Vulcan Materials Co (NYSE:VMC), the nation’s largest construction aggregates producer, stock rose 0.18% (As on February 18, 11:28:15 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that fell significantly short of analyst expectations. The disappointing results were accompanied by a 9% decline in fourth-quarter gross profit to $487 million compared to $537 million in the same period last year. Despite the quarterly setback, Vulcan reported full-year earnings growth with net earnings attributable to Vulcan increasing 18% to $1.08 billion for 2025. Annual revenue rose 7% to $7.94 billion from $7.42 billion in 2024. Fourth-quarter aggregates shipments increased 2% YoY, benefiting from healthy public construction activity. Shipments in the prior year’s fourth quarter were aided by strong demand in Western North Carolina and East Tennessee in the aftermath of Hurricane Helene. Freight-adjusted selling prices increased 5% on a mix-adjusted basis, though reported price growth was limited to 2% due to unfavorable geographic and product mix. The company also announced it completed the disposition of its asphalt and construction services assets in the Houston market and entered into an agreement to sell its ready-mixed concrete businesses in California, with the latter transaction expected to close in the second quarter of 2026.
Moreover, Non-aggregates segment gross profit in the fourth quarter was $51 million, and cash gross profit was $73 million. In 2025, cash provided by operating activities was $1.8 billion, a 29 percent increase over the prior year. Capital expenditures for maintenance and growth projects were $261 million in the fourth quarter and $703 million for the full year. At December 31, 2025, the ratio of total debt to Adjusted EBITDA was 1.9 times, or 1.8 times on a net debt basis.
VMC in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.70, missing the analysts’ estimates for the adjusted earnings per share of $2.13. The company had reported the adjusted revenue of $1.91 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $1.95 billion.
Looking ahead to 2026, Vulcan expects continued strength in public construction activity and improving private nonresidential opportunities. The company forecasts adjusted EBITDA between $2.4 billion and $2.6 billion, with aggregates shipments projected to increase 1% to 3%. FY 26 Net earnings attributable to Vulcan expected to be of $1.1 to $1.3 billion and capital spending for maintenance and growth projects of $750 to $800 million.