NYSE:VMC
Vulcan Materials CO
A dominant US-based provider of construction aggregates and concrete products with a robust network spanning North America.
Key Metrics
Investment Thesis
Bull Case
Investors may favor this stock due to its essential utility role in infrastructure projects ensuring steady demand regardless of economic cycles, coupled with a disciplined balance sheet generating strong free cash flow. The company's ability to self-fund growth through reinvested earnings and return excess capital to shareholders provides a compelling margin of safety.
Bear Case
Concerns persist regarding the cyclical nature of construction demand which could lead to revenue contraction if major infrastructure bills stall or economic growth slows. High levels of long-term debt at $4.36B combined with significant capital expenditures could strain liquidity if operating margins compress due to rising input costs.
About Vulcan Materials CO
Vulcan Materials Company is a leading North American producer of construction aggregates, concrete products, and asphalt materials serving infrastructure, energy, and industrial markets. The company operates over 400 locations across the US and Canada, supplying essential raw materials for highway construction, mining, and commercial development projects.
Analysis
Management Discussion
The company generated $1.08B in net profit for 2025, reflecting a recovery from the slight revenue dip in 2024 to reach $7.94B, demonstrating operational resilience despite macroeconomic headwinds. Strong operating cash flow of $1.81B funded significant capital expenditures of $677.7M and substantial shareholder returns via dividends and buybacks totaling nearly $700M.
Industry Overview
The construction aggregates industry is highly fragmented but dominated by regional leaders who control key mineral reserves and distribution hubs. Success depends on managing a complex supply chain from quarry extraction to final delivery, making scale and logistics efficiency critical differentiators in a low-margin environment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $7.32B | $7.78B | $7.42B | $7.94B |
| Cost of Revenue | $5.76B | $5.83B | $5.42B | $5.77B |
| Gross Profit | $1.56B | $1.95B | $2.00B | $2.17B |
| Operating Expenses | $606.3M | $521.1M | $635.1M | $555.0M |
| Operating Income | $951.4M | $1.43B | $1.36B | $1.62B |
| G&A | $515.1M | $542.8M | $531.1M | $564.1M |
| Stock-Based Comp | $41.1M | $63.2M | $53.4M | $63.1M |
| D&A | $587.5M | $617.0M | $632.2M | $748.5M |
| Depreciation | $409.1M | $441.1M | $464.6M | $544.6M |
| Amortization | $97.6M | $88.1M | $83.9M | $89.0M |
| Other OpEx | $91.2M | $-21.7M | $104.0M | $-9.1M |
| Non-Operating Income | $-163.3M | $-182.3M | $-192.4M | $-229.5M |
| Interest Expense | $169.2M | $196.1M | — | — |
| Pre-Tax Income | $788.1M | $1.25B | $1.17B | $1.39B |
| Income Tax | $193.0M | $299.4M | $251.4M | $307.5M |
| Continuing Ops | $595.1M | $945.7M | $920.7M | $1.08B |
| Discontinued Ops | $-18.6M | $-10.8M | $-7.6M | $-4.5M |
| Net Income | $576.5M | $934.9M | $913.1M | $1.08B |
| Minority Interest | $900.0K | $1.7M | $1.2M | $1.4M |
| Net to Common | $575.6M | $933.2M | $911.9M | $1.08B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.90B | $2.52B | $2.27B | $2.57B |
| Cash & Equivalents | $161.4M | $931.1M | $559.7M | $183.3M |
| Accounts Receivable | $845.6M | — | — | — |
| Inventory | $579.3M | $615.6M | $681.8M | $680.5M |
| Other Current Assets | $315.7M | $978.2M | $1.02B | $1.70B |
| Long-Term Assets | $12.33B | $12.02B | $14.84B | $14.13B |
| PP&E (Net) | $6.05B | $6.22B | — | — |
| Intangibles | $1.70B | $1.46B | $1.71B | $1.49B |
| Goodwill | $3.69B | $3.53B | $3.79B | $3.78B |
| Operating Leases | $572.6M | $511.7M | $526.4M | $521.5M |
| Other LT Assets | $317.0M | $299.0M | $8.81B | $8.34B |
| Total Assets | $14.23B | $14.55B | $17.10B | $16.70B |
| Current Liabilities | $956.6M | $797.6M | $1.24B | $956.1M |
| Current Debt | $500.0K | $500.0K | $400.5M | $400.0K |
| Current Leases | $48.1M | $47.3M | $49.3M | $44.5M |
| Other Current Liab | $908.0M | $749.8M | $789.3M | $911.2M |
| Long-Term Liabilities | $6.33B | $6.24B | $7.72B | $7.20B |
| Long-Term Debt | $3.88B | $3.88B | $4.91B | $4.36B |
| LT Operating Leases | $548.4M | $507.4M | $521.4M | $522.6M |
| Other LT Liab | $1.74B | $1.71B | $2.16B | $2.18B |
| Total Liabilities | $7.28B | $7.04B | $8.96B | $8.15B |
| Shareholders' Equity | $6.95B | $7.51B | $8.14B | $8.55B |
| Retained Earnings | $4.11B | $4.62B | $5.21B | $5.59B |
| AOCI | $-154.7M | $-143.8M | $-127.4M | $-125.6M |
| Total L&E | $14.23B | $14.55B | $17.10B | $16.70B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $576.5M | $934.9M | $913.1M | $1.08B |
| Non-Cash Adjustments | $430.4M | $670.8M | $652.7M | $699.5M |
| Working Capital Changes | $141.3M | $-68.9M | $-156.2M | $35.4M |
| Cash from Operations | $1.15B | $1.54B | $1.41B | $1.81B |
| Capital Expenditures | $612.6M | $872.6M | $603.5M | $677.7M |
| Cash from Investing | $-1.05B | $-163.5M | $-2.81B | $-529.2M |
| Debt Issuances | $550.0M | $550.0M | $2.00B | $0 |
| Debt Repayments | $557.7M | $550.5M | $550.5M | $400.5M |
| Share Buybacks | $0 | $200.0M | $68.8M | $438.4M |
| Dividends Paid | $212.6M | $228.4M | $244.4M | $259.8M |
| Cash from Financing | $-175.2M | $-585.6M | $1.06B | $-1.70B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-80.0M | $787.7M | $-348.4M | $-411.4M |
| Beginning Cash | $241.5M | $161.5M | $949.2M | $600.8M |
| Ending Cash | $161.5M | $949.2M | $600.8M | $189.4M |
Frequently Asked Questions
How does Vulcan Materials CO make money?
Core revenue streams include Construction Aggregates (crushed stone, sand, gravel), Concrete Products (precast structures, ready-mix concrete), Asphalt Products (hot mix asphalt for paving), and Specialty Materials (including geosynthetics and recycled materials).
What are the main risks for VMC?
Cyclical sensitivity to construction spending and infrastructure investment levels; exposure to volatile fuel prices impacting high-cost transportation logistics; regulatory changes affecting quarry permitting and environmental compliance; and potential overcapacity in specific regional markets.
What is VMC's competitive advantage?
Extensive proprietary mining and processing assets securing low-cost feedstock; deep regional distribution networks reducing logistics costs; and a diversified product mix providing resilience against commodity price volatility.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.