Q2 2025 Vulcan Materials Co Earnings Call

July 31, 2025

Operator: Please stand by.

Please stand by.

Trey Grooms: Your program is about to begin.

Your program is about to begin.

Please stand by your program is about to begin.

Operator: Good morning. Welcome everyone to the Vulcan Materials Company Q2 2025 earnings call. My name is David and I will be your conference call coordinator today. Please be reminded that today's call is being recorded and will be available for replay later today on the company's website. All lines have been placed in a listen-only mode. After the company's prepared remarks, there will be a question and answer session. Now I will turn the call over to your host, Mr. Mark Warren, Vice President of Investor Relations for Vulcan Materials. Mr. Warren, you may begin.

Good morning. Welcome everyone to the Vulcan Materials Company Q2 2025 earnings call. My name is David and I will be your conference call coordinator today. Please be reminded that today's call is being recorded and will be available for replay later today on the company's website. All lines have been placed in a listen-only mode. After the company's prepared remarks, there will be a question and answer session. Now I will turn the call over to your host, Mr. Mark Warren, Vice President of Investor Relations for Vulcan Materials. Mr. Warren, you may begin.

David: Good morning. Welcome, everyone, to the Vulcan Materials Company second quarter 2025 earnings call. My name is David, and I'll be your conference call coordinator today. Please be reminded that today's call is being recorded, and we will be available for replay later today on the company's website. All lines have been placed in a listen-only mode. After the company's prepared remarks, there will be a question and answer session. Now, I will turn the call over to your host, Mr. Mark Warren, Vice President of Investor Relations for Vulcan Materials. Mr. Warren, you may begin.

Good morning. Welcome everyone to the Vulcan Materials company. Second quarter, 2025 earnings call. My name is David, and I'll be your conference call coordinator today.

Please be reminded that today's call is being recorded and we will be available for replay later today on the company's website.

Online have been placed in a listen-only mode. After the company's prepared remarks, there will be a questionnaire session.

Mark Warren: Thank you, operator. With me today are Tom Hill, Chairman and CEO, and Mary Andrews Carlisle, Senior Vice President and Chief Financial Officer. Today's call is accompanied by a press release and a supplemental presentation posted to our website. Please be reminded that today's discussion may include forward-looking statements which are subject to risks and uncertainties. These risks, along with other legal disclaimers, are described in detail in the company's earnings release and in other filings with the Securities and Exchange Commission. Reconciliations of non-GAAP financial measures are defined and reconciled in our earnings release, supplemental presentation, and other SEC filings. During the Q&A, we ask that you limit your participation to one question. This will allow us to accommodate as many as possible during our time we have available. And with that, I'll turn the call over to Tom.

Mark Warren: Thank you, Operator. With me today are Tom Hill, Chairman and CEO, and Mary Andrews Carlisle, Senior Vice President and Chief Financial Officer. Today's call is accompanied by a press release and a supplemental presentation posted to our website, vulcanmaterials.com. Please be reminded that today's discussion may include forward-looking statements, which are subject to risks and uncertainties. These risks, along with other legal disclaimers, are described in detail in the company's earnings release and in other filings with the Securities and Exchange Commission. Reconciliations of non-GAAP financial measures are defined and reconciled in our earnings release, supplemental presentation, and other SEC filings. During the Q&A, we ask that you limit your participation to one question. This will allow us to accommodate as many as possible during our time we have available. And with that, I'll turn the call over to Tom.

Now, I will turn the call over to your host, Mr. Mark Warren. Vice president of investor relations for Vulcan Materials, Mr. Warren, you may begin.

Thank you, operator.

With me today are Tom Hill, chairman and CEO and Mary Andrews, Carlile, senior vice, president and Chief Financial Officer.

Today's call is accompanied by a press release and a supplemental presentation posted to our website, bulkmaterials.com.

Please be reminded that today's discussion may include forward-looking statements, which are subject to risks and uncertainties.

These risks, along with other legal disclaimers, are described in detail in the company's earnings release and in other filings with the Securities and Exchange Commission.

Reconciliation of non-gaap financial measures or defined in reconciled in our earnings release, supplemental presentation and other SEC filings.

During the Q&A, we ask that you limit your participation to 1 question. This will allow us to accommodate as many as possible during our time. We have available

Tom Hill: Thank you, Mark. Thank all of you for your interest in Vulcan Materials Company. I'm very proud of how our talented teams are delivering results. They exhibit their commitment to continuous improvement through consistent execution of our strategic disciplines. Most importantly, they are doing so while keeping one another safe. Both our safety and financial performance through the first half of the year has been outstanding despite a challenging operating environment. Extreme temperatures early in the year and excessive rainfall in the second quarter have all contributed to lower same-store to-date shipments across all product lines. Nonetheless, our Adjusted EBITDA has improved 16%, margins have expanded 260 basis points, and aggregates' Cash Gross Profit per ton has grown 13%. Our two-pronged growth strategy to improve earnings through compounding profitability in our organic business and adding strategic assets to our portfolio is clearly working.

Tom Hill: Thank you, Mark, and thank all of you for your interest in Vulcan Materials Company. I'm very proud of how our talented teams are delivering results that exhibit their commitment to continuous improvement through consistent execution of our strategic disciplines. Most importantly, they are doing so while keeping one another safe. Both our safety and financial performance through the first half of the year has been outstanding, despite a challenging operating environment. Extreme temperatures early in the year and excessive rainfall in the second quarter have all contributed to lower same-store-to-date shipments across all product lines. Nonetheless, our adjusted EBITDA has improved 16%. Margins have expanded 260 basis points, and aggregate cash gross profit per ton has grown 13%. Our two-pronged growth strategy to improve earnings through compounding profitability on our organic business and adding strategic assets to our portfolio is clearly working.

Tom Hill: Thank you, Mark, and thank all of you for your interest in Vulcan Materials Company. I'm very proud of how our talented teams are delivering results that exhibit their commitment to continuous improvement through consistent execution of our strategic disciplines. Most importantly, they are doing so while keeping one another safe. Both our safety and financial performance through the first half of the year has been outstanding, despite a challenging operating environment. Extreme temperatures early in the year and excessive rainfall in the second quarter have all contributed to lower, same-store-to-date shipments across all product lines. Nonetheless, our adjusted EBITDA has improved 16%. Margins have expanded 260 basis points, and aggregate cash gross profit per ton has grown 13%. Our two-pronged growth strategy to improve earnings through compounding profitability on our organic business and adding strategic assets to our portfolio is clearly working.

And with that, I'll turn the call over to Tom.

Thank you, Mark. And thank all of you for your interest in vocal materials company.

I'm very proud of how our talented teams are delivering results the exhibit, the commitment to continuous Improvement through consistent execution of our strategic disciplines.

Most importantly they are doing so while keeping 1 another safe.

Both our safety and financial performance through the first half of the year has been outstanding, despite a challenging operating environment.

Extreme temperatures early in the year and excessive rainfall in the second quarter have all contributed to lower. Same store today, shipments across all product lines.

Nonetheless, our adjusted ibida has improved 16%.

Margins of expanded 260 basis points. An aggregate cash, gross profit per ton. Has grown 13%.

Our 2-prong gross strategy to improve earnings through compounding profitability, in our organic business.

Tom Hill: In the quarter we generated $660 million of adjusted EBITDA, a 9% improvement over the prior year despite lower aggregate shipments. Rainfall in the Southeast notched 10-year records in many key market states, namely Georgia, Tennessee, Alabama, and the Carolinas, disrupting both our aggregates and asphalt businesses. In these markets, aggregate shipments were impacted by an estimate 2 to 3 million tons in our most profitable markets. Still, our reported cash gross profit per ton expanded an impressive 9%. Our teams executed particularly well on our Vulcan Way of Operating disciplines to navigate the challenging operating environment, drive plant efficiencies, and tightly control operating costs. Freight-adjusted unit cash cost of sales increased only 1.5% while remaining lower on a year-to-date basis. Price improvements was geographically widespread and freight-adjusted average selling prices improved 5%. On a mix-adjusted basis, average selling prices improved 8%.

In the quarter we generated $660 million of adjusted EBITDA, a 9% improvement over the prior year despite lower aggregate shipments. Rainfall in the Southeast notched 10-year records in many key market states, namely Georgia, Tennessee, Alabama, and the Carolinas, disrupting both our aggregates and asphalt businesses. In these markets, aggregate shipments were impacted by an estimate 2 to 3 million tons in our most profitable markets. Still, our reported cash gross profit per ton expanded an impressive 9%. Our teams executed particularly well on our Vulcan Way of Operating disciplines to navigate the challenging operating environment, drive plant efficiencies, and tightly control operating costs. Freight-adjusted unit cash cost of sales increased only 1.5% while remaining lower on a year-to-date basis. Price improvements was geographically widespread and freight-adjusted average selling prices improved 5%. On a mix-adjusted basis, average selling prices improved 8%.

Tom Hill: In a quarter, we generated $660 million of adjusted EBITDA, a 9% improvement over the prior year, despite lower aggregate shipments. Rainfall in the Southeast notched 10-year records in many key Vulcan states, namely Georgia, Tennessee, Alabama, and the Carolinas, disrupting both our aggregates and asphalt businesses in these markets. Aggregate shipments were impacted by an estimate of 2 to 3 million tons in our most profitable markets. Still, our reported cash gross profit per ton expanded an impressive 9%. Our teams executed particularly well on our Vulcan web operating disciplines to navigate the challenging operating environment, drive plant efficiencies, and tightly controlled operating costs. Freight-adjusted unit cash cost of sales increased only 1.5% while remaining lower on a year-to-date basis. Price improvements were geographically widespread, and freight-adjusted average selling prices improved 5%. On a mixed-adjusted basis, average selling prices improved 8%.

And adding strategic assets to our portfolio is clearly working.

In a quarter, we generated 660 million dollars of adjusted adopt.

A 9% improvement, over the prior year despite lower aggregate shipments.

Rainfall in the Southeast notched 10 year records in many key. Vulcan States. Namely Georgia Tennessee Alabama. And the Carolinas

Disrupting both our aggress and asphalt businesses in these markets.

our shipments were impacted by an estimate 2 to 3 million tons and our most profitable markets,

Still. I reported cash gross profit per ton. Expanded impressive, 9%,

Our teams executed, particularly well on our Vulcan way of operating disciplines to navigate the challenging operating environment.

Drive plan efficiencies and tightly Control operating costs.

Great adjusted unit cash cost of sales increase only 1.5% while remaining lower on the year to date basis.

The price improvements was yearly widespread and Freight adjusted average selling prices improved 5%.

Tom Hill: The difference was the anticipated impact of recent acquisitions and unfavorable geographic mix due to weather impacted shipments in our attractive Southeast markets. Consistent pricing discipline coupled with operating execution are yielding attractive unit profitability growth as we move into the back half of the year. Let me share a few other thoughts about the second half. Residential construction activity, which accounts for about 20% of our shipments, remains weak with persistent affordability challenges across most of the US markets. Starts and permits for single-family housing continue to accelerate. However, multifamily starts are showing signs of improvement with over half of our markets having turned positive on a trailing three-month basis. This improvement should begin to help offset the weakness in single-family activity in private non-residential construction.

The difference was the anticipated impact of recent acquisitions and unfavorable geographic mix due to weather impacted shipments in our attractive Southeast markets. Consistent pricing discipline coupled with operating execution are yielding attractive unit profitability growth as we move into the back half of the year. Let me share a few other thoughts about the second half. Residential construction activity, which accounts for about 20% of our shipments, remains weak with persistent affordability challenges across most of the US markets. Starts and permits for single-family housing continue to accelerate. However, multifamily starts are showing signs of improvement with over half of our markets having turned positive on a trailing three-month basis. This improvement should begin to help offset the weakness in single-family activity in private non-residential construction.

Tom Hill: The difference was the anticipated impact of recent acquisitions and unfavorable geographic mix due to weather-impacted shipments in our attractive Southeast markets. Consistent pricing discipline, coupled with operating execution, are yielding attractive unit profitability growth as we move into the back half of the year. Let me share a few other thoughts about the second half. Residential construction activity, which accounts for about 20% of our shipments, remains weak, with persistent affordability challenges across most of the US markets. Starts and permits for single-family housing continue to accelerate. However, multifamily starts are showing signs of improvement, with over half of our markets having turned positive on a trading three-month basis. This improvement should begin to help offset the weakness in single-family activity. In private non-residential construction, higher rates for longer and macro uncertainty have been weighing on construction activity, but we are beginning to see several signs of recovery.

On a mixed adjusted basis, average selling prices improved 8%.

The difference was the anticipated impact of recent acquisitions and unfavorable Geographic mix due to weather impacted shipments in our attractive Southeast markets.

Unit profitably growth as we move into the back, half of the year.

Let me share a few other thoughts about the second half.

Residential construction activity, which accounts for about 20% of our shipments remains weak.

With persistent affordability, challenges across most of the US markets.

Stocks and permits for single family. Housing continue to accelerate. However, multifamily starts are showing signs of improvement with over half of our markets, having turned positive on a trading 3-month basis

This Improvement should begin to help offset the weakness in single family activity.

Tom Hill: Higher rates for longer and macro uncertainty have been weighing on construction activity, but we are beginning to see several signs of recovery with growth in data center activity and moderating declines in warehouse, and other private non-residential categories. Trailing three-month starts have turned positive. This is an encouraging sign that private non-residential demand will soon begin to grow. Data centers remain a bright spot. We are currently serving a number of data center projects and actively discussing green-lit projects totaling over $35 billion. We're beginning to hear discussions of supporting power generation projects in areas with a heavy exposure to data centers. Nearly 80% of data center activity in the planning stage is within 30mi of a Vulcan operation. On the public side, trailing 12 months highway contract awards in Vulcan markets have accelerated meaningfully.

