Vulcan Materials announced results for the quarter and full year ended Dec. 31, 2024. The company said solid operational execution drove margin expansion and its aggregates unit’s profitability growth.
“Our aggregates-led business delivered a strong finish to the year. Adjusted EBITDA in the fourth quarter improved 16%, and Adjusted EBITDA margin expanded 370 basis points,” said Tom Hill, Vulcan Materials’ chairman and CEO. “The favorable pricing environment coupled with strong operational execution led to consistent double-digit year-over-year improvement in aggregates cash gross profit per ton each quarter – exiting 2024 with aggregates cash gross profit per ton at $11.50. As we look to 2025, the pricing environment remains favorable, and we are focused on our operating disciplines to manage costs and improve efficiencies. By controlling what we can control, we expect to deliver 19% growth in Adjusted EBITDA.”
Fourth quarter Aggregates segment gross profit increased 15% to $486 million ($9.02 per ton), and gross profit margin expanded 300 basis points. Cash gross profit per ton improved 16% ($1.58 per ton) to $11.50 per ton resulting from continued pricing growth and moderating cost trends. Improvements in unit profitability were widespread across the company’s footprint and marked the 11th consecutive quarter of year-over-year growth.
Aggregates shipments in the fourth quarter decreased 3%, reflecting underlying demand as well as the benefit of favorable weather in most markets throughout the quarter.
The pricing environment remained positive. Freight-adjusted selling prices increased 11% ($2.07 per ton) versus the prior year’s fourth quarter, with all markets realizing year-over-year improvement. Freight-adjusted unit cash cost of sales increased 5% ($0.49 per ton) as a result of operational cost discipline and moderating inflationary pressures.
Asphalt segment gross profit was $46 million, and cash gross profit was $58 million, a 29% improvement over the prior year. Shipments increased slightly compared to the prior year, and price improved 7%. Concrete segment gross profit was $5 million. Cash gross profit was $15 million, and unit cash gross profit improved 5% despite lower volumes. The prior year included results from the previously divested concrete assets in Texas.
Regarding the company’s outlook, Hill said, “We carry solid momentum into 2025 and are well positioned to deliver another year of strong earnings growth and cash generation. Continued strength in public construction activity and our recent acquisitions support our expectations for volume growth in 2025.
“The pricing environment remains positive, and inflationary pressures continue to moderate. This backdrop, coupled with our Vulcan Way of Selling and Vulcan Way of Operating disciplines will lead to further expansion in our industry-leading aggregates cash gross profit per ton and value creation for our shareholders,” he concluded.