Vulcan’s aggregates price rises 3.8% while shipments fall (NYSE: VMC)

What happened

Vulcan Materials Company (NYSE: VMC) sold aggregates at a higher price but in lower volume in the third quarter.

In results for the quarter ended Sept. 30, reported Oct. 29, the freight-adjusted price per ton reached $22.84, up from $22.01 a year earlier. Shipments fell to 62.7 million tons from 64.7 million. OptimistFi calculates a 3.8% price gain against a 3.1% volume decline.

Chief Executive Ronnie Pruitt said the quarter reflected operational execution in an environment marked by energy inflation. Vulcan also completed two bolt-on acquisitions. It says they strengthen its position in Tennessee and extend its reach into southern Ohio. It expects approximately $2.4 billion in Adjusted EBITDA for the full year.

Key numbers

Metric	Latest	Change	Source
Aggregates freight-adjusted price per ton, Q3	$22.84	from $22.01, +3.8%	SEC 8-K Exhibit 99.1, change calculated by OptimistFi
Aggregates shipments, Q3	62.7 million tons	from 64.7 million tons, -3.1%	SEC 8-K Exhibit 99.1, change calculated by OptimistFi
Adjusted EBITDA, Q3	$706.7 million	from $735.2 million, -3.9%	SEC 8-K Exhibit 99.1, change calculated by OptimistFi
Adjusted EBITDA margin, Q3	32.3%	from 32.1%, +0.2 percentage points	SEC 8-K Exhibit 99.1, change calculated by OptimistFi
2026 Adjusted EBITDA outlook	approximately $2.4 billion		SEC 8-K Exhibit 99.1
Returned to shareholders, Q3	$417 million		SEC 8-K Exhibit 99.1

Read more: Vulcan Materials (VMC) company research

Where earnings landed

Total revenue was $2.18 billion, down 4.7% from $2.29 billion in the third quarter of 2025. The prior-year quarter included Vulcan's Houston asphalt and construction business, divested in the fourth quarter of 2025, and California concrete assets, divested in the second quarter of 2026. Concrete segment revenue was $92.4 million against $237.5 million a year earlier. Aggregates segment revenue rose to $1.82 billion from $1.79 billion.

Adjusted EBITDA was $706.7 million, down 3.9% from $735.2 million. The margin edged up to 32.3% from 32.1%. Net earnings attributable to Vulcan were $362.3 million against $374.9 million. Adjusted diluted earnings per share were $2.83 against $2.84.

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Why it matters

OptimistFi has argued that Vulcan's value rests on turning its quarry positions into pricing power and wider margins. This quarter supports the first half of that claim. Price per ton rose $0.82 on a reported basis. The filing says the gains were widespread across the footprint.

Costs took most of that gain. Freight-adjusted unit cash cost of sales rose 7%, or $0.72 per ton, and 3% excluding higher diesel fuel costs. Cash gross profit per ton was $11.95, up from $11.84. Gross profit per ton stayed at $9.46. Pricing is covering energy inflation, with little to spare.

The caveat is volume. Shipments fell, though the filing notes that the prior-year third quarter benefited from favorable weather across the footprint. Vulcan says elevated energy inflation has continued into the fourth quarter. It has taken pricing and cost actions in response.

Where the cash went

Vulcan returned $417 million to shareholders in the quarter. That was $350 million of stock repurchases and $67 million of dividends. Capital spending on maintenance and growth projects was $174 million. For the nine months, repurchases were $749.8 million against $38.1 million a year earlier.

Operating cash flow was weaker over the nine months, at $971.0 million against $1.27 billion, a 23.5% drop. The cash flow statement shows a larger outflow from changes in assets and liabilities, $435.3 million against $256.3 million.

Total debt was $4.68 billion against $4.36 billion a year earlier. Total debt to trailing-twelve months Adjusted EBITDA was 2.0 times, at the low end of the company's 2.0 to 2.5 times target range. Return on invested capital was 15.9%, down from 16.5%.

What's next

Vulcan hosts a conference call at 9:00 a.m. CT on Oct. 29. For 2027, management expects the current demand environment to continue. It expects to keep expanding aggregates cash gross profit per ton, with mid- to high-single digit pricing gains.

The next quarterly report is the test. Vulcan needs to reach its full-year Adjusted EBITDA target while keeping price gains above unit cost growth. Another quarter of falling shipments with higher diesel costs would weaken the pricing story. Steady price gains at stable volume would strengthen it.

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