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Vulcan's Q2 Earnings & Revenues Miss Estimates, Both Up Y/Y
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Key Takeaways
Vulcan's Q2 EPS of $2.45 missed estimates but rose 4.3% year over year on pricing and margin gains.
Total revenues of $2.1B missed the consensus mark by 4% but climbed 4.4% from the prior year.
Aggregates volume fell 1.3%, yet gross margin expanded 110 bps to 33.9% on cost controls and price discipline.
Vulcan Materials Company (VMC - Free Report) reported lower-than-expected second-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate but increasing year over year.
The quarterly performance of the company improved year over year due to its continuous pricing discipline and operational execution despite lower shipments and risky weather conditions. The contributions from all three reported segments aided the top line during the quarter, positioning Vulcan favorably for the remainder of 2025.
Moreover, its aggregates-driven business model and strong commercial performance bode well for the near and long term
VMC stock tumbled 4% during today’s pre-market trading hours following its earnings release.
Vulcan’s Q2 Earnings & Revenues
The quarter’s adjusted earnings per share (EPS) of $2.45 missed the Zacks Consensus Estimate of $2.55 by 3.9%. However, year over year, the reported value grew 4.3% from an adjusted EPS of $2.35.
Vulcan Materials Company Price, Consensus and EPS Surprise
Total revenues of $2.1 billion also missed the consensus mark of $2.19 billion by 4% but grew 4.4% year over year.
Vulcan’s Segments in Detail
Aggregates
Revenues from the segment increased to $1.65 billion from $1.61 billion in the year-ago period. Aggregates shipments (volumes) declined 1.3% year over year to 59.3 million tons. Our model expected Aggregates revenues of $1.78 billion on 62.6 million tons of shipments.
Freight-adjusted average sales price rose to $22.11 per ton from the prior-year level of $21. Our estimate for the same was pegged at $22.18 per ton. Freight-adjusted revenues were up 3.8% from the prior-year quarter’s level to $1.31 billion.
Gross profit of $559.5 million increased from the prior-year figure of $528.5 million, with the gross margin expanding 110 basis points (bps) to 33.9%. Cash gross profit per ton improved 8.8% to $11.88, driven by favorable pricing and operational efficiencies.
Asphalt and Concrete
Revenues in the Asphalt segment were $368.9 million (marginally ahead of our expectation of $368.6 million), up 12.1% year over year. The segment generated a gross profit of $57.2 million compared with $59 million a year ago. Volumes were down slightly to 3.9 million tons from 4 million tons a year ago, while the prices improved 3.2%.
Revenues from the Concrete segment were up 31.9% year over year to $220.6 million (compared with our expectation of $208.8 million). Gross profit totaled $8.5 million, up from $4.7 million in the year-ago period. Shipments grew to 1.2 million cubic yards from 0.8 million cubic yards on a year-over-year basis. Average selling prices increased 3.5% to $186.6 from $180.2 in the prior-year quarter.
Operating Highlights of Vulcan
Selling, administrative and general (SAG) expenses — as a percentage of total revenues — expanded 20 bps to 6.9% from a year ago.
Adjusted EBITDA during the quarter increased year over year by 9.5% to $660 million, with adjusted EBITDA margin expanding 150 bps year over year to 31.4%.
VMC’s Financials
As of June 30, 2025, Vulcan’s cash and cash equivalents were $347.4 million, down from $559.7 million at 2024-end. Long-term debt of $4.36 billion was slightly down from $4.91 billion at 2024-end.
As of June 30, total debt to trailing-12-month adjusted EBITDA was 2.2x, up from 1.7x as of last year's quarter.
As of the first six months of 2025, net cash provided by operating activities was $593.2 million, up from $374.5 million a year ago.
Vulcan Maintains 2025 Guidance
As unveiled earlier during the fourth-quarter earnings call, Vulcan expects double-digit year-over-year growth in the cash gross profit per ton compared with $10.61 in 2024 for the Aggregates segment. Shipment growth is expected to be between 3% and 5% year over year. Freight-adjusted price improvement is projected to be between 5% and 7% (including more than 100 bps of negative mix impact from recent acquisitions). The freight-adjusted unit cash cost is expected to increase in the low to mid-single digits.
