Vulcan Materials posts fall in revenues in 1Q24

US-based Vulcan Materials has reported total revenue of US$1546m in the first quarter of 2024, down from US$1649m in the same period a year earlier. Gross profit in the 1Q came in at US$305m (1Q23: US$302m) while adjusted EBITDA stood at US$323m (1Q23: US$338m). 

Commenting on the results, Tom Hill, Vulcan Materials' chairman and CEO, said, "Our teams' solid execution helped us overcome challenging weather conditions throughout much of the first quarter. Margins expanded despite lower aggregates shipments, demonstrating the durability of our aggregates business and its attractive compounding growth characteristics.”

The aggregates business saw shipments decline from 51.8Mt in the 1Q23 to 48.1Mt in the same period a year later, mainly attributed to poor weather conditions throughout most of the quarter. However, cash gross profit per ton improved 10 per cent YoY to US$8.86 over the three-month period, driven by continued pricing momentum and solid operational execution, according to the company. 

Vulcan’s asphalt segment posted gross profit of US$5m, and cash gross profit of US$14m, marking a 39 per cent improvement over the prior year. Shipments increased by three per cent, and prices improved by six per cent. Strong shipments in Arizona and California, the company's largest asphalt markets, were partially offset by lower shipments in Texas due to weather conditions. 

The concrete segment reported a gross loss of US$3m in the 1Q24. The quarter saw a cash gross profit of US$9m and unit cash gross profit up 10 per cent, despite lower volumes. The prior year included results from the previously divested concrete assets in Texas. Capex in the opening quarter of the year came in at US$103m with the company expecting to spend US$625-675m over the full year on maintenance and growth projects.

Regarding the company's outlook, Mr Hill said, “Our operating performance in the first quarter was solid and in line with our expectations. We remain on track to deliver US$2.15-2.30bn of adjusted EBITDA, marking the fourth consecutive year of double-digit growth. The pricing environment remains positive, and our focus remains on compounding unit margins through all parts of the cycle, creating value for our shareholders through improving returns on capital.”