Strong 3Q results from Vulcan boost full-year forecasts
Vulcan Materials Co has reported revenues of US$2186m in the third quarter of 2023, up from US$2088m in the same period a year earlier. Gross profit over the same timeframe has advanced from US$493m to US$591m, while adjusted EBITDA has improved from US$507m to US$602m.
In the 3Q23 the aggregates segment saw its gross profit increase by 17 per cent YoY to US$508m (equivalent to US$7.95/t), while the gross profit margin expanded 200 basis points. Cash gross profit per tonne improved 18 per cent to US$9.92/t on the back of continued pricing momentum. Aggregates shipments over the three-month period fell two per cent YoY, although shipment growth in certain southeastern markets continued to benefit from healthy industrial project activity, helping to offset the weakness in residential demand.
Gross profit in the asphalt segment came in at US$56m in the 3Q23, an increase of US$26m on the 3Q22. The gross profit margin expanded 660 basis points, while cash gross profit was US$65m versus US$38m in the same period a year earlier. Shipments increased 11 per cent YoY with growth widespread across the company's footprint.
Concrete segment gross profit was US$26m in the 3Q23 with the gross profit margin expanding 120 basis points. Cash gross profit stood at US$47m, compared to US$48m in the 3Q22, which included earnings from the company's divested operations in New York, New Jersey and Pennsylvania. Unit gross profit improved 34 per cent, or US$3.11/yd3, despite lower shipments. Shipments in the 3Q23 were impacted by the divestiture and the timing of large projects in the prior year. Pricing increased 11 per cent YoY. Calcium segment gross profit approximated the prior year's third quarter.
Commenting on the results, Tom Hill, Vulcan Materials’ chairman and chief executive officer, said, “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 US$1.95bn-US$2bn for 2023.”
