Q2 2026 Vulcan Materials Co Earnings Call

July 29, 2026

Operator: Good morning, everyone. Welcome to the Vulcan Materials Company Q2 2026 earnings call. 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 later today at 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. I would like to turn the call over to your host, Mr. Mark Warren, Vice President of Investor Relations for Vulcan Materials. Please go ahead, sir.

Speaker #1: My name is Beau, 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.

Speaker #1: 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 would like to turn the call over to your host, Mr. Mark Warren, Vice President of Investor Relations for Vulcan Materials.

Speaker #1: Please go ahead, sir.

Speaker #2: Thank you, operator. I'm joined today by Ronnie Pruitt, Chief Executive Officer, and Mary Andrews Carlisle, Senior Vice President and Chief Financial Officer. Before we begin our prepared remarks, please note that a press release and a supplemental presentation related to this call are available on our website, vulcanmaterials.com.

Mark D. Warren: Thank you, operator. I am joined today by Ronnie Pruitt, Chief Executive Officer, and Mary Andrews Carlisle, Senior Vice President and Chief Financial Officer. Before we begin our prepared remarks, please note that a press release and a supplemental presentation related to this call are available at our website, vulcanmaterials.com. Today's discussion may include forward-looking statements, which are subject to risks and uncertainties. Details on these risks, other legal disclaimers, and reconciliations of any non-GAAP financial measures are defined and described in our earnings release, supplemental presentation, and other filings with the Securities and Exchange Commission. For the question-and-answer session, we kindly ask that you limit your participation to one question. This will help us address as many questions as possible during the time we have available. With that, I will turn the call over to Ronnie.

Mark Warren: Thank you, operator. I am joined today by Ronnie Pruitt, Chief Executive Officer, and Mary Andrews Carlisle, Senior Vice President and Chief Financial Officer. Before we begin our prepared remarks, please note that a press release and a supplemental presentation related to this call are available at our website, vulcanmaterials.com. Today's discussion may include forward-looking statements, which are subject to risks and uncertainties. Details on these risks, other legal disclaimers, and reconciliations of any non-GAAP financial measures are defined and described in our earnings release, supplemental presentation, and other filings with the Securities and Exchange Commission. For the question-and-answer session, we kindly ask that you limit your participation to one question. This will help us address as many questions as possible during the time we have available. With that, I will turn the call over to Ronnie.

Speaker #2: Today's discussion may include forward-looking statements, which are subject to risks and uncertainties. Details on these risks, other legal disclaimers, and reconciliations of any items described are in our earnings release, supplemental presentation, and other filings with the Securities and Exchange Commission.

Speaker #2: For the question-and-answer session, we kindly ask that you limit your participation to one question. This will help us address as many questions as possible during the time we have available.

Speaker #2: And with that, I'll turn the call over to Ronnie.

Speaker #3: Thanks, Mark. And thank you all for your interest in Vulcan Materials. The resiliency of our aggregates-led business and the importance of our strategic disciplines are evident in periods of inflationary pressure.

Ronnie A. Pruitt: Thanks, Mark, and thank you all for your interest in Vulcan Materials. The resiliency of our aggregates-led business and the importance of our strategic disciplines are evident in periods of inflationary pressure. I am proud of how our commercial and operating teams have navigated the H1 of the year to deliver adjusted EBITDA growth and aggregates cash gross profit per ton expansion. Most importantly, they did so while keeping each other safe. In the quarter, we generated $654 million of adjusted EBITDA, approximating the prior year despite energy headwinds of almost $40 million. Our teams executed well, earning higher prices for our products in each segment and driving operational efficiencies to help offset inflationary increases in our input costs. Q2 aggregates cash gross profit per ton topped $12 and was $0.14 higher than the prior year.

Ronnie Pruitt: Thanks, Mark, and thank you all for your interest in Vulcan Materials. The resiliency of our aggregates-led business and the importance of our strategic disciplines are evident in periods of inflationary pressure. I am proud of how our commercial and operating teams have navigated the H1 of the year to deliver adjusted EBITDA growth and aggregates cash gross profit per ton expansion. Most importantly, they did so while keeping each other safe. In the quarter, we generated $654 million of adjusted EBITDA, approximating the prior year despite energy headwinds of almost $40 million. Our teams executed well, earning higher prices for our products in each segment and driving operational efficiencies to help offset inflationary increases in our input costs. Q2 aggregates cash gross profit per ton topped $12 and was $0.14 higher than the prior year.

Speaker #3: I am proud of how our commercial and operating teams have navigated the first half of the year to deliver adjusted EBITDA growth and aggregates cash gross profit per ton expansion.