Higher rates for longer and macro uncertainty have been weighing on construction activity, but we are beginning to see several signs of recovery with growth in data center activity and moderating declines in warehouse, and other private non-residential categories. Trailing three-month starts have turned positive. This is an encouraging sign that private non-residential demand will soon begin to grow. Data centers remain a bright spot. We are currently serving a number of data center projects and actively discussing green-lit projects totaling over $35 billion. We're beginning to hear discussions of supporting power generation projects in areas with a heavy exposure to data centers. Nearly 80% of data center activity in the planning stage is within 30mi of a Vulcan operation. On the public side, trailing 12 months highway contract awards in Vulcan markets have accelerated meaningfully.

In private, non-residential construction, higher rates for longer and macro uncertainty have been weighing on construction activity.

Tom Hill: With growth in data center activity and moderating declines in warehouse and other private non-residential categories, trading three-month starts have turned positive. This is an encouraging sign that private non-residential demand will soon begin to grow. Data centers remain a bright spot. We are currently serving a number of data center projects and actively discussing green-lit projects totaling over $35 billion. We're beginning to hear discussions of supporting power generation projects in areas with a heavy exposure to data centers. Nearly 80% of data center activity in the planning stage is within 30 miles of a Vulcan operation. On the public side, trading 12-month highway contract awards in Vulcan markets have accelerated meaningfully. They were modestly down a year ago and were up over 20% at the end of June.

Tom Hill: With growth in data center activity and moderating declines in warehouse and other private non-residential categories, trading three-month starts have turned positive. This is an encouraging sign that private non-residential demand will soon begin to grow. Data centers remain a bright spot. We are currently serving a number of data center projects and actively discussing green-lit projects totaling over $35 billion. We're beginning to hear discussions of supporting power generation projects in areas with a heavy exposure to data centers. Nearly 80% of data center activity in the planning stage is within 30 miles of a Vulcan operation. On the public side, trading 12 months highway contract awards in Vulcan markets have accelerated meaningfully. They were modestly down a year ago and were up over 20% at the end of June.

But we are beginning to see several signs of recovery.

With growth in data, center activity and moderating declines in warehouse and other private non-residential categories. Trailing 3 months starts have turned positive.

This is an encouraging sign that private non-residential demand will soon begin to grow.

Data centers, were made a bright spot. We are currently serving a number of data center projects and actively discussing green lit projects totaling over 35 billion dollars.

We're beginning to hear discussions of supporting power generation projects, in areas with a heavy exposure to data centers.

Nearly 80% of data center activity. In the planning stage is within 30 Mi of Vulcan operation.

On the public side.

Tom Hill: They were modestly down a year ago and were up over 20% at the end of June. IIJA funding is continuing to benefit both highways and other public infrastructure activity, and we still have over 60% of the dollars yet to be spent. Importantly, the improvements we're beginning to see in both private and public demand environment are translating into accelerating bookings and growing backlogs to support volume growth in the back half of this year and into 2026. Therefore, we continue to expect to deliver between $2.35 and 2.55 billion of Adjusted EBITDA. Now I'll turn the call over to Mary Andrews Carlisle for some additional commentary on our results and revised outlook.

They were modestly down a year ago and were up over 20% at the end of June. IIJA funding is continuing to benefit both highways and other public infrastructure activity, and we still have over 60% of the dollars yet to be spent. Importantly, the improvements we're beginning to see in both private and public demand environment are translating into accelerating bookings and growing backlogs to support volume growth in the back half of this year and into 2026. Therefore, we continue to expect to deliver between $2.35 and 2.55 billion of Adjusted EBITDA. Now I'll turn the call over to Mary Andrews Carlisle for some additional commentary on our results and revised outlook.

Training, 12 months, Highway contractor Awards and volkan markets have accelerated meaningfully.

Tom Hill: IIJA funding is continuing to benefit both highways and other public infrastructure activity, and we still have over 60% of the dollars yet to be spent. Importantly, the improvements we're beginning to see in both private and public demand environments are translating into accelerating bookings and growing backlogs to support volume growth in the back half of this year and into 2026. Therefore, we continue to expect to deliver between $2.35 and $2.55 billion of adjusted EBITDA. Now, I'll turn the call over to Mary Andrews for some additional commentary on our results and revised outlook. Mary Andrews?

They were modestly down a year ago and were up over 20% at the end of June.

I j funding is continuing to benefit both highways and other public infrastructure activity.

And we still have over 60% of the dollars yet to be spent

Importantly, the improvements we're beginning to see in both private and public demand, environment are translating into accelerating bookings, and growing backlogs, and support volume growth in the back, half of this year and into 2026.

Therefore, we continue to expect to deliver between 2.35 and 2.55 billion of adjusted of a dog.

Mary Andrews Carlisle: Mary Andrews Carlisle: Thanks, Tom, and good morning. Over the last six months, our year-over-year trailing twelve months aggregate freight-adjusted unit cash cost of sales has improved nearly 600 basis points from 10% to 4%. The focus of our operating teams on utilizing our Process Intelligence system and other Vulcan Way of Operating tools to drive plant efficiencies is contributing to the attractive expansion in our aggregates cash gross profit per ton, even in a lower volume environment. The solid operating performance through the first six months of this year drove a 58% improvement in operating cash flow, and free cash flow on a trailing twelve month basis surpassed $1 billion. This attractive cash generation, coupled with our consistent, disciplined capital allocation, will enable us to continue to drive long-term value creation for shareholders.

Mary Andrews Carlisle:

Mary Andrews Carlisle: Thanks, Tom, and good morning. Over the last six months, our year-over-year trailing twelve months aggregate freight-adjusted unit cash cost of sales has improved nearly 600 basis points from 10% to 4%. The focus of our operating teams on utilizing our Process Intelligence system and other Vulcan Way of Operating tools to drive plant efficiencies is contributing to the attractive expansion in our aggregates cash gross profit per ton, even in a lower volume environment. The solid operating performance through the first six months of this year drove a 58% improvement in operating cash flow, and free cash flow on a trailing twelve month basis surpassed $1 billion. This attractive cash generation, coupled with our consistent, disciplined capital allocation, will enable us to continue to drive long-term value creation for shareholders.

Mary Andrews Carlisle: Thanks, Tom, and good morning. Over the last six months, our year-over-year trailing 12-month aggregate rate-adjusted unit cash cost of sales has improved nearly 600 basis points from 10 to 4%. The focus of our operating teams on utilizing our process intelligence system and other Vulcan web operating tools to drive plan efficiencies is contributing to the attractive expansion in our aggregates cash gross profit per ton, even in a lower volume environment. The solid operating performance through the first six months of this year drove a 58% improvement in operating cash flow, and free cash flow on a trailing 12-month basis surpassed $1 billion. This attractive cash generation, coupled with our consistent, disciplined capital allocation, will enable us to continue to drive long-term value creation for shareholders.

Mary Andrews Carlisle: Thanks, Tom, and good morning. Over the last six months, our year-over-year trailing 12 months aggregate rate-adjusted unit cash cost of sales has improved nearly 600 basis points from 10 to 4%. The focus of our operating teams on utilizing our process intelligence system and other Vulcan web operating tools to drive plan efficiencies is contributing to the attractive expansion in our aggregates cash gross profit per ton, even in a lower volume environment. The solid operating performance through the first six months of this year drove a 58% improvement in operating cash flow, and free cash flow on a trailing 12-month basis surpassed $1 billion. This attractive cash generation, coupled with our consistent, disciplined capital allocation, will enable us to continue to drive long-term value creation for shareholders.

Now, I'll turn the call over to Mary Andrews for some additional commentary on our results and revised Outlook managers.

Thanks Tom and good morning.

Our year.

Our trailing 12.

Cost of sales has improved nearly 600 basis, points from 10 to 4 percent.

The focus of our operating teams on utilizing our process intelligence system and other volkan way of operating tools to drive plan. Efficiencies is contributing to the attractive expansion and our Aggregates cash growth profit per ton, even in a lower volume environment.

The solid operating performance through the first 6 months of this year, drove a 58% Improvement in operating cash flow and free cash flow on a trailing 12-month basis, surpassed 1 billion dollars.

Mary Andrews Carlisle: Through the first six months we reinvested $207 million in maintenance and growth Capital Expenditures, returned $169 million to shareholders through dividends and share repurchases, and retired $400 million of debt. Our Return on Invested Capital at 30 June was 15.9%. At quarter end we reclassified $550 million of Commercial Paper borrowings from long-term to short-term debt, reflecting the likelihood that we will use some of the discretionary cash generation in the second half to repay those balances. Doing so will reduce our interest expense while maintaining the flexibility to reissue at any time to opportunistically capitalize on growth opportunities. At 30 June, net debt to Trailing Twelve Months Adjusted EBITDA leverage was 2.1x. Given the cold and wet start to the year that slowed spending timelines on some projects.

Through the first six months we reinvested $207 million in maintenance and growth Capital Expenditures, returned $169 million to shareholders through dividends and share repurchases, and retired $400 million of debt. Our Return on Invested Capital at 30 June was 15.9%. At quarter end we reclassified $550 million of Commercial Paper borrowings from long-term to short-term debt, reflecting the likelihood that we will use some of the discretionary cash generation in the second half to repay those balances. Doing so will reduce our interest expense while maintaining the flexibility to reissue at any time to opportunistically capitalize on growth opportunities. At 30 June, net debt to Trailing Twelve Months Adjusted EBITDA leverage was 2.1x. Given the cold and wet start to the year that slowed spending timelines on some projects.

Mary Andrews Carlisle: Through the first six months, we reinvested $207 million in maintenance and growth capital expenditures, returned $169 million to shareholders through dividends and share repurchases, and retired $400 million of debt. Our return on invested capital at June 30 was 15.9%. At quarter end, we reclassified $550 million of commercial paper borrowing from long-term to short-term debt, reflecting the likelihood that we will use some of the discretionary cash generation in the second half to repay those balances. Doing so will reduce our interest expense while maintaining the flexibility to reissue at any time to opportunistically capitalize on growth opportunities. At June 30, net debt to trailing 12-month adjusted EBITDA leverage was 2.1 times.

This attractive cash generation coupled with our consistent disciplined. Capital allocation will enable us to continue to drive long-term value creation for shareholders.

You're the first 6 months, we reinvested 207 million in maintenance and growth, Capital expenditures.

Returned 169 million to shareholders through dividends and share repurchases and retired million dollars of debt.

Our return on invested Capital at June 30th n.

At quarter end, we reclassified 550 million of commercial paper, borrowing from long-term to short-term debt reflecting the likelihood that we will use some of the discretionary cash generation and the second half to repay those balances.

Doing. So, will reduce our interest expense while maintaining the flexibility to reissue at any time to opportunistically capitalize on growth opportunities.

Mary Andrews Carlisle: Given the cold and wet start to the year that slowed spending timelines on some projects, we now expect full-year maintenance and growth capital expenditures of approximately $700 million, with an acceleration of spending in the second half of the year. Our trailing 12-month SAG expenses of $550 million were flat to the prior year and 10 basis points lower as a percentage of revenue. Year-to-date expenses of $283 million were in line with our expectations. As Tom said, we are reaffirming our full-year adjusted EBITDA guidance of $2.35 to $2.55 billion. Double-digit year-over-year shipments thus far in July, the exceptional execution of our teams in the first half of the year, and the improving private and public demand backdrop all give us confidence in an accelerating second half of the year. I'll now turn the call back over to Tom to provide a few closing remarks.

At June 30th to trailing 12 months adjusted. EBA leverage was, 2.1 times.

Mary Andrews Carlisle: We now expect full-year maintenance and growth capital expenditures of approximately $700 million with an acceleration of spending in the second half of the year. Our trailing 12-month SAG expenses of $550 million were flat to the prior year and 10 basis points lower as a percentage of revenue. Year-to-date expenses of $283 million were in line with our expectations. As Tom said, we are reaffirming our full-year adjusted EBITDA guidance of $2.35 to 2.55 billion. Double-digit year-over-year shipments thus far in July, the exceptional execution of our teams in the first half of the year, and the improving private and public demand backdrop all give us confidence in an accelerating second half of the year. I'll now turn the call back over to Tom to provide a few closing remarks.

We now expect full-year maintenance and growth capital expenditures of approximately $700 million with an acceleration of spending in the second half of the year. Our trailing 12-month SAG expenses of $550 million were flat to the prior year and 10 basis points lower as a percentage of revenue. Year-to-date expenses of $283 million were in line with our expectations. As Tom said, we are reaffirming our full-year adjusted EBITDA guidance of $2.35 to 2.55 billion. Double-digit year-over-year shipments thus far in July, the exceptional execution of our teams in the first half of the year, and the improving private and public demand backdrop all give us confidence in an accelerating second half of the year. I'll now turn the call back over to Tom to provide a few closing remarks.

Given the cold and wet start to the year that slowed spending timelines on some projects. We now expect full year maintenance and growth, Capital expenditures of approximately 700 million.

With an acceleration of spending in the second half of the year.

Our trailing 12-month sag expenses of 550 million.

To the prior year and 10 basis points lower as a percentage of Revenue.

Year to date, expenses of 283 million were in line with our expectations.

As Tom said, we are reaffirming our full year adjusted Ava die, guidance of 2.35 to 2.55 billion dollars.

Double digit year-over-year shipment thus far, in July the exceptional execution of our teams in the first half of the year and the improving private and public demand backdrop. All. Give us confidence in an accelerating second half of the year.

Tom Hill: Thank you, Mary Andrews, and thank you to my Vulcan teammates who delivered a strong first half of 2025. Our trailing 12 months aggregates cash gross profit of $11.25 per ton is now over 50% higher than just three years ago when we communicated a goal of $11 to $12 per ton. This clearly depicts the durability of our aggregates business and our commitment to controlling what we can control to deliver consistent earnings growth for our shareholders regardless of the demand backdrop. Now Mary Andrews and I will be happy to take your questions.

Tom Hill: Thank you, Mary Andrews, and thank you to my Vulcan teammates who delivered a strong first half of 2025. Our trading 12-month aggregate cash gross profit of $11.25 per ton is now over 50% higher than just three years ago when we communicated a goal of $11 to $12 per ton. This clearly depicts the durability of our aggregate-lit business and our commitment to controlling what we can control to deliver consistent earnings growth for our shareholders regardless of the demand backdrop. And now, Mary Andrews and I will be happy to take your questions.

