Vulcan Materials Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the third quarter of 2026 were $2,185 million, a decrease from $2,292 million in the prior year period; year-to-date revenues were $6,096 million compared to $6,029 million in 2025.
• Gross profit for the quarter was $666 million compared to $697 million in the prior year; year-to-date gross profit was $1,714 million versus $1,688 million in 2025.
• Net earnings attributable to Vulcan were $362 million for the quarter, down from $375 million in the prior year; year-to-date net earnings were $851 million compared to $825 million in 2025.
• Earnings per diluted share from continuing operations were $2.81 for the quarter versus $2.83 in the prior year; year-to-date earnings per share were $6.54 compared to $6.24 in 2025.
• Adjusted EBITDA was $707 million for the quarter compared to $735 million in the prior year; year-to-date Adjusted EBITDA was $1,808 million versus $1,806 million in 2025.
• Adjusted EBITDA margin was 32.3% for the quarter, up from 32.1% in the prior year; year-to-date margin was 29.7% compared to 30.0% in 2025.
• Trailing-twelve months Adjusted EBITDA was $2,326 million compared to $2,356 million in the prior year.
• Selling, Administrative and General (SAG) expenses were $137 million for the quarter, 6% lower than the prior year, representing 6.3% of total revenues; year-to-date SAG was $414 million (6.8% of revenues) versus $428 million (7.1% of revenues) in 2025.
• Cash gross profit per ton for the Aggregates segment was $11.95 for the quarter, up from $11.84 in the prior year; year-to-date cash gross profit per ton was $11.68 versus $11.52 in 2025.
• Trailing-twelve months return on average invested capital was 15.9%.

Guidance and Future Outlook:

• The Company expects to deliver approximately $2.4 billion in Adjusted EBITDA for the full year 2026.
• Management anticipates a continuation of the current demand environment in 2027 and expects to expand aggregates cash gross profit per ton.
• The Company expects mid- to high-single-digit pricing gains in 2027 through the execution of the Vulcan Way of Selling and cost benefits from the Vulcan Way of Operating.

Business Segments and Product Lines:

• Aggregates: Segment gross profit was $593 million ($9.46 per ton) for the quarter; cash gross profit was $750 million ($11.95 per ton). Shipments decreased 3% year-over-year to 62.7 million tons. Freight-adjusted sales price increased 5% on a mix-adjusted basis (4% on a reported basis) to $22.84 per ton.
• Asphalt: Segment gross profit margin remained strong at 17% despite lower shipments and higher liquid asphalt costs; prior year results included the Houston asphalt and construction business divested in Q4 2025.
• Concrete: Segment gross profit margin expanded to 9%; prior year results included California concrete assets divested in Q2 2026.
• Acquisitions: The Company completed two bolt-on acquisitions during the quarter, enhancing its position in Tennessee and expanding reach into southern Ohio.

Market and Competitive Landscape:

• The Company operates in a dynamic environment marked by energy inflation and ongoing energy headwinds.
• Price growth remained widespread across the Company's footprint in the third quarter.
• The Company is the nation's largest producer of construction aggregates.

Risks and Challenges:

• The business faces energy cost headwinds and inflationary pressures on parts and supplies.
• Freight-adjusted unit cash cost of sales increased 7% year-over-year, or $0.72 per ton; excluding higher diesel fuel costs, cash cost of sales increased 3%.
• The Company notes that actual results may vary significantly from forward-looking statements due to risks including general business conditions, energy costs, construction industry cycles, and regulatory actions.

Management Commentary and Tone:

• CEO Ronnie Pruitt stated that results reflect disciplined operational execution, driving efficiencies and protecting margins despite energy inflation.
• Management emphasized the durability of the business, noting that proactive pricing and cost actions are mitigating elevated energy inflation.
• The tone regarding 2027 is confident, citing the right aggregates-led strategy and operational rigor to navigate dynamic market conditions and compound value for shareholders.

Other Key Points:

• Capital expenditures for maintenance and growth projects were $174 million in the third quarter.
• The Company returned $417 million to shareholders through $350 million of common stock repurchases and $67 million of dividends.
• As of September 30, 2026, the ratio of total debt to trailing-twelve months Adjusted EBITDA was 2.0 times, within the target range of 2.0 to 2.5 times.
• Net debt to Adjusted EBITDA was 1.9 times as of September 30, 2026, compared to 1.8 times in the prior year period.
• The Company divested its Houston asphalt and construction business in Q4 2025 and California concrete assets in Q2 2026.