Full Year Earnings Growth and Margin Expansion

Operating Cash Flow Increased 29 Percent to $1.8 Billion

Anticipated Aggregates Demand Growth and Attractive Price Environment

Support Continued Earnings Growth in 2026

Financial Highlights Include:

		Fourth Quarter								Full Year
Amounts in millions, except per unit data		2025				2024				2025				2024
Total revenues		$	1,913			$	1,854			$	7,941			$	7,418
Gross profit		$	487			$	537			$	2,175			$	2,000
Selling, Administrative and General (SAG)		$	136			$	138			$	564			$	531
As % of Total revenues			7.1	%			7.5	%			7.1	%			7.2	%
Net earnings attributable to Vulcan		$	252			$	294			$	1,077			$	912
Adjusted EBITDA		$	518			$	550			$	2,324			$	2,057
Adjusted EBITDA margin			27.1	%			29.7	%			29.3	%			27.7	%
Earnings attributable to Vulcan from continuing operations per diluted share		$	1.91			$	2.23			$	8.15			$	6.91
Adjusted earnings attributable to Vulcan from continuing operations per diluted share		$	1.70			$	2.17			$	8.00			$	7.53
Aggregates segment
Shipments (tons)			55.1				53.9				226.8				219.9
Freight-adjusted sales price per ton		$	21.78			$	21.41			$	21.98			$	21.08
Gross profit per ton		$	7.91			$	9.02			$	8.66			$	8.26
Cash gross profit per ton		$	10.73			$	11.50			$	11.33			$	10.61
Gross margin			28.7	%			33.0	%			31.2	%			30.5	%

Ronnie Pruitt, Vulcan Materials’ Chief Executive Officer, said, “Our aggregates-led business delivered another year of strong earnings growth and margin expansion.  Adjusted EBITDA for the full year improved 13 percent over the prior year, and margin expanded 160 basis points.  Through a consistent focus on commercial and operational execution, we continue to deliver attractive organic growth and expand our industry-leading aggregates cash gross profit per ton, which increased to $11.33 per ton.  The resulting strong cash generation, coupled with disciplined M&A and portfolio management, positions us well to continue compounding results and creating value for our shareholders in 2026 and beyond.”

Aggregates

As compared to the prior year, fourth quarter aggregates shipments increased 2 percent and continued to benefit 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.  Full year aggregates shipments increased 3 percent, with volume from operations acquired in late 2024 more than offsetting slightly lower year-over-year same-store shipments.

Freight-adjusted selling prices increased 5 percent on a mix-adjusted basis (2 percent on a reported basis) as compared to the prior year’s fourth quarter.  As anticipated, reported price in the quarter was impacted by unfavorable geographic and product mix, along with the impact of prior year acquisitions.  For the full year, mix-adjusted pricing improved 6 percent (4 percent on a reported basis).  Pricing growth was widespread across the Company’s footprint.

For the full year, freight-adjusted unit cash cost of sales increased 2 percent, even with several fourth quarter timing impacts, reflecting a continued focus on cost management and operating efficiencies.

Cash gross profit per ton for the full year was $11.33, an increase of 7 percent over the prior year and marked the twelfth consecutive quarter of at least high single-digit improvement on a trailing-twelve months basis.  Segment gross profit improved 8 percent, and gross margin expanded 70 basis points to 31.2 percent.

Asphalt and Concrete

Non-aggregates segment gross profit in the fourth quarter was $51 million, and cash gross profit was $73 million.  For the full year, gross profit improved 15 percent to $210 million, and cash gross profit improved 18 percent to $322 million.

Asphalt gross profit margin remained strong at 13 percent, and unit cash gross profit improved 6 percent for the full year.  Gross profit margin in the concrete segment expanded 220 basis points to 4 percent, and unit cash gross profit increased 34 percent for the full year, benefiting from the profitability of acquired operations.

SAG expense in the quarter was $136 million, 1 percent lower than the prior year and 40 basis points lower as a percentage of revenue.  Full year SAG expense was $564 million and, at 7.1 percent of revenues, was 10 basis points lower than the prior year.

Full year other operating income was $9 million compared to $104 million of expense 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 and $18 million of charges associated with previously divested operations.

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.  During the year, the Company returned $698 million to shareholders through $438 million of common stock repurchases and $260 million of dividends.  On a trailing-twelve months basis, return on average invested capital was 15.7 percent.

In the fourth quarter, the Company completed the disposition of its asphalt and construction services assets in the greater Houston market and entered into an agreement for the disposition of its ready-mixed concrete businesses in California.  Subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions, the California ready-mixed concrete transaction is expected to close in the second quarter of 2026.  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.

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.  The Company’s weighted average debt maturity was 14 years, and the effective weighted average interest rate was 5 percent.  The Company’s strong balance sheet and ample liquidity position the Company well for continued growth.

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Continued improvement in Aggregates segment cash gross profit per ton ($11.33 in 2025)

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Total shipments up 1 to 3 percent (226.8 million tons in 2025)

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Freight-adjusted price improvement of 4 to 6 percent ($21.98 in 2025)

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Low-single digit increase in freight-adjusted unit cash cost

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Total Asphalt and Concrete segment cash gross profit of approximately $290 million

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Relative contribution of approximately 85 percent from the Asphalt segment and

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Selling, Administrative and General expense of $580 to $590 million ($564 million in 2025)

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Interest expense of approximately $225 million

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Capital spending for maintenance and growth projects of $750 to $800 million

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Depreciation, depletion, accretion and amortization expense of approximately $700 million

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An effective tax rate of 22 to 23 percent

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Net earnings attributable to Vulcan of $1.1 to $1.3 billion

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Adjusted EBITDA between $2.4 and $2.6 billion

Vulcan will host a conference call at 9:00 a.m. CT on February 17, 2026.  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 833-316-1983, or 785-838-9310 if outside the U.S.  The conference ID is 7531856.  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 sustainability 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

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