The total Asphalt and Concrete segment’s cash gross profit is expected to be about $360 million compared with $272 million in 2024.
Vulcan expects SAG expenses between $550 million and $560 million compared with $531 million in 2024. Interest expenses are expected to be approximately $245 million. Adjusted EBITDA for the full year is projected to be between $2.35 billion and $2.55 billion (including a $150 million contribution from acquisitions) compared with $2.06 billion in 2024.
The company expects capital expenditures between $750 million and $800 million for maintenance and growth projects. The effective tax rate is anticipated to be in the range of 22-23%.
Mohawk Industries, Inc. (MHK - Free Report) reported second-quarter 2025 results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, the top line remained flat, while the bottom line decreased.
Mohawk was supported by new premium residential and commercial product collections launched over the past two years and restructuring actions. With rising tariffs, it highlighted the advantage of its manufacturing base in North America, as it took steps such as adjusting prices and optimizing supply chains. Mohawk expects adjusted EPS in the range of $2.56-$2.66, excluding restructuring and other charges, compared with the year-ago figure of $2.9.
Weyerhaeuser Company (WY - Free Report) reported second-quarter 2025 results, wherein its earnings and net sales topped their respective Zacks Consensus Estimate.
On a year-over-year basis, the top and bottom lines declined due to lower domestic sales realizations with seasonally elevated per-unit log and haul costs, and forestry and road costs across its Timberlands segment. Besides, increased contributions from Weyerhaeuser’s Real Estate, Energy & Natural Resources segment boded well for the quarter to some extent. Weyerhaeuser remains optimistic about its business position on the back of its long-term demand fundamentals, stable balance sheet and flexible capital allocation framework.
United Rentals, Inc. (URI - Free Report) reported second-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased but the bottom line declined.
United Rentals reported record second-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. This performance reflects continued momentum from the prior quarter. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. Going forward, United Rentals anticipates continued growth in large projects and strong performance in the specialty segment. Based on these trends, the company has raised its 2025 outlook.
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Vulcan's Q2 Earnings & Revenues Miss Estimates, Both Up Y/Y
Key Takeaways
Vulcan Materials Company (VMC - Free Report) reported lower-than-expected second-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate but increasing year over year.
The quarterly performance of the company improved year over year due to its continuous pricing discipline and operational execution despite lower shipments and risky weather conditions. The contributions from all three reported segments aided the top line during the quarter, positioning Vulcan favorably for the remainder of 2025.
Moreover, its aggregates-driven business model and strong commercial performance bode well for the near and long term
VMC stock tumbled 4% during today’s pre-market trading hours following its earnings release.
Vulcan’s Q2 Earnings & Revenues
The quarter’s adjusted earnings per share (EPS) of $2.45 missed the Zacks Consensus Estimate of $2.55 by 3.9%. However, year over year, the reported value grew 4.3% from an adjusted EPS of $2.35.
Vulcan Materials Company Price, Consensus and EPS Surprise
Vulcan Materials Company price-consensus-eps-surprise-chart | Vulcan Materials Company Quote
Total revenues of $2.1 billion also missed the consensus mark of $2.19 billion by 4% but grew 4.4% year over year.
Vulcan’s Segments in Detail
Aggregates
Revenues from the segment increased to $1.65 billion from $1.61 billion in the year-ago period. Aggregates shipments (volumes) declined 1.3% year over year to 59.3 million tons. Our model expected Aggregates revenues of $1.78 billion on 62.6 million tons of shipments.
Freight-adjusted average sales price rose to $22.11 per ton from the prior-year level of $21. Our estimate for the same was pegged at $22.18 per ton. Freight-adjusted revenues were up 3.8% from the prior-year quarter’s level to $1.31 billion.
Gross profit of $559.5 million increased from the prior-year figure of $528.5 million, with the gross margin expanding 110 basis points (bps) to 33.9%. Cash gross profit per ton improved 8.8% to $11.88, driven by favorable pricing and operational efficiencies.
