Q3 2025 Vulcan Materials Co Earnings Call
Speaker #3: Thanks again everyone . Please stand by . We're about to begin . Good everyone . Welcome to the Vulcan Materials Company . Third quarter 2025 Earnings Call .
Speaker #3: My name is Bo, 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 after the call.
Speaker #3: Later today, this morning on the company's website, all lines have been placed in a listen-only mode after the company's prepared remarks.
Speaker #3: 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 .
Speaker #3: Please go ahead , sir .
Speaker #4: Thank you . Operator . Joining me today are Tom Hill , chairman and CEO Ronnie Pruitt , chief operating officer . And Mary Andrews Carlisle , senior vice president and chief financial officer .
Speaker #4: Today's call is accompanied by a press release and a supplemental presentation posted to our website . Vulcan Materials CO . Please be advised that today's discussion may include forward looking statements , which are subject to risks and uncertainties .
Speaker #4: 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 .
Speaker #4: 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 .
Speaker #4: 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 .
Speaker #5: Thank you, Mark, and thank all of you for joining our call this morning. Maria Andrews and I are happy to have Ronnie joining us today as we discuss the third quarter results and what lies ahead for the remainder of 2025.
Speaker #5: And moving into 2026 . The third quarter financial results clearly demonstrate the consistent , solid execution of our teams across the footprint . Gross margin and unit profitability expanded in each segment and adjusted EBITDA margin expanded 310 basis points .
Speaker #5: EBITDA of $735 million improved 27% compared to the prior year . Thankfully , this year we were not confronted with the same extreme weather events as the prior year .
We believe that these Downstream positions that we strategically built over time are now more valuable to the acquirers than to us and we will redeploy the proceeds into attractive growth opportunities in the future.
I'll now pass the call to Mary Andrews to provide some additional details on our financial results and capital allocation before we share some of our preliminary views about next year.
Thanks Ronnie and good morning.
The aggregate unit profitability improvement that Ronnie and our division teams are driving each day is foundational to our cash generation, overall growth, and return on invested capital.
Over the last 12 months, our free cash flow has increased by 31% to over 1 billion dollars and our conversion is 94%.
ERS through dividends and share repurchases.
All while maintaining our adjusted EBA leverage ratio, just below. Our targeted range of 2 to 2 and a half times and improving our return on invested Capital by 40 basis points.
We are poised for additional profitable growth.
We also continue to prioritize reinvesting in our franchise year-to-date. We have deployed $442 million toward maintenance and growth capital expenditures and plan to spend approximately $700 million for the full year.
Our trailing 12 months, sag expenses were 566 million and consistent with the prior years, trailing 12 months as a percentage of Revenue at 7.2%,
We are pleased with the results. Our investments in technology and talent are yielding in the business.
I'll now turn the call back over to Ronnie to provide some preliminary thoughts on 2026 before Tom makes some closing remarks.
Thank you, mayor Andrews.
Tom shared earlier our views on the current demand environment, and we anticipate those Trends to continue into next year.
Consistent growth in public, improving private non-res and lingering softness in residential.
Overall, we expect organic shipments to return to growth in 2026 and improve modestly year-over-year.
We also anticipate mid single-digit pricing Improvement.
We will maintain our focus on efficiency gains and cost discipline through our vocal. We have operating efforts to continue to deliver expansion and aggregate cash growth profit per ton that exceeds historical averages.
Before I turn to call back over to Tom, I would like to express my gratitude for the opportunity to lead this organization and leverage, the strong Foundation Thomas built over the last decade.
He has cultivated a culture of continuous improvement and created meaningful value for our shareholders.
I'm excited about what lies ahead and I'm confident. Bulk of materials will continue to deliver.
Tom back over to you.
Thank you, Ronnie. I want to thank all the men and women of Vulcan Materials for living out the Vulcan Way.
Each and every day doing the right thing, the right way, at the right time.
Our safety and financial performance are evidence of their commitment to Excellence and to continuous Improvement.
