Vulcan Materials Company (NYSE: VMC) has reported its second quarter 2024 results, showing a 5% decrease in aggregates shipments compared to the prior year's second quarter, due to significant rainfall in key markets, particularly in Texas and across the Southeast. However, despite the challenges posed by weather conditions and lower shipments, the company managed to achieve a 6% increase in second quarter segment gross profit to $529 million, with a cash gross profit per ton improvement of 12% to $10.92 per ton. The gross profit margin also expanded by 120 basis points.
In terms of financial performance, the company's total revenues for the second quarter of 2024 were $2,014 million, down from $2,113 million in the same period in 2023. Gross profit for the same period increased to $592 million from $583 million in 2023, and net earnings attributable to Vulcan were $308 million, compared to $309 million in the second quarter of 2023.
The aggregates segment freight-adjusted sales price per ton also saw an increase, reaching $21.00 compared to $18.71 in the prior year's second quarter. Additionally, the cash gross profit per ton for the aggregates segment improved to $10.92 from $9.76 in the same period in 2023.
Looking at adjusted EBITDA, Vulcan reported $603 million for the second quarter of 2024, up from $595 million in the prior year's second quarter, with an adjusted EBITDA margin of 29.9%, compared to 28.2% in 2023.
Vulcan's Chairman and CEO, Tom Hill, highlighted the company's consistent execution and the durable characteristics of its business, despite the challenging weather conditions. The company's focus remains on compounding aggregates unit profitability to drive earnings growth and strong cash generation.
In terms of outlook, management expects continued improvement in aggregates segment cash gross profit per ton and a positive pricing environment for the remainder of the year.
The company also provided a financial position update, reporting a strong liquidity position and disciplined capital allocation, resulting in a 160 basis points improvement in return on average capital over the last twelve months.
Vulcan Materials Company, headquartered in Birmingham, Alabama, is the nation's largest supplier of construction aggregates and a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete. Following these announcements, the company's shares moved -3.3%, and are now trading at a price of $257.43. If you want to know more, read the company's complete 8-K report here.
