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. We had an outstanding safety year and delivered another year of robust growth in earnings and cash generation. Their accomplishments position us well to take advantage of the growth opportunities ahead of us.

In 2025, we delivered $2.3 billion of Adjusted EBITDA, a 13% increase over the prior year. Importantly, our Aggregates cash gross profit per ton grew to $11.33, achieving our previously established target of $11-$12 and driving operating cash flow of over $1.8 billion, a 29% increase over the prior year. As expected, Aggregates units profitability continued to expand and public demand continued to grow. However, single-family residential activity was weaker than we initially anticipated, yielding a full year volume and price at the lower end of our initial expectations.

Our Aggregates units cash cost of sales increased less than 2% for the full year. Aggregate shipments of approximately 227 million tons increased 3% for the full year, with growth driven by prior year acquisitions. Same-store aggregate shipments for the full year were slightly lower than the prior year. Aggregates mix adjusted price improved 6% for the full year and 5% in the fourth quarter.

What went well
  • Full year 2025 adjusted EBITDA reached $2.3 billion, a 13% increase over the prior year, with adjusted EBITDA margin expanding 160 basis points to 29.3%.
  • Aggregates cash gross profit per ton grew to $11.33, achieving the previously established $11 to $12 target, and improved 7% for the year.
  • Operating cash flow exceeded $1.8 billion, up 29% over the prior year, and free cash flow rose over 40% after $678 million of capital expenditures.
  • Aggregates units cash cost of sales increased less than 2% for the full year, reflecting Vulcan Way of Operating discipline in a dynamic environment.
  • Full year aggregates mix adjusted price improved 6% and shipments rose 3% to about 227 million tons, with year-end net debt to adjusted EBITDA leverage of 1.8x.
What went wrong
  • Fourth quarter adjusted EBITDA was essentially flat year over year once the prior year hurricane relief activity is excluded, falling short of anticipated growth.
  • Single-family residential activity was weaker than initially anticipated, pulling full year volume and price to the lower end of initial expectations.
  • Weather hurt the quarter, with winter arriving early in seasonal markets and Southern California being extremely wet.
  • Incremental costs related to timing on repairs and insurance weighed on the fourth quarter.
  • Fourth quarter aggregate shipments rose only 2%, held back by nearly 30% lower shipments in East Tennessee and North Carolina that had outsized hurricane-relief volume the prior year.

Guidance Changes

MetricPeriodCurrent guidance
Adjusted EBITDAFY2026$2.4 billion to $2.6 billion (introduced; reflects continued compounding improvements and modest demand growth)
Aggregate shipmentsFY2026grow between 1% and 3% (introduced; driven by public strength and improving private non-residential)
Aggregates freight adjusted average selling priceFY2026increase between 4% and 6% (introduced; weighted toward lower end early in year, higher end later)
Aggregates units cash cost of salesFY2026increase by low single digit percentage (introduced; supports at least high single digit cash gross profit per ton expansion)
Downstream cash gross profitFY2026approximately $290 million, about 85% from asphalt (introduced; reflects pruned ready-mix footprint)
SG&A expensesFY2026$580 million to $590 million (introduced)

Performance Breakdown

MetricYoYNote
Full year adjusted EBITDA +13% compounding unit profitability plus contribution of prior year acquisitions
Q4 aggregate shipments +2% growth from prior year acquisitions offset by nearly 30% lower shipments in hurricane-relief markets
Full year aggregates mix adjusted price +6% pricing discipline, though reported price impacted by geographic and product mix and acquisitions
Q4 aggregates mix adjusted price +5% acquisitions, prior year elevated high-priced shipments, and product mix shift toward base
Operating cash flow +29% expanding cash gross profit per ton and strong aggregates earnings

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Q4 shortfall driversexpected fourth quarter growththree factors, weakening residential, early and wet weather, and timing on repair and insurance costs, kept Q4 EBITDA roughly flat ex hurricane comps
Data centersbiggest catalystover 150 million square feet under construction and nearly 450 million square feet announced, with over 70% within 30 miles of a Vulcan facility
Base versus clean stone mixbase weighing on reported pricedata center projects start with base and fill (base sells $8 to $10 below clean stone) and shift to clean stone as projects go vertical; margin impact is small
M&A pipeline2025 was a year of integrating two large late-2024 deals amid a paused market2026 expected to be a very active year with a healthy pipeline and good seller conversations
Ready-mix divestiturependingCalifornia ready-mix excluded from guidance; same-store guide at midpoint implies over 10% growth in 2026

Q&A Summary

Given where Q4 landed, what gives you confidence that it is not the trend, and what are the demand, pricing, and profitability puts and takes for 2026?
Public starts remain solid and reflected in backlog; private non-res led by data centers converting quickly to shipments; warehouses finding a bottom; residential expected to improve somewhat if rates and affordability help. Q4 was essentially flat EBITDA ex hurricane comps due to weakening residential, weather, and timing costs. 2026 reflects continued compounding improvement.
Can you bridge the 3-point gap between reported and mix adjusted pricing in Q4, and how should we shape 2026 pricing?
About two-thirds of the 300 basis points was geographic mix from strong prior-year shipments in profitable markets; the remaining third split roughly evenly between acquisition drag and product mix from base-heavy projects. 2026 pricing should be toward the lower end early and move to the higher end as demand improves; mid-years are not in guidance but anticipated.
What gives confidence in keeping 2026 cost growth to low single digits, and is there a mix impact baked in?
Vulcan Way of Operating is the main driver, with 120-plus plants representing about 75% of production now mature on process intelligence and labor scheduling. Base mix is a benefit to plant operation and yield; three years of muted demand were managed without building inventory, positioning cost as a tailwind when demand recovers.
With IIJA expiring in September, how is reauthorization messiness handled in guidance and how are states taking control?
Guidance assumes a bill gets done, on time or via continuing resolution, and historically larger than the prior bill; 50% of IIJA money is unspent and will flow through 2026 and 2027. Trailing 12-month starts dollars in Vulcan markets are up 24% year over year and up 80% since IIJA began, with California highway starts up 47%.
Is a data center project higher or lower margin overall than a traditional manufacturing project, and how much drag does it create?
Base sells about $8 to $10 below clean stone but the margin difference is small, and base plays well to plant yield and cost. The mix will become more uniform as projects go vertical and clean stone and concrete ship. 2026 will still be base-heavy as new projects start.
How much of your mix is data centers and what housing recovery is embedded in the 2026 volume forecast?
Single-family recovery is assumed to be essentially flat and lagged, a potential second-half opportunity if affordability improves. Data centers are a very large piece of the private side; the mix is not broken out but is heavily influenced by data centers, complemented by emerging energy and LNG projects and a $6 billion Eli Lilly project in Alabama.
What is the cadence of EBITDA expected for 2026?
Best to think about normal seasonality rather than year over year comparisons; the year over year comps will look different in the first half versus the second half.
Can you size the Q4 repair, insurance, and rebuild costs, and will they linger into Q1?
Largely timing-related as weather pushed project work through the year; plant rebuilds are accounted for in both cost and CapEx plans. Q4 shortfall versus expectations was roughly 50/50 revenue and cost, with most of the cost tied to timing.

More on Vulcan Materials CO

Reported 2026-02-17 · figures from the Vulcan Materials CO Q4 2025 earnings call.

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