the aggregates sector, navigating challenges and pursuing growth opportunities through strategic acquisitions and operational efficiencies as it moves through 2024.
A Who Owns Vulcan Materials Company (VMC)
Major Shareholders
As of 2024, Vulcan Materials Company (VMC) has a diverse ownership structure. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 11.5 million |
| BlackRock, Inc. | 7.2% | 9.8 million |
| State Street Corporation | 4.8% | 6.5 million |
| T. Rowe Price Associates, Inc. | 4.3% | 5.9 million |
| Wellington Management Group LLP | 3.9% | 5.3 million |
| Other Institutional Investors | 42.9% | 58.9 million |
| Retail Investors | 24.4% | 33.5 million |
Executive Leadership and Insider Ownership
The executive team at Vulcan Materials also holds a significant amount of shares. The following table summarizes insider ownership:
| Executive | Position | Ownership Percentage | Number of Shares |
|---|---|---|---|
| J. Thomas Hill | President & CEO | 0.3% | 400,000 |
| Michael A. McGowan | CFO | 0.1% | 150,000 |
| Other Executives | Various | 0.4% | 500,000 |
Stock Performance and Market Capitalization
As of September 30, 2024, Vulcan Materials Company has shown fluctuating stock performance with a market capitalization of approximately $9.3 billion. The following are key financial metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $70.00 |
| 52-Week High | $95.00 |
| 52-Week Low | $65.00 |
| Market Capitalization | $9.3 billion |
| Annual Dividends | $1.38 per share |
Institutional Ownership Trends
Institutional ownership has been on the rise, reflecting confidence in Vulcan Materials' long-term growth potential. The percentage of shares held by institutional investors has increased from 79% in 2023 to 82% in 2024.
Shareholder Voting Power
In corporate governance, the voting power of shareholders is critical. The following table illustrates the voting power distribution:
| Category | Voting Power |
|---|---|
| Institutional Investors | 67% |
| Retail Investors | 33% |
Conclusion on Ownership Structure
The ownership structure of Vulcan Materials Company is characterized by a mix of institutional and retail investors, with significant stakes held by major asset management firms. This diverse ownership base is indicative of strong market interest and confidence in the company’s operations and performance.
Vulcan Materials Company (VMC) Mission Statement
Company Overview
Vulcan Materials Company (VMC) is a leading producer of construction materials in the United States. The company primarily operates in the aggregates, asphalt mix, and ready-mixed concrete segments.
Mission Statement
Vulcan Materials Company is committed to providing high-quality construction materials that meet the needs of its customers while ensuring safety, sustainability, and community development. The company emphasizes a culture of integrity, innovation, and operational excellence.
Financial Performance
As of the third quarter of 2024, Vulcan reported total revenues of $2,003.9 million, a decrease of 8% compared to $2,185.8 million in the same quarter of 2023. Year-to-date revenues for 2024 stand at $5,564.0 million, down from $5,947.6 million in 2023, representing a 6% decline.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues (in millions) | $2,003.9 | $2,185.8 | $5,564.0 | $5,947.6 |
| Gross Profit (in millions) | $565.2 | $591.0 | $1,462.4 | $1,476.3 |
| Net Earnings (in millions) | $207.6 | $276.5 | $618.2 | $705.8 |
| Earnings Per Share (EPS) | $1.56 | $2.07 | $4.65 | $5.28 |
Cost Management and Profitability
Vulcan's selling, administrative, and general (SAG) expenses for Q3 2024 were $129.1 million, down from $143.9 million in Q3 2023. As a percentage of total revenues, SAG expenses represented 6.4%, a slight improvement from 6.6% in the previous year.
Operational Highlights
In the Aggregates segment, gross profit was $498.5 million in Q3 2024, compared to $509.1 million in Q3 2023. The average sales price increased to $21.27 per ton, up from $19.31 per ton in the same quarter last year. Unit shipments for aggregates decreased by 10% to 57.7 million tons.
| Segment | Q3 2024 Gross Profit (in millions) | Q3 2023 Gross Profit (in millions) | Average Sales Price | Unit Shipments (tons) |
|---|---|---|---|---|
| Aggregates | $498.5 | $509.1 | $21.27 | 57.7 million |
| Asphalt | $60.2 | $55.9 | $80.88 | 4.1 million |
| Concrete | $6.5 | $26.0 | $185.61 | 0.9 million |
Investment and Growth Strategy
In 2024, Vulcan plans to invest between $625 million and $650 million in maintenance and growth projects. The company returned $60.8 million to shareholders in Q3 2024 through dividends, reflecting a 6% increase from the previous year.
Debt and Financial Ratios
As of September 30, 2024, Vulcan's total debt was $3,329.7 million, with a net debt to trailing-twelve months (TTM) Adjusted EBITDA ratio of 1.5x, down from 1.8x in the prior year. The company maintains a strong liquidity position and a balanced approach to capital management.
| Debt Metric | Value (in millions) |
|---|---|
| Total Debt | $3,329.7 |
| Net Debt | $2,895.4 |
| TTM Adjusted EBITDA | $1,983.3 |
| Total Debt to TTM Adjusted EBITDA | 1.7x |
| Net Debt to TTM Adjusted EBITDA | 1.5x |
Market Trends and Challenges
Vulcan faces challenges from inflationary pressures and labor constraints that may impact operational efficiency. However, the company anticipates long-term demand growth, particularly in public construction projects.
How Vulcan Materials Company (VMC) Works
Company Overview
Vulcan Materials Company (VMC) is a leading producer of construction aggregates and a major supplier of asphalt mix and ready-mixed concrete in the United States. The company primarily generates revenue through the sale of these products which are essential for infrastructure development and construction projects.