We are ready to finish the year strong and to continue our long track record of durable growth as we move into 2026. And now may Andrews Ronnie. And I will be happy to take your questions.
Thank you very much. Ladies and gentlemen, at this time, if you would like to ask a question, please press star 1, and you may remove yourself from the queue at any time by pressing star 2. Again, we do ask that you please limit yourself to 1 question so we can get to as many questions as possible.
We'll go first this morning to trade Grooms with Stevens.
Hey, good morning, everyone.
Hey, Tom first, I want to say congratulations. Uh, Ronnie on your new role well deserved and and also to Tom, you know, it's been a it's been a pleasure working with you over the last several years and we wish you the best on your next chapter.
Thanks. So
Sure and uh I guess with that Ronnie. Um, maybe if you could um, highlight some of your uh, top priorities that you have for the for the Vulcan Materials team here as you as you take the Reigns and and transition into your new position.
Sure. Thanks Trey for the question. Um, you know, first and foremost I'm going to continue to build on the culture that Tom has grown through his leadership of Vulcan.
Our culture is a based on a safety is our foundation and our people own and drive our results.
You know, our strategic approach will continue to focus on enhancing our core.
Through vocal wave operating and vocal wave selling.
And strategically will continue to expand our reach.
Through discipline aggregate Centric Acquisitions, as well as Greenfield initiatives. Uh, that are going to continue to complement our aggregate leading, uh, positions in our Network.
Excellent, thank you. Ronnie.
Thanks Trey.
Thank you. We'll go next now to Tyler Brown with Raymond James.
Hey, good morning, guys.
Hey, Tyler.
Appreciate the the look on 26. But when you say modest Improvement, can you put a finer point there? Maybe talk about some of the puts and takes in the 3, call it the 3 big in markets.
Yeah, I think you got to look back a little bit at the third quarter before we go to Q4 weather. Definitely cooperated third quarter volumes were obviously double digit, but the big jump in volume, um, was a combination of pinup demand from the first half of the Year, easy comps from last year, and then importantly, strong and growing public, demand, and improving non-residential demand. Now Q4 weather last year was very good. So tough comps, uh, in Q4,
Uh, you know, we predict, 3%, um, volume growth for the full year, uh, with the exception of single family construction. We see demand and other sectors getting better. Uh, I would tell you that October supported the full year guide of 3%. But Ryan, why don't you talk a little bit about 26? Yeah, Tom, thanks. Um, you know, as Tom said, I think single family will continue to be challenging until we get some of the affordability issues behind us. Uh, public is quite strong. And as I we look into public in the 2026, we'll continue to see improved funding
And I think the more mature execution from the states to get that money and put in play.
On the private non-res side. You know our starts have been positive in our markets for the previous 6 months.
And as we look internally, our bidding, our bidding activity, our bookings and our backlog, really support demand growth as we go into next year.
Perfect. Thanks guys.
Thank you.
Thank you. We'll go next now to Garrick schmoes at loop capital.
Oh, hi. Thanks and uh, congrats uh, to you both on on, on your new roles. Uh, moving forward. Um, wanted to ask, um, just on the pricing, uh, both the growth in the quarter and your confidence in the Outlook in 26, a tick down, uh, sequentially. Um, is there anything specific driving that and you know, how should we think about pricing a little bit more detail uh, into 2026?
Yeah, good morning. I would call pricing as expected. You know, 5% 150 basis points of mix in there which we talked about last quarter. Obviously the Acquisitions have been a drag on prices but pricing of those markets continues to improve, I'd call it as planned.
But now in the quarter, we had 20% more bass, um, driven by a really good Highway work and data centers and while bases lower price, it's also a lower cost. So we cut our unit margin uh, momentum. Um, I'm pleased with our very pleased with our ability to take that price to the bottom line and then some as you saw costs go down in the quarter. And if you look looking forward, I think growing Highway demand and improvements in non-res will support higher prices and unit margins in 26. But Ronnie, why don't you talk a little bit about 26? Yeah, Tom's correct. I mean improving demand in public and private non-res will definitely support 2026 pricing
and we send out our letters in September for effective January 1st. So we're in the middle of having those conversations now, I'm I've been encouraged with those conversations.
