Vulcan Materials reported lower third-quarter revenue and adjusted EBITDA as aggregates shipments declined, while pricing gains helped preserve per-ton profitability despite higher fuel and other costs. The company also completed two small aggregates-focused acquisitions, returned $417 million to shareholders and said it is targeting earnings growth again in 2027.
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Third-quarter results: Revenue was $2.19 billion, down about 5% from $2.29 billion a year earlier. Net earnings attributable to Vulcan were $362 million, compared with $375 million. Adjusted EBITDA fell to $707 million from $735 million, while adjusted EBITDA margin edged up to 32.3% from 32.1%.
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Per-share earnings were nearly flat: Earnings from continuing operations were $2.81 per diluted share, versus $2.83 a year earlier. Adjusted earnings were $2.83 per share, compared with $2.84.
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Aggregates pricing offset weaker volumes: Shipments declined 3% to 62.7 million tons. Freight-adjusted selling prices rose 4% on a reported basis to $22.84 per ton, and 5% on a mix-adjusted basis. Gross profit per ton held at $9.46, while cash gross profit per ton increased to $11.95 from $11.84.
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Costs remained a pressure point: Aggregates cash cost of sales per ton rose 7%, or 72 cents, from a year earlier. Excluding higher diesel costs, the increase was 3%. Vulcan said cost management and operational execution helped counter energy inflation and higher costs for some parts and supplies.
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Prior-year shipment comparisons were affected by weather: The year-earlier quarter benefited from favorable weather after severe winter conditions and rainfall had slowed construction earlier that year.
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Other businesses and divestitures: Asphalt and concrete generated $72 million of gross profit and $88 million of cash gross profit. Asphalt gross profit margin was 17% despite lower shipments and higher liquid-asphalt costs; concrete margin expanded to 9%. Comparisons were affected by the earlier sale of Vulcan’s Houston asphalt and construction business and California concrete assets.
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Year-to-date performance was mixed: Through September, revenue rose to $6.10 billion from $6.03 billion, and net earnings increased to $851 million from $825 million. Adjusted EBITDA was nearly unchanged at $1.81 billion. Aggregates shipments were 172.6 million tons, slightly above the prior-year 171.7 million.
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Acquisitions and capital returns: Vulcan completed two bolt-on acquisitions during the quarter, strengthening its position in Tennessee and extending its reach into southern Ohio. It spent $174 million on maintenance and growth capital projects and returned $417 million to shareholders: $350 million through stock repurchases and $67 million in dividends.
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Debt and liquidity: At September 30, total debt was 2.0 times trailing-12-month adjusted EBITDA, at the lower end of Vulcan’s stated target range of 2.0 to 2.5 times. The company described its liquidity and balance-sheet position as strong.
What changes for investors: The quarter showed that higher aggregates prices and operating discipline supported per-ton profitability, but lower shipments and rising costs weighed on overall revenue and adjusted EBITDA. Vulcan’s acquisitions expand its aggregates footprint, while the announced buybacks and dividends represent substantial capital returned during the quarter. The company said it is targeting earnings growth in 2027, without providing a specific forecast in the material provided.