Asphalt and Concrete
Revenues in the Asphalt segment were $368.9 million (marginally ahead of our expectation of $368.6 million), up 12.1% year over year. The segment generated a gross profit of $57.2 million compared with $59 million a year ago. Volumes were down slightly to 3.9 million tons from 4 million tons a year ago, while the prices improved 3.2%.
Revenues from the Concrete segment were up 31.9% year over year to $220.6 million (compared with our expectation of $208.8 million). Gross profit totaled $8.5 million, up from $4.7 million in the year-ago period. Shipments grew to 1.2 million cubic yards from 0.8 million cubic yards on a year-over-year basis. Average selling prices increased 3.5% to $186.6 from $180.2 in the prior-year quarter.
Operating Highlights of Vulcan
Selling, administrative and general (SAG) expenses — as a percentage of total revenues — expanded 20 bps to 6.9% from a year ago.
Adjusted EBITDA during the quarter increased year over year by 9.5% to $660 million, with adjusted EBITDA margin expanding 150 bps year over year to 31.4%.
VMC’s Financials
As of June 30, 2025, Vulcan’s cash and cash equivalents were $347.4 million, down from $559.7 million at 2024-end. Long-term debt of $4.36 billion was slightly down from $4.91 billion at 2024-end.
As of June 30, total debt to trailing-12-month adjusted EBITDA was 2.2x, up from 1.7x as of last year's quarter.
As of the first six months of 2025, net cash provided by operating activities was $593.2 million, up from $374.5 million a year ago.
Vulcan Maintains 2025 Guidance
As unveiled earlier during the fourth-quarter earnings call, Vulcan expects double-digit year-over-year growth in the cash gross profit per ton compared with $10.61 in 2024 for the Aggregates segment. Shipment growth is expected to be between 3% and 5% year over year. Freight-adjusted price improvement is projected to be between 5% and 7% (including more than 100 bps of negative mix impact from recent acquisitions). The freight-adjusted unit cash cost is expected to increase in the low to mid-single digits.
The total Asphalt and Concrete segment’s cash gross profit is expected to be about $360 million compared with $272 million in 2024.
Vulcan expects SAG expenses between $550 million and $560 million compared with $531 million in 2024. Interest expenses are expected to be approximately $245 million. Adjusted EBITDA for the full year is projected to be between $2.35 billion and $2.55 billion (including a $150 million contribution from acquisitions) compared with $2.06 billion in 2024.
The company expects capital expenditures between $750 million and $800 million for maintenance and growth projects. The effective tax rate is anticipated to be in the range of 22-23%.
VMC’s Zacks Rank & Recent Construction Releases
Vulcan currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mohawk Industries, Inc. (MHK - Free Report) reported second-quarter 2025 results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, the top line remained flat, while the bottom line decreased.
Mohawk was supported by new premium residential and commercial product collections launched over the past two years and restructuring actions. With rising tariffs, it highlighted the advantage of its manufacturing base in North America, as it took steps such as adjusting prices and optimizing supply chains. Mohawk expects adjusted EPS in the range of $2.56-$2.66, excluding restructuring and other charges, compared with the year-ago figure of $2.9.
Weyerhaeuser Company (WY - Free Report) reported second-quarter 2025 results, wherein its earnings and net sales topped their respective Zacks Consensus Estimate.
On a year-over-year basis, the top and bottom lines declined due to lower domestic sales realizations with seasonally elevated per-unit log and haul costs, and forestry and road costs across its Timberlands segment. Besides, increased contributions from Weyerhaeuser’s Real Estate, Energy & Natural Resources segment boded well for the quarter to some extent. Weyerhaeuser remains optimistic about its business position on the back of its long-term demand fundamentals, stable balance sheet and flexible capital allocation framework.
United Rentals, Inc. (URI - Free Report) reported second-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased but the bottom line declined.
United Rentals reported record second-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. This performance reflects continued momentum from the prior quarter. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. Going forward, United Rentals anticipates continued growth in large projects and strong performance in the specialty segment. Based on these trends, the company has raised its 2025 outlook.