Um, and that's really all around the fixed plan, 40% of our business, you know, on the bid work, our trailing 3-month, uh, backlog process, and they're showing acceleration.
And most of that work will ship next year, so there’s still work to be done. But this, coupled with our operating performance, should still provide us with continued superior unit margin growth over historical norms.
Thank you. We'll go next now to Brian Brophy at stel.
Hey, this is Andrew on for Bryant. Thank you for taking my question.
Hey, had a question about the unit costs down 2% in the quarter? How much of that was Vulcan way of operating versus lower inflation versus volume benefits and then additionally,
Uh, as you're looking at next year, do you have any preliminary thoughts on how you're thinking about inflation or the cost piece into 2026 following such a phenomenal year this year? Thanks.
Uh, I think Ronnie and his operators have worked very hard at the Vulcan way of operating and he should be pleased with this performance.
Yeah, thanks, Tom. I know our operators will appreciate those comments.
You know, first and foremost, uh, you know, our safety performance is really good, and it's continuing to improve.
And so when I look at our disciplines and our investment in technology uh they're working. Um and and and that's the Vulcan way of operating they're still Improvement ahead. And so we'll continue to to focus on those disciplines as we get into 26.
But I've Got Confidence in our people, and our processes, and our disciplines, and our technology, and I think it'll be exciting to watch the local. We have operating, as we continue to go uh, selling and and as far as growing our margins, and I think our margin growth will continue to be even more dependable in the future.
Great. Thank you.
Thank you.
We'll go next now to Anthony Pettinari at City.
Hi, this is Asher Son. And on for Anthony. Thanks for taking my question, and congratulations all around. Um,
I just you guys talked about stronger backlogs, but I was wondering if you could maybe walk through some of your key geographies and what you're seeing there on like an individual or Regional basis,
Yeah. Actually it's pretty pretty widespread. I can't think of any that are that are down at this point. Uh the probably the the healthiest is going to be the southeast which is a benefit for us because that's probably where the higher unit margins are. But we have we've really seen um a turn in the non-res side of the business data centers, have helped that and really strong growth in public demand. And I think that that growth continues to accelerate for the next 2 or 3 years. So, you know, a good story obviously, single family is still a drag for us and probably will be for a while hopefully that turns next year. But uh, in the meantime, the other sectors are taking up for that.
Great thanks. I'll turn it over.
Thank you.
We'll go next now to Katherine Thompson with the Thompson Research Group.
Hi, Katherine. Hi uh, good morning and thank you for taking my question today. Uh, first off Tom, it's been a pleasure working with you over the years with support of keeping up with you and Ronnie. Uh, we go back a couple of companies and congratulations on starting in CEO role in January.
Thank you. Um thank you. So yep. So um can I looking forward? You you had did a great job of shaping your portfolio.
uh, as was highlighted in the quarter, you just reported
um, how are you thinking about what fits in your portfolio and maybe
What may not, or who may be a better owner? And can you approach it from thinking about it from either a product type?
Which was we saw this quarter or a geographic focus and just maybe thinking bigger picture about kind of how you're thinking about that portfolio shaping going forward. Thanks very much.
Yeah, Catherine. This is Ronnie. I'll, I'll take that question. You know, I'm, I'm continue to be really pleased with the downstream business that we have, you know, in the asphalt business.
Uh, you know, those businesses are really um heavily.
Um influenced by the Public Funding and the strength and Public Funding. And so we're going to continue to focus on 1 safety as well as our financial performance and we talk about the concrete and the domestic that that we announced this week.
Um, and I mean, that's our strategy. We said early on, when we bought Superior, that we were going to evaluate that business and we would decide whether that was a business that we wanted to be in long term.
We continue to see challenges on the private side in California. And so we thought the acquirers it was it was a business that was going to be more valuable to them.
