Publicly Traded Companies

The Industry’s Publicly Traded Companies Provide An IndustryBarometer When they Release Their Quarterly Reports.

Vulcan Materials
Vulcan Materials Co. announced results for the quarter ended June 30, reporting total revenues of $2.113 billion versus $1.954 billion in the second quarter of 2022; and a six-month total of $3.762 billion versus $3.495 billion for the same period in 2022.

In the second quarter, aggregates segment gross profit increased 24% to $499 million ($7.87 per ton), and gross profit margin expanded 290 basis points. This improvement resulted from strong pricing growth and improving efficiencies from operating disciplines. Earnings improvement was widespread across the company’s footprint.

Aggregates shipments decreased 1% with variations across geographies. Shipment activity in California was particularly strong, following the weather-impacted first quarter. Certain markets in the Southeast benefited from healthy shipment activity to industrial projects.

The pricing environment remains positive across the company’s footprint. Freight-adjusted selling prices increased 15%, or $2.44 per ton, as compared to the prior year, with all markets realizing year-over-year improvement.

Consistent with expectations, freight-adjusted unit cash cost of sales increased 8%, or $0.67 per ton, over the prior year. Persistent inflationary pressures for parts and supplies offset the benefit of lower diesel prices.

Pricing momentum and solid operational execution drove a 22% improvement in cash gross profit per ton to $9.76 per ton in the second quarter. The company remains focused on compounding improvements in unit profitability throughout the cycle through fixed cost leverage, price growth and operating efficiencies.

Asphalt segment gross profit was $57 million, an increase of $43 million over the prior year’s second quarter, and gross profit margin continued to expand.

Concrete segment gross profit was $27 million, and cash gross profit was $47 million in the second quarter. 

Calcium segment gross profit was $1.1 million compared to $0.2 million in the prior year’s second quarter.

Tom Hill, Vulcan Materials’ chairman and chief executive officer, said, “Our earnings growth through the first half of 2023 reflects the compounding benefits of the consistent execution of our strategic disciplines and the strength of our aggregates-led business. Aggregates gross profit margin has expanded 230 basis points, and cash gross profit per ton has improved 23% to $8.98 per ton. Strong sales and operating momentum across our business is expected to carry through the rest of the year. Shipments have benefited from large industrial projects, and residential construction activity has been better than expected. As a result, we now expect to deliver full-year Adjusted EBITDA of $1.9 to $2.0 billion, an increase of $150 million compared to our initial expectations communicated in February.”

Martin Marietta Materials
Martin Marietta Materials Inc. reported results for the second quarter ended June 30, including quarterly records for revenues, profitability and unit margins. The company achieved gross profit of $1.821 billion versus $1.642 billion in the second quarter of 2022. Second-quarter aggregates gross-profit-per-ton increased 27.9% to $6.80.

The Building Materials business generated record quarterly revenues of $1.74 billion, an 11.6% increase. Gross profit increased 34.3% to a quarterly record of $536.1 million. Pricing gains contributed to gross margin improvement of 520 basis points.

Second-quarter aggregates shipments decreased 5.7% while pricing increased 18.6%, or 17.0% on a mix-adjusted basis. Aggregates gross profit increased 20.7% to a quarterly record of $370.9 million.

  • Second quarter cement shipments increased to 1.1 million tons while pricing increased 21.8%, or 21.3% on a mix-adjusted basis. Cement gross profit increased 84% to an all-time quarterly record of $93.3 million.
  • Ready mixed concrete revenues and gross profit increased 19.7% and 142.3%, respectively. 
  • Asphalt and paving revenues and gross profit increased 11.7% and 37.9%, respectively.

Ward Nye, chairman and CEO of Martin Marietta, stated, “Martin Marietta delivered exceptional performance across nearly every safety, financial and operational measure in the second quarter. These impressive results, despite lower aggregates shipments, demonstrate the success of our value-over-volume commercial strategy and the durability of our business model through various macroeconomic conditions. Our second-quarter results, together with our expectations for an even stronger next six months, underpin our revised full-year Adjusted EBITDA guidance range of $2.0-$2.1 billion, a 28% increase at the midpoint as compared with the prior year.

“As record-setting public funds for infrastructure and manufacturing begin to enter the U.S. economy, we continue to expect that aggregates demand will accelerate in the second half of 2023,” Nye continued. “This well-chronicled increased investment should largely offset the current residential construction air pocket, which we expect to bottom in the third quarter of 2023.”

Nye concluded, “This scenario, combined with continued commercial momentum and moderating cost inflation, should contribute to a record-setting year in 2023 and provide a solid foundation for an even brighter 2024 and beyond. Our fidelity to safety, enterprise excellence, sustainable business practices and execution of our strategic plan reinforces our confidence in Martin Marietta’s ability to consistently deliver superior shareholder value.”

RR072220 SummitLogo

Summit Materials
Summit Materials Inc. announced results for the second quarter ended July 1, reporting net revenue of $680.4 billion versus $631.9 billion in the second quarter of 2022, a 7.7% increase.

Operating income increased $18.4 million, or 16.5% in the second quarter to $129.6 million, driven by a combination of increases in average sales price that more than offset inflationary increases in cost of revenue and higher general and administrative expenses versus the prior-year period. Summit’s operating margin percentage for the three months ended July 1, increased to 19.1% from 17.6%, from the comparable period a year ago.

Net income attributable to Summit Inc. decreased to $83.6 million, or $0.70 per basic share, compared to $190.1 million, or $1.58 per basic share in the comparable prior year period due primarily to gain on sale of business in the prior year period. Summit reported adjusted diluted net income of $84.7 million, or $0.71 per adjusted diluted share as compared to $71.8 million, or $0.59 per adjusted diluted share in the prior-year period.

