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Vulcan Materials Company VMC reported third-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate and declining on a year-over-year basis due to severe weather, including hurricanes and storms across the Southeast, that led to lower aggregates shipments.

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VMC’s shares grew 1.9% in the pre-market trading session on Oct. 30, after the earnings release. Investors might have been optimistic about the strong pricing environment, improved operational efficiency and strategic acquisitions.

Nonetheless, Vulcan reported a 10% increase in aggregates cash gross profit per ton, marking the eighth consecutive quarter of double-digit growth. Additionally, Vulcan’s recent acquisition of Wake Stone Corporation will extend its presence in the high-growth Carolinas region. The company's "Vulcan Way of Selling and Operating" principles as key drivers in enhancing profitability and seamlessly integrating new operations.

Inside the Headlines

Adjusted earnings of $2.22 per share missed the consensus mark of $2.34 by 5.1% and declined 3.1% from the year-ago level.

Total revenues of $2.004 billion missed the consensus mark of $2.036 billion by 1.6% and declined 8.3% year over year.

Vulcan Materials Company Price, Consensus and EPS Surprise

Vulcan Materials Company price-consensus-eps-surprise-chart | Vulcan Materials Company Quote

Segments in Detail

Aggregates

Revenues from the segment were down 3.4% year over year to $1.57 billion. Aggregate shipments (volumes) declined 10% year over year to 57.7 million tons. We expected Aggregate revenues of $1.66 billion on 60.6 million tons of shipments. Shipments across the Southeast were disrupted due to heavy rainfall in July, followed by multiple hurricanes and severe storms in August and September. This contrasts with the previous year's third quarter, which saw fewer severe weather events.

Freight-adjusted average sales price rose 10.2% to $21.27 per ton from the prior-year level. Our estimate for the same was pegged at $21.22 per ton. Freight-adjusted revenues were down 0.6% from the prior-year quarter’s levels to $1.23 billion.

Gross profit of $498.5 million inched down from the prior-year figure of $509.1 million but gross margin expanded 40 basis points (bps). Cash gross profit per ton improved 10% to $10.89 despite the challenges.

Asphalt and Concrete

Revenues in the Asphalt segment were $381.1 million (ahead of our expectation of $355.9 million), up 9.8% year over year. The segment generated a solid gross profit of $60.2 million, up 7.7% from a year ago. Volumes were up slightly to 4.1 million tons from 4 million tons a year ago, while prices improved 6.1%.

Total revenues from the Concrete segment were $174.4 million (lower than our expectation of $189.1 million), down 52.2% year over year. Gross profit totaled $6.5 million compared with $26 million in the year-ago period. Shipments fell to 0.9 million cubic yards from 2.1 million cubic yards year over year. The downside was mainly due to the previous third quarter's inclusion of results from divested concrete assets in Texas. Average selling prices increased 9.2% from the prior-year level.