VULCAN REPORTS THIRD QUARTER 2025 RESULTS

Solid Execution Drives Strong Earnings Growth and Margin Expansion in Each Segment

Improving Demand and Continued Aggregates Unit Margin Expansion in 2026

Financial Highlights Include:

Tom Hill, Vulcan Materials’ Chairman and Chief Executive Officer, said, “The combination of our aggregates-led business and our commercial and operational execution has resulted in strong earnings growth and margin expansion through the first nine months of 2025.  Adjusted EBITDA has improved 20 percent over the prior year, and margin has expanded 290 basis points on a year-to-date basis.  Aggregates cash gross profit per ton has improved 12 percent with widespread improvements across our footprint.  These results demonstrate the compounding benefits of our strategic disciplines and reinforce our confidence in our ability to continue to deliver strong earnings growth and cash generation.”

Aggregates

Solid execution in the third quarter drove strong earnings growth and margin expansion.  Segment gross profit increased 23 percent to $612 million, and gross profit margin expanded 250 basis points to 34.2 percent.  Cash gross profit per ton improved 9 percent to $11.84 per ton.  On a trailing-twelve months basis, cash gross profit per ton was $11.51, increasing 13 percent over the prior year and marking the eleventh consecutive quarter of double-digit compounding improvement in unit profitability.

Aggregates shipments in the third quarter increased 12 percent, reflecting healthy public construction activity, as well as the benefit of more favorable weather in most markets.  Shipments in the prior year’s third quarter were disrupted by numerous hurricanes and severe storms across the Southeast.

Freight-adjusted selling prices increased 5 percent on a mix-adjusted basis (3.5 percent on a reported basis) as compared to the prior year.  Reported price in the quarter was impacted by unfavorable product mix, as well as the anticipated impact of recent acquisitions.  On a year-to-date basis, mix-adjusted pricing has improved 7 percent (5.1 percent on a reported basis) with growth widespread across the Company’s footprint.

Freight-adjusted unit cash cost of sales decreased 2 percent as a result of continued operating cost discipline and the benefit of strong shipments in the quarter.  On a trailing-twelve months basis, unit cash cost approximated the prior year, reflecting a continued focus on cost management and operating efficiencies.

Asphalt and Concrete

Asphalt segment gross profit was $71 million, and cash gross profit was $84 million, a 16 percent improvement over the prior year.  Gross profit margin remained strong and expanded to 17 percent, and unit cash gross profit improved 10 percent.  Concrete segment gross profit was $14 million, and cash gross profit was $31 million.  Gross profit margin expanded to 6 percent, and unit cash gross profit increased 34 percent, benefiting from the profitability of acquired operations.

SAG expense in the quarter was $145 million compared to $129 million in the prior year.  The year-over-year increase was mostly due to SAG expense for prior year business acquisitions and higher incentives expense.  For the quarter, SAG expense as a percent of total revenues improved slightly to 6.3 percent.  On a trailing-twelve months basis, SAG expense was 7.2 percent of total revenues, unchanged from the prior year.

Other operating expense was $9 million compared to $99 million in the prior year.  The prior year included a pretax charge of $87 million resulting from the write-off of goodwill for the Company’s concrete assets in Northern California.

Through the first nine months, cash provided by operating activities was $1.3 billion, a 31 percent increase over the prior year.  Capital expenditures for maintenance and growth projects were $235 million in the third quarter, and the Company returned $65 million to shareholders through dividends, a 6 percent increase versus the prior year.  The Company also used $550 million of cash on hand to pay down its outstanding commercial paper balance, resulting in a ratio of total debt to trailing-twelve months Adjusted EBITDA of 1.9 times (1.8 times on a net debt basis).

On a trailing-twelve months basis, return on average invested capital improved 40 basis points over the prior year to 16.5 percent through a combination of solid operating earnings, disciplined capital management and a balanced approach to growth.

In early October, the Company completed the disposition of its asphalt and construction services assets in the greater Houston market.  Additionally, on October 28, we entered into an agreement for the disposition of our ready-mixed concrete businesses in California.  Subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions, we expect to close the transaction in the fourth quarter.  The sale of these downstream assets is consistent with our aggregates-led strategy and generates cash proceeds that can be redeployed into attractive growth opportunities in the future.

The Company remains well positioned for continued growth with a strong liquidity position and balance sheet profile.

Vulcan will host a conference call at 9:00 a.m. CT on October 30, 2025.  A webcast will be available via the Company’s website at www.vulcanmaterials.com.  Investors and other interested parties may access the teleconference live by calling 800-343-4849, or 203-518-9848 if outside the U.S.  The conference ID is 5104670.  The conference call will be recorded and available for replay at the Company’s website approximately two hours after the call.

Vulcan Materials Company, a member of the S&P 500 Index with headquarters in Birmingham, Alabama, is the nation's largest supplier of construction aggregates – primarily crushed stone, sand and gravel – and a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete.  For additional information about Vulcan, go to www.vulcanmaterials.com.

Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, other than the reconciliation of Projected Adjusted EBITDA as included in Appendix 2 hereto. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.

FORWARD-LOOKING STATEMENT DISCLAIMER

This document contains forward-looking statements.  Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements.  Generally, these statements relate to future financial performance, results of operations, business plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned divestitures and asset sales.  These forward-looking statements are sometimes identified by the use of terms and phrases such as “believe,” “should,” “would,” “expect,” “project,” “estimate,” “anticipate,” “intend,” “plan,” “will,” “can,” “may” or similar expressions elsewhere in this document.  These statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.

Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary significantly from those expressed in or implied by the forward-looking statements.  The following risks related to Vulcan's business, among others, could cause actual results to differ materially from those described in the forward-looking statements: general economic and business conditions; domestic and global political, economic or diplomatic developments; a pandemic, epidemic or other public health emergency; Vulcan’s dependence on the construction industry, which is subject to economic cycles; the timing and amount of federal, state and local funding for infrastructure; changes in the level of spending for private residential and private nonresidential construction; changes in Vulcan’s effective tax rate; the increasing reliance on information technology infrastructure, including the risks that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; the impact of the state of the global economy on Vulcan’s businesses and financial condition and access to capital markets; international business operations and relationships, including actions taken by the Mexican government with respect to Vulcan’s property and operations in that country; the highly competitive nature of the construction industry; the impact of future regulatory or legislative actions, including those relating to climate change, biodiversity, land use, wetlands, greenhouse gas emissions, the definition of minerals, tax policy and domestic and international trade; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena, including the impact of climate change and availability of water; availability and cost of trucks, railcars, barges and ships as well as their licensed operators for transport of Vulcan’s materials; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; labor relations, shortages and constraints; the amount of long-term debt and interest expense incurred by Vulcan; changes in interest rates; volatility in pension plan asset values and liabilities, which may require cash contributions to the pension plans; the impact of environmental cleanup costs and other liabilities relating to existing and/or divested businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan’s ability to identify, close and successfully integrate acquisitions; the effect of changes in tax laws, guidance and interpretations; significant downturn in the construction industry may result in the impairment of goodwill or long-lived assets; changes in technologies, which could disrupt the way Vulcan does business and how Vulcan’s products are distributed; the risks of open pit and underground mining; expectations relating to environmental, social and governance considerations; claims that our products do not meet regulatory requirements or contractual specifications; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with the SEC.  All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.  Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as required by law.

Source: Vulcan Materials Company

										(in millions, except per share data)
		Three Months Ended								Nine Months Ended
Consolidated Statements of Earnings		September 30								September 30
(Condensed and unaudited)		2025				2024				2025				2024
Total revenues		$	2,291.5			$	2,003.9			$	6,028.5			$	5,564.0
Cost of revenues			(1,594.3	)			(1,438.7	)			(4,340.8	)			(4,101.6	)
Gross profit			697.2				565.2				1,687.7				1,462.4
Selling, administrative and general expenses			(145.3	)			(129.1	)			(428.0	)			(393.0	)
Gain on sale of property, plant & equipment and businesses			0.6				0.2				9.2				4.6
Loss on impairments			0.0				(86.6	)			0.0				(86.6	)
Other operating expense, net			(9.3	)			(12.6	)			(28.2	)			(23.9	)
Operating earnings			543.2				337.1				1,240.7				963.5
Other nonoperating income (expense), net			0.7				(3.8	)			0.4				(12.7	)
Interest expense, net			(55.3	)			(38.4	)			(174.2	)			(117.7	)
Earnings from continuing operations before income taxes			488.6				294.9				1,066.9				833.1
Income tax expense			(112.4	)			(85.2	)			(237.4	)			(208.5	)
Earnings from continuing operations			376.2				209.7				829.5				624.6
Loss on discontinued operations, net of tax			(1.2	)			(1.3	)			(4.2	)			(5.0	)
Net earnings			375.0				208.4				825.3				619.6
Earnings attributable to noncontrolling interest			(0.1	)			(0.8	)			(0.6	)			(1.4	)
Net earnings attributable to Vulcan		$	374.9			$	207.6			$	824.7			$	618.2
Basic earnings (loss) per share attributable to Vulcan
Continuing operations		$	2.85			$	1.58			$	6.27			$	4.71
Discontinued operations		$	(0.01	)		$	(0.01	)		$	(0.03	)		$	(0.04	)
Net earnings		$	2.84			$	1.57			$	6.24			$	4.67
Diluted earnings (loss) per share attributable to Vulcan
Continuing operations		$	2.83			$	1.57			$	6.24			$	4.68
Discontinued operations		$	(0.01	)		$	(0.01	)		$	(0.03	)		$	(0.03	)
Net earnings		$	2.82			$	1.56			$	6.21			$	4.65
Weighted-average common shares outstanding
Basic			132.1				132.2				132.2				132.3
Assuming dilution			132.9				133.0				132.9				133.1
Effective tax rate from continuing operations			23.0	%			28.9	%			22.3	%			25.0	%