Vulcan Materials, during its third-quarter conference call, noted that during the quarter, it acquired strategic aggregates and downstream assets to complement its position in Northern California. Additionally, the company acquired a quarry in Honduras “from which we have been distributing materials to certain Gulf Coast markets since 2019,” the company stated.
Regarding the company’s outlook for 2022, Tom Hill, Vulcan Materials’ chairman and chief executive officer stated, “We have continued to execute well and now expect full-year Adjusted EBITDA of $1.640 to $1.680 billion. Through the first nine months, aggregates shipments have exceeded the upper end of our expectations, driven by acquisitions and healthy underlying demand in our markets.”
Hill continued, “As we look ahead to 2023, leading indicators suggest that growing public construction activity, particularly highways and the recovery in private nonresidential contract awards should help to offset contracting single-family residential demand. The pricing environment remains positive, and we carry strong momentum into 2023.”
Hill concluded, “Our industry-leading aggregates focus positions us well for continued growth and value creation. We have a durable business model with strong fundamentals and less execution risk through economic cycles. This durability is evidenced by the consistent growth in our aggregates unit profitability, despite ongoing volatility in the macro environment. We are positioned in geographic markets that will continue to outperform other parts of the country from a demand perspective, both in the near term and longer term, and we expect both the favorable pricing dynamics and our strong execution to lead to continued earnings growth.”