Vulcan Materials Shares Gain After Q2 Results
Vulcan Materials Co (NYSE: VMC) reported a second-quarter revenue increase of 43.6% year-over-year to $1.95 billion, beating the consensus of $1.86 billion.
Adjusted EPS was $1.53, missing the consensus of $1.74.
Overall gross margin contracted by 644 bps to 22.8%. The operating earnings increased by 7% Y/Y to $307.6 million, and the margin contracted by 538 bps to 15.7%.
Vulcan Materials generated cash from operating activities year-to-date of $325.5 million, compared to $397.9 million a year ago.
Adjusted EBITDA was $450.2 million (+10.9% Y/Y), and the margin contracted by 680 bps to 23%.
Average selling prices increased in each product line, helping to offset inflationary pressures. Aggregates pricing increased 9% (10 percent mix-adjusted), and the average price for asphalt and concrete increased 19% and 14%, respectively, during the quarter.
On June 30, 2022, the total debt ratio to trailing-twelve months Adjusted EBITDA was 2.6 times.
The company disclosed a potential EBITDA impact of $80 million - $100 million should it be unable to fully operate in Mexico for the balance of 2022. In May, the company unexpectedly and arbitrarily shut down its operations in Mexico.
FY22 Outlook: Vulcan Materials expects an Adjusted EBITDA of $1.60 billion - $1.70 billion.
"We are updating our full-year Adjusted EBITDA guidance range to reflect the considerable pricing momentum in our aggregates business as well as higher than expected energy-related cost inflation that is currently impacting each of our segments," said Chairman & CEO Tom Hill.
Price Action: VMC shares are trading higher by 2.92% at $171.11 on the last check Thursday.
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