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Vulcan Materials Q3 Earnings Beat Estimates, Revenues Miss, Stock Down
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Key Takeaways
Vulcan Materials earned $2.83 per share, beating estimates, while revenues fell 4.7% to $2.18 billion.
Aggregates pricing rose 5%, but shipments fell 3% and higher diesel costs pressured profitability.
Vulcan lowered its 2026 EBITDA outlook to $2.4 billion but expects earnings growth in 2027.
Vulcan Materials Company (VMC - Free Report) posted mixed third-quarter 2026 results, with adjusted earnings beating the Zacks Consensus Estimate but declining year over year. Total revenues missed the consensus mark and decreased from the prior-year quarter.
The quarter’s results reflected disciplined pricing, operational efficiencies and cost management. However, lower aggregates shipments and continued energy-related inflation partly offset these benefits. Aggregates cash gross profit per ton increased to $11.95 from $11.84 in the year-ago quarter.
VMC stock declined 1.9% during today’s pre-market trading hours following its earnings release, likely reflecting weaker-than-expected revenues, lower aggregates shipments and the reduced 2026 adjusted EBITDA outlook, despite the earnings beat and continued pricing gains.
VMC's Q3 Earnings & Revenues
VMC reported adjusted earnings of $2.83 per share in the third quarter, beating the Zacks Consensus Estimate of $2.79 by 1.4%. However, the figure declined 0.4% from the year-ago quarter’s adjusted earnings of $2.84 per share.
Vulcan Materials Company Price, Consensus and EPS Surprise
Quarterly revenues were $2.18 billion, down 4.7% year over year and 1.9% below the consensus mark of $2.23 billion. Aggregates shipments declined 3% to 62.7 million tons, reflecting a difficult comparison with the prior-year quarter, which benefited from favorable weather conditions.
Vulcan's Profitability Pressured by Higher Costs
Profitability faced pressure from elevated energy costs and lower shipments. Gross profit declined to $665.6 million from $697.2 million a year ago. Operating earnings decreased 3.4% year over year to $524.6 million. Net earnings attributable to Vulcan declined to $362.3 million from $374.9 million in the prior-year quarter.
Adjusted EBITDA decreased 3.9% to $706.7 million, although the adjusted EBITDA margin improved to 32.3% from 32.1%. Higher diesel costs and inflationary pressures on certain parts and supplies weighed on earnings, partly offsetting benefits from pricing and operational efficiencies.
VMC Cuts SAG Expenses Amid Cost Discipline
Below-the-line discipline continued to support results. Selling, administrative and general (“SAG”) expenses were $137 million, down from $145.3 million in the prior-year quarter. SAG, as a percentage of revenues, remained unchanged year over year at 6.3%.
On a trailing-12-month basis, SAG expenses accounted for 6.9% of revenues, improving 30 basis points year over year. The company recorded a $0.2 million gain on the sale of property, plant and equipment and businesses compared with a $0.6 million gain a year ago. Other operating expenses, net, declined to $4.2 million from $9.3 million.
The Aggregates segment continued to benefit from pricing strength. Segment sales increased 1.7% year over year to $1.82 billion, while segment gross profit declined to $593.4 million from $612.1 million. Cash gross profit decreased to $749.5 million from $765.7 million.
Freight-adjusted sales price improved to $22.84 per ton from $22.01 year over year. On a mix-adjusted basis, pricing increased 5%, reflecting widespread pricing gains across the company's footprint. Gross profit per ton remained unchanged at $9.46.
Freight-adjusted revenues advanced to approximately $1.43 billion from $1.42 billion, highlighting continued pricing strength. At the same time, freight-adjusted cash cost of sales per ton increased 7% to $10.89 from $10.17, primarily due to higher diesel fuel costs. Excluding diesel inflation, unit cash costs increased 3%, supported by disciplined cost management and operational execution.
VMC's Asphalt and Concrete Reflect Portfolio Changes
Performance in the downstream businesses reflected lower shipments and recent portfolio actions. Asphalt segment revenues declined to $381.2 million from $416.1 million, while gross profit decreased to $64.2 million from $71 million. Nevertheless, the asphalt gross profit margin remained strong at 17% despite higher liquid asphalt costs.
Operationally, asphalt mix shipments declined to 3.9 million tons from 4.3 million tons, while the average selling price improved to $85.49 per ton from $82.70. The prior-year quarter included the Houston asphalt and construction business, which was divested during the fourth quarter of 2025.
Concrete segment revenues declined to $92.4 million from $237.5 million, while gross profit decreased to $8 million from $14.1 million a year ago. Ready-mixed concrete shipments decreased to 0.5 million cubic yards from 1.2 million cubic yards, while the average selling price increased to $192.21 from $190.90. The concrete gross profit margin expanded to 9%. Results reflected the divestiture of the California concrete assets during the second quarter of 2026.
