Vulcan Q3 revenue and EBITDA beat estimates

Overview

• Vulcan Q3 revenue beats analyst expectations, driven by improved demand and favorable weather

• Adjusted EBITDA for Q3 exceeds estimates, reflecting operational efficiencies and strategic pricing

• Company sells Houston asphalt assets, aligning with aggregates-led strategy

Outlook

• Vulcan projects 2025 Adjusted EBITDA between $2.35 bln and $2.45 bln

• Company expects 2026 aggregates shipments to grow modestly

• Vulcan sees strong public construction activity in 2026

Result Drivers

• AGGREGATES GROWTH - Strong earnings growth and margin expansion driven by increased shipments and favorable weather conditions

• COST MANAGEMENT - Decreased unit cash cost of sales due to operating cost discipline and strong shipments

• ASPHALT AND CONCRETE IMPROVEMENTS - Profitability boosted by strategic acquisitions and pricing adjustments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction materials peer group is "buy"

• Wall Street's median 12-month price target for Vulcan Materials Co is $314.50, about 6.2% above its October 29 closing price of $294.97

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nPn9phtnya

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.