Aggregates net revenues increased by $21.0 million to $182.5 million in the second quarter. Aggregates adjusted cash gross profit margin was 53.6% in the second quarter as compared to 53.7% in the prior-year period. 

Aggregates sales volume decreased 2.5% in the second quarter due, in part, to divestitures in the East Segment. Organic aggregates sales volumes declined 2.0% as unfavorable weather conditions and residential softness in the West Segment more than offset organic aggregates volume growth from the East Segment.

Average selling prices for aggregates increased 14.5%, sustaining strong levels and reflecting the cumulative effects of Jan. 1, 2023, pricing actions and those implemented in the second quarter.

Cement Segment net revenues increased 19.5% to $111.9 million in the second quarter. Cement Segment adjusted cash gross profit margin increased to 52.8% in the second quarter, compared to 48.6% in the prior-year period as strong pricing gains coupled with a greater contribution from Green America Recycling more than offset inflationary cost conditions. Despite solid demand conditions, sales volume of cement decreased 0.3% reflecting sold-out conditions along the Mississippi River market. Average selling prices increased 16.0% in the second quarter due to the compounding effects of mid-year 2022 and Jan. 1, 2023, pricing actions.

Products net revenues were $309.6 million in the second quarter, up 5.1% versus the prior year period. Products adjusted cash gross profit margin increased 3 percentage points to 21.2% in the second quarter reflecting margin expansion for both ready-mix concrete and asphalt relative to the year-ago period. Organic average sales price for ready-mix concrete increased 13.7% driven by strong, double-digit pricing growth across all markets, including our key residential markets of Houston and Salt Lake City. Organic sales volumes of ready-mix concrete decreased 11.0% due to reduced residential activity. Organic average selling prices for asphalt increased 15.0%, due to pricing gains in North Texas and the Intermountain West. Organic asphalt sales volume increased 2.1% fueled by growth in North Texas and public infrastructure demand.

“Sustained pricing momentum across the portfolio, together with solid demand fundamentals and very strong operational execution resulted in remarkable second quarter performance and several financial records for our business,” commented Anne Noonan, Summit Materials president and CEO. “Importantly, we are delivering against our Elevate Summit goals, setting high-water marks for Adjusted EBITDA margin and surpassing our ROIC target minimum. Given these first half tailwinds, more favorable second half operating conditions, and contributions from recently completed acquisitions, we are on solid footing to again raise our financial commitments for this year. Underpinning these upgraded expectations is better-than-anticipated traction on recent pricing actions and a more robust demand environment, especially concerning residential demand resiliency. Bottom line is that the teams across our Summit footprint are capitalizing on market opportunities, raising the bar operationally, and delivering significant growth in 2023 for the organization and our shareholders.”

Heidelberg Materials 
Heidelberg Materials announced revenue increases of 8.5% to €10,473 million and “improvement in result” of 37.5% to €1,189 million for the first half of 2023. CO₂ emissions were reduced by a further 2.4%.

“We have closed the first half of 2023 with a good result,” stated Dr. Dominik von Achten, chairman of the managing board of Heidelberg Materials. “Even in a weaker market environment, with significant declines in sales volumes in some cases, we performed quite well. We remain confident about the second half of the year and are once again upgrading our outlook for 2023 significantly. 

“We also continue to make good progress on sustainability,” he continued. “In the first half of 2023, we achieved a further reduction in our specific net CO₂ emissions through numerous measures. With the large number of our carbon capture, utilization, and storage (CCUS) projects, we are aiming at the full decarbonization of our products. Just recently, one of our pioneering CCS projects in Germany was approved to receive funding from the EU Innovation Fund. The continuous reduction of our carbon footprint and strengthening the circular economy are our most powerful levers to offer our customers climate-friendly products on a large scale.”

The downward trend in sales volumes continued in the second quarter of 2023. High inflation and a further increase in financing costs led to a drop in construction activity, especially in residential construction.

Revenue rose by 5.3% compared with the previous year to €10,473 million (previous year: 9,950). Excluding scope and currency effects, the increase amounted to 8.5%. 

The result from current operations experienced a rise of 31.0% to €1,189 million (previous year: 908) or (+37.5% on a like-for-like basis). In addition to revenue growth, continuous cost management and the slight easing on the energy and raw materials markets in particular contributed to the positive development of results.

Profit for the period totalled €783 million (previous year: €597 million). Earnings per share adjusted for the additional ordinary result attributable to Heidelberg Materials AG shareholders increased by €0.49 to €3.64.

In the first half of 2023, the strong development of results resulted in a cash inflow from operating activities of €25 million (previous year: cash outflow of €138 million). As at the end of the first half of 2023, net debt amounted to €6.7 billion (previous year: €6.8 million). The leverage ratio was 1.67x (previous year: 1.85x) and thus within the target corridor of 1.5x to 2.0x.

Cement deliveries from its North American plants stayed largely stable in the first six months. While sales volumes in the Southeast Region increased with strong construction activity, both the Northwest and Midwest regions recorded slightly lower sales volumes. 

In June 2023, Heidelberg Materials celebrated the opening of the modernized Mitchell cement plant in Indiana. The state-of-the-art facility will be the second largest cement plant in North America. The plant will reduce CO₂ emissions per tonne of clinker by almost 30%.

Compared with the previous year, deliveries of aggregates in North America rose slightly. The increase was particularly driven by the impact of significant highway infrastructure and large-scale manufacturing facility projects in the Midwest Region. Also, sales volumes in the Southeast and Southwest regions remained stable as heightened construction activity levels continued.

The company also upgraded its outlook for the rest of 2023. The good order situation for infrastructure projects and parts of the commercial construction sector should partly compensate for the decline in residential construction. Energy prices have eased in the first half of 2023, but they remain volatile and still well above previous years’ levels.

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