Details on these risks, other legal disclaimers, and reconciliations of any non-GAAP financial measures are defined and described in our earnings release, supplemental presentation, and other filings with the Securities and Exchange Commission. We generated $447 million of adjusted EBITDA, a 9% increase over the prior year. SAG expenses were lower than the prior year, and adjusted EBITDA margin grew. Aggregate shipments in the first quarter support the anticipated return to growth for 2026.
Shipments increased 5% compared to the prior year due to both improving demand and fewer extreme weather days than in the prior year. The sequential growth from the prior quarter demonstrates the success of our January first price increases and discussions are already underway for mid-year increases. From a demand perspective, we still expect strong public activity and improving private non-residential opportunities to drive year-over-year shipments growth in 2026 and mitigate the ongoing challenges facing residential construction. Our footprint is advantaged, and this public demand provides a solid foundation for shipments and supports a healthy pricing environment.
With approximately 650 million square feet under construction or announced, we anticipate data centers and other related investments to be a positive catalyst for future aggregates demand. As I said earlier, we continue to expect overall growth in aggregate shipments in 2026. We carry good momentum from our solid start to the year and continue to expect to deliver between $2.4 billion and $2.6 billion of adjusted EBITDA for the full year. The earnings from our aggregates-led business continue to compound and drive attractive cash generation.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EBITDA | FY2026 | $2.4 billion to $2.6 billion (reiterated; solid start and momentum support the full year range despite near term diesel headwinds) |
| Aggregates cash cost of sales (year over year) | Q2 2026 | could approach double the Q1 rate, closer to high single digits including diesel (raised for Q2 specifically due to the diesel spike, with margin impact expected to moderate in the second half) |
| Aggregates cash cost of sales | FY2026 | low single digit increase (reiterated; where it lands in the range depends on how diesel develops) |
| Metric | YoY | Note |
|---|---|---|
| Adjusted EBITDA | +9% | strong operational and commercial execution, margin expansion across segments |
| Aggregate shipments | +5% | improving demand plus fewer extreme weather days, with backlog converting to shipments faster on data center work |
| Aggregates mix adjusted price | +4% | realization of January 1 price increases, partly offset by mix shift to base products and tougher comps |
| Aggregates freight adjusted unit cash cost of sales | +4% | input cost inflation and better weather enabling more stripping and project work, partly mitigated by Vulcan Way of Operating efficiencies |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Diesel and energy costs | not a major factor entering the quarter | run-up starting in February creates a near term headwind, most acute in Q2 at about $25 million, managed via surcharges, usage levers, and pricing | — |
| Data centers | leading private non-residential growth | approximately 650 million square feet under construction or announced, accelerating and now accompanied by active energy build-out projects | — |
| Highway funding reauthorization | efforts underway in Washington | IIJA expires later this year; new bill expected at higher funding, with discussions around $500 billion to $700 billion and a smooth transition given unspent funds | — |
| Mid-year price increases | typical annual cadence | sent to all markets several weeks earlier than last year, confirming a back-half weighted pricing trajectory | — |
| M&A and greenfield | expanding reach a core strategy | active pipeline with several bolt-on acquisitions expected to finalize in coming months, plus three new plants and seven distribution yards coming online | — |