Vulcan Materials Company (VMC) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue was $7.782 billion, up 6%; Adjusted EBITDA reached $2.011 billion, up 24%, and its margin expanded 360 bps.

• Operating cash flow was $1.537 billion, supporting $868 million of free cash flow and 93% conversion of net earnings.

• Aggregates cash gross profit reached $9.46 per ton for FY 2023, its sixth consecutive annual improvement.

Financial highlights

• Q4 revenue was $1.834 billion vs. $1.732 billion; gross profit was $472 million vs. $350 million.

• Q4 net earnings attributable to Vulcan were $227.5 million vs. $119.4 million; diluted EPS from continuing operations was $1.72 vs. $0.91.

• Q4 Adjusted EBITDA was $476 million vs. $375 million; adjusted diluted EPS from continuing operations was $1.46 vs. $0.89.

• FY net earnings attributable to Vulcan were $933.2 million vs. $575.6 million; Adjusted EBITDA was $2.011 billion vs. $1.626 billion.

Outlook and guidance

• 2024 Adjusted EBITDA guidance is $2.15–$2.30 billion, with 11% organic growth at the midpoint; net earnings attributable to Vulcan guidance is $1.07–$1.19 billion.

• 2024 Aggregates shipments are expected flat to down 4%; freight-adjusted price is expected up 10%–12%, with freight-adjusted cash cost up mid-single digits and cash gross profit per ton expected to improve.

• 2024 Asphalt, Concrete and Calcium cash gross profit is expected at ~$275 million, with ~70% from asphalt and ~30% from concrete.

• 2024 maintenance and growth capital expenditures are expected at $625–$675 million; SAG expense at $550–$560 million, interest expense at ~$155 million, and effective tax rate at 22%–23%.

• Public demand growth is expected to offset private-market softness.