Tom Hill: Thank you, Mary Andrews, and thank you to my Vulcan teammates who delivered a strong first half of 2025. Our trading 12 months aggregate cash gross profit of $11.25 per ton is now over 50% higher than just three years ago when we communicated a goal of $11 to $12 per ton. This clearly depicts the durability of our aggregate-lit business and our commitment to controlling what we can control to deliver consistent earnings growth for our shareholders regardless of the demand backdrop. And now, Mary Andrews and I will be happy to take your questions.

I'll now turn the call back over to Tom to provide a few closing remarks.

Thank you, Mary Andrews and thank you to my Vulcan teammates who delivered a strong first half of 2025.

Our trade 12 months ago, it's cash gross. Profit of $11.25 per ton.

Is now over 50% higher than just 3 years ago. When we communicated a goal of 11 or 12 dollars per ton,

This clearly depicts the durability of our Irish lid business and our commitment to controlling what we can control to deliver consistent earnings growth for our shareholders, regardless of the demand backdrop.

Operator: At this time, if you'd like to ask a question, please press the Star and one keys on your telephone keypad. Keep in mind you may remove yourself from the question queue at any time by pressing Star and two again. In the interest of time, we ask that you limit yourself to one. If you have any follow-up questions, you may re-enter the queue. As a reminder, it is Star and one to ask a question. We'll take our first question from Trey Grooms with Stephens. Please go ahead. Your line is open.

David: At this time, if you'd like to ask a question, please press the star and one keys on your telephone keypad. Keep in mind you may remove yourself from the question queue at any time by pressing star and two. Again, in the interest of time, we ask that you limit yourself to one question. If you have any follow-up questions, you may re-enter the queue. As a reminder, it is star and one to ask a question. We'll take our first question from Trey Grooms with Stevens. Please go ahead. Your line is open.

And now Mary Andrews and I will be happy to take your questions.

Time. If you'd like to ask a question, please press the star and 1 keys on your telephone keypad. Keep in mind, you may remove yourself from the question Queue at any time by pressing star and 2 again. In the interest of time, we asked the limit yourself to 1 question. If you have any follow-up questions, you may have re-enter the queue

as a reminder, it is star and 1 to ask a question.

Trey Grooms: Hey, good morning everyone. Thanks for taking my question. So you know, clearly you all faced a heavily weather-impacted first half of the year which clearly impacted your volume and I'm sure had to hurt profitability as well to some degree. So I guess what are you seeing or what gives you the confidence going into the second half to reaffirm your EBITDA guide for the year despite this kind of tough first half that we've been having to deal with, especially due to weather.

Speaker 9: Hey, good morning, everyone. Thanks for taking my question. So, you know, clearly you all faced a heavily weather-impacted first half of the year, which clearly impacted your volume and I'm sure had to hurt profitability as well to some degree. So, I guess, what are you seeing or what gives you the confidence going into the second half to reaffirm your EBITDA guide for the year despite this kind of tough first half that we've been having to deal with, especially due to weather?

Trey Grooms: Hey, good morning, everyone. Thanks for taking my question. So, you know, clearly you all faced a heavily weather-impacted first half of the year, which clearly impacted your volume and I'm sure had to hurt profitability as well to some degree. So, I guess, what are you seeing or what gives you the confidence going into the second half to reaffirm your EBITDA guide for the year despite this kind of tough first half that we've been having to deal with, especially due to weather?

We'll take our first question from Trey, Grooms with Stevens. Please go ahead; your line is open.

Hey uh, good morning everyone. Thanks for taking my question.

Tom Hill: Well, thanks for the question, Trey. I think, Trey, great. I was very pleased with the quarter and the first half of the year. You know, volumes were down 1% in Q2, and in the first half without acquisitions down 5%, as we been talking about. The quarter saw significant rainfall in the Southeast. And with our outsized performance in the Southeast, we were probably impacted more than most. Now that's the tough news for me. The good news is that even with the wet weather in Q2, the cold weather in Q1, volumes down, and the most impacted region being the Southeast, which houses probably our highest prices and margins, we still saw first half prices up 6% and unit margins up 13%. And for me, that's really quality earnings and some tough conditions.

Tom Hill: Well, thanks for the question, Trey. I think, Trey, ex-rain, I was very pleased with the quarter and the first half of the year. You know, volumes were down 1% in Q2 and in the first half without acquisitions down 5. As we've been talking about, the quarter saw significant rainfall in the Southeast, and with our outsized performance in the Southeast, we were probably impacted more than most. Now, that's the tough news. For me, the good news is that even with the wet weather in Q2, the cold weather in Q1, volumes down, and the most impacted region being that Southeast, which houses probably our highest prices and margins, we still saw first-half prices up 6% and unit margins up 13.

So, you know, clearly you all faced a, a heavily weather impacted first half of the year, uh, which clearly impacted your volume. And I'm sure had to to hurt profitability as well to some degree. So I guess, what are you seeing or, or what gives you the, the confidence going into the second half to reaffirm your Eva dog guide for the year. Despite this kind of tough first half that we've uh been having to deal with especially due to weather.

Well, thanks for the for the question. Trey, I think Trey X rain, I was very pleased with with the quarter and the first half of the year, you know, volumes were down 1% in Q2 and in the first half um without Acquisitions down. 5 uh as we've been talking about quarter saw significant rainfall in the Southeast and with our um outsized performance. In the Southeast, we were probably impacted more than most. Um, now that's a tough news for me. The good news is that even with the wet weather and Q2 the cold weather and q1 volume is down and the most impacted region, being that Southeast which houses probably, you know, our highest prices and margins.

We still saw first half prices.

Tom Hill: And for me, that's really quality earnings in some tough conditions and one I think our people should be very proud of, of their performance in the first half. It gives us a lot of confidence for the second half because, you know, a bit of good weather in the Southeast, like we saw in July, will really help improve what I thought was already a really good performance. when it's dry, we're shipping strong. you know, July had what I'd call normal weather patterns, and we saw very strong shipments. They were, as Mary Andrews said, they were up double-digit in July, and then that's a little bit of catch-up probably and probably some easy comps.

Tom Hill: And one, I think our people should be very proud of their performance in the first half. It gives us a lot of confidence for the second half because, you know, a bit of good weather in the Southeast like we saw in July will really help improve what I thought was already a really good performance. When it's dry, we're shipping strong. You know, July had what I call normal weather patterns, and we saw very strong shipments. They were, as Mary Andrews said, up double-digit in July. And that's a little bit of catch up probably and some easy comps. But importantly, what we know is that our backlogs, our booking pace, and our shipping pace are all up and would support our full-year guidance of that 3% to 5%, which will have significant catch up in the second half.

And one, I think our people should be very proud of their performance in the first half. It gives us a lot of confidence for the second half because, you know, a bit of good weather in the Southeast like we saw in July will really help improve what I thought was already a really good performance. When it's dry, we're shipping strong. You know, July had what I call normal weather patterns, and we saw very strong shipments. They were, as Mary Andrews said, up double-digit in July. And that's a little bit of catch up probably and some easy comps. But importantly, what we know is that our backlogs, our booking pace, and our shipping pace are all up and would support our full-year guidance of that 3% to 5%, which will have significant catch up in the second half.

Up 6% in unit, margins up 13. And for me, that's really quality earnings and some tough conditions and 1. I think our people should be very proud of of their performance in the first half. It gives us a lot of confidence with the second half because, you know, a a bit of good weather in the Southeast. Like we saw in July, will really help improve what I thought was already a really good performance. Uh, when it's dry, we're shipping strong. Um,

Tom Hill: But importantly, what we know is that our backlogs and our booking pace and our shipping pace are all up and would support, you know, our full-year guidance of that 3 to 5%, which will have significant catch-up in the second half. And we always said this will be second half loaded from a volume perspective. I think the other thing that gives me confidence in it is that the underlying demand is there, and it is improving. And so I think that we're starting to be on the edge of a turn for the private side.

Tom Hill: but importantly, what we know is that our backlogs and our booking pace and our shipping pace are all up and would support, you know, our full-year guidance of that 3 to 5%, which will have significant catch-up in the second half. And we always said this will be second half loaded from a volume perspective. I think the other thing that gives me confidence in it is that the underlying demand, is there, and it is improving. And so I think that, we're starting to be on the edge of a turn for the private side.

You know, July had, I called normal weather patterns and we saw a very strong shipments. They were is, is Mayor said they were up double digit in July and then that's a little bit of catch up. Probably in, probably some easy comps.

Tom Hill: We always said this will be second half loaded from a volume perspective. I think the other thing that gives me confidence in it is that the underlying demand is there, and it is improving. So I think that we're starting to be on edge of a turn for the private side.

We always said this will be second half loaded from a volume perspective. I think the other thing that gives me confidence in it is that the underlying demand is there, and it is improving. So I think that we're starting to be on edge of a turn for the private side.

But importantly, what we know is that our backlogs and our booking pace and a shipping Pace, are all up and would support, you know, our full year guidance of that 3 to 5% which will have significant catch up in in the second half. And we always said, this will be second half loaded from a volume perspective. I think the other thing that gives me confidence in it is that the underlying demand

Um is there and it is improving. And so I I think that uh we'll starting to be on the edge of a turn for for the private side.

Trey Grooms: Perfect. Okay, thanks, Tom. That's encouraging. I'll keep it to one question and pass it on. Thank you very much.

Speaker 9: Perfect. okay. Thanks, Tom. That's encouraging. I'll keep it to one question, question and pass it on. Thank you very much.

Trey Grooms: Perfect. Okay. Thanks, Tom. That's encouraging. I'll keep it to one question and pass it on. Thank you very much.

Tom Hill: Thanks, Ray. Talk to you later.

Tom Hill: Thanks, Trey. Talk to you later.

Speaker 9: See you.

Trey Grooms: See you.

Operator: We'll take our next question from Anthony Pettinari with Citigroup. Please go ahead. Your line is open.

David: We'll take our next question from Anthony Pettitari with Citigroup. Please go ahead. Your line is open.

Perfect. Uh, okay. Thanks, Tom, that's encouraging. I'll keep it to one question, uh, question, and then pass it on. Thank you very much. Thanks, Greg. Talk to you later.

See you.

Tom Hill: Hi, Anthony.

Speaker 9: Hi, Anthony. Oh, good morning. Hey. last quarter, I think you mentioned, maybe delays in in bids translating to bookings as something that maybe we're seeing a little bit more, and maybe we've seen some of that in national data. I'm just curious if if that's accurate. Are you seeing project timelines stretch out or, you know, customer confidence, you know, improved? Or I'm just kind of curious how that, kind of bid-to-booking timeline has, has trended.

Trey Grooms: Hi, Anthony. Oh, good morning. Hey. Last quarter, I think you mentioned maybe delays in bids translating to bookings as something that maybe we're seeing a little bit more, and maybe we've seen some of that in national data. I'm just curious if that's accurate. Are you seeing project timelines stretch out or, you know, customer confidence, you know, improved? Or I'm just kind of curious how that kind of bid-to-booking timeline has has trended.

Trey Grooms: Good morning.

Anthony Pettinari: Good morning.

We'll take our next question from Anthony. Pedoni with Citi group, please go ahead. Your line is open.

Tom Hill: Hey.

Hey.

Trey Grooms: Last quarter, I think you mentioned maybe delays in bids translating to bookings as something that maybe we're seeing a little bit more, and maybe we've seen some of that in national data. I'm just curious if that's accurate. Are you seeing project timelines stretch out or customer confidence improved, or just kind of curious how that kind of bid to booking timeline has trended?

Last quarter, I think you mentioned maybe delays in bids translating to bookings as something that maybe we're seeing a little bit more, and maybe we've seen some of that in national data. I'm just curious if that's accurate. Are you seeing project timelines stretch out or customer confidence improved, or just kind of curious how that kind of bid to booking timeline has trended?

Hi Anthony. Hi, good morning. Hey

Tom Hill: Yeah, good question. And an important one because it's turned. We are seeing them, seeing them get green lit, they're going. That's what's also building our booking pace and our backlogs. So I think we've seen the turn in that.

Tom Hill: Yeah, good question and an important one because it's turned. we we are seeing them. They were seeing them get green-lit. They're going. that's what's also building our booking pace and our backlogs. So I think we've seen the turn in that.

Tom Hill: Yeah, good question and an important one because it's turned. We are seeing them. They were seeing them get green-lit. They're going. That's what's also building our booking pace and our backlogs. So I think we've seen the turn in that.

Is something that maybe you were seeing a little bit more and maybe we've seen some of that National Data. I'm just curious if, if that's accurate are you seeing project timelines stretch out or uh you know customer confidence uh you know improved or just kind of curious how that um kind of bit the booking timeline has uh, has trended.

Yeah. Good question. And an important 1 because it's turned uh we we are seeing them. We are seeing them get green lit. They're going. Um that's what's also building our booking pace and our backlogs. So I think we we've seen the turn in that.

Trey Grooms: Okay. Is that specific to private, commercial, or public? Or are you seeing it across end markets or.

Anthony Pettinari: Okay. Is that specific to private, commercial, or public? Or are you seeing it across end markets or.

Speaker 9: Okay. And is that, is that, specific to, private commercial or public, or are you seeing it across end markets, or?

Trey Grooms: Okay. And is that specific to private commercial or public, or are you seeing it across end markets, or?

Tom Hill: I think I think you're seeing it across all end markets. The one I would call out that we're not seeing it across would be, single-family. But the, you know, as we talked about, the the backlogs and booking pace and starts on the public side is very strong, and it continues to improve on the private side in all sectors except for single-family.

Tom Hill: I think you're seeing it across all end markets. The one I would call out that we're not seeing it across would be single-family. But the, you know, as we talked about, the backlogs and booking pace and starts on the public side is very strong, and it continues to improve on the private side in all sectors except for single-family.

Tom Hill: I think you're seeing it across all end markets. The one I would call out that we're not seeing it across would be single family. But as we talked about, the backlogs, booking pace, and starts on the public side is very strong and it continues to improve on the private side in all sectors except for single family.

