Vulcan Materials has highlighted margin expansion and aggregates unit profitability after releasing its fourth-quarter results.
The company has praised “solid execution” across its business as the key drive behind its results and outlook, which includes an early indication of double-digit earnings growth in 2025.
“Our aggregates-led business delivered a strong finish to the year. Adjusted EBITDA in the fourth quarter improved 16 per cent, and Adjusted EBITDA margin expanded 370 basis points,” Vulcan Materials’ chairman and chief executive officer Tom Hill said.
“The favourable pricing environment coupled with strong operational execution led to consistent double-digit year-over-year improvement in aggregates cash gross profit per ton each quarter – exiting 2024 with aggregates cash gross profit per ton at $11.50.
“As we look to 2025, the pricing environment remains favourable, and we are focused on our operating disciplines to manage costs and improve efficiencies. By controlling what we can control, we expect to deliver 19 per cent growth in Adjusted EBITDA.”
Vulcan Materials’ aggregates sector saw its gross profit increase 15 per cent to $486 million while the gross profit margin expanded by 300 basis points. Vulcan Materials noted Improvements in unit profitability were widespread across the company’s footprint and marked the eleventh consecutive quarter of year-over-year growth.
Aggregate shipments decreased in the fourth quarter by three per cent, which the company said reflected the “underlying demand” throughout the quarter.
The company’s asphalt and concrete segment’s gross profit was $46 million. Vulcan Materials reported that shipments increased slightly compared to the prior year, and prices improved by seven per cent.
Hill said the company was looking at a strong outlook for 2025.
“We carry solid momentum into 2025 and are well positioned to deliver another year of strong earnings growth and cash generation,” he said.
“Continued strength in public construction activity and our recent acquisitions support our expectations for volume growth in 2025. The pricing environment remains positive, and inflationary pressures continue to moderate.
“This backdrop, coupled with our Vulcan way of selling and Vulcan way of operating disciplines, will lead to further expansion in our industry-leading aggregates cash gross profit per ton and value creation for our shareholders.”
