Vulcan Materials Company Q4 FY2025 earnings call

• Outstanding safety year and robust growth in earnings and cash generation. - Teams executed well in 2025, positioning for growth opportunities. - Adjusted EBITDA and operating cash flow increased significantly. - Aggregates unit profitability expanded, but single-family residential activity weaker than expected. - Operating and sales teams adjusted to dynamic environment by managing inventories and controlling costs. - Vulcan Way of Operating at work, with implementation ongoing. - 2026 expects continued growth in public demand with IIJA dollars and private demand showing some improvement, especially in industrial and data center sectors.

In 2025, adjusted EBITDA was $2,300,000,000, a 13% increase over prior year, with margin expanding 160 basis points to 29.3%. Aggregate shipments were approximately 227 million tons, up 3% for full year, with same-store slightly lower than prior year. Aggregates cash gross profit per ton grew to $11.33. Aggregates mix-adjusted price improved 6% for full year and 5% in fourth quarter. Downstream businesses expected to contribute approximately $290,000,000 in cash gross profit, with asphalt segment being major contributor.

• Expect aggregate shipments to grow between 1 - 3% in 2026. - Anticipate aggregates freight-adjusted average selling prices to increase between 4 - 6% and aggregates units cash cost of sales to increase by low single-digit percentage. - Expect to deliver between $2,400,000,000 and $2,600,000,000 of adjusted EBITDA in 2026. - Plan to reinvest $750,000,000 to $800,000,000 in 2026 for operating and maintenance and internal growth.

• Uncertainty around IIJA reauthorization and its impact on public infrastructure spending. - Weather and seasonal impacts on operations. - Labor market fluctuations affecting cost control. - Volatility in private demand, especially in single-family residential.

Q: Ronnie, given 4Q 2025 and guide for 2026, talk about confidence levels and end-market demand, pricing and profitability.

A: Ronnie Pruitt discussed business execution, strong public starts, private non-res growth in industrial and data centers, and potential improvement in residential. Mary Andrews added about 4Q unusual comparisons and factors affecting EBITDA.

Q: Tyler Brown on pricing, bridging three-point difference between reported and mix.

A: Mary Andrews explained about two-thirds geographic mix headwind, third split between acquisitions and product mix, and pricing expected lower first half 2026 then higher. Ronnie Pruitt talked about backlog, large projects, fixed plant price increases, and demand tailwinds.

Q: Foden on confidence in keeping costs down to low single-digit inflation.

A: Ronnie Pruitt mentioned Vulcan Way of Operating, focus on plants, labor control, and good position on mix and costs when demand recovers.

Q: Kathryn Thompson on IIJA expiring and states taking control.

A: Ronnie Pruitt and Mary Andrews talked about IIJA tail continuing, public works starts, and divested assets not included in guidance.

Q: Angel Castillo on data center mix impact.

A: Ronnie Pruitt discussed base vs clean stone timing, data center projects' mix impact, and margin comparison.

Q: Michael Dudas on M&A pipeline.

A: Ronnie Pruitt said 2026 to be active on M&A, aggregates-led, disciplined, and healthy pipeline.

Q: Timna Tanners on private demand view and data center mix.

A: Ronnie Pruitt talked about slow residential recovery, data centers' heavy influence on mix, and other private non-res projects.

Q: Garik Shmois on midyear price increases.

A: Ronnie Pruitt said midyears relate to demand improvement, visibility in single-family and public demand.

Q: David MacGregor on cost uncertainty.

A: Ronnie Pruitt and Mary Andrews discussed confidence in low single-digit cost increase, control over labor, energy, fuel, and demand's impact on cost.

Q: Steven Fisher on project delays.

A: Ronnie Pruitt talked about mix of private and public project timings, normal flow expected in 2026.

Q: Ivan Yi on volume guidance.

A: Ronnie Pruitt said conservative volume guidance due to need for single-family recovery.

Q: Brent Thielman on costs from repairs, insurance, plant rebuilds.

A: Ronnie Pruitt and Mary Andrews talked about cost lumpiness, timing issues, and visibility in 2026 plans