You know, I'll remind you that, you know, since the acquisition of us concrete, you know, we now only have a couple of plants left in the Virginia DC area that are integrated with a very successful Vulcan Legacy concrete business. But we've also retained all those Aggregates. So it complements our strategy of being aggregate lead and you know, we're we're going to keep the expertise of both the asphalt and the concrete business. So if those businesses as we look in the future and m&a, presents those to us, we're not scared of that, but it's going to continue to be aggregate LED and I think that's our strategy and and you'll see us continue to be focused heavily on um, those aggregate LED businesses.
Thank you so much, and good luck.
Thank you.
Thank you, we'll go next now to Phil ING with Jeffries.
A bit of dry powder, give them where your Leverage is and post the dive messages, um, just any geographies that you're particularly targeting. Thanks,
Yeah, this is Ronnie. I would tell you we you know 1 we have a number of green fields that are still in process and you know Green Fields for us is a strategy of growth, it takes time, you know, we'll we'll those will be timed with.
Both market-driven factors as well as the timing of permits are still in play, and we have that ongoing.
When we talk about m&a opportunities, uh it's been a quiet year. Um, we continually have a really good list of targets out there but the timing of those targets are really driven to 2 2 fold, 1 by the seller and they're Readiness. And then also by the market conditions. And so I would tell you m&a this year is not surprising to us. We knew through um, you know, some of the uncertainties with tariffs and and other positives in the interest rates that the m&a was going to be paused, but I can assure you that we're still very active. We have a, a really strong list, um, and those m&a opportunities are going to continue to be aggregate LED
Great thanks. I'll turn it over.
We'll go next now to Keith Hughes with truist.
Uh, thank you. Uh question, congratulations. Tom on a tremendous run here and I do have a, a question for Ronnie. You had talked about 26, kind of from a high level of contending with this, just wonderful run of cash growth problems for time. Just from a general level. Would we from what you know, today on the market, will we see something?
Similar to the last couple years. Um uh with the numbers you've been putting up and what could potentially take that higher
What was the last part of that Keith and what would take it higher? What what kind of what kind of things would you need to see something that would set, you know, even better than what we've seen in the last couple years.
Look, we're coming off, you know?
Muted demand in our markets. And so, you know what we've been able to accomplish over the last 3 years, we're growing our cash growth profit has been twofold 1. You know, the inflationary stuff helped our pricing early on, um, and this year, we've, we've, we've had some momentum on the cost side of our business. And so, as we said earlier, demand is going to help.
Uh, you know, some recovery in demand is going to help our pricing story and when we look forward to that, but the Volkswagen have operating in the Volkswagen of selling both support that from a, from a cost side as well as a commercial side. And so, I would tell you, as I said earlier, in my comments, I think our cash growth profit will continue above historical Norms, um, and I think both sides of it, the cost and the and the commercial efforts uh will play play a role into that.
Uh but some some demand will uh will definitely help the pricing side of our story.
Okay, great. Thank you.
Thank you.
We'll go next. Now, to Brent Dielman at D.A. Davidson.
Hey thanks. Uh, congrats to D and team as well. Um I guess there's a 2-part question, I guess, just in terms of thinking about the mid single digit, um price growth in 2026. Um part of the questions just as that is that consistent with the annual price increases your planning for next year. And then the other thing I was wondering is just around that how much sort of volume, um, do you bring into 2026 from Acquisitions that sort of, lack of a better word underpriced. And you're, you're pushing towards that bulk and way of sort of sewing,
Yeah. I I would tell you the the 5 and a half the mid mid mid single digit. Is a combination of what we're seeing both with our backlog as we go into the year, so our our bidding work which accounts for about 60%.
As well as the announced letters that we have out with our fixed plans, which is about 40% of our business. And so, those conversations, like I said, are happening. Now, those letters were sent out in September. Those those fixed plan, um, increases will go into effect in January, you know, when I look over all at, you know, how that is going to shape up, you know, I think our backlogs and I said on a trading, 3 months, our bookings process have been accelerating. And so, it's a, it's a combination of that of that bid work, and what opportunities we're seeing, especially, around the private non-res side, as well as we still need some help.