Trey Grooms: Okay, that's very helpful. I'll turn it over.

Anthony Pettinari: Okay, that's very helpful. I'll turn it over.

Speaker 9: Okay. That's very helpful. I'll turn it over.

Trey Grooms: Okay. That's very helpful. I'll turn it over.

Okay. Is that is that specific to, uh, private commercial or public? Or are you seeing it across end markets? Or I think, I think you're sending across all in markets, the 1, I would call out that we're not seeing it across, would be, uh, single family. But the, the, you know, as we talked about the, the backlogs and booking pace and starts in, on the public side is very strong and it continues to improve on the private side. It all sectors, except for single family.

Tom Hill: Thank you.

Okay, that that's very helpful. I'll turn it over.

Operator: We'll take our next question from Kathryn Thompson with Thompson Research Group. Please go ahead.

David: We'll take our next question from Katherine Thompson with Thompson Research Group. Please go ahead.

Thank you.

Tom Hill: Hi, Catherine.

Tom Hill: Hi, Katherine.

Kathryn Thompson: Good morning and thank you for taking my question this morning. Just tagging on to the infrastructure question, you talked about the acceleration of dollars slowing out. How much of this? When you look, there are certain key states like Florida with the Moving Florida Forward initiative, which is $4 billion, and then Tennessee's Transportation Modernization Act, which added another $3.3 billion to DOT funding. Is it these types of states that have these big initiatives and you're starting to see dollars flow through, or is it other types of projects that are more related to IIJA and just seeing a more delay from those? Or is it a combination of all the above?

Mary Andrews Carlisle: Good morning, and thank you for taking my question this morning. Just tagging on on the infrastructure question, you talked about the acceleration of dollars flowing out. How much of this, when you look, there are certain key states like Florida with the moving floor of Florida initiative, which is $4 billion, and then Tennessee's Modernization Act, which added another $3.3 billion to DOT funding. Is it these types of states that have these big initiatives and you're starting to see dollars flow through, or is it, you know, other types of projects that are more related to IIJA and just seeing a more delay from those? Or is it a combination of all the above?

Katherine Thompson: Good morning, and thank you for taking my question this morning. Just tagging on on the infrastructure question, you talked about the acceleration of dollars flowing out. How much of this, when you look, there are certain key states like Florida with the Moving Floor of Florida initiative, which is $4 billion, and then Tennessee's Modernization Act, which added another $3.3 billion to DOT funding. Is it these types of states that have these big initiatives and you're starting to see dollars flow through, or is it, you know, other types of projects that are more related to IIJA and just seeing a more delay from those? Or is it a combination of all the above?

We'll take our next question, from Katherine Thompson, with Thompson research group, please go ahead. Your line.

Uh, good morning. And, uh, thank you for taking, um, my my question this morning, uh, just tagging on on the the infrastructure question. You talked about the acceleration,

Of of dollars flowing out. Uh how much of this when you when you look at their certain key States like Florida with the moving floor of Florida uh initiative which is 4 billion dollars and then Tennessee's modernization act, which added another um 3.3 billion to dot funding. Is it these types of states that um have these big initiatives and you're starting to see dollars flow through?

Tom Hill: Yeah, it's all of the above. And you know, the capital spending, as you pointed out, in all of our southeastern states, in fact, all of our biggest states are up and up considerably. That is coupled with IIJA funding. I think you're seeing both of them come together, along with some local funding that's been increasing over the last three or four years. So I think what we're seeing in the highway work is demand is very strong and getting better. We're seeing this in lettings, we're seeing bookings, we're seeing backlogs. You know, remember a year ago, the contract awards were down 2%. Now contract awards are up 22%. And so we're also seeing this in our shipments. We saw it in July. We really feel the impact in 2026.

Tom Hill: Yeah, it's all of the above. And you know, the capital spending, as you pointed out, in all of our Southeastern states, in fact, all of our biggest states are up and up considerably. That is coupled with IIJA funding. I think you're seeing both of them come together along with some local funding that's been increasing over the last three or four years. So I think what we're seeing in the highway work is demand is very strong and getting better. We're seeing this in lettings. We're seeing it in bookings. We're seeing it in backlogs. You know, remember a year ago, the contract awards were down 2%. Now, contract awards are up 22%. And so we're also seeing this in our shipments. I mean, we saw it in July. We really feel the impact in 2026.

Or is it, um, you know, other types of projects in the world related to ija and, and just seeing a more Delay from those or is it a combination of, of all the above?

Yeah, it's it's all of the above, um, and, you know, the, the capital spending to you as you pointed out in in all of our southeastern states. In fact, all of our bigger States is are up and up considerably. Um, that is coupled with IJ funding. I think you're you're seeing, you're seeing both of them come together along with some local funding that's been increasing over the last 3 or 4 years.

Tom Hill: This kind of growth in public demand should be a strong catalyst for 2026 pricing because it's so visible. So that gives you that visibility of future work, which really helps pricing.

Tom Hill: And this kind of growth in public demand should be a strong catalyst for '26 pricing because it's so visible. And so that gives you that visibility of future work, which really helps pricing.

This kind of growth in public demand should be a strong catalyst for 2026 pricing because it's so visible. So that gives you that visibility of future work, which really helps pricing.

Mary Andrews Carlisle: Okay.

Kathryn Thompson: Okay.

Mary Andrews Carlisle: Okay. And when you said that contract awards are up 22%, is that for Vulcan-Serv states, or is that more a national?

Katherine Thompson: Okay. And Lisa, that contract awards are up 22%. Is that for Vulcan-Serv states, or is that more a national?

Kathryn Thompson: Many said that contract awards are up 22%. Is that for bulk conserved states or is that more a national number?

Many said that contract awards are up 22%. Is that for bulk conserved states or is that more a national number?

So I think what we're seeing in the highway work is demand is very strong in getting better. We're seeing this in leggings we're seeing booking bookings. We're seeing a backlogs, you know, remember a year ago? Uh, the contractor awards were down 2% now, contract awards, are up 22% and so we're, we're also seeing this in our shipments. We saw it in July. Um, we we really feel the impact in 2026 and this kind of growth in public demand. Should be a strong Catalyst for 26 pricing because it it's so visible. And and so that gives you that visibility of future work which helped really helps pricing.

Trey Grooms: Just put it.

Just put it.

Tom Hill: That is Vulcan-Serv. Yeah, that is highway for Vulcan-Serv states. You know.

Tom Hill: That is Vulcan-Serv states. Yeah, that is highway for Vulcan-Serv states. You know.

Tom Hill: Yeah, that is highway for Vulcan served states.

Mary Andrews Carlisle: You know, and Kathryn, I think one of the, you know, things we're pleased to see is that that shift from, as Tom commented, you know, down a year ago to significantly up is distinctly different in Vulcan states versus other states where, you know, the awards have actually, you know, decelerated some.

Mary Andrews Carlisle: And Katherine, I think one of the things we're pleased to see is that that shift from, as Tom commented, you know, down a year ago to significantly up is distinctly different in Vulcan states versus other states where, you know, the awards have actually, you know, decelerated some. Well, great. Thank you so much. I appreciate it.

Katherine Thompson: Well, great. Thank you so much. I appreciate it.

Kathryn Thompson: Great. Thank you so much. Appreciate it.

Okay. And and me, so that contract towards are up 22% is that for, um, uh, for bulk and serve States? Or is that more a national? But just put that that is all concerns that. Yeah, that's Highway for Vulcan service States. You know, and Catherine, I think 1 of the, you know, things we're pleased to see is that that shift from as Tom commented, you know, down a year ago to significantly up is is distinctly different. And Vulcan States versus other states where, you know, the um Awards have actually, you know, decelerated some

Tom Hill: Thank you.

Kathryn Thompson: Best of luck.

Mary Andrews Carlisle: Best of luck.

Katherine Thompson: Best of luck.

Tom Hill: Thanks.

Operator: We'll take our next question from Brian Brophy with Stifel. Please go ahead.

David: We'll take our next question from Brian Brophy with Steeple. Please go ahead.

Okay, great, thank you so much, I appreciate it. Thank you. Best of luck.

Thanks.

Trey Grooms: Hello, this is Andrew on for Brian. Thank you for taking my question. I just had a question on CapEx. It looks like it took a step down in the quarter. Wondering if there's any particular drivers of that. And then are there any changes to how you're thinking about CapEx for the full year?

Brian Brophy: Hello, this is Andrew on for Brian. Thank you for taking my question. I just had a question on CapEx. It looks like it took a step down in the quarter. Wondering if there's any particular drivers of that. And then are there any changes to how you're thinking about CapEx for the full year?

Andrew Maser: Hello. This is Andrew on for Brian. Thank you for taking my question. I just had a question on CapEx. It looks like it took a step down in the quarter. I'm wondering if there's any particular drivers of that, and then are there any changes to how you're thinking about CapEx for the full year?

Andrew: Hello. This is Andrew on for Brian. Thank you for taking my question. I just had a question on CapEx. It looks like it took a step down in the quarter. I'm wondering if there's any particular drivers of that, and then are there any changes to how you're thinking about CapEx for the full year?

We'll take our next question from Brian Brophy with Stifel. Please go ahead.

Hello. This is Andrew on for Bryant. Thank you for taking my question.

Mary Andrews Carlisle: Yes. So the CapEx in the first half, you know, being lighter than what we anticipate for the full year was really due to the slow start with the weather, just harder to get project timelines going. We do expect now that CapEx for the full year will be about $700 million, which is a bit lower than our original guide of $750 to 800 million.

Mary Andrews Carlisle: Yeah. So the CapEx in the first half, you know, being lighter than what we anticipate for the full year was really due to the slow start with the weather, just harder to get project timelines going. We do expect now that CapEx for the full year will be about $700 million, which is a bit lower than our original guide of $750 to $800 million.

Mary Andrews Carlisle: Yeah. So the CapEx in the first half, you know, being lighter than what we anticipate for the full year was really due to the slow start with the weather. It's just harder to get project timelines going. We do expect now that CapEx for the full year will be about $700 million, which is a bit lower than our original guide of $750 to $800 million.

I just had a question on capex. It looks like it took a step down in the quarter. I'm wondering if there's any particular drivers of that and then are there any changes to how your thinks about capex for the full year? Thanks.

yeah, so the the cap

um, you know, being lighter than what we anticipate for the full year was really

Due to the slow start. Um, with the weather just harder to get. Um, project timelines going. Uh, we do expect now that capex for the full year will be about 700 million dollars. Um, which is uh, a bit lower than um, our original guide of 750 to 800 million.

Trey Grooms: Thank you.

Brian Brophy: Thank you.

Speaker 9: Thank you.

Trey Grooms: Thank you.

Operator: We'll take our next question from Steven Fisher with UBS. Please go ahead.

David: We'll take our next question from Steven Fisher with UBS. Please go ahead.

Thank you.

David: We'll take our next question from Steven Fisher with UBS. Please go ahead.

Tom Hill: Hi Steven.

Speaker 9: Hi, Steven. Hi. Thanks for taking the question. So obviously, good cost performance in the quarter, and I'm just curious what your visibility is to the increases in the second half of the year and maybe what you experienced in July with the real kind of question around, do you think you'll be able to be back growing cash gross profit per ton by double digits in Q3?

Trey Grooms: Hi, Steven. Hi. Thanks for taking the question. So obviously, good cost performance in the quarter, and I'm just curious what your visibility is to the increases in the second half of the year and maybe what you experienced in July with the real kind of question around, do you think you'll be able to be back growing cash gross profit per ton by double digits in Q3?

Trey Grooms: Hi. Thanks for taking the question. So, obviously, good cost performance in the quarter, and I'm just curious what your visibility is to the increases in the second half of the year and maybe what you experienced in July, with the real kind of question around, do you think you'll be able to be back growing Cash Gross Profit per ton by double digits in Q3?

Steven Fisher: Hi. Thanks for taking the question. So, obviously, good cost performance in the quarter, and I'm just curious what your visibility is to the increases in the second half of the year and maybe what you experienced in July, with the real kind of question around, do you think you'll be able to be back growing Cash Gross Profit per ton by double digits in Q3?

We'll take our next question from Stephen Fischer with UBS. Please go ahead.

I see.

Tom Hill: Yeah. So, I look at cost; we would call it towards trending towards or guide you towards the low end of our guidance. The cost in the first half was down 1%, up 1% in Q2. I thought that was a really excellent operating performance. That's really hard to do when you have that kind of rain. So great performance by my operators. Their safety record was also record setting. So thanks and congratulations to all of them. What they're really doing is, to your point, helping us take that price to the bottom line. As to that point, our gross margins for aggregates was up 200 basis points, and it was up to 42.7% in Q2.

Tom Hill: Yeah. So I look at cost. We would call it towards trending towards or guide you towards the low end of our guidance. You know, the cost in the first half was down 1%, up 1% in Q2. I thought that was a really excellent operating performance. That's really hard to do when you have that kind of that kind of rain. So great performance by my operators. Their safety record was also record-setting. So, you know, thanks and congratulations to all of them. Really, what they're really doing is, to your point, is helping us take that price to the bottom line. To that point, our gross margins for aggregates was up 200 basis points, and it was up to 42.7% in Q2.

Tom Hill: Yeah. So I look at cost. We would call it towards trending towards or guide you towards the low end of our guidance. You know, the cost in the first half was down 1%, up 1% in Q2. I thought that was a really excellent operating performance. That's really hard to do when you have that kind of rain. So great performance by my operators. Their safety record was also record-setting. So, you know, thanks and congratulations to all of them. Really, what they're really doing is, to your point, is helping us take that price to the bottom line. To that point, our gross margins for aggregates was up 200 basis points, and it was up to 42.7% in Q2.

Hi. Uh, thanks for taking the question. Um, so obviously good, uh, cost performance in the quarter and I'm just curious what your visibility is to the, uh, the increases in the second half of the year and maybe what you experienced in July, uh, with the real kind of question around, do you think you'll be able to be back growing cash growth profit for a ton by double digits in in Q3?

