Vulcan Materials Co. announced results for the quarter ended March 31. Total revenues were $1.546 billion compared to $1.649 billion in the first quarter of 2023. However trailing 12-month revenues were $7.679 billion in the first quarter compared to $7.424 billion in the first quarter of 2023.
Aggregates Segment total revenues were $1.291 billion, versus $1.297 billion in the first quarter of 2023. Aggregates segment gross profit was $303 million ($6.30 per ton). Cash gross profit per ton improved 10% to $8.86 per ton, despite lower shipments due to unfavorable weather conditions throughout most of the quarter. Improvements in unit profitability were widespread across the company’s footprint and resulted from continued pricing momentum and solid operational execution.
Price increases effective at the beginning of the year resulted in another quarter of attractive growth. Freight-adjusted selling prices increased 10% versus the prior year, with all markets realizing year-over-year improvement.
Freight-adjusted unit cash cost of sales increased 10%, primarily driven by a 7% decline in aggregates shipments due to unfavorable weather. On a trailing-12-months basis, unit cash cost increased 9%, marking the fourth consecutive quarter of unit cost deceleration.
Asphalt segment gross profit was $5 million, and cash gross profit was $14 million, a 39% improvement over the prior year. Shipments increased 3%, and price improved 6%. Strong shipments in Arizona and California, the company’s largest asphalt markets, were partially offset by lower shipments in Texas due to weather impacts.
Concrete segment gross profit was a loss of $3 million. Cash gross profit was $9 million, and unit cash gross profit improved 10% despite lower volumes. The prior year included results from the previously divested concrete assets in Texas.
Tom Hill, Vulcan Materials’ chairman and chief executive officer, said, “Our teams’ solid execution helped us overcome challenging weather conditions throughout much of the first quarter. Margins expanded despite lower aggregates shipments, demonstrating the durability of our aggregates business and its attractive compounding growth characteristics. Aggregates cash gross profit per ton increased 10% in the first quarter, with improvements widespread across our footprint. A consistent focus on our strategic disciplines coupled with continued pricing momentum reinforces our confidence in our full year outlook and our ability to deliver another year of double-digit earnings growth and strong cash generation.”
Regarding the company’s outlook, Hill said, “Our operating performance in the first quarter was solid and in line with our expectations. We remain on track to deliver $2.15 to $2.30 billion of Adjusted EBITDA, marking the fourth consecutive year of double-digit growth. The pricing environment remains positive, and our focus remains on compounding unit margins through all parts of the cycle, creating value for our shareholders through improving returns on capital.”
All aspects of the company’s outlook in February remain unchanged.