Help on on single family. And so I feel good about our pricing going into next year. I think there's opportunities on both sides on the public and private side, uh, but that's where we're at. And I think those conversations are going well.
as far as acquired volumes, I think it's uh,
About 10 million, tons of acquired volume coming out of last year, which was both waken Superior. And so, as we've said before, you know, it's taken us a time. We're on that campaign. It's going as expected as far as North Carolina goes. And so, you know, I would anticipate that, that, that Gap being made up with our normal Vulcan markets and what we're seeing in Raleigh that Gap will continue to be made up over the, you know, over the next 12 months.
Very good. Thank you.
Thank you.
We'll get next now to Stephen Fischer with UBS.
Thanks congrats. Uh, Tom and Ronnie just first a clarification. Have you changed your pricing expectation? For the full year of of 2025? Not sure if I missed that. And then on the volumes, the the 1% reduction is is that basically just, uh, single family and within your 26 Outlook. Are you starting if it is single family affecting 25? Do you assume that sort of, that's still a drag on the first part of 26? And then a, uh, a more accelerating part of the second half. I know it's still early, but just curious, how you're seeing those Dynamics?
Yeah, so on pricing. I would call fourth quarter. Probably very similar to third quarter as we continue to enjoy the big baseball volumes like I said, while there are lower price, they're also at lower cost and very good margins. So happy to have that, have you have that work with the data centers and the big Highway work on. If you look at
Non. If you look at non-res going going forward, I think it continues to grow public is very good. I think we probably see headwinds from res for a while but it probably, you know, starting to bottom sometime in 26.
Okay, thank you.
Have a good next now to Angel Castillo at Morgan Stanley.
Thanks, and good morning everyone. Um, Ronnie. Tom. I Echo. Everyone's congratulations on, and well, wishes, and, and looking forward to working with you Ronnie.
Thank you, maybe. Just, uh, you're welcome, just regarding your quoting activity and projects pipeline. Um, the acceleration you talked about, I was wondering if you could kind of dive a little deeper into that, maybe just kind of as a starting point, just putting a, a finer point on the magnitude of what you saw in October versus perhaps 3Q levels. I know you've given kind of a last few months, but just if we could kind of split that up and, and maybe if you could expand, also, just on what's driving or what you think is driving kind of the acceleration here in activity. Uh, the reason I ask is because I feel like we've kind of heard about project, uh, backlogs and quoting activity, uh, being robust the last couple of years and conversion rates, and, and delays, uh, shipments of kind of disappointed a little bit. So trying to understand. I guess what gives us confidence that, you know, something has changed that will result in in kind of the letting of projects moving faster and within private. If you could expand a bit more like, is that data is, are you seeing it happen? Outside of data centers and semiconductors as well? Or is it primarily just those 2?
Yeah, so um look we talked some in the first part of the Year about projects us pricing projects and then kind of getting postponed or pushed to pause button. We're not seeing that anymore. In fact, we some of it seen a lot of those projects actually go at supporting growth in our backlogs. If we put it in our backlogs, we're pretty sure it's going to happen. It's very rare that once we put them in there that the projects don't go. So, I have very good confidence in our backlogs, will be shipped and then that those that growth will support growth as we look at, uh, 2026. Um, I I think that if you look forward, I think, um, the non-residential continues to grow, right? Why don't you talk a little bit about kind of volume drivers in 26 and the momentum we carry into that. Yeah. I mean when I look at starts on the private non-road side as Thomas said, um in Vulcan serve markets um in September on a on a trailing 6 months, we're up 7% treading 3, we're up 8.
