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Vulcan Materials Co (VMC) Q3 2023 Earnings: Strong Growth and Margin Expansion

  • VMC's total revenues for Q3 2023 stood at $2.186 billion, up from $2.088 billion in Q3 2022.

  • The company's net earnings attributable to Vulcan were $276 million in Q3 2023, a significant increase from $177 million in the same period last year.

  • Adjusted EBITDA for Q3 2023 was $602 million, up from $507 million in Q3 2022.

  • Aggregates segment shipments decreased 2% compared to the prior year's third quarter, but pricing momentum and operational execution led to a 17% increase in segment gross profit.


Released on October 26, 2023, Vulcan Materials Co (NYSE:VMC)'s Q3 2023 earnings report shows strong growth in earnings and margin expansion across all product lines. The company's total revenues for the quarter stood at $2.186 billion, up from $2.088 billion in Q3 2022. Net earnings attributable to Vulcan were $276 million, a significant increase from $177 million in the same period last year.

Financial Highlights


VMC's gross profit for Q3 2023 was $591 million, up from $493 million in Q3 2022. Selling, Administrative and General (SAG) expenses were $144 million, representing 6.6% of total revenues. Adjusted EBITDA for the quarter was $602 million, up from $507 million in Q3 2022. Earnings attributable to Vulcan from continuing operations per diluted share were $2.09, up from $1.33 in Q3 2022.

Aggregates Segment Performance


In the aggregates segment, shipments decreased 2% compared to the prior year's third quarter. However, continued pricing momentum and solid operational execution resulted in a 17% increase in segment gross profit to $508 million. Cash gross profit per ton improved 18% to $9.92 per ton.

Outlook


Looking ahead, VMC expects full-year Adjusted EBITDA of $1.95 to $2.00 billion for 2023, a 21% improvement at the midpoint. The company also anticipates another year of earnings growth and strong cash generation in 2024.

CEO Commentary


Tom Hill, Vulcan Materials Chairman and Chief Executive Officer, said, Through the first nine months of 2023, Adjusted EBITDA has improved 23 percent over the prior year, and margin has expanded 340 basis points. Aggregates cash gross profit per ton has improved 21 percent and now exceeds $9 per ton. These strong results demonstrate the compounding benefits of our strategic disciplines and the durability of our aggregates-led business. We remain focused on finishing the year strong and carrying solid momentum into next year. As a result, we now expect our full-year Adjusted EBITDA to be $1.95 to $2.00 billion for 2023.


Explore the complete 8-K earnings release (here) from Vulcan Materials Co for further details.

This article first appeared on GuruFocus.

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