These risks, along with other legal disclaimers, are described in detail in the company's earnings release and in other filings with the Securities and Exchange Commission. Reconciliations of non-GAAP financial measures are defined and reconciled in our earnings release, supplemental presentation, and other SEC filings. Margins have expanded 260 basis points, and aggregate cash gross profit per ton has grown 13%. Our two-pronged growth strategy to improve earnings through compounding profitability in our organic business and adding strategic assets to our portfolio is clearly working.
In the quarter, we generated $660 million of adjusted EBITDA, a 9% improvement over the prior year despite lower aggregate shipments. Consistent pricing discipline, coupled with operating execution, are yielding attractive unit profitability growth as we move into the back half of the year. With growth in data center activity and moderating declines in warehouse and other private non-residential categories, trending three-month starts have turned positive. This is an encouraging sign that private non-residential demand will soon begin to grow.
Therefore, we continue to expect to deliver between $2.35 billion and $2.55 billion of adjusted EBITDA. Now, I'll turn the call over to Mary Andrews for some additional commentary on our results and the revised outlook. Over the last six months, our year-over-year, trailing 12 months' aggregate freight-adjusted unit cash cost of sales has improved nearly 600 basis points, from 10% to 4%. The solid operating performance through the first six months of this year drove a 58% improvement in operating cash flow, and free cash flow on a trailing 12-month basis surpassed $1 billion.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EBITDA | FY2025 | $2.35 billion to $2.55 billion (reaffirmed; supported by double-digit July shipments and improving demand backdrop) |
| Full year aggregate shipments | FY2025 | 3% to 5% growth (second-half loaded) (reiterated; significant catch-up expected in the second half) |
| Full year capital expenditures | FY2025 | approximately $700 million (lowered due to weather-slowed project timelines, with spending accelerating in the second half) |
| Aggregates unit cash cost of sales | FY2025 | trending toward the low end of guidance (favorable; first half cost down 1%, up 1% in Q2) |
| Metric | YoY | Note |
|---|---|---|
| Adjusted EBITDA | +9% | unit profitability gains offsetting weather-reduced shipment volumes |
| Aggregate shipments | down (about -1% in Q2, -5% first half ex-acquisitions) | extreme temperatures early in the year and record Southeast rainfall |
| Aggregates freight adjusted average selling price | +5% | widespread price improvement, muted by acquisition drag and adverse geographic mix |
| Aggregates mix adjusted price | +8% | consistent pricing discipline across markets |
| Aggregates freight adjusted unit cash cost of sales | +1.5% | Vulcan Way of Operating plant efficiencies amid challenging weather |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Weather disruption | cold start to the year | record 10-year rainfall in Georgia, Tennessee, Alabama, and the Carolinas cut an estimated 2 to 3 million tons; July returned to normal patterns with strong shipments | — |
| Private non-residential inflection | weighed down by rates and macro uncertainty | trending three-month starts turned positive; bid-to-booking conversions improving as green-lit projects proceed past the post-Liberation Day lull | — |
| Data centers | a bright spot | actively discussing green-lit projects totaling over $35 billion, nearly 80% within 30 miles of a Vulcan operation, plus emerging power generation projects | — |
| Public infrastructure | awards modestly down a year ago | trailing 12-month highway awards up over 20% (22%) in Vulcan states, distinctly stronger than decelerating awards in other states | — |
| Tax legislation benefit | n/a | estimated cash tax benefit over $40 million year-to-date from bonus depreciation and R&D expensing, potentially approaching $100 million for the full year | — |