Yeah. So I look at Cost we would we would call it towards trending towards or guide you towards the low end of our guidance. Um, you know the cost in the first half was down. 1% up 1% in Q2, although that was a really excellent operating um performance. That's really hard to do when you have that kind of that kind of rain. So um great performance by by my operators, um, their safety record was also record setting. So, you know, thanks and congratulations to to all of them. Um, but really what they're really doing is head to your point, is helping us take that price to the bottom line.

Tom Hill: So again, in spite of rain-reduced volumes in the Southeast and extremely wet quarter, I thought our folks should be very proud of, but not only the cost performance, but the unit margin performance. And what it's telling me is the Vulcan way of operating is making a difference. We got a long ways to go on that, but we should see that improving. And also, to your point, we're just able to take all the price to the bottom line.

Tom Hill: So again, in spite of rain-reduced volumes in the Southeast and extremely wet quarter, I thought our folks should be very proud of not only the cost performance, but the unit margin performance. What it's telling me is the Vulcan way of operating is making a difference. We got a long ways to go on that, but we should see that improving. And also, to your point, we're just able to take all the price to the bottom line.

Tom Hill: So again, in spite of rain, reduced volumes in the Southeast, and extremely wet quarter, I thought our folks should be very proud of, but not only the cost performance, but the unit margin performance. What it's telling me is that the Vulcan Way of Operating is making a difference. We got a long ways to go on that, but we should see that improving. And also to your point, we're just able to take all the price to the bottom line.

So again, in spite of rain, reduced volumes in the Southeast, and extremely wet quarter, I thought our folks should be very proud of, but not only the cost performance, but the unit margin performance. What it's telling me is that the Vulcan Way of Operating is making a difference. We got a long ways to go on that, but we should see that improving. And also to your point, we're just able to take all the price to the bottom line.

Um, our to that point, our gross margins for Aggregates was up 200 basis points and it was up to 42.7% in Q2. Uh, so again, in spite of rain reduced volumes in the Southeast, uh, and extremely wet quarter.

Mary Andrews Carlisle: Yeah, I mean, if you look at the quarter, you know, with our price being up over a dollar per ton, $1.11, and being able to take $0.95 of that to the bottom line in cash gross profit per ton, that was just a great performance, and we think that we'll carry that momentum into the back half.

Mary Andrews Carlisle: Yeah. I mean, if you look at the quarter, you know, with our price being up over $1 per ton, $1.11, and being able to take 95 cents of that to the bottom line in cash gross profit per ton was just a great performance. And we think that we'll carry that momentum into the back half.

Tom Hill: Yeah. And remember, you know, this is in reduced volumes. As the volumes go up will really help us with that and really help push those unit margins up.

Yeah. And remember, you know, this is in reduced volumes. The volume leverage that we're when we as the volumes go up will really help us with that and really help push those unit margins up.

Tom Hill: Yeah. And remember, you know, this is in reduced volumes. The volume leverage that we're when we as the volumes go up will really help us with that and really help push those unit margins up.

I thought our focus should be very proud of, but not only the, um, cost performance but the, the unit margin performance. Uh, it was telling me is that the Vulcan way of operating is making a difference. We got a long ways to go on that, but we should, we should see that improving and also to your point, we're just able to take all the price to the bottom line. Yeah, I mean if you look at the quarter, you know, with our price being up over a dollar per ton, a $111 and being able to take 95 cents of that, to the bottom line and cash goes profit per ton was just a great performance. And we think that um we'll carry that momentum into the back half.

Yeah and remember you know this is in reduced volumes the volume leverage that we're when we as the volumes go up will help us with that then really push help push those unit of margins up.

Trey Grooms: Terrific. Thank you.

Steven Fisher: Terrific. Thank you.

Trey Grooms: Terrific. Thank you.

Tom Hill: Thank you.

Terrific. Thank you.

Operator: We'll take our next question from Keith Hughes with Truist. Please go ahead. Your line is open.

David: We'll take our next question from Keith Hughes with Truist. Please go ahead. Your line is open.

Thank you.

Tom Hill: Thank you.

Tom Hill: Thank you. Thank you. Thanks for taking the questions. I guess on the non-residential comments, some of the more bullish that I've heard, when do you think that would turn into volumes for you? Is that a 26-story or what's the view? You know. We'll feel a little bit of it in the second half. I think it is probably more of a 26 volume just because you got a delay in those projects. But we, I mean, I think we're starting to see that. We have definitely seen it in our backlogs, and we're starting to see a little bit of it in shipments, but I think it's more of a 26 play, 27 play. You know, we've been anticipating recovery in non-res. Now, I think we're starting to see signs of the turn. The data centers are accelerating quickly.

Trey Grooms: Thanks for taking the questions. I guess on the non-residential comments, some of the more bullish that I've heard. When do you think that would turn into volumes for you? Is that a 2026 story or what's the view?

Keith Hughes: Thanks for taking the questions. I guess on the non-residential comments, some of the more bullish that I've heard. When do you think that would turn into volumes for you? Is that a 2026 story or what's the view?

We'll take our next question from Keith Hughes with truist. Please go ahead. Your line is open. Thank you. Thank you. Thanks for taking the questions. Um, I guess on the non-residential comments, some of the, some of the more bullish that I've heard.

Tom Hill: You know, we'll feel a little bit of it in the second half. I think it is probably more of a 26 volume just because you got a delay in those projects. But we, I mean I think we're starting to see that. We are definitely seeing our backlogs, and we're starting to see a little bit of it in shipments. But I think it's more of a 26 play, 27 play. You know, we've been anticipating a recovery in non res. Now I think we're starting to see signs of the turn. The data centers are accelerating quickly. We're seeing some green shoots in warehouses, and we're seeing some green shoots in positional like non res, which we think is at the bottom. Our backlogs in non res are up and support that. Our encouraging comments. So I think we're encouraged about it.

When do you think that would turn into volumes for you? Is that a 26 story or what's the view?

Um, you know, we'll feel a little bit of it in, in the SEC in the second half. I think it is probably more of a 26 volume, just because you got a delay in those projects. But we, I mean, I think we're starting to see that we we are definitely seeing in our backlogs and we're starting to see a little bit of it in shipments, but I think it's more of a 26 play. 27 play.

Tom Hill: We're seeing some green shoots in warehouses, and we're seeing some green shoots in traditional light non-res, which we think is at the bottom. Our backlogs in non-res are up and support that our encouraging comments. So I think we're encouraged about it. So, you know, let's hope that momentum continues, but it sure appears this is going to.

Tom Hill: So, you know, let's hope that momentum continues. But it sure appears it's going to.

So, you know, let's hope that momentum continues. But it sure appears it's going to.

You know, we've been anticipating the recovery and non-res. Um, now I think we're starting to see signs of the turn. The data centers are accelerating quickly. We're seeing some green shoots in warehouses and we're seeing some green shoots in traditional um, light non-res, which we think is at the bottom, our backlogs in in non-res are up and support that that our our encouraging comments.

So I think we're encouraged about it. Um, so

Trey Grooms: Final question in the guide, what are you thinking about second half for aggregate pricing?

Trey Grooms: And the final question in the guide, what are you thinking about the second half for aggregate pricing?

Keith Hughes: Final question in the guide, what are you thinking about second half for aggregate pricing?

you know, let's let's let's hope that momentum continues, but it sure appears that you're going to

and the final question in the guide, what, what do you thinking about the second half for

Tom Hill: I think that we keep it. We keep on with the momentum. I think we'll be impacted some because the highway sector is so strong right now, which has a larger portion of base, which is a cheaper product, but it's also a cheaper product to make. So I would point you to. I feel good about the unit margins, and I feel good about our momentum in pricing, but that sequential will be a little bit less than prior year because of product mix, because of the heavy highway sector. Thank you. Yeah. One of the things I would tell you add to that was I thought when it came to pricing we were really strong in the acquisitions both on the East Coast and the West Coast. We got all we had planned in January.

Tom Hill: I think that, you know, we keep on with the momentum. You know, I think we'll be impacted some because the highway sector is so strong right now, which has a larger portion of base, which is a cheaper product, but it's also a cheaper product to make. So I would point you to I feel good about the unit margins, and I feel good about the momentum in pricing, but that sequential will be a little bit less than prior year because of product mix because of the heavy highway sector.

Aggregate pricing.

Keith Hughes: Thank you.

Trey Grooms: Okay. Thank you.

Tom Hill: Yeah. One of the things I would tell you add to that was I thought when it came to pricing we were really strong in the acquisitions both on the East Coast and the West Coast. We got all we had planned in January.

I think that, you know, we we keep it, we keep on with the momentum, um, you know, I think we'll be impacted some because the highway sector is is so strong right now, which has a larger portion of Base, which is a cheaper product, but it's also a cheaper product to make. So I would point you to I feel good about the unit margins and I feel good about a momentum and pricing, but that sequential will be a little bit less than prior year because of product mix because of the heavy Highway sector.

Thank you.

Tom Hill: Yeah. One of the things I would tell you, I add to that was I thought that when it came to pricing, we were really strong in the acquisitions, both on the East Coast and the West Coast. We got all we had planned in January, and I think we got all we had planned in mid-years, which will help us because, as you can see, the mix has been a drag on us.

Tom Hill: I think we got all we had planned in May, which will help us because, as you can see, the mix, it's been a drag on us.

I think we got all we had planned in May, which will help us because, as you can see, the mix, it's been a drag on us.

Trey Grooms: Yeah. Right. Okay. Thanks very much.

Keith Hughes: Yeah. Right. Okay. Thanks very much.

Trey Grooms: Yeah, right. Okay. Thanks very much.

Tom Hill: Thanks.

Yeah, right. Okay. Thanks very much.

Operator: We'll take our next question from Ivan Yee with Wolfe Research. Please go ahead.

David: We'll take our next question from Ivan Yee with Wolf Research. Please go ahead.

Thanks.

Trey Grooms: Yes, hi, good morning. Thanks for taking my question first. Roughly what percent of your aggregates move on the rails? And I guess I just wanted to get your initial thoughts on the proposed Union Pacific Norfolk Southern merger. What impact would this have? Would you support or oppose the transaction? Thank you.

Ivan Yi: Yes, hi, good morning. Thanks for taking my question first. Roughly what percent of your aggregates move on the rails? And I guess I just wanted to get your initial thoughts on the proposed Union Pacific Norfolk Southern merger. What impact would this have? Would you support or oppose the transaction? Thank you.

Angel Castillo: Yes. Hi. Good morning. Thanks for taking my question. First, roughly what percent of your aggregates move on the rails? And I guess I just wanted to get your initial thoughts on the proposed Union Pacific-Norfolk Southern merger. What impact would this have? Would you support or oppose the transaction? Thank you.

We'll take our next question from Ivan ye with wolf research. Please go ahead.

Yes. Hi, good morning. Thanks for taking my question.

Tom Hill: I don't know that it has any impact on us. We're customers of both those railroads. But the way aggregate shipments move, you're not going to commingle those. So I don't see much of an impact for us. In other words, what we ship now, we're not a long hauler, so we're shipping to a market which was within each one of those railroads, not changing carriers.

Tom Hill: I don't know that it has any impact on us. We, you know, we're customers of both those railroads, but the way aggregate shipments move, you're not going to commingle those. So I don't, I don't see much of an impact for us. In other words, what we ship now, we're not a long hauler. So, you know, we're shipping to a market, which is within each one of those railroads, not changing carriers.

First roughly 1% of your Aggregates move on the rails and I guess I just want to get your initial thoughts on the proposed Union Pacific. Norfolk Southern merger. What impact would this have? Would you support or oppose? The transaction? Thank you.

I don't know that it has any impact on us where we, you know, we're customers of both those railroads but the way a shipments move, um, you're not going to co-mingle those so I don't

I don't see much of an impact for us. In other words, what we ship now.

We're not a long hauler so, you know, we're shipping to a market which was within each 1 of those railroads not changing carriers.

Kathryn Thompson: Great.

Ivan Yi: Great.

Angel Castillo: Great. Thank you.

Trey Grooms: Thank you.

Thank you.

Tom Hill: Sure.

Great. Thank you.

Operator: We'll take our next question from Angel Castillo with Morgan Stanley. Please go ahead. Your line is open.

David: We'll take our next question from Angel Castillo with Morgan Stanley. Please go ahead. Your line is open.

Sure.

Tom Hill: Hi, Angel.

Trey Grooms: Hi, good morning. Hi. How's it going? Thank you for taking my question. This is a bit of a multi part one, but just wanted to get a better sense of. You mentioned the bid to bookings, conversions starting to improve here, and it sounds like some of that is just again an inflection point. But curious, what are you seeing change here? Is it just market confidence? Is it the tax bill? And then as you kind of respond to that, I guess, just curious, it sounds like you're also still seeing some deferrals and delays. So are those also still at maybe a little bit elevated levels or are you seeing inflection there where those are no longer kind of occurring?

Angel Castillo: Hi, good morning. Hi. How's it going? Thank you for taking my question. This is a bit of a multi part one, but just wanted to get a better sense of. You mentioned the bid to bookings, conversions starting to improve here, and it sounds like some of that is just again an inflection point. But curious, what are you seeing change here? Is it just market confidence? Is it the tax bill? And then as you kind of respond to that, I guess, just curious, it sounds like you're also still seeing some deferrals and delays. So are those also still at maybe a little bit elevated levels or are you seeing inflection there where those are no longer kind of occurring?

Phil Ing: Hi. Good morning. Hi. How's it going? Thank you for taking my question. Just this is a bit of a multi-part one, but just wanted to get a better sense of you mentioned the bid-to-bookings conversions starting to improve here. And it sounds like, you know, some of that is just, again, an inflection point. But curious, what are you seeing change here? Is it just the market confidence? Is it the tax bill? And then, you know, as you kind of respond to that, I guess just curious, it sounds like you're also still seeing some deferrals and delays. So are those also still at maybe a little bit elevated levels, or are you seeing inflection there where those are no longer kind of occurring?

We'll take our next question from Angel. Castillo with Morgan Stanley. Please go ahead. Your line is open.

