Vulcan Materials Targets 2027 Earnings Growth as Aggregates Pricing Offsets Energy Costs

Vulcan Materials said Thursday it expects about $2.4 billion of adjusted EBITDA for 2026 and is targeting another year of earnings growth in 2027, after higher prices for crushed stone, sand and gravel helped it hold margins through a third quarter marked by energy inflation and lower shipments.

The nation's largest producer of construction aggregates reported third-quarter total revenues of $2.185 billion, down from $2.292 billion a year earlier, according to the earnings release it filed with an 8-K on Thursday. Net earnings attributable to Vulcan were $362 million, compared with $375 million.

Earnings roughly flat

Earnings from continuing operations were $2.81 a diluted share, compared with $2.83 a year earlier. Adjusted EPS was $2.83, compared with $2.84. Adjusted EBITDA fell to $707 million from $735 million, but the adjusted EBITDA margin edged up to 32.3% from 32.1%.

"Our teams stayed focused on our core priorities, driving operational efficiencies, protecting margins, and delivering dependable value to our customers in a dynamic environment marked by energy inflation," CEO Ronnie Pruitt said in the release.

Price offsets lower volume

Aggregates shipments fell 3% to 62.7 million tons from 64.7 million. Vulcan said the prior-year quarter benefited from favorable weather that followed a slow, weather-hit start to the 2025 construction season.

Pricing remained strong. Freight-adjusted selling prices rose 5% on a mix-adjusted basis, or 4% as reported, to $22.84 a ton. Freight-adjusted unit cash cost of sales increased 7%, or 72 cents a ton, though excluding higher diesel fuel costs it rose 3%. Aggregates cash gross profit per ton still improved to $11.95 from $11.84, and segment gross profit was $593 million.

In asphalt and concrete, non-aggregates gross profit was $72 million. Asphalt gross profit margin held at 17% despite lower shipments and higher liquid asphalt costs, and concrete gross profit margin expanded to 9%. Prior-year results included businesses that Vulcan has since divested, including Houston asphalt and construction operations and California concrete assets.

Selling, administrative and general expense fell 6% to $137 million, or 6.3% of total revenues.

Acquisitions and buybacks

Vulcan completed two bolt-on acquisitions in the quarter that strengthen its position in Tennessee and extend its reach into southern Ohio. It returned $417 million to shareholders, including $350 million of stock repurchases and $67 million of dividends, and spent $174 million on capital projects.

At Sept. 30, the ratio of total debt to trailing-twelve-month adjusted EBITDA was 2.0 times, at the low end of its 2.0 to 2.5 times target range. Return on average invested capital was 15.9% on a trailing-twelve-month basis.

Looking to 2027

Pruitt said the company has taken proactive pricing and cost actions to mitigate elevated energy inflation that has continued into the fourth quarter. For 2027, Vulcan anticipates a continuation of the current demand environment and expects to keep expanding aggregates cash gross profit per ton with mid- to high-single-digit pricing gains, he said.

By the numbers

• $2.185 billion: third-quarter total revenues
• $2.83: adjusted EPS, compared with $2.84
• 62.7 million tons: aggregates shipments, down 3%
• $11.95: aggregates cash gross profit per ton
• About $2.4 billion: expected 2026 adjusted EBITDA

Sources

1. Vulcan Materials Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001140361-26-041095)

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