Speaker #3: And most importantly, they did so while keeping each other safe. In the quarter, we generated $654 million of adjusted EBITDA, approximating the prior year, despite energy headwinds of almost $40 million.

Speaker #3: Our team has executed well, earning higher prices for our products in each segment and driving operational efficiencies to help offset inflationary increases in our input costs.

Speaker #3: Second quarter aggregates cash gross profit per ton top 12 dollars and was 14 cents higher than the prior year. Shipments increased 1% compared to the prior year, and varied widely across geographies depending upon whether conditions.

Ronnie A. Pruitt: Shipments increased 1% compared to the prior year and varied widely across geographies depending upon weather conditions. Aggregates freight-adjusted selling prices moved higher both sequentially and year-over-year. On a mix-adjusted basis, average selling prices in Q2 improved 5% compared to the prior year, with improvement widespread across geographies. Our commercial teams continue to execute our Vulcan Way of Selling disciplines to capture value for our products and deliver solutions for our customers. Excluding diesel, aggregates freight-adjusted unit cash cost of sales increased 3% compared to the prior year. Our Vulcan Way of Operating disciplines were executed well to drive efficiencies and control spending, even with lower than expected volumes in many areas due to wet weather.

Ronnie Pruitt: Shipments increased 1% compared to the prior year and varied widely across geographies depending upon weather conditions. Aggregates freight-adjusted selling prices moved higher both sequentially and year-over-year. On a mix-adjusted basis, average selling prices in Q2 improved 5% compared to the prior year, with improvement widespread across geographies. Our commercial teams continue to execute our Vulcan Way of Selling disciplines to capture value for our products and deliver solutions for our customers. Excluding diesel, aggregates freight-adjusted unit cash cost of sales increased 3% compared to the prior year. Our Vulcan Way of Operating disciplines were executed well to drive efficiencies and control spending, even with lower than expected volumes in many areas due to wet weather.

Speaker #3: Aggregates freight-adjusted selling prices moved higher both sequentially and year over year. On a mix-adjusted basis, average selling prices in the quarter improved 5% compared to the prior year, with improvement widespread across geographies.

Speaker #3: Our commercial Vulcan way of selling disciplines to capture value for our products and deliver solutions for our customers. Excluding diesel, aggregates freight-adjusted unit cash cost of sales increased 3% compared to the prior year.

Speaker #3: Our Vulcan way of operating disciplines were executed well to drive efficiencies and control spending even with lower-than-expected volumes in many areas due to wet weather.

Speaker #3: From coast to coast, our teams are aligned with a relentless focus to drive compounding improvements in the profitability of our existing portfolio and to win the future in aggregates.

Ronnie A. Pruitt: From coast to coast, our teams are aligned with a relentless focus to drive compounding improvements in the profitability of our existing portfolio and to win the future in aggregates. Winning the future will also mean continuing to strategically add to our portfolio through acquisitions and greenfield projects. Both of these growth pipelines remain active, including numerous acquisition opportunities likely to be finalized this year. The strength of our balance sheet gives us the financial flexibility to pursue those opportunities that will drive the most value for our shareholders. During Q2, we completed several strategic portfolio actions. We finalized the divestitures of our concrete operations in California and our non-core operations in the US Virgin Islands, generating cash proceeds that can be redeployed to strategically grow our aggregates business. A clear example was our acquisition of an aggregate operation from Brannan Sand and Gravel in early June.

Ronnie Pruitt: From coast to coast, our teams are aligned with a relentless focus to drive compounding improvements in the profitability of our existing portfolio and to win the future in aggregates. Winning the future will also mean continuing to strategically add to our portfolio through acquisitions and greenfield projects. Both of these growth pipelines remain active, including numerous acquisition opportunities likely to be finalized this year. The strength of our balance sheet gives us the financial flexibility to pursue those opportunities that will drive the most value for our shareholders. During Q2, we completed several strategic portfolio actions. We finalized the divestitures of our concrete operations in California and our non-core operations in the US Virgin Islands, generating cash proceeds that can be redeployed to strategically grow our aggregates business. A clear example was our acquisition of an aggregate operation from Brannan Sand and Gravel in early June.

Speaker #3: Winning the future will also mean continuing to strategically add to our portfolio through acquisitions and greenfield projects. Both of these growth pipelines remain active, including numerous acquisition opportunities likely to be finalized this year.

Speaker #3: The strength of our balance sheet gives us the financial flexibility to pursue those opportunities that will drive the most value for our shareholders. During the second quarter, we completed several strategic portfolio actions.

Speaker #3: We finalized the divestitures of our concrete operations in California, and our non-core operations in the US Virgin Islands generating cash proceeds that can be redeployed to strategically grow our aggregates business.