Hi Angel. Hi, good morning. Good morning. Hi, how's it going? Um, thank you for taking my question. Just this is a bit of a multi-part 1 but just wanted to get a bit of sense of, um, you mentioned the bid to bookings conversions, uh, starting to improve here and sounds like, uh, you know, some of that is just it's, again, an inflection point. But curious what, what are you seeing change here? Is it just uh, Market confidence, is it the the tax bill? And then, you know, as you kind of uh, respond to that, I guess.

Tom Hill: I missed the second half of your question. I'm sorry.

Was just curious. It sounds like you're also still seeing some deferrals and delays. So are those also still at maybe a little bit elevated levels. Or, or are you seen inflection there, where where those are are no longer kind of occurring.

Phil Ing: Yeah. Just curious, you know, as we think about that change in the bid-to kind of bookings, it sounds like you are still seeing some deferrals and delays of projects that maybe make the volume inflection more of a 26-story. So just curious, is that also improving in terms of the number of kind of deferrals or delays? And just as we think about kind of the speed at which we can see these awards start to turn to real volumes.

Trey Grooms: Yeah. Just curious. As we think about that change in the bid to kind of bookings, it sounds like you are still seeing some deferrals and delays of projects that maybe make the volume inflection more of a 26 story. So just curious, is that also improving in terms of the number of kind of deferrals or delays? And just as we think about kind of the speed at which we can see these awards start to turn to real volumes?

Angel Castillo: Yeah. Just curious. As we think about that change in the bid to kind of bookings, it sounds like you are still seeing some deferrals and delays of projects that maybe make the volume inflection more of a 26 story. So just curious, is that also improving in terms of the number of kind of deferrals or delays? And just as we think about kind of the speed at which we can see these awards start to turn to real volumes?

I missed the second half of your question, I'm sorry.

Tom Hill: Yeah, so I don't think we're seeing. I think the deferrals and delays have come to pass. We're seeing those jobs start. And so I think while that will build for 26 just because our backlogs are building, I think we're going to feel that in the second half. Where is that? As I see a pretty broad spread, the highway and infrastructure work is very good. That is all that money, the IIJA and the state funding and local funding going to work. And so that we will definitely feel in the Southeast second half of 25 and into 26. Data centers are good and growing. We're shipping a number of them right now and have said there's $35 billion of green lit projects that haven't, you know, they're going to go but we're not feeling them at this point. Those are heavily in our markets.

Tom Hill: Yeah. So I don't think we're seeing the I think the deferrals and delays have come to pass. We're seeing those jobs start. And so I think while that will build for 26, just because our backlogs are building, I think we're going to feel that in the second half. Now, where is that? It's pretty broad-spread. The highway and infrastructure work is very good. That is that all that money to IIJA and the state funding and local funding going to work. And so that we will definitely feel in the second half of '25 and into '26. Data centers are good and growing. We're shipping a number of them right now and have said there's $35 billion of green-lit projects that haven't, you know, they're going to go, but we're not feeling them at this point. Those are heavily in our markets.

Yeah, just curious, you know, as we think about that change and the bit to uh, kind of bookings. It sounds like you, you are still seeing some deferrals and delays of projects that maybe make the volume of inflection, more of a 26 story. So just curious is, is that also, uh, improving in terms of the number of kind of deferrals or delays and just as we think about kind of the, the speed at which we can see these Awards start to turn to to real volumes.

Yeah, so I don't think we're seeing the, I think the deferrals and delays have have have come to pass. We're seeing those those, those Bots bid those jobs start. And so I think while that will bill for 26 just because our backlogs are building, I think we're going to feel that in the second half. Um you know, where is that as I pretty broad spread the highway?

And and infrastructure work is very good. That is that is that all that money, the IJ and the state funding and local funding going to work and so that we will definitely feel in the second half of of 25. And in the 26th data centers are are good and growing. Um we're shipping a number of them right now and have said there's 35

Tom Hill: As I said, on non-res warehouses, we think are turning, so that'll help us. Light res, we think, is bottom; that'll help us. And then, interestingly, we haven't talked about, but on multifamily residential, we've gone into growth mode, and trailing three months starts, I think we're up 17%. So the only one we're struggling right now is single-family, not overbuilt. So at some point in time it'll turn, but we haven't seen signs of that at this point.

As I said, on non-res warehouses, we think are turning, so that'll help us. Light res, we think, is bottom; that'll help us. And then, interestingly, we haven't talked about, but on multifamily residential, we've gone into growth mode, and trailing three months starts, I think we're up 17%. So the only one we're struggling right now is single-family, not overbuilt. So at some point in time it'll turn, but we haven't seen signs of that at this point.

Tom Hill: As I said, on non-res, warehouses we think are turning. So that'll help us. Light-res, we think, is bottom. That'll help us. And then, interestingly, we haven't talked about, but on multifamily residential, we've gone into growth mode in the first three-month starts. I think we're up 17%. So the only one we're struggling with right now is single-family, not overbuilt. So at some point in time, it'll turn, but we haven't seen signs of that at this point.

Billion dollars of of green lit projects that haven't, you know, they're going to go but we're not feeling them at this point. Those are heavily in our markets on as I said on on non-res warehouses or we think are turning. Um, so that'll help us like Rez we think is bottom. That'll help us and then interestingly, we haven't talked about but on multifamily, um,

Mary Andrews Carlisle: Yeah, and I think, Angel, overall there was just a bit of a, you know, post-election day lull that we seem to really be past now, and trailing three-month contract awards and private non-res, you know, has turned positive. So that to us is encouraging that we've moved past some of that uncertainty.

Mary Andrews Carlisle: Yeah. And I think, Angel, overall, there was just a bit of a, you know, post-Liberation Day lull that we seem to really be past now. And trailing three months, contract awards and private non-res, you know, have turned positive. So that, to us, is encouraging that we've moved past some of that uncertainty.

Trey Grooms: That's very helpful. Thank you.

Angel Castillo: That's very helpful. Thank you.

Phil Ing: That's very helpful. Thank you.

Residential we're we've gone into growth mode and truly 3 months starts. I think we're up 17%. So, uh, the only the only 1 we're struggling right now with single family, not overbuilt. So at some point in time, it'll turn but we haven't seen signs of that at this point. Yeah. And I think Angel overall, there was just a bit of a, you know, post Liberation day law that we seem to really be be passed now and trailing 3 months. Um, contract Awards in private non-res, you know, have turned positive so that to us is encouraging that we've moved past some of that uncertainty.

Tom Hill: Thank you.

That's very helpful. Thank you.

Operator: We'll take our next question from Phil Ng with Jefferies, please. Go ahead. Your line is open.

David: We'll take our next question from Phil Ing with Jefferies. Please go ahead. Your line is open.

Thank you.

Tom Hill: Hey guys.

Philip Ng: Hey guys.

Garrik Shmois: Hey, guys. Tom, you sounded pretty bullish on the pace of the infrastructure side of things. I think coming into the year, there was probably an expectation for infrastructure to call it beyond mid-single digits. Now, given what you're seeing, is that still a good way to think about it? And does that rate of growth perhaps even accelerate more in '26 and beyond?

Trey Grooms: Tom, you sounded pretty bullish on the pace of the infrastructure side of things. I think coming into the year there was probably an expectation for infrastructure to, call it, be up mid single digits. Now given what you're seeing, is that still a good way to think about it, and does that rate of growth perhaps even accelerate more in 2026 and beyond?

Tom, you sounded pretty bullish on the pace of the infrastructure side of things. I think coming into the year there was probably an expectation for infrastructure to, call it, be up mid single digits. Now given what you're seeing, is that still a good way to think about it, and does that rate of growth perhaps even accelerate more in 2026 and beyond?

We'll take our next question from Phil Inc. With Jeffrey's please go ahead. Your line is open.

Hey guys. Um Tom you sounded pretty bullish on the pace of the infrastructure side of things. I think coming in the year there was probably an expectation for infrastructure to call it. Be off mid single digits. Um,

Tom Hill: I would tell you what, as I said, what we're seeing is just that money going to work and the DOT's ability to get more work out, I think, is maturing. I do think that, you know, as I said, we see the upswing in 2025. I think we see it grow even more into 2026 and it wouldn't surprise me to see it grow more into 2027.

Tom Hill: I would tell you, as I said, what we're seeing is just that money going to work. And the DOT's ability to get more work out, I think, is maturing. I do think that, you know, as I said, we see the upswing in '25. I think we see it grow even more into '26. And it wouldn't surprise me to see it grow more into '27.

Now, given what you're seeing, is that still a good way to think about it? And does that rate of growth perhaps even accelerate more in 2026 and beyond?

Trey Grooms: Okay, that's helpful. And then your downstream business, you know, appreciating it's a smaller part of your business. It was a little softer than I would have thought. You know how much of that is weather-related dynamic and ready-mix, I would imagine, is more tied to housing perspective. Has your outlook in terms of your profitability in your downstream business changed from the start of the year?

Philip Ng: Okay, that's helpful. And then your downstream business, you know, appreciating it's a smaller part of your business. It was a little softer than I would have thought. You know how much of that is weather-related dynamic and ready-mix, I would imagine, is more tied to housing perspective. Has your outlook in terms of your profitability in your downstream business changed from the start of the year?

Garrik Shmois: Okay. That's helpful. And in your downstream business, you know, I appreciate it's a smaller part of your business. It was a little softer than I would have thought. You know, how much of that is weather-related, dynamic, and you know, ready mix, I would imagine, is more tied to housing to a perspective. Has your outlook in terms of your profitability in your downstream business changed from the start of the year?

Uh I would tell you what, as I said, what we're seeing um, is just that money going to work and the the Dot's ability to get more work out. I think is maturing I do think that um, you know, as I said, we see the upswing in 25, I think we see it grow even more than 26, and it would surprise me to see it. Grow more into 27,

Mary Andrews Carlisle: So, Phil, you're right. You know, the first half was impacted really by the weather in our asphalt business in Tennessee and Alabama. And the softer, you know, private demand did weigh on ready mix. I think, you know, overall in asphalt, you know, we still saw price improvement, and the lower liquid helped, you know, offset the lower volumes in the quarter. So I think a pretty, you know, solid performance there. You know, the good news is we've seen a good recovery already in July shipments where, you know, we were weather-impacted. And I think the accelerating public demand and a little bit lower liquid level versus what we'd initially anticipated all bode well for, you know, for the back half in asphalt. And then in ready mix, we certainly have some ground to make up.

Mary Andrews Carlisle: Phil, you're right. The first half was impacted really by the weather in our asphalt business in Tennessee and Alabama. And the softer private demand did weigh on Ready Mix. I think overall in asphalt we still saw price improvement, and the lower liquid helped offset the lower volumes in the quarter. So I think a pretty solid performance there. The good news is we've seen a good recovery already in July shipments where we were weather impacted. And I think the accelerating public demand and a little bit lower liquid level versus what we'd initially anticipated all bode well for, you know, for the back half in asphalt, and then in Ready Mix. We certainly have some ground to make up. But you know, we saw price improvement, unit margin improvement even with the lower volumes.

Um, you know how much of that is water related Dynamic, and you know, Ready? Mix I would imagine is more tied to housing to a perspective, has your outlook in terms of your profitability, uh, in your downturn business change uh, from the start of the year,

Mary Andrews Carlisle: But, you know, we saw price improvement, unit margin improvement, even with the lower volumes. Some of that, you know, in part to the quality of that recent Southern California acquisition. But we're encouraged in ready mix by some of the positive, you know, signs on the private side that Tom was just talking about and still think we have a shot at some improvement in the back half.

Mary Andrews Carlisle: Some of that, you know, in part to the quality of that recent Southern California acquisition. But we're encouraged in ready-mix by some of the positive signs on the private side that Tom was just talking about and still think we have a shot at some improvement in the back half.

Some of that, you know, in part to the quality of that recent Southern California acquisition. But we're encouraged in ready-mix by some of the positive signs on the private side that Tom was just talking about and still think we have a shot at some improvement in the back half.

So so you're right, you know, the first half um was impacted really by the weather in our asphalt business and in Tennessee and Alabama. Um and the softer, you know, private demand did weigh on Ready. Mix. I think, you know, overall in Asphalt, uh, you know, we still sell price Improvement and the lower liquid helped, you know, offset the lower volume in the quarter. So I think a pretty, you know, solid performance there. Um, you know, the good news is we've seen a good recovery already in July shipments, um, where, you know, we were weather impacted and I think the accelerating public demand. Um, and a, a little bit lower liquid level versus what we'd initially anticipated, um, all bode well for, you know, for the back half, um, and asphalt and then in in Ready, Mix. Um, we certainly have some ground, um, to make up. Um, but you know we saw price Improvement unit margin Improvement. Um, even with the lower volume, some of that.

Trey Grooms: Okay, helpful color. Thank you.

Philip Ng: Okay, helpful color. Thank you.

Garrik Shmois: Okay. Helpful color. Thank you.

You know, in part to the quality of that, uh, recent Southern California acquisition. Um, but we're encouraged and ready to make by some of the positive, you know, signs on the private side that Tom was was just talking about. Um, and and still think we have um, a shot at some improvement in the back half.

Tom Hill: Thank you.

Helpful color. Thank you.

Operator: We'll take our next question from Garik Shmois with Loop Capital. Please go ahead. Your line is open.

David: We'll take our next question from Garrick Schmoys with Loop Capital. Please go ahead. Your line is open.

Thank you.

Trey Grooms: Great, thanks. Had a question on aggregates pricing. How should we think about mid year increases this year? Tom, you spoke a little bit to traction on acquired markets. Just wondering how widespread the mid years were. And then also on the mix side, appreciate the product mix headwinds with more base. But I'm wondering about geographic mix, especially if the Southeast snaps back here as it has in July, how does that impact pricing in the second half of the year?

Garik Shmois: Great, thanks. Had a question on aggregates pricing. How should we think about mid year increases this year? Tom, you spoke a little bit to traction on acquired markets. Just wondering how widespread the mid years were. And then also on the mix side, appreciate the product mix headwinds with more base. But I'm wondering about geographic mix, especially if the Southeast snaps back here as it has in July, how does that impact pricing in the second half of the year?

