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Vulcan Gears Up to Post Q2 Earnings: What's in Store for the Stock?

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Key Takeaways

  • Vulcan is set to report Q2 earnings, with year-over-year growth expected in both revenues and EPS.
  • Pricing gains, acquisitions and stable public demand are likely to have boosted VMC's top-line performance.
  • Higher costs, weather impact and softness in private construction are likely to have weighed on margins.

Vulcan Materials Company (VMC - Free Report) is scheduled to release second-quarter 2025 results on July 31, before the opening bell.

In the last reported quarter, the company’s adjusted earnings beat the Zacks Consensus Estimate by 26.6% and increased 25% year over year. On the other hand, the revenues missed the consensus mark by 2.5% but grew 5.8% year over year. 

Vulcan’s earnings beat the consensus mark in two of the last four quarters and missed on the other two occasions, with an average surprise of 10%.

How Are Estimates Placed for Vulcan Stock?

The Zacks Consensus Estimate for VMC’s second-quarter earnings per share has decreased to $2.59 from $2.66 over the past 30 days. The estimated figure indicates a rise of 10.2% from the year-ago quarter.

Vulcan Materials Company Price and EPS Surprise

Vulcan Materials Company Price and EPS Surprise

Vulcan Materials Company price-eps-surprise | Vulcan Materials Company Quote

The consensus estimate for revenues is pegged at $2.2 billion, indicating a 9.2% year-over-year increase.

Factors Likely to Shape VMC’s Q2 Results

Vulcan's second-quarter revenues and earnings are expected to have increased year over year, driven by strong pricing gains across its product lines, accretive acquisitions and stable demand in the legacy business. Acceleration in infrastructure spending and continued expansion in public construction activity are expected to have offset a more moderate decline in private construction. Also, recent trends in warehouse starts and data centers have been encouraging.

The company’s strong pricing power is attributable to Vulcan Way of Selling discipline, which has enabled it to consistently expand cash gross profit per ton, even in quarters with declining volumes.

The Aggregates business, including crushed stone, sand and gravel, and other aggregates (which accounted for 74% of total 2024 revenues), has been a major contributor to top-line growth. Our model expects net sales from the segment to grow 10% to $1.78 billion from a year ago. We also predict Aggregates volumes and Aggregates prices to increase 4.2% and 5.6%, respectively, in the quarter.

Our model anticipates net sales from the Asphalt Mix segment (which accounted for 17% of total revenues) to be $368.6 million, indicating 5% growth from a year ago. We also predict volumes for the Asphalt Mix unit to grow 1.8% and prices to increase 3.1% year over year.

Revenues from the Concrete segment (which accounted for 9% of total revenues) are expected to increase 24.8% to $208.8 million from a year ago. Concrete volumes and prices are expected to increase 22.6% and 1.8%, respectively, year over year.

However, the company’s top line is likely to have been affected by adverse weather conditions, a decline in private non-residential construction and some incremental slowness in housing. Price and cost challenges in the Cement segment, along with higher natural gas pricing, are also expected to have acted as headwinds during the to-be-reported quarter.

Meanwhile, higher cost inflation, the shortage of skilled labor and rising wage expenses are expected to have affected VMC’s second-quarter margins to some extent. Our model anticipates the gross profit margin to decline 120 basis points year over year to 28.2%. The company remains focused on improving operational efficiencies through the Vulcan Way of Operating.

What the Zacks Model Unveils for VMC

Our proven model does not conclusively predict an earnings beat for Vulcan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

VMC's Earnings ESP: Vulcan has an Earnings ESP of -1.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

VMC's Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.

Primoris Services Corporation (PRIM - Free Report) has an Earnings ESP of +5.33% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company’s earnings beat estimates in each of the last four quarters, the average surprise being 44.8%. Primoris Services’ earnings for the second quarter of 2025 are expected to increase 1.9%.

Quanta Services, Inc. (PWR - Free Report) currently has an Earnings ESP of +0.65% and a Zacks Rank of 3.

The company’s earnings beat estimates in three of the trailing four quarters, missed in one occasion, the average surprise being 6.5%. Quanta’s earnings for the second quarter of 2025 are expected to increase 27.9%.

Masco (MAS - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3.

The company’s earnings beat estimates in two of the trailing four quarters, missed in one and met on one occasion, the average negative surprise being 0.2%. Masco’s earnings for the second quarter of 2025 are expected to decrease 10%.

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