So that momentum continues. As I look at the sub segments of of our private non-res office. Data stores and warehouses, institutional are all up and and and our quoting activity in our bidding are on the same trajectory. And so as we look at it I mean there is a lot of data center work out there. I mean that that subcategory itself sub 26% but we've also booked 2 LNG projects. We've booked a couple of manufacturing projects, we've booked some retail and so it's a combination that
Data center says, definitely been a very good um, Tailwind for us but there's other sectors within the private non-res. It also give us confidence as we look in 2026. Yeah, I would tell you that I think that is Ronnie M Andrews as we all look at 26. Pretty good confidence. We'll see. Volume growth. The public side. I think I can't tell you how strong the public side is. It's very, very good. We've seen the turn. We think in non-res data centers, is bigger than what we thought it was going to be. We think warehouses is now probably turning to growth in most of our markets. So you know as we talked a lot about single family, it's still
Uh, a headwind. But I think it continues to probably, it will get better as we March through next year. So I think our confidence level that's pretty good.
Well, thank you.
We'll go next now to David McGregor at Longbow, research.
Hey, good morning. This is Joe, Nolan on for David. Congrats on a nice quarter.
Thank you. I was just wondering on public infrastructure. Slide 5 shows a nice acceleration in contract Awards. I was just hoping you could break it down in some of your key markets and give any detail on how fiscal year 2060 OT budgets. Look there.
Yeah, I would tell you in our markets is very wide spread, uh, the the public side. I can't escort. It's, it's good and getting better. Uh, remember we're in year 4 of ija and it took 2 years to really get that started. Which frustrated everyone including us, but, but to be, but as expected. So now we're seeing the state Dot's mature into substantially, increased federal and state funding. All of our, the vast, our top 10 dots are all up, um, for fiscal year 26.
Uh Trucking 12 month Highway starts. As we said are up 17% in Vulcan States and 5% in other states. So we are aware of the dots are growing. I think the simply put the dots are putting that money to work now and they continue to get better at it. Uh and remember uh only 40% of the IJ funds have been spent. So there's a long tail to this past 26.
Yeah. And and I think as as Tom said, that those funds will carry us, uh, well into 26, and 27 and Beyond, and I would tell you there's 3 rules around reauthorization, um, 1 it never happens on time.
2, it will happen and 3. It's, it's historically, always been larger than the bill before. And so we we're anticipating that. Um, we think public will continue to remain strong and you know, if you think about the infrastructure of the country we still got a lot of work to do and so we're we're happy with where we're at on the public side. And we think that's a uh, it's going to continue strong in the future.
Okay, very encouraging, thanks, I'll pass it on.
We'll go next. Now to Michael dudis at vertical research,
We can't hear you.
Michael, you might be on mute. We cannot hear you right now.
And we'll circle back around to Michael. We'll go next now to Adrien Hera at JP Morgan.
Thank you. Um hi Tom congrats and uh and best wishes was a pleasure to work with you, all the all these uh, all these years. Uh my pleasure. You're welcome Ronnie. I'm welcome Ronnie on. Uh um, I know you for for a few years on on since uh, us concrete and I'm sure you're going to deliver.
Very good results as well. Um, thank you, quick question on the on, on on the cost, it's been quite impressive. Uh, what you guys have been doing on on on the cost on uh side over the last uh uh couple of quarters. I think you mentioned that you still in the early Innings on uh, on many of these measures that you're taking uh can you give us a sense on on the action being taken and uh and for how many more quarters we can see very good performance on cost as as we have seen in the last in the in the last few quarters.
Yeah, thank you for the question. I would, I would tell you, we're, we're still in the early Innings and, and we've, we've talked about, you know, V operating. Um, you know, the, the technology investment is complete within our top 127 plants, which represents over 70% of our production as a company. You know, where we're at today is is really in the final stages of the, of the human behavioural side. And so we have a lot of training going on with our plant operators, using the tools, the process intelligence, uh, the scheduling systems with our labor focus. And so, my my anticipation is we we've got a long ways to go, but it's it's really exciting to watch. And I would tell you that, you know, as I look at what's transpired this year and then what we're forecasting for next year, you know, these tools these Investments we've made and and and and the processes that we go through um around our operations and focusing on our critical critical size production in the yield on that. And and and the
Be very proud of their performance this year. And yeah, they got help from weather and volume and Q3, but they did not in q1 and Q2. In fact, you know, surprisingly, how good the cost was given the conditions. Um, but I, I think they have years of improvement ahead of them.