Michael Dudas: Great. Thanks. I had a question on aggregates pricing. How should we think about mid-year increases this year? Tom, you spoke a little bit to traction on acquired markets. Just wondering how widespread the mid-years were. And then also, you know, on the mix side, you know, I appreciate the product mix headwinds with more base, but I'm wondering about geographic mix, especially if the Southeast snaps back here as it has in July. How does that impact pricing in the second half of the year?

We'll take our next question from Garrick Schmoes with Loop Capital. Please go ahead. Your line is open.

Tom Hill: Yeah, so on midyears I'd call it some products in some markets, which is not that unusual. You know, everybody wants it to have an impact on same year. As we'll see, it'll have a little bit of impact on 2025, but it's really a 2026 play and it's really trying to set you up for 2026 price increases. So, you know, it's more tailwind for 2026. As I said, I was very pleased with the pricing we got on both acquisitions in North Carolina and in California; they're behind, and we'll quickly get them up to Vulcan standards, but that's going to take a little while. And as you saw in the mix, that was a big part of, you know, the difference in reported and mix.

Tom Hill: Yeah. So on mid-years, I'd call it, you know, some products in some markets, which is not that unusual. You know, everybody wants it to have an impact on the same year. As we'll say, it'd have a little bit of impact on '25, but it's really a 26 play, and it's really trying to set you up for your 26 price increases. So, you know, it's more tailwind for '26. As I said, I was very pleased with the pricing we got on both in North Carolina and in California on the acquisitions. They're behind, and we'll quickly get them up to Vulcan standards, but that's going to take a little while. And as you saw in the mix, that was a big part of, you know, the difference in reported and mixed.

Great, thanks. Um, had a question on Aggregates pricing. Um how should we think about maybe your increases this year time? You spoke a little bit to traction on acquired markets, just wondering how widespread the mid-years were. And then also, you know, on the mixed side, you know, appreciate the product mix headwinds uh with more bass. But I'm wondering about geographic, mix, especially with the southeast steps back here as it has in July. How does that impact pricing in the second half of the year?

Yeah. So and on Mid years, I'd call it, you know, some products and some markets, which is not that unusual. Um, you know, everybody wants it to have an impact on same year as we'll say it have a little bit of impact on 25, but it's really a 26 play. And it's and it's really trying to set you up for your 26 price increases. So uh, you know, it's more Tailwind for 26. As I said, I was very pleased with the pricing. We got on both in um in North Carolina and in California on the Acquisitions there behind and we'll quickly get them up to V.

Tom Hill: The other part to your point was the Southeast where our volumes were hit hard with record rainfall in a number of our key states. I think that, you know, the fact that we performed as well as we did in the first half based on mix and based on, you know, challenging conditions, gives me a lot of confidence with the second half where I think we'll see better volumes and that we can continue that momentum and we carry a lot of that into 2026. So I think while we've had a challenge from outside forces, I thought our internal performance was quite disciplined and done quite well.

The other part to your point was the Southeast where our volumes were hit hard with record rainfall in a number of our key states. I think that, you know, the fact that we performed as well as we did in the first half based on mix and based on, you know, challenging conditions, gives me a lot of confidence with the second half where I think we'll see better volumes and that we can continue that momentum and we carry a lot of that into 2026. So I think while we've had a challenge from outside forces, I thought our internal performance was quite disciplined and done quite well.

Tom Hill: The other part to your point was the Southeast where our volumes were hit hard with record rainfall in a number of our key states. I think that, you know, the fact that we performed as well as we did in the first half based on mix and based on, you know, challenging conditions gives me a lot of confidence with the second half where I think we'll see better volumes and that we can continue that momentum, and we carry a lot of that into '26. So I think while we've had, you know, a challenge from outside forces, I thought our internal performance was quite disciplined and done quite well.

Mary Andrews Carlisle: Yeah. And Garik, I think we will see some modest sequential growth, but it really will just come down to geographic mix, product mix, and where those land. You know, what's important to us mostly is just the underlying pricing momentum with the 8% mix-adjusted in the quarter and how strong that remains.

Mary Andrews Carlisle: Yeah. And Garrick, I think we will see, you know, some modest sequential growth, but it really will just come down to geographic mix and product mix and where those land. You know, what's important to us mostly is just the underlying pricing momentum with the 8% mix adjusted in the quarter and how strong that remains.

Standards. But that's going to take a little while. And as you saw saw in the mix, that was a big, a part of, you know, the difference in reported and mixed. The other part to your point was the southeast where our volumes were hit hard with record rainfall in a number of our key States. Um, I think that, you know, the fact that we performed as well as we did, in the first half based on mix and based on, you know, challenging conditions gives me a lot of confidence with with the second half where I think we'll see better volumes and, um, that that we can continue that momentum and we carry a lot of that into 26. So, I think while we've had, you know, a a challenge from outside forces, I thought, our internal performance was quite disciplined and done quite well. Yeah, and Garrick, I think.

mod of sequential growth, but it really will just

Tom Hill: Yeah. The one thing you brought up, base that I would point out, while people tend to, I guess, kind of look down on base, it is a really important product for us, and it has great margins and it balances our plants and, you know, will help our costs. So while it may be, well, flexible bases, lower price, it's still really good margins and really important. So I'm, you know, for me as an operator, I think the base volumes look fantastic.

Tom Hill: Yeah. The one thing you brought up base that I would point out, while you know, people tend to, I guess, kind of look down on base, it is a really important product to us, and it has great margins, and it balances our plants, and you know, will help our costs. So while it may be, while flexible base is lower priced, it's still really good margins and really important. So I'm, you know, for me, as an operator, I think the base volumes look fantastic.

Come down to um Geographic mix and product mix and and and where those land, you know, what's important to us, mostly is just the underlying pricing momentum with the 8% mix adjusted, um, in the quarter and how strong that remains.

Trey Grooms: That's encouraging. Thank you.

Garik Shmois: That's encouraging. Thank you.

Trey Grooms: That's encouraging. Thank you.

Yeah. The the 1 thing I I you you brought up base that I would point out. Well, you know, people tend to, I guess kind of look down on base. It is a really important product to us and it has great margins and it balances our plants and you know, we'll help our cost. So while it may be well well flexible base is lower price is still really good margins and really important. So I'm, you know, for me as a, as a, as a as an operator, I think the the, the baseball is looking fantastic.

Tom Hill: Thank you.

That's encouraging. Thank you.

Operator: We'll take our next question from Michael Dudas with Vertical Research Partners. Please go ahead. Your line is open.

David: We'll take our next question from Michael Dudas with Vertical Research Partners. Please go ahead. Your line is open.

Thank you.

Trey Grooms: Morning, Mary Andrews, Mark, Tom.

Michael Dudas: Morning, Mary Andrews, Mark, Tom.

Tom Hill: Morning, Mary Andrews, Mark, Tom.

Won't take our next question from Michael Dudas, with Vertical Research Partners. Please go ahead. Your line is open.

Trey Grooms: Hey.

Mary Andrews Carlisle: Good morning.

Morning, Mary. Andrews, Mark, Tom.

Trey Grooms: Tom, share your thoughts on big beautiful bill legislation and how that may be from your clients or how you assess it from a Vulcan standpoint? And maybe I need to follow on to that. What are you hearing your thoughts on IIJA 2.0?

Michael Dudas: Tom, share your thoughts on big beautiful bill legislation and how that may be from your clients or how you assess it from a Vulcan standpoint? And maybe I need to follow on to that. What are you hearing your thoughts on IIJA 2.0?

Tom Hill: Tom, I want to hear your thoughts on big, beautiful bill legislation and how that may be from your clients or how you assess it from a Vulcan standpoint. And maybe to follow on to that, what are you hearing your thoughts on IIJA 2.0?

Hey, good morning.

Uh, um.

Mary Andrews Carlisle: Yeah. I'll start, you know, first maybe with the recent tax legislation. There are certainly some benefits in there for us. Those will mainly come from the 100% bonus depreciation and the expensing of domestic research costs. So, you know, we currently estimate a cash tax benefit of over $40 million for June year-to-date activity, and we would expect, you know, the full-year benefit could approach 100 million. We don't expect any, you know, material impacts to our effective tax rate, but definitely a cash tax benefit for 2025 and going forward.

Mary Andrews Carlisle: I'll start first. Maybe with the recent tax legislation, there are certainly some benefits in there for us. Those will mainly come from the 100% bonus depreciation and the expensing of domestic research costs. So we currently estimate a cash tax benefit of over $40 million for fiscal year to date activity. And we would expect, you know, the full year benefit could approach $100 million. We don't expect any, you know, material impacts to our effective tax rate, but definitely a cash tax benefit for 2025 and going forward.

How you assess it from a Vulcan standpoint and maybe to follow on to that. Um, what are you hearing your thoughts on iij 2.0?

You know, first maybe with the uh the recent tax legislation. Um there are certainly some benefits in there for for us. Um, those will mainly come from the 100% bonus depreciation um and the expensing of domestic research cost. Um so you know, we currently

Tom Hill: Yeah. On a new highway bill. I think the good news, what I'm encouraged about, is that Congress is already working on one. They're already trying to pin it. They are aggressively pursuing it. I think, you know, to tell you what the magnitude is versus IIJA is probably too early to call. It will be bigger now, whether that's 5% or 20%. We don't know yet. We're voting for 20, but I'd take 5. I think importantly, remember this IIJA funding as a comment. We've only spent 60% of that funding, and we're a year and a half away from the bill expiring. So there will be a tail to this, and we'll have substantial highway work based on IIJA dollars that will go past the expiration of IIJA.

Tom Hill: Yeah. On a new highway bill, I think the good news or what I'm encouraged about is that Congress is already working on one. They're already trying to pin it. They are aggressively pursuing it. I think, you know, to tell you what the magnitude is versus IIJA is probably too early to call. It will be bigger. Now, whether that's 5% or 20%, we don't know yet. We're voting for 20, but I'd take 5. I think importantly, remember, this IIJA funding, as I commented, we've only spent 60% of that funding. So, and, you know, we're a year and a half away from the bill expiring. So there will be a tail to this, and we'll have substantial highway work based on IIJA dollars that will go past the expiration of IIJA.

Estimate a cash tax benefit of over 40 million dollars uh for June year to date activity and we would expect, you know, the full year benefit um could approach a 100 million. Um, we don't expect any, you know, material impacts to our effective tax rate. Um, but but definitely a cash tax benefit for for 2025 and going forward.

Yeah, on a new highway Bill. Uh I think the good news or what I'm encouraged about is that Congress are like working on 1. They're like trying to pin it, they are aggressively pursuing it. Um, I think, you know, to tell you what the magnitude is for Z is probably too early to call. It will be bigger, uh, and that whether that's 5% or 20% I don't, we don't know yet, we're voting for 20, but um, I'd take 5 the, I think the importantly remember, this IJ funding is a is a comment that we've only spent 60% of that funding. So and and and, you know, we're a year and a half away from

Tom Hill: So we got kind of what I call an insurance policy or a timeline that will protect us on trying to get that new bill. But we'll get one. It'll be at higher funding.

So we got kind of what I call an insurance policy or a timeline that will protect us on trying to get that new bill. But we'll get one. It'll be at higher funding.

Tom Hill: So we got a kind of what I call an insurance policy or a timeline that will protect us on trying to get that new bill. But we'll get one. It'll be at higher funding.

Trey Grooms: Well, let's settle for 12.5%, Tom, we'll call it a day. Thank you.

Trey Grooms: Let's settle for 12.5%, Tom. We'll call it a day. Thank you.

Michael Dudas: Let's settle for 12.5%, Tom. We'll call it a day. Thank you.

The bill expiring. So there will be a tail to this and we'll have substantial Highway work based on IJ dollars that will go past the expiration of of ija. So we got a kind of what I call an insurance policy or a timeline. Uh that will protect us on trying to get that new bill but we'll get 1. It'll be at higher funding.

Tom Hill: Okay.

Well, let's settle for 12.5% time. We'll call it a day. Thank you.

Operator: We'll take our next question from David MacGregor with Longbow Research. Please go ahead. Your line is open.

David: We'll take our next question from David McGregor with Longbow Research. Please go ahead. Your line is open.

Okay.

David Macgregor: Yeah. Thanks. And good morning, everyone. Thanks for taking the questions. Tom, you talked about 2 to 3 million tons that were lost in the quarter. How much incremental tons do you think you'll ship in 3Q that was of that 2 to 3 million? How much can you recover? And I guess also on that question, you know, I appreciate all the conversation and discussion around the backlogs. And I know normally you don't open that up and get into a lot of detail, but given we seem to be at a fairly important inflection point in terms of what you're seeing there, I wonder if you could maybe just dig in a little further on the backlog and share with us a little more detail. Maybe, you know, growth numbers year over year versus last quarter, anything you could say about pricing growth in the backlog?

Trey Grooms: Thanks, and good morning everyone. Thanks for taking the questions. Tom, you talked about 2 to 3 million tons that were lost in the quarter. How much incremental tonnage do you think you'll ship in Q3 that was of that 2 to 3 million? How much can you recover? And I guess also on that question, you know, I appreciate all the conversation and discussion around the backlogs, and I know normally you don't open that up and get into a lot of detail, but given we seem to be at a fairly important inflection point in terms of what you're seeing there, I wonder if you could maybe just dig in a little further on the backlog and share with us a little more detail. Maybe growth numbers year over year versus last quarter. Anything you could say about pricing growth in the backlog?

David MacGregor: Thanks, and good morning everyone. Thanks for taking the questions. Tom, you talked about 2 to 3 million tons that were lost in the quarter. How much incremental tonnage do you think you'll ship in Q3 that was of that 2 to 3 million? How much can you recover? And I guess also on that question, you know, I appreciate all the conversation and discussion around the backlogs, and I know normally you don't open that up and get into a lot of detail, but given we seem to be at a fairly important inflection point in terms of what you're seeing there, I wonder if you could maybe just dig in a little further on the backlog and share with us a little more detail. Maybe growth numbers year over year versus last quarter. Anything you could say about pricing growth in the backlog?

