Vulcan Materials reported lower third-quarter revenue and earnings as aggregates shipments declined from a weather-favorable period a year earlier. Higher selling prices and cost controls helped preserve per-ton profitability despite energy and other cost pressures.
The company also completed two small aggregates-focused acquisitions, returned $417 million to shareholders and said it is targeting earnings growth again in 2027. It did not provide a specific 2027 earnings target in the announcement.
Key details
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Third-quarter results were down year over year. Revenue was $2.19 billion, compared with $2.29 billion a year earlier. Net earnings attributable to Vulcan were $362 million, versus $375 million, while adjusted EBITDA was $707 million, down from $735 million. Adjusted diluted earnings per share were $2.83, compared with $2.84; reported diluted earnings per share were $2.81, versus $2.83.
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Aggregates pricing rose, but shipments fell. The aggregates business shipped 62.7 million tons, down 3% from the prior-year quarter. Vulcan said the comparison was affected by favorable weather in the year-earlier quarter, following poor weather earlier in that year. Freight-adjusted selling price was $22.84 per ton, up 4% as reported and 5% on a mix-adjusted basis.
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Per-ton aggregates profitability held up. Gross profit was $593 million, or $9.46 per ton, matching the prior-year per-ton figure. Cash gross profit rose to $11.95 per ton from $11.84. The company attributed the improvement to pricing, cost management and operational execution, which helped counter energy inflation and higher costs for some supplies. Freight-adjusted cash cost of sales per ton increased 7%; excluding higher diesel costs, it rose 3%.
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Other construction materials contributed $72 million in gross profit. Asphalt margins remained strong at 17% despite lower shipments and higher liquid asphalt costs. Concrete gross profit margin expanded to 9%. Comparisons were affected by the prior-year inclusion of Houston asphalt and construction operations, sold in late 2025, and California concrete assets, divested in the second quarter of 2026.
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Year-to-date results were mixed but adjusted earnings increased. Through September, revenue was $6.10 billion, up from $6.03 billion a year earlier. Adjusted EBITDA was essentially unchanged at $1.81 billion, while adjusted diluted earnings per share rose to $6.76 from $6.29. Aggregates shipments were 172.6 million tons, slightly above the year-earlier 171.7 million.
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Selling and administrative costs declined. Third-quarter selling, administrative and general expense was $137 million, down 6% from a year earlier and equal to 6.3% of revenue. On a trailing-12-month basis, the expense ratio was 6.9%, 0.3 percentage points lower than a year earlier.
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Vulcan completed two bolt-on acquisitions. The purchases strengthen its position in Tennessee and extend its reach into southern Ohio. The company did not provide purchase prices or other transaction terms in the announcement.
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Shareholder returns and investment remained substantial. Vulcan spent $174 million on maintenance and growth capital projects in the quarter. It returned $417 million to shareholders: $350 million through stock repurchases and $67 million through dividends.
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Debt remained within the company’s stated target range. At September 30, total debt was 2.0 times trailing-12-month adjusted EBITDA, at the bottom of Vulcan’s target range of 2.0 to 2.5 times. The company described its liquidity and balance sheet as strong.
Plain-English implications
Vulcan’s quarterly results show the distinction between weaker shipment volumes and firmer pricing: aggregates volumes declined, but higher prices kept gross profit per ton steady and cash gross profit per ton higher. The acquisitions expand the company’s geographic footprint, while its debt ratio remained within its stated range even as it funded capital projects and returned cash through buybacks and dividends.