Speaker #3: A clear example was our acquisition of an aggregate operation from Brandon Sand and Gravel in early June. This acquisition expanded our reach into Southern Colorado and strengthened our distribution network in Dallas–Fort Worth.

Ronnie A. Pruitt: This acquisition expanded our reach into southern Colorado and strengthened our distribution network in Dallas-Fort Worth. Our team is already hard at work capturing synergies and driving value from this strategic acquisition. In terms of the demand environment, what I see ahead of us is similar to what the views that I shared on the last call. We still expect strong public activity in our markets and improving private large project opportunities to drive year-over-year shipments growth in 2026. Trailing 12 months highway awards in Vulcan markets remain up double digits from a year ago, far outpacing non-Vulcan markets. The same is true for public infrastructure awards, which are up 20% year-over-year in Vulcan markets, yet down in other markets.

Ronnie Pruitt: This acquisition expanded our reach into southern Colorado and strengthened our distribution network in Dallas-Fort Worth. Our team is already hard at work capturing synergies and driving value from this strategic acquisition. In terms of the demand environment, what I see ahead of us is similar to what the views that I shared on the last call. We still expect strong public activity in our markets and improving private large project opportunities to drive year-over-year shipments growth in 2026. Trailing 12 months highway awards in Vulcan markets remain up double digits from a year ago, far outpacing non-Vulcan markets. The same is true for public infrastructure awards, which are up 20% year-over-year in Vulcan markets, yet down in other markets.

Speaker #3: Our team is already hard at work capturing synergies and driving value from this strategic acquisition. In terms of the demand environment, what I see ahead of us is similar to the views that I shared on the last call.

Speaker #3: We still expect strong public activity in our markets and improving private large project opportunities to drive year-over-year shipments growth in 2026. Trailing 12 months highway awards in Vulcan markets remain up double digits from a year ago, far outpacing non-Vulcan markets.

Speaker #3: The same is true for public infrastructure awards, which are up 20% year over year in Vulcan markets, yet down in other markets. The amount of work in the pipeline bodes well for public shipments for the next several years.

Ronnie A. Pruitt: The amount of work in the pipeline bodes well for public shipments for the next several years, providing good demand visibility, which is important for a healthy pricing environment. With the August recess upon us, as expected, there will likely be a continuing resolution to fund federal highway spending while Congress completes this work. The House Transportation and Infrastructure Committee passed its BUILD America 250 Act with overwhelming bipartisan support in late May. The bill enhanced the focus on aggregate-intensive construction and shifted to a formula first distribution approach compared to the Infrastructure Investment and Jobs Act, both changes benefiting Vulcan. While the final text and timing remain uncertain, we anticipate a smooth transition between funding programs given the significant amount of IIJ funds that are yet to be spent. On the private side, large project opportunities continue to drive non-residential activity, particularly data centers.

Ronnie Pruitt: The amount of work in the pipeline bodes well for public shipments for the next several years, providing good demand visibility, which is important for a healthy pricing environment. With the August recess upon us, as expected, there will likely be a continuing resolution to fund federal highway spending while Congress completes this work. The House Transportation and Infrastructure Committee passed its BUILD America 250 Act with overwhelming bipartisan support in late May. The bill enhanced the focus on aggregate-intensive construction and shifted to a formula first distribution approach compared to the Infrastructure Investment and Jobs Act, both changes benefiting Vulcan. While the final text and timing remain uncertain, we anticipate a smooth transition between funding programs given the significant amount of IIJ funds that are yet to be spent. On the private side, large project opportunities continue to drive non-residential activity, particularly data centers.

Speaker #3: Providing good demand visibility, which is important for a healthy pricing environment. With the August recess upon us, as expected, there will likely be a continuing resolution to fund federal highway spending while Congress completes this work.

Speaker #3: The House Transportation and Infrastructure Committee passed its Build America 250 Act with overwhelming bipartisan support in late May. The bill enhanced the focus on aggregate-intensive construction and shifted to a formula-first distribution approach compared to the Infrastructure Investment and Jobs Act, both changes benefiting Vulcan.

Speaker #3: While the final texts and timing remain uncertain, we anticipate a smooth transition between funding programs, given the significant amount of IIJA funds that are yet to be spent.

Speaker #3: On the private side, large project opportunities continue to drive non-residential activity, particularly data centers. Our footprint is well aligned with data center activity, in addition to power infrastructure expansion, recently announced LNG projects, and other manufacturing opportunities.

