Vulcan Materials (NYSE:VMC) Announces Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Vulcan Materials beat EPS expectations with quarterly adjusted earnings of $2.83 per share versus the $2.81 consensus, but revenue of $2.18 billion missed estimates and declined 4.7% year over year.
• Aggregate shipments fell 3% amid weak demand, residential affordability pressures and rising energy costs, which are expected to create roughly $120 million in full-year headwinds.
• Management maintained its approximately $2.4 billion 2026 adjusted EBITDA target, citing pricing, cost controls and infrastructure demand; the company also continued acquisitions and returned capital through stock repurchases and dividends.

Vulcan Materials (NYSE:VMC - Get Free Report) announced its quarterly earnings results on Thursday. The construction company reported $2.83 earnings per share for the quarter, beating analysts' consensus estimates of $2.81 by $0.02, FiscalAI reports. Vulcan Materials had a net margin of 13.75% and a return on equity of 13.05%. The firm had revenue of $2.18 billion during the quarter, compared to analysts' expectations of $2.24 billion. During the same period in the previous year, the company earned $2.84 earnings per share. Vulcan Materials's quarterly revenue was down 4.7% compared to the same quarter last year.

Here are the key takeaways from Vulcan Materials' conference call:

• Third-quarter adjusted EBITDA was $707 million, with adjusted margins expanding 20 basis points to 32.3%. Excluding approximately $40 million of energy headwinds and prior divestitures, underlying EBITDA grew 5% year over year.
• Aggregate shipments declined 3% year over year amid a muted demand environment, while energy costs are expected to create roughly $120 million of full-year headwinds. Residential construction remains constrained by weak affordability and elevated interest rates.
• Management maintained its outlook for approximately $2.4 billion of 2026 adjusted EBITDA, supported by pricing, cost controls, and an aggregates-led portfolio. Full-year aggregate unit margin is expected to expand despite higher diesel costs.
• Vulcan expects mid- to high-single-digit aggregate pricing growth in 2027, including the benefit of announced January increases, while public infrastructure and large private projects such as data centers, manufacturing, and energy developments support demand.
• The company closed multiple bolt-on aggregate acquisitions and expects several more by year-end, while maintaining substantial shareholder returns. Through nine months, Vulcan repurchased $750 million of stock, paid dividends, and ended the quarter with manageable net leverage of 1.9 times adjusted EBITDA.

Vulcan Materials Stock Performance

NYSE VMC traded up $15.23 during trading on Thursday, reaching $280.23. The company's stock had a trading volume of 2,832,423 shares, compared to its average volume of 1,177,489. The business's fifty day moving average price is $255.48 and its 200-day moving average price is $280.70. Vulcan Materials has a twelve month low of $237.03 and a twelve month high of $331.09. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.20 and a current ratio of 1.76. The firm has a market cap of $36.31 billion, a price-to-earnings ratio of 33.09, a P/E/G ratio of 2.68 and a beta of 1.05.

Vulcan Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 24th. Shareholders of record on Monday, November 9th will be paid a $0.52 dividend. The ex-dividend date is Monday, November 9th. This represents a $2.08 dividend on an annualized basis and a yield of 0.7%. Vulcan Materials's payout ratio is currently 24.56%.

Insider Activity

In other news, Director J. Hill sold 14,000 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $276.17, for a total transaction of $3,866,380.00. Following the completion of the sale, the director owned 58,209 shares in the company, valued at approximately $16,075,579.53. This represents a 19.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP David Clement sold 2,000 shares of the firm's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $285.10, for a total value of $570,200.00. Following the transaction, the senior vice president directly owned 6,716 shares in the company, valued at approximately $1,914,731.60. This represents a 22.95% decrease in their position. The SEC filing for this sale provides additional information. 0.65% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Vulcan Materials

Here are the key news stories impacting Vulcan Materials this week:

• Positive Sentiment: Vulcan reported third-quarter adjusted EPS of $2.83, narrowly exceeding analyst expectations. Management highlighted operational efficiencies, pricing discipline and margin resilience in its aggregates-led business. Vulcan Materials Surpasses Q3 Earnings Estimates
• Positive Sentiment: Management reaffirmed an approximately $2.4 billion adjusted EBITDA target for 2026 and said it expects to return to earnings growth in 2027, supporting confidence that current headwinds may be temporary. Vulcan Materials Q3 2026 Earnings Call Transcript
• Positive Sentiment: Vulcan returned $417 million to shareholders during the quarter through $350 million of repurchases and $67 million in dividends. It also completed bolt-on acquisitions in Tennessee and southern Ohio, expanding its footprint in targeted markets. Vulcan Reports Third Quarter 2026 Results
• Neutral Sentiment: Aggregates shipments declined 3% year over year, but freight-adjusted selling prices increased 5% on a mix-adjusted basis, showing pricing power is partly offsetting weaker volumes and cost pressures. Vulcan Reports Third-Quarter Revenue for 2026
• Negative Sentiment: Revenue of approximately $2.18 billion missed the $2.24 billion consensus estimate and fell 4.7% from the prior year. Net earnings also declined, while lower shipments and reduced 2026 EBITDA guidance weighed on some investors. Vulcan Materials Q3 Earnings Beat Estimates, Revenues Miss
• Negative Sentiment: Stifel lowered its price target from $333 to $320, while another recent report assigned Vulcan a sell rating, adding caution around valuation and near-term construction demand. Stifel Lowers Vulcan Materials Price Target

Analysts Set New Price Targets

A number of research firms have recently commented on VMC. Stifel Nicolaus cut their target price on Vulcan Materials from $333.00 to $320.00 and set a "buy" rating on the stock in a research report on Wednesday. UBS Group decreased their target price on Vulcan Materials from $349.00 to $326.00 and set a "buy" rating for the company in a research report on Thursday, October 8th. Wall Street Zen downgraded Vulcan Materials from a "hold" rating to a "sell" rating in a research note on Saturday, September 12th. Wells Fargo & Company cut their price target on Vulcan Materials from $254.00 to $249.00 and set an "underweight" rating on the stock in a research report on Monday, October 5th. Finally, DA Davidson reaffirmed a "buy" rating and set a $330.00 price target on shares of Vulcan Materials in a research report on Monday, September 21st. Nine research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $309.86.

About Vulcan Materials

Vulcan Materials Company NYSE: VMC is a producer and distributor of construction materials used in infrastructure, commercial, residential and industrial projects. The company is the largest producer of construction aggregates in the United States, including crushed stone, sand and gravel.

In addition to aggregates, Vulcan Materials produces asphalt mix, ready-mixed concrete and cement. Its materials are used in roads, bridges, airports, commercial buildings, homes and other construction applications.

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