Financial Performance
As of the third quarter of 2024, Vulcan Materials reported total revenues of $2,003.9 million, which represents an 8% decrease compared to $2,185.8 million in the third quarter of 2023. The decline was largely attributed to reduced shipments in aggregates and ready-mixed concrete, offset slightly by an increase in asphalt mix shipments.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues (in millions) | $2,003.9 | $2,185.8 | -8% |
| Net Earnings (in millions) | $207.6 | $276.5 | -25% |
| Earnings per Share (EPS) | $1.56 | $2.07 | -25% |
| Adjusted EBITDA (in millions) | $580.6 | $602.2 | -4% |
Segment Performance
Vulcan's operations are divided into three primary segments: Aggregates, Asphalt, and Concrete. The Aggregates segment remains the largest contributor to revenue, despite a 10% decrease in shipments due to adverse weather conditions. The Asphalt segment saw a slight increase in gross profit, while the Concrete segment experienced a significant decline due to the divestiture of operations in Texas.
| Segment | Q3 2024 Gross Profit (in millions) | Q3 2023 Gross Profit (in millions) | Change (%) |
|---|---|---|---|
| Aggregates | $498.5 | $509.1 | -2% |
| Asphalt | $60.2 | $55.9 | 8% |
| Concrete | $6.5 | $26.0 | -75% |
Cost Structure
Vulcan's cost structure includes Selling, Administrative, and General (SAG) expenses, which were reported at $129.1 million for Q3 2024, down from $143.9 million in Q3 2023. This decrease reflects effective cost management despite the revenue decline.
Debt and Liquidity
As of September 30, 2024, Vulcan Materials reported total debt of $3,329.7 million, with a total capital of $11,222.8 million. The company maintains a debt-to-capital ratio of 29.7%, indicating a strong balance sheet relative to its capital structure.
| Debt Metric | Amount (in millions) |
|---|---|
| Total Debt | $3,329.7 |
| Total Equity | $7,893.1 |
| Total Capital | $11,222.8 |
| Debt to Total Capital Ratio | 29.7% |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, net cash provided by operating activities was $969.5 million, a decrease from $1,055.2 million in the same period of 2023. Capital expenditures for the same period totaled $441.0 million, which includes investments in maintenance and growth projects.
| Cash Flow Metric | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $969.5 |
| Capital Expenditures | $441.0 |
Market Trends and Outlook
Vulcan Materials faces challenges from weather disruptions affecting construction activity. However, the company anticipates improved pricing in aggregates and a positive demand environment driven by public construction activity. The outlook for 2024 indicates expected Adjusted EBITDA of approximately $2,000 million, supported by a focus on operational efficiency and strategic acquisitions.
| Outlook Metric | Projected Value |
|---|---|
| Expected Adjusted EBITDA (2024) | $2,000 million |
How Vulcan Materials Company (VMC) Makes Money
Revenue Streams
Vulcan Materials Company generates revenue primarily from the sale of construction materials, segmented into aggregates, asphalt, and concrete. In 2024, the breakdown of total revenues is as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Aggregates | $4,477.3 | 80.5% |
| Asphalt | $918.5 | 16.5% |
| Concrete | $489.9 | 8.8% |
| Total Revenues | $5,564.0 | 100% |
Aggregates Segment
The aggregates segment is the largest contributor to Vulcan's revenue, comprising various products such as crushed stone, sand, and gravel. In the first nine months of 2024, aggregates segment sales totaled $4,477.3 million, with a gross profit of $1,330.3 million, translating to a gross profit per ton of $8.01.
Asphalt Segment
The asphalt segment reported revenues of $918.5 million for the nine months ended September 30, 2024, with a gross profit of $123.9 million. This segment experienced a 5.4% increase in average sales price compared to the previous year.
Concrete Segment
In the concrete segment, revenues were $489.9 million, showing a significant decrease from the previous year due to the divestiture of operations in Texas. The gross profit for this segment was $8.2 million.
Cost Structure
The cost of revenues for Vulcan Materials Company totaled $4,101.6 million for the nine months ended September 30, 2024, resulting in a gross profit of $1,462.4 million.
Sales and Profitability Metrics
The following metrics illustrate Vulcan's sales performance and profitability:
| Metric | Value |
|---|---|
| Gross Profit Margin | 26.3% |
| Net Earnings | $618.2 million |
| Earnings Per Share (EPS) | $4.65 |
| Adjusted EBITDA | $1,507.1 million |
Market Position and Demand
Vulcan's products are primarily sold to private industry, with approximately 40% to 55% of aggregates shipments historically used in publicly funded construction projects. The company does not directly rely on government contracts, insulating it from potential funding cuts.
Recent Developments
In 2024, Vulcan announced the acquisition of Wake Stone Corporation, expanding its reach in high-growth markets. This strategic move is expected to enhance Vulcan's long-term profitability and market presence.
Financial Performance Summary
Vulcan's financial performance for the third quarter of 2024 compared to the third quarter of 2023 shows a decline in total revenues from $2,185.8 million to $2,003.9 million, which is an 8% decrease. The net earnings also saw a reduction from $276.5 million to $207.6 million.
Conclusion of Financial Metrics
The following table summarizes Vulcan's key financial metrics for the third quarter of 2024:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $2,003.9 million | $2,185.8 million |
| Net Earnings | $207.6 million | $276.5 million |
| Adjusted EBITDA | $580.6 million | $602.2 million |
| EPS | $1.56 | $2.07 |
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Article updated on 8 Nov 2024
Resources:
- Vulcan Materials Company (VMC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vulcan Materials Company (VMC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vulcan Materials Company (VMC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.