We'll take our next question from David MacGregor. With Longbow research, please go ahead. Your line is open.

Yeah, thanks and good morning everyone. Um, thanks for taking the questions. Um, Tom you, you talked about 2 to 3 million tons uh, that were lost in the quarter. How much incremental tons? Do you think you'll ship in 3 q? That was of that 2 to 3 million. How much can you recover and I guess?

David Macgregor: I think anything there would be helpful. Thanks.

Trey Grooms: I think anything there would be helpful. Thanks.

I think anything there would be helpful. Thanks.

Tom Hill: Yeah. So on the weather-related, it will be spread out in the second half. I mean, you just don't get a big slug of that. We saw price slug; the slug we saw was probably in July. That probably helped that double-digit number. But most of it will be spread out over the quarter. So you know, I think we catch that up and do fine with it and move ahead. If I look at our backlogs, they're there. I would call them up in all sectors except for single-family, and they're kind of what I call flat to maybe down a little bit single-family. But the one that's, you know, non-res is up, and highways is up substantially.

Tom Hill: Yeah. So on the weather-related, it will be spread out in the second half. I mean, you just don't get a big slug of that. We saw probably saw the slug we saw was probably in July. That probably helped that double-digit number, but most of it will be spread out over the quarter. So, you know, I think we catch that up and do fine with it and move ahead. If I look at our backlogs, I would call them up in all sectors except for single-family, and they're kind of what I call flat to maybe down a little bit in single-family. But the one that's, you know, non-res is up and highways is up substantially.

Also on that question, you know, I appreciate all the the conversation and discussion around the backlogs and I know normally you don't open that up and get into a lot of detail. But given we seem to be at a fairly important important inflection point. In terms of what you're seeing there, I wonder if you could maybe just dig in a little further on the backlog and share with us a little more detail. Maybe, you know, growth numbers, uh, year-over-year versus last quarter or anything. You can say about pricing growth in the backlog. I think anything that would be helpful. Thanks.

Yeah, so on the 2 on the, on the weather related, it will be spread out from the second half. I mean, just you just don't get a big slug of that. We saw probably saw this. The slug we saw was probably in July that probably helped that double digit number, but it'll most of that will be spread out over the quarter. Um, so, you know, I think we catch that up and, and, and do fine with it and, and, and move ahead.

Um, if I look at our backlogs, um,

Tom Hill: So I think that gives us a lot of confidence in continuing our guide to the 3 to 5, but also gives us confidence that we're going to start 2026 off on the right foot.

So I think that gives us a lot of confidence in continuing our guide to the 3 to 5, but also gives us confidence that we're going to start 2026 off on the right foot.

Tom Hill: So I think that gives us a lot of confidence in continuing our guide to the three to five, but also gives us confidence that we're going to start '26 off on the right foot.

Trey Grooms: Thanks very much, thank you.

David MacGregor: Thanks very much,

Trey Grooms: Thanks very much.

There, I would call them up in all sectors except for single family, and they're kind of what I call flat to maybe down a little bit, single family. But the one that's, you know, non-res is up, and highways is up substantially. Um, so I think that gives us a lot of confidence in continuing our guide to the 3 or 5, but also gives us confidence that we're going to start 26 off on the right foot.

Tom Hill: thank you.

Tom Hill: Thank you.

Operator: We'll take our last question today from Michael Feniger with Bank of America. Please go ahead.

David: And we'll take our last question today from Michael Feniger with Bank of America. Please go ahead.

Thanks very much.

Operator: We'll take our last question today from Michael Feniger with Bank of America. Please go ahead.

Thank you.

Tom Hill: Hey, Michael.

Tom Hill: Hi, Michael.

Mary Andrews Carlisle: Morning.

Trey Grooms: Morning, guys. Thanks for squeezing me in. Tom, you mentioned with the second half, the product mix with highways kind of weighs on the sequential pricing. It sounds like a mixed impact. Is there anything we should keep in mind for 2026 if growth is led more by highways and data centers? Does that headline pricing number look a little bit more modest, but the price versus cost spread is still the same in terms of, you know, 60% incrementals, kind of double-digit gross profit per ton? Just kind of wondering, as the mix and your end markets kind of evolve, do we have to think about differently if it impacts the pricing or the profitability metrics at all?

Michael Feniger: Morning guys. Thanks for squeezing me in. Tom, you mentioned with the second half, the product mix with highways kind of weighs on the sequential pricing. Sounds like a mix impact. Is there anything we should keep in mind for 2026? If growth is led more by highways and data centers, does that headline pricing number look a little bit more modest? But the price versus cost spread is still the same in terms of 60% incrementals, kind of double digit gross profit per ton. Just kind of wondering as the mix and your end markets kind of evolve, do we have to think about differently if it impacts the pricing or the profitability metrics at all?

And we'll take our last question. Today from Michael, Fenger, with Bank of America, please go ahead. Hey, Michael, good morning, morning morning, guys. Thanks for squeezing me in, uh, Tom you mentioned. But the second half, the product mix width with highways kind of weighs on the sequential pricing. Uh, it sounds like a mixed impact. Is there anything we should keep in mind for 2026 if growth is Led more by highways and and data centers does does that. That headline pricing number look a little bit more modest, but the price versus cost spread is is still

Tom Hill: Well, over the last couple of years, we've got a lot of headwinds on the private side, and we've been slow getting growth on the highways about where we thought. But what was encouraging me about pricing in '26 is two things. Number one, the highways are so strong, and you got a lot of visibility to coming work in highways. It's not just what we have in our backlogs, but what's the funding and the capital spending levels for our states coupled that with the IIJA money maturing and the DOTs being able to get that work out. All those are really impacting us. But remember, highway work, once they say it's going to go, it's going to go. It's not going to get paused. It's not going to get pushed back unless you have a permitting issue. So there's a lot of clarity to what's going on that.

Tom Hill: Well, over the last couple of years we've had a lot of headwinds on the private side, and we've been slow getting growth on the highways about where we thought. But what's encouraging me about pricing 26 is two things. Number one, the highways is so strong, and you got a lot of visibility to come and work in highways. It's not just what we have in our backlogs, but what's the funding and the capital spending levels for, for our states. Couple that with the IIJA money maturing and the DOTs being able to get that work out; all those are really impactors. But remember, highway work, once they say it's going to go, it's going to go. It's not going to get paused, it's not going to get pushed back unless you have a permitting issue. So it's a lot of clarity to what's going on.

With Sam, in terms of, you know, 60% incremental kind of double digit, gross profit per ton, just kind of wondering as a mix and your and markets kind of evolved. Do we have to think about differently if it impacts the pricing or the profitability metrics at all?

Tom Hill: If you layer on top of that, if we're making the turn on the private side, then that gives us a lot of tailwinds for people having confidence in more work to come and taking risk on pricing going forward. So that's what's given me a better feeling than maybe what I had six, you know, three or four, six months ago when we were a little bit of a lull on the private side and the public side had not kicked in as strong.

If you layer on top of that, if we're making the turn on the private side, then that gives us a lot of tailwinds for people having confidence in more work to come and taking risk on pricing going forward. So that's what's given me a better feeling than maybe what I had six, you know, three or four, six months ago when we were a little bit of a lull on the private side and the public side had not kicked in as strong.

Tom Hill: If you layer on top of that, if we're making the turn on the private side, then that gives us a lot of tailwinds for people who are having confidence in more work to come and taking risk on pricing going forward. So that's what's given me a better feeling than maybe what I had six, you know, three or four, six months ago when we were at a little bit of a lull on the private side and the public side had not kicked in as strong.

Michael Feniger: Great. Thanks, Tom. And just lastly from a second question, you guys are looking, we're looking like $1 billion of free cash flow. Is that the new baseline for you guys going forward? Rebasing the free cash flow, this billion number and moving that higher? And if that is the case, this is your new baseline, which would be a record for the company. Does that change at all how you're thinking of capital allocation? I appreciate that. I think you're at 2x leverage. But I'm just kind of curious. That new baseline, does that kind of change or how aggressive you'll be on the capital allocation side?

Trey Grooms: Great. Thanks, Tom. And just lastly, from a second question, you guys are looking at, we're looking at like a billion dollars of free cash flow. Is that the new baseline for you guys going forward, rebasing the free cash flow to this billion number and moving it higher? And if that is the case, this is your new baseline, which would be a record for the company. Like, does that change at all how you're thinking of capital allocation? I appreciate that I think you're at, you know, two times leverage. But I'm just kind of curious with that new baseline, does that kind of change or how aggressive you'll be on the capital allocation side? Thank you.

But what's the funding and the and the capital spending levels for for our state's couple that with the IJ money maturing and the dots being able to get that that work out. All those are really impactors but remember how we were once they say it's going to go, it's going to go. It does. It's not going to get paused. It's not going to get pushed back unless you have a permitting issue. So it's, it's a lot of clarity to what's going on that, if you layer on top of that, if we're making the turn on the private side, then that gives us a lot of Tailwinds for for, um, people are having confidence in more work to come, and take a risk on pricing, going forward. So that's what's giving me a, a better feeling than maybe, what I had 6, you know, 3 or 4, or 6 months ago when we were in a little bit of a lull on the private side and the, and the, and the public side did not kicked in as strong

Trey Grooms: Thank you.

Thank you.

Great, thanks Tom. Just lastly uh, from a second question, you know, you guys are looking. We're looking like a billion dollars of free cash flow, uh, is that the new Baseline for you guys going forward? You get rebates in that free Council this billion number. And, and moving that higher, and if, if that is the case, this is your new Baseline. It should be a record for the company. Like, does that change at all? How you're thinking of of capital, allocation, I appreciate that. I think you're at, you know, 2 times leverage. Um, but I'm just kind of curious if that new Baseline. Does that kind of change or how aggressive you'll be on on the capital allocation side.

Mary Andrews Carlisle: Yeah. I would tell you our capital allocation priorities don't change. But I think the level to which we can allocate capital to each of those priorities does change. And even as you think about the back half of the year, given the current balance sheet profile and, you know, the strong cash generation, you know, I think returning cash, you know, to shareholders is likely, and that level will, you know, be dependent upon, you know, how the M and A discussions that we've been having continue to develop.

Mary Andrews Carlisle: Yeah. I would tell you, you know, our capital allocation priorities don't change, but I think the level to which we can allocate capital to each of those priorities, you know, does change. And even as you think about the back half of the year, you know, given the current balance sheet profile and, you know, the strong cash generation, you know, I think returning cash, you know, to shareholders is likely, and that level will, you know, be dependent upon, you know, how the M&A discussions that we've been having continue to develop.

Thank you.

Tom Hill: Yeah, I thought we were, you know, we were very pleased with the two acquisitions we got. We closed on the end of 2025. We're pleased with our integration, particularly on the pricing side. You know, M and A was a bit slow in the first months of the year. We're starting to have some conversations now that hopefully will be meaningful to us. So I'm encouraged. I'm more encouraged about the M and A than maybe I was four or five months ago. But also, like I said, once you. Once you buy one, you better execute. And I'm pleased with the execution of what we've done with the two we closed at the end of last year.

Tom Hill: Yeah. I thought we were, you know, we were very pleased with the two acquisitions we got. We closed on at the end of '25. We're pleased with our integration, particularly on the pricing side. You know, M&A was a bit slow in the first months of the year. We're starting to have some conversations now that hopefully will be meaningful to us. So I'm I'm more encouraged about the M&A than maybe I was four or five months ago. But also, like I said, once you buy one, you better execute. And I'm pleased with the execution of what we've done with the two we closed on at the end of last year.

Yeah, I would tell you, you know, our Capital allocation priorities, um, don't change, um, but I think the level to which, we can allocate Capital to each of those priorities. Um, you know, does change. And even as you think about the back half of the year, um, you know, given the current balance sheet profile and you know, the strong cash generation, you know, I think returning cash, you know, to shareholders is, is, is likely and that level will, you know, be dependent. Um, upon, you know, how the m&a discussions that. Um, we've been having continued to develop,

Michael Feniger: Thank you.

Trey Grooms: Thank you.

Yeah, I thought we were, you know, we were very pleased with the 2 acquisition. We we got we closed on at the end of 25. We're pleased with our integration, particularly on the pricing side, you know, m&a was a bit slow in the first months of the year, we're starting to have some conversations now that hopefully will be meaningful to us. So I'm encouraged. I'm I'm more encouraged about the m&a that maybe I was uh 4 or 5 months ago. Um, but also like I said, once you once you buy 1 you you better execute and I'm pleased with the execution of what we've done with the 2. We closed on the end of last year.

Tom Hill: Thank you.

David: Thank you. There are no further questions on the line at this time. I'll turn the program back to Tom Hill, Chairman and CEO, for any closing or remaining remarks.

Thank you.

Operator: There are no further questions on the line at this time. I'll turn the program back to Tom Hill, Chairman and CEO, for any closing or remaining remarks.

Tom Hill: Again, thank you for your interest in Vulcan Materials. We appreciate your time. We look forward to talking to you throughout the quarter. We hope you stay safe, and your family stay safe. Thank you.

Tom Hill: Again, thank you for your interest in Vulcan Materials. We appreciate your time. We look forward to talking to you throughout the quarter, and we hope you stay safe and your family stays safe. Thank you.

Thank you. There are no further questions on the line at this time. I'll turn the program back to Tom Hill, chairman and CEO for any closing or uh, remaining remarks.

Operator: This does conclude today's program. Thank you again for your participation. You may now disconnect.

Again, thank you for your interest in Vulcan Materials. Um, we appreciate your time. Uh, we look forward to talking to you throughout the quarter, and we hope you stay safe and your family. Stay safe. Thank you.

David: This does conclude today's program. Thank you again for your participation, and you may now disconnect.

This does conclude today's program. Thank you again for your participation and you may now disconnect

Mary Andrews Carlisle: Sa.

Sa.

Trey Grooms: Sam. Sa.

Sam. Sa.

Hello.

Tom Hill: Sam.

Sam.

Q2 2025 Vulcan Materials Co Earnings Call

Request a DemoDemo

VMC

Vulcan

Earnings