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Vulcan Materials
(NYSE:VMC)
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Rating:70Outperform
Price Target:
$312.00
▲(11.55% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by strong financial performance (improving profitability and solid cash generation) and a constructive earnings call (reiterated EBITDA guidance and pricing execution despite cost headwinds). These positives are tempered by weak near-term technical positioning (trading below key moving averages) and a relatively expensive valuation (high P/E with a low dividend yield).
Positive Factors
Strong cash generation
Consistent operating cash flow that comfortably covers net income and a roughly $1.0B TTM free cash flow profile indicate durable internal funding for maintenance capex, dividends, buybacks and selective M&A. This financial flexibility supports long-term capital allocation and resilience across cycles.
Negative Factors
Energy and diesel cost exposure
Heavy reliance on diesel for hauling and energy-intensive quarry operations creates a persistent margin vulnerability when fuel or binder costs remain elevated. Sticky energy costs can compress per-ton margins for multiple quarters and limit the pace at which pricing offsets input inflation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent operating cash flow that comfortably covers net income and a roughly $1.0B TTM free cash flow profile indicate durable internal funding for maintenance capex, dividends, buybacks and selective M&A. This financial flexibility supports long-term capital allocation and resilience across cycles.
Read all positive factors
Vulcan Materials Key Performance Indicators (KPIs)
Any
Aggregates Shipped
Measures the volume of aggregates delivered, indicating demand for construction materials and the company’s capacity to meet market needs.
Measures the volume of aggregates delivered, indicating demand for construction materials and the company’s capacity to meet market needs.
Data provided by:
The Fly
The FlyVulcan Materials (VMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.15B
Dividend Yield0.75%
Average Volume (3M)1.07M
Price to Earnings (P/E)31.6
Beta (1Y)0.75
Revenue Growth6.86%
EPS Growth18.35%
CountryUS
Employees11,548
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)8.50
Shares Outstanding129,578,740
10 Day Avg. Volume814,579
30 Day Avg. Volume1,071,411
Financial Highlights & Ratios
PEG Ratio1.91
Price to Book (P/B)4.41
Price to Sales (P/S)4.74
P/FCF Ratio33.15
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$326.17Price Target Upside16.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)9.13
Revenue Forecast (FY)$8.16B
Vulcan Materials Business Overview & Revenue Model
Company Description
Vulcan Materials Company, alongside its affiliated entities, stands as a prominent producer and distributor of construction aggregates, primarily operating within the United States. The company's activities are organized into four distinct divisio...
How the Company Makes Money
Vulcan makes money primarily by selling construction aggregates—crushed stone, sand, and gravel—which typically represent the company’s largest revenue stream. Revenue is generated on a per-ton basis, with realized earnings driven by shipment volu...
Vulcan Materials Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized operational resilience and disciplined commercial execution: the company delivered roughly flat adjusted EBITDA despite nearly $40 million of energy headwinds, achieved a 5% mix-adjusted price improvement, modest volume growth, expanded cash gross profit per ton and maintained a strong balance sheet and active M&A/capital return program. Offsets include sticky diesel/energy costs, weather-related volume disruptions, near-term margin pressure (notably Q3), continued weakness in single-family residential, and a disappointing arbitration damages award despite a favorable ruling on violations. On balance, positive execution, pricing progress, capital returns, and a healthy balance sheet outweighed the near-term cost and volume headwinds.Positive Updates
Adjusted EBITDA Resilience
Generated $654 million of adjusted EBITDA in Q2, approximately flat with prior year despite energy headwinds of almost $40 million; reaffirmed full-year adjusted EBITDA guidance of $2.4 billion to $2.6 billion.
Negative Updates
Energy and Diesel Cost Headwinds
Energy-related headwinds totaled nearly $40 million in the quarter, including a $26 million diesel headwind; diesel prices described as 'sticky', pressuring margins and contributing to Q2 margin pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Resilience
Generated $654 million of adjusted EBITDA in Q2, approximately flat with prior year despite energy headwinds of almost $40 million; reaffirmed full-year adjusted EBITDA guidance of $2.4 billion to $2.6 billion.