Right. Congrats. Thanks Tom and Ronnie.
Sure.
Thank you, we'll go next now to Ivan ye at Wolfe research.
Yes, good morning first. Congrats uh to Tom and Ronnie.
Thank you. Just want to go back to the just want to go back to the aggregate pricing again. Price per ton in 3Q, was a smallest in a few years and I get that there are some negative mix in there. But why is the year of your growth decelerated? In recent quarters? It had been double digits and now you're guiding to 5% in. 26, just some color there. Thank you.
Yeah, I think the couple of things there, obviously we had, you know, headwinds from Acquisitions. We had in the first part of the year. We had headwinds from lower volumes in the Southeast driven by by whether that helps that got back more normal in Q3. But you're sitting here on 3 years of negative volume and that does put some pressures on price. I think that's so we're kind of proud of you at at at at at a at a low point. I believe that the continued acceleration in public and now visibility to the private non-res going up really helps our conversations for pricing and
Our backlog pricing is we looked into 26 Ronnie called that out uh that we've put out the January 1 price increases. We're having those conversations are going well, but importantly, before that, over the last few months, we're seeing acceleration in our backlog pricing, which is a very good foreshadowing for what's going to happen in 2026.
Thank you.
Thank you.
We'll go next. Now to Michael dudas at vertical research.
Yeah, I hope I hope I the mutes off here. Uh good, good morning manners and Ronnie and Tom Ronnie, Tom, good to hear from you. Yeah. Thanks Tom. And Ronnie also congrats to Mary Andrews with a great cash generation and a great cash flow. Numbers you've been putting up here, so congrats to all um, maybe just, you know, as we get closer to wrap up here for Ronnie, um, you know, as you, you know, look into the to your tenure here, for the next several years, maybe even a decade or so. Um, as you look out, maybe past 2026,
Uh how how much different or not will Vulcan look like and is the seeds the sense of the industry fundamentals and where we are and given what you're seeing, you know, from competitors and from clients that this type of, um, you know, growth and sustainability and volume pricing and and certainly um uh profit per ton growth is sustainable over the next several years.
Yeah, great question. I mean I think as if you look out past 26 27, 28 in the future vulcan's, going to look very similar and I would tell you we're going to continue to be led by, you know, our our strategy around enhancing our core, which is really investing in continuing to invest in bulk of operating in bulk of selling, which is going to really, um, complement our, our margin growth and it and it gives us confidence in that margin growth with those tools that we've invested in. And then on a strategic side when we talk about uh expanding our reach. I mean we're going to stay aggregate focused and you know, both within the markets that we serve and and building the franchise that we have. And also as we look geographical expansion is still going to be um, an aggregate Le company. And so I wouldn't tell you that, you know, as you look in the future, you're going to see anything different than what Vulcan has continued to execute on, uh, those growth opportunities will be there. Um, and we'll be right in the middle of it. But we're going to be very disciplined on on, you know what we look like and how we, you know what those businesses are going to be led by is is is always going to be aggregate.
Thank you, Ronnie.
Thank you and gentlemen. It appears. We have no further questions this morning. Mr. Hill. I'll turn things back to you sir for any closing comments.
Thank you and thank you all for your time this morning as I step back and look at vulcan's future. I feel both pride and excitement.
Vulcan has fantastic talent and bench strength throughout the organization, particularly in leadership.
Ronnie and Mary Andrews. And their teams are seasoned. Talented industry. Experts.
Who are armed with a superior set of tools and disciplines embedded in the Vulcan way of selling in the Vulcan way of operating.
Putting that together with our continuous Improvement culture will take Vulcans to remarkable Heights.
I'm very proud to have represented the men and women of Vulcan, and I look forward to supporting Ronnie and Mary Andrews in the future.
You and your family safe and healthy. Thank you.
Dr. Hill again, ladies and gentlemen. That will conclude today's Vulcan Materials company. Earnings conference call. Again. Thanks so much for joining us everyone and we wish you all a great day. Goodbye.