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. I am proud of how our commercial and operating teams have navigated the first half of the year to deliver adjusted EBITDA growth and aggregates cash gross profit per ton expansion. In the quarter, we generated $654 million of adjusted EBITDA, approximating the prior year despite energy headwinds of almost $40 million. Our teams executed well, earning higher prices for our products in each segment and driving operational efficiencies to help offset inflationary increases in our input costs.
Both of these growth pipelines remain active, including numerous acquisition opportunities likely to be finalized this year. A clear example was our acquisition of an aggregate operation from Brannan Sand & Gravel in early June. This acquisition expanded our reach into southern Colorado and strengthened our distribution network in Dallas-Fort Worth. Our team is already hard at work capturing synergies and driving value from this strategic acquisition.
In terms of the demand environment, what I see ahead of us is similar to what the views that I shared on the last call. We still expect strong public activity in our markets and improving private large project opportunities to drive year-over-year shipments growth in 2026. The amount of work in the pipeline bodes well for public shipments for the next several years, providing good demand visibility, which is important for a healthy pricing environment. Reinvesting in our business, growing our franchise through strategic acquisitions, and returning capital to shareholders through both dividends and share repurchases.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year adjusted EBITDA | FY2026 | $2.4B-$2.6B (reaffirmed) |
| Full-year capital expenditures | FY2026 | $750M-$800M (maintained) |
| Full-year mix-adjusted price growth | FY2026 | ~4-6%, exiting the year at the upper end |
| Full-year SAG expense | FY2026 | ~$10M-$15M lower than the prior range |
| Aggregate shipments | FY2026 | modest growth (volumes weighted to first half, consistent second-half pace) |
| Second-half gross margin | 2H 2026 | expected up year-over-year (driven by Q4); Q3 possibly still down |
| Metric | YoY | Note |
|---|---|---|
| Adjusted EBITDA | $654M (~flat) | Higher prices and operating efficiencies offset ~$40M of energy headwinds. |
| Aggregates cash gross profit per ton | >$12 (+$0.14) | Price gains and cost discipline compounding unit profitability. |
| Aggregates shipments | +1% | Weather-driven geographic variability (wet weather in Texas and the Southeast). |
| Mix-adjusted average selling price | +5% | Vulcan Way of Selling execution and mid-year increases pulled forward to June. |
| Unit cash cost of sales (ex-diesel) | +3% | Operating efficiencies and spending control despite wet-weather volume impacts. |
| Trailing-12-month ROIC | 16.1% (+20 bps) | Profitability compounding and disciplined capital allocation. |
| Net debt / adjusted EBITDA | 1.7x | Strong cash generation plus divestiture proceeds; commercial paper paid down ~$200M. |
| SAG expense (trailing 12 months) | $558M, 6.9% of revenue (-30 bps) | Continued overhead cost management (first-half SAG down 2%). |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Price as the primary inflation lever | Vulcan Way of Selling discipline | Mid-year increases pulled forward to June (nearly 2x last year sequentially), delivering 5% mix-adjusted price; management may push additional price in the second half if diesel stays sticky, with more color next call and implications for January 1 increases. | — |
| Cost control (Vulcan Way of Operating) | Efficiency focus | Dampened a $26M diesel headwind via production efficiencies, labor scheduling, stripping optimization and liquid-asphalt storage (added a Northern California facility); back-half costs aided by easier comps (last year's concentrated Q4 repair/insurance costs) and seasonally higher tonnage. | — |
| Public demand / infrastructure funding | IIJA-driven strength | Trailing-12-month highway awards up double digits and public infrastructure awards up 20% in Vulcan markets (Gulf Coast infrastructure +360%, North Georgia highways +189%); a continuing resolution is expected with ~60% of IIJA funds unspent ensuring a smooth transition; the House-passed BUILD America 250 Act's formula-first, aggregate-intensive focus is seen as better for Vulcan than IIJA. | — |
| Private demand (data centers / power / LNG) | Data-center strength | Data centers remain a key driver with power generation (coal-to-gas conversions, solar, Texas growth), power infrastructure and LNG projects emerging as multi-year aggregate-intensive tailwinds; power will ramp slower than data centers given regulatory/planning timelines (4-5 year horizon). | — |
| Residential/light non-res weakness | Affordability drag | Single-family remains weak on affordability, dragging light non-residential (which follows rooftops) and keeping warehouses broadly flat; management sees Vulcan's advantaged footprint well-positioned to capture an eventual recovery. | — |
| M&A / greenfield growth | Active pipeline | Disciplined, aggregates-focused pipeline with several acquisitions likely to close in the second half; Brannan (~1-1.5M tons, split between southern Denver and DFW via a Fort Worth rail facility) a complementary bolt-on; no surprises expected as Vulcan stays the purest-play aggregates company. | — |
| Acquisition integration (Superior, Wake Stone) | Recent deals | Superior Ready Mix executed as planned (aggregates retained, downstream spun to CalPortland); Wake Stone Corporation on schedule after applying Vulcan Way of Selling to lift below-standard pricing over a couple of years. | — |
| Mexico / Calica arbitration | NAFTA arbitration pending | Tribunal unanimously found Mexico's 2022 Calica seizure arbitrary and in violation of NAFTA but awarded only immaterial damages (one arbitrator dissented on the low award); Vulcan still owns the land and port-area land, and Gulf Coast EBITDA has grown 50%+ over four years via its distribution network. | — |