Read all positive updates
Company Guidance
Vulcan reiterated full‑year adjusted EBITDA guidance of $2.4–$2.6 billion and expects modest aggregate shipment growth in 2026, with mix‑adjusted pricing accelerating to exit the year at the upper end of its 4–6% target; in Q2 the company reported $654 million of adjusted EBITDA (despite roughly $40M of energy headwinds and a ~$26M diesel impact), shipments +1% YoY, mix‑adjusted selling prices +5% YoY, aggregates cash gross profit per ton >$12 (+$0.14 YoY) and, excluding diesel, freight‑adjusted unit cash cost of sales +3% YoY. Management reiterated capex guidance of $750–$800M for the year (YTD spend $370M plus $75M strategic acquisition), noted >$0.5B returned to shareholders (including $400M buybacks), ~$200M of commercial paper paid down and ~$300M cash at June 30, net debt/adjusted EBITDA of 1.7x, trailing‑12‑month ROIC of 16.1% (up 20 bps), trailing‑12‑month SAG $558M (6.9% of revenue, down 30 bps) and said full‑year SAG is likely $10–$15M below the prior $580–$590M range; management expects gross margins to be pressured in Q3 but to expand in Q4, driving a stronger back half.Vulcan Materials Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.11B | 7.93B | 7.42B | 7.78B | 7.32B | 5.55B |
| Gross Profit | 2.22B | 2.17B | 2.00B | 1.95B | 1.56B | 1.37B |
| EBITDA | 2.56B | 2.57B | 1.98B | 2.04B | 1.53B | 1.47B |
| Net Income | 1.12B | 1.08B | 911.90M | 933.20M | 575.60M | 670.80M |
Balance Sheet | ||||||
| Total Assets | 16.44B | 16.70B | 17.10B | 14.55B | 14.23B | 13.68B |
| Cash, Cash Equivalents and Short-Term Investments | 194.20M | 183.30M | 559.70M | 931.10M | 161.40M | 235.00M |
| Total Debt | 4.89B | 5.41B | 5.83B | 4.39B | 4.52B | 4.52B |
| Total Liabilities | 7.95B | 8.15B | 8.96B | 7.04B | 7.28B | 7.11B |
| Stockholders Equity | 8.46B | 8.53B | 8.12B | 7.48B | 6.93B | 6.54B |
Cash Flow | ||||||
| Free Cash Flow | 1.03B | 1.14B | 806.10M | 664.20M | 535.60M | 560.60M |
| Operating Cash Flow | 1.80B | 1.81B | 1.41B | 1.54B | 1.15B | 1.01B |
| Investing Cash Flow | -147.50M | -529.20M | -2.81B | -163.50M | -1.05B | -1.87B |
| Financing Cash Flow | -1.72B | -1.70B | 1.06B | -585.60M | -175.20M | -94.30M |
Vulcan Materials Technical Analysis
Negative
279.70
Price Trends
286.63
Negative
282.98
Negative
289.65
Negative
Market Momentum
-3.57
Positive
42.82
Neutral
15.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMC, the sentiment is Negative. The current price of 279.7 is below the 20-day moving average (MA) of 285.87, below the 50-day MA of 286.63, and below the 200-day MA of 289.65, indicating a bearish trend. The MACD of -3.57 indicates Positive momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 15.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VMC.
Vulcan Materials Risk Analysis
Vulcan Materials disclosed 46 risk factors in its most recent earnings report. Vulcan Materials reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vulcan Materials Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $64.15B | 14.82 | 23.81% | 1.52% | 6.29% | 18.35% | |
70 Outperform | $35.15B | 31.60 | 13.11% | 0.72% | 6.86% | 18.35% | |
70 Outperform | $32.42B | 12.88 | 23.11% | 0.59% | 0.06% | 125.23% | |
65 Neutral | $18.05B | 35.40 | 3.67% | 0.82% | 9.40% | -67.61% | |
62 Neutral | $6.30B | 16.11 | 26.87% | 0.47% | 1.68% | -7.06% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $4.15B | 28.36 | 9.35% | ― | 9.57% | -18.90% |
* Basic Materials Sector Average
VMC
Vulcan Materials
268.57
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-1.61%
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Vulcan Materials Corporate Events
Business Operations and StrategyLegal Proceedings
Vulcan Materials Faces Limited NAFTA Arbitration Award Impact
Negative
Jul 27, 2026
On July 27, 2026, Vulcan Materials announced that a NAFTA arbitration tribunal had issued its decision in the company’s long-running dispute with Mexico, initiated in 2018 over the shutdown of its quarrying operations and the repudiation of ...
Executive/Board ChangesShareholder Meetings
Vulcan Materials President Announces Upcoming Retirement Transition
Positive
May 11, 2026
Vulcan Materials Company announced that President Thompson S. Baker II notified the company on May 11, 2026, that he will retire from his role effective July 15, 2026, marking an upcoming leadership transition at the construction materials produce...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.