Vulcan Materials began the year with a quarter that exceeded market expectations for profitability, even as revenue came in below Wall Street estimates. Management attributed the strong adjusted earnings to effective pricing strategies, disciplined cost control, and operational improvements, particularly within its aggregates and downstream businesses. CEO Tom Hill highlighted the company's “Vulcan Way of Selling and Operating” as a key driver of expanded margins and improved profitability per ton, with units benefiting from both operational efficiencies and acquisition integration. The company also saw notable gains in its asphalt and concrete segments, crediting improved unit profitability and steady public infrastructure demand.
Is now the time to buy VMC? Find out in our full research report (it’s free).
Vulcan Materials (VMC) Q1 CY2025 Highlights:
- Revenue: $1.63 billion vs analyst estimates of $1.68 billion (5.8% year-on-year growth, 2.8% miss)
- Adjusted EPS: $1 vs analyst estimates of $0.76 (31.6% beat)
- Adjusted EBITDA: $410.9 million vs analyst estimates of $384.5 million (25.1% margin, 6.9% beat)
- EBITDA guidance for the full year is $2.45 billion at the midpoint, in line with analyst expectations
- Operating Margin: 13.9%, up from 11.2% in the same quarter last year
- Tons Shipped: 47.8 million, in line with the same quarter last year
- Market Capitalization: $34.94 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Vulcan Materials’s Q1 Earnings Call
- Jerry Revich (Goldman Sachs) asked about the sustainability of price increases and future cost trends. CEO Tom Hill explained that midyear price discussions are ongoing and expected to vary by market, with cost improvements tied to operational discipline and technology adoption.
- Tyler Brown (Raymond James) questioned the outlook for organic volume growth across public and private segments. Hill clarified that public demand remains strong, while private volumes face challenges, leading to a back-half weighted volume recovery.
- Keith Hughes (Truist) sought detail on the drivers of lower costs in the quarter and expectations for the rest of the year. Hill cited efficiency gains, controlled spending during adverse weather, and delayed expenditures, but cautioned that cost trends may be uneven throughout the year.
- Garik Shmois (Loop Capital) probed on pricing integration for recent acquisitions and customer reactions amid private market softness. CFO Mary Andrews Carlisle confirmed expected acquisition performance and ongoing efforts to capture synergies through established operating disciplines.
- Angel Castillo (Morgan Stanley) asked about the timing and scale of power generation projects as an aggregates demand driver. Hill indicated these projects will become more meaningful in late 2026 and beyond, particularly in regions with growing data center activity.
Catalysts in Upcoming Quarters
In the upcoming quarters, the StockStory team will be closely monitoring (1) the pace and impact of public infrastructure contract awards and IIJA-related spending, (2) the rollout and measurable benefits of plant automation initiatives on cost efficiency, and (3) signs of stabilization or recovery in private residential and nonresidential construction volumes. Progress toward full integration of recent acquisitions and evolving industry trends around tariffs and input costs will also be important for assessing Vulcan Materials’ execution.
Vulcan Materials currently trades at $265.23, up from $245.16 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