Ronnie A. Pruitt: Our footprint is well-aligned with data center activity, in addition to power infrastructure expansion, recently announced LNG projects, and other manufacturing opportunities. Our scale, quality, and customer service make us a supplier of choice for these large, complex projects. Residential construction continues to struggle due to the ongoing lack of affordability. Longer term, there remains a fundamental need for additional housing, and our footprint is well-positioned to benefit from an eventual recovery. With a continued expectation of modest growth in aggregate shipments in 2026, a healthy pricing environment, and a solid year-to-date execution from our operating teams, we reiterate our full year adjusted EBITDA guidance range of $2.4 to $2.6 billion. Now I'll turn the call over to Mary Andrews to provide some additional commentary on our Q2 performance before we take your questions.

Ronnie Pruitt: Our footprint is well-aligned with data center activity, in addition to power infrastructure expansion, recently announced LNG projects, and other manufacturing opportunities. Our scale, quality, and customer service make us a supplier of choice for these large, complex projects. Residential construction continues to struggle due to the ongoing lack of affordability. Longer term, there remains a fundamental need for additional housing, and our footprint is well-positioned to benefit from an eventual recovery. With a continued expectation of modest growth in aggregate shipments in 2026, a healthy pricing environment, and a solid year-to-date execution from our operating teams, we reiterate our full year adjusted EBITDA guidance range of $2.4 to $2.6 billion. Now I'll turn the call over to Mary Andrews to provide some additional commentary on our Q2 performance before we take your questions.

Speaker #3: Our scale, quality, and customer service make us a supplier of choice for these large complex projects. Residential construction continues to struggle due to the ongoing lack of affordability.

Speaker #3: Longer term, there remains a fundamental need for additional housing, and our footprint is well positioned to benefit from an eventual recovery. With a continued expectation of modest growth in aggregates shipments in 2026, a healthy pricing environment, and a solid year-to-date execution from our operating teams, we—.

Speaker #3: Reiterate our full-year adjusted EBITDA guidance range of 2.4 to 2.6 billion dollars. Now, I'll turn the call over to Mary Andrews to provide some additional commentary on our second quarter performance before we take your questions.

Speaker #2: Thanks, Ronnie, and good morning. The strong cash generation of our business, coupled with the recent proceeds from divestitures Ronnie commented on earlier, have the balance sheet extremely well positioned for us to continue to pursue our disciplined and balanced capital allocation strategy.

Mary Andrews Carlisle: Thanks, Ronnie, and good morning. The strong cash generation of our business, coupled with the recent proceeds from divestitures Ronnie commented on earlier, have the balance sheet extremely well-positioned for us to continue to pursue our disciplined and balanced capital allocation strategy, reinvesting in our business, growing our franchise through strategic acquisitions, and returning capital to shareholders through both dividends and share repurchases. Through H1 of this year, we have invested $370 million in maintenance and growth capital projects, $75 million in a strategic aggregate acquisition, and returned over half a billion dollars to shareholders, including $400 million of share repurchases. We continue to expect between $750 and $800 million of capital expenditures for the full year.

Speaker #2: Reinvesting in our business, growing our franchise through strategic acquisitions, and returning capital to shareholders through both dividends and share repurchases. Through the first six months of this year, we have invested $370 million in maintenance and growth capital projects, $75 million in a strategic aggregates acquisition, and returned over half a billion dollars to shareholders, including $400 million of share repurchases.

Speaker #2: We continue to expect between $750 and $800 million of capital expenditures for the full year. During the second quarter, we used cash on hand to pay down our outstanding commercial paper balances of approximately $200 million and maintained approximately $300 million of cash at quarter end.

Mary Andrews Carlisle: During Q2, we used cash on hand to pay down our outstanding commercial paper balances of approximately $200 million and maintained approximately $300 million of cash at quarter end. At 30 June, net debt to Adjusted EBITDA leverage stood at 1.7x, providing plenty of capacity to support an active acquisition pipeline. We are focused on improving our Return on Invested Capital as we continue to compound profitability in our existing business and make disciplined capital allocation decisions. Our trailing 12 months Return on Invested Capital improved 20 basis points from a year ago to 16.1% at quarter end. SAG expenses in H1 were 2% lower than the prior year. Trailing 12 months expenses of $558 million, or 6.9% of revenues, 30 basis points lower than the prior year period. We continue to closely manage our overhead costs.

Speaker #2: At June 30, net debt to adjusted EBITDA leverage stood at 1.7 times, providing plenty of capacity to support an active acquisition pipeline. We are focused on improving our return on invested capital as we continue to compound profitability in our existing business and make disciplined capital allocation decisions.

Speaker #2: Our trailing twelve-month return on invested capital improved 20 basis points from a year ago, to 16.1% at quarter end. SG&A expenses in the first six months were 2% lower than the prior year.

Speaker #2: Trailing 12 months expenses of $558 million were 6.9% of revenue, 30 basis points lower than the prior year period. We continue to closely manage our overhead costs.