Vulcan's Liquidity & Capital Return Highlights
Liquidity remained supported by the company's balance sheet, with cash and cash equivalents of $106.6 million at quarter-end. The company carried $400 million of current maturities of long-term debt, $315 million of short-term debt and $3.97 billion of long-term debt. Total debt to trailing-12-month adjusted EBITDA stood at 2x, within management's targeted range of 2x to 2.5x.
VMC invested $174 million in maintenance and growth projects during the quarter. The company also returned $417 million to its shareholders through $350 million of share repurchases and $67 million of dividends.
During the quarter, Vulcan completed two bolt-on acquisitions, strengthening the aggregates position in Tennessee and expanding its footprint into southern Ohio, further supporting the aggregates-led growth strategy.
VMC Lowers 2026 Outlook, Targets 2027 Growth
Management now expects approximately $2.4 billion in adjusted EBITDA for full-year 2026, compared with its previous guided range of $2.4-$2.6 billion. The revised outlook places expectations at the lower end of the earlier range amid continued energy-related inflation.
The company has taken proactive pricing and cost actions to mitigate elevated energy inflation extending into the fourth quarter. Looking ahead to 2027, Vulcan expects another year of earnings growth, supported by a continuation of the current demand environment, mid-to-high-single-digit aggregates pricing gains and further expansion in aggregates cash gross profit per ton through commercial discipline and operating efficiencies.
Otis Worldwide Corporation (OTIS - Free Report) reported third-quarter 2026 results, wherein adjusted earnings beat the Zacks Consensus Estimate but remained flat year over year. Net sales also surpassed the consensus mark and increased from the year-ago quarter.
OTIS reaffirmed its full-year net sales outlook of $15.1-$15.3 billion, implying approximately 4.6-6% year-over-year growth and expects organic sales growth in the low to mid-single digits. Otis continues to project adjusted operating profit of approximately $2.4 billion and adjusted earnings of $4.01-$4.05 per share.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected robust demand across technology-related projects, strong execution and continued expansion in construction activity. Backlog reached $17.81 billion, reinforcing management's confidence in sustained growth and profitability.
Comfort Systems also paid dividends of 90 cents per share during the quarter, compared with 50 cents a year ago. Share repurchases totaled $340.9 million, reflecting continued shareholder returns alongside investments in business expansion.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. URI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70. URI’s total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.
United Rentals management raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected to be $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.
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Vulcan Materials Q3 Earnings Beat Estimates, Revenues Miss, Stock Down
Key Takeaways
Vulcan Materials Company (VMC - Free Report) posted mixed third-quarter 2026 results, with adjusted earnings beating the Zacks Consensus Estimate but declining year over year. Total revenues missed the consensus mark and decreased from the prior-year quarter.
The quarter’s results reflected disciplined pricing, operational efficiencies and cost management. However, lower aggregates shipments and continued energy-related inflation partly offset these benefits. Aggregates cash gross profit per ton increased to $11.95 from $11.84 in the year-ago quarter.
VMC stock declined 1.9% during today’s pre-market trading hours following its earnings release, likely reflecting weaker-than-expected revenues, lower aggregates shipments and the reduced 2026 adjusted EBITDA outlook, despite the earnings beat and continued pricing gains.
VMC's Q3 Earnings & Revenues
VMC reported adjusted earnings of $2.83 per share in the third quarter, beating the Zacks Consensus Estimate of $2.79 by 1.4%. However, the figure declined 0.4% from the year-ago quarter’s adjusted earnings of $2.84 per share.
Vulcan Materials Company Price, Consensus and EPS Surprise
Vulcan Materials Company price-consensus-eps-surprise-chart | Vulcan Materials Company Quote
Quarterly revenues were $2.18 billion, down 4.7% year over year and 1.9% below the consensus mark of $2.23 billion. Aggregates shipments declined 3% to 62.7 million tons, reflecting a difficult comparison with the prior-year quarter, which benefited from favorable weather conditions.
Vulcan's Profitability Pressured by Higher Costs
Profitability faced pressure from elevated energy costs and lower shipments. Gross profit declined to $665.6 million from $697.2 million a year ago. Operating earnings decreased 3.4% year over year to $524.6 million. Net earnings attributable to Vulcan declined to $362.3 million from $374.9 million in the prior-year quarter.
Adjusted EBITDA decreased 3.9% to $706.7 million, although the adjusted EBITDA margin improved to 32.3% from 32.1%. Higher diesel costs and inflationary pressures on certain parts and supplies weighed on earnings, partly offsetting benefits from pricing and operational efficiencies.
VMC Cuts SAG Expenses Amid Cost Discipline
Below-the-line discipline continued to support results. Selling, administrative and general (“SAG”) expenses were $137 million, down from $145.3 million in the prior-year quarter. SAG, as a percentage of revenues, remained unchanged year over year at 6.3%.
