Vulcan Materials Co. announced results for the quarter ended March 31, reporting total revenues of $1,635 billion, versus $1,546 billion in the first quarter of 2024.
Aggregates segment gross profit increased 18% to $357 million ($7.48 per ton), and gross profit margin expanded 320 basis points to 26.7%. Cash gross profit per ton increased 20% to $10.63 per ton resulting from geographically widespread pricing growth and improving operational efficiencies.
On a trailing-12-months basis, cash gross profit per ton was $10.99, marking the ninth consecutive quarter of double-digit compounding improvement in unit profitability.
Aggregates shipments decreased 1% as compared to the prior year’s first quarter. Shipments from acquisitions partially offset one less shipping day in the quarter and challenging weather, particularly in February.
Price increases effective at the beginning of the year resulted in another quarter of attractive growth. Freight-adjusted selling prices increased 7% (mix-adjusted pricing increased 8.5% as compared to the prior year. Freight-adjusted unit cash cost of sales decreased 3% ($0.33 per ton) as a result of continued operational cost discipline and moderating inflationary pressures.
Asphalt segment gross profit was $5 million, and cash gross profit was $17 million, a 24% improvement over the prior year. Shipments increased 4%, and price improved 4%, resulting in 19% improvement in unit cash gross profit.
Concrete segment gross profit was $3 million, and cash gross profit was $19 million. Unit cash gross profit increased 77% through a combination of improvement in the legacy business and the benefit of acquired operations. Shipments improved 15%, and price improved 4% versus the prior year.
Tom Hill, Vulcan Materials’ chairman and chief executive officer, said, “The combination of our aggregates-led business and our consistent focus on our Vulcan Way of Selling and Vulcan Way of Operating disciplines resulted in strong earnings growth and margin expansion in the first quarter. Adjusted EBITDA increased 27%, and Adjusted EBITDA margin expanded 420 basis points over the prior year. Aggregates cash gross profit per ton improved 20% with widespread improvements across our footprint. Our commercial and operational execution support our full-year outlook to deliver another year of earnings growth in 2025.”
Regarding the company’s outlook, Hill said, “Our execution in the first quarter was strong, and we reiterate our full-year outlook to deliver $2.35 to $2.55 billion of Adjusted EBITDA. We continue to monitor the impact on overall economic activity from the uncertainty surrounding trade policy and the trajectory of interest rates. As always, we are focused on the things we can control. Our continued execution of our strategic disciplines has and will continue to lead to attractive cash generation and value creation for our shareholders regardless of external headwinds.”