On a trailing-12-month basis, SAG expenses accounted for 6.9% of revenues, improving 30 basis points year over year. The company recorded a $0.2 million gain on the sale of property, plant and equipment and businesses compared with a $0.6 million gain a year ago. Other operating expenses, net, declined to $4.2 million from $9.3 million.
Vulcan's Aggregates Pricing Offsets Shipment Weakness
The Aggregates segment continued to benefit from pricing strength. Segment sales increased 1.7% year over year to $1.82 billion, while segment gross profit declined to $593.4 million from $612.1 million. Cash gross profit decreased to $749.5 million from $765.7 million.
Freight-adjusted sales price improved to $22.84 per ton from $22.01 year over year. On a mix-adjusted basis, pricing increased 5%, reflecting widespread pricing gains across the company's footprint. Gross profit per ton remained unchanged at $9.46.
Freight-adjusted revenues advanced to approximately $1.43 billion from $1.42 billion, highlighting continued pricing strength. At the same time, freight-adjusted cash cost of sales per ton increased 7% to $10.89 from $10.17, primarily due to higher diesel fuel costs. Excluding diesel inflation, unit cash costs increased 3%, supported by disciplined cost management and operational execution.
VMC's Asphalt and Concrete Reflect Portfolio Changes
Performance in the downstream businesses reflected lower shipments and recent portfolio actions. Asphalt segment revenues declined to $381.2 million from $416.1 million, while gross profit decreased to $64.2 million from $71 million. Nevertheless, the asphalt gross profit margin remained strong at 17% despite higher liquid asphalt costs.
Operationally, asphalt mix shipments declined to 3.9 million tons from 4.3 million tons, while the average selling price improved to $85.49 per ton from $82.70. The prior-year quarter included the Houston asphalt and construction business, which was divested during the fourth quarter of 2025.
Concrete segment revenues declined to $92.4 million from $237.5 million, while gross profit decreased to $8 million from $14.1 million a year ago. Ready-mixed concrete shipments decreased to 0.5 million cubic yards from 1.2 million cubic yards, while the average selling price increased to $192.21 from $190.90. The concrete gross profit margin expanded to 9%. Results reflected the divestiture of the California concrete assets during the second quarter of 2026.
Vulcan's Liquidity & Capital Return Highlights
Liquidity remained supported by the company's balance sheet, with cash and cash equivalents of $106.6 million at quarter-end. The company carried $400 million of current maturities of long-term debt, $315 million of short-term debt and $3.97 billion of long-term debt. Total debt to trailing-12-month adjusted EBITDA stood at 2x, within management's targeted range of 2x to 2.5x.
VMC invested $174 million in maintenance and growth projects during the quarter. The company also returned $417 million to its shareholders through $350 million of share repurchases and $67 million of dividends.
During the quarter, Vulcan completed two bolt-on acquisitions, strengthening the aggregates position in Tennessee and expanding its footprint into southern Ohio, further supporting the aggregates-led growth strategy.
VMC Lowers 2026 Outlook, Targets 2027 Growth
Management now expects approximately $2.4 billion in adjusted EBITDA for full-year 2026, compared with its previous guided range of $2.4-$2.6 billion. The revised outlook places expectations at the lower end of the earlier range amid continued energy-related inflation.
The company has taken proactive pricing and cost actions to mitigate elevated energy inflation extending into the fourth quarter. Looking ahead to 2027, Vulcan expects another year of earnings growth, supported by a continuation of the current demand environment, mid-to-high-single-digit aggregates pricing gains and further expansion in aggregates cash gross profit per ton through commercial discipline and operating efficiencies.
VMC’s Zacks Rank & Recent Construction Releases
Vulcan currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Otis Worldwide Corporation (OTIS - Free Report) reported third-quarter 2026 results, wherein adjusted earnings beat the Zacks Consensus Estimate but remained flat year over year. Net sales also surpassed the consensus mark and increased from the year-ago quarter.
OTIS reaffirmed its full-year net sales outlook of $15.1-$15.3 billion, implying approximately 4.6-6% year-over-year growth and expects organic sales growth in the low to mid-single digits. Otis continues to project adjusted operating profit of approximately $2.4 billion and adjusted earnings of $4.01-$4.05 per share.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected robust demand across technology-related projects, strong execution and continued expansion in construction activity. Backlog reached $17.81 billion, reinforcing management's confidence in sustained growth and profitability.
Comfort Systems also paid dividends of 90 cents per share during the quarter, compared with 50 cents a year ago. Share repurchases totaled $340.9 million, reflecting continued shareholder returns alongside investments in business expansion.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. URI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70. URI’s total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.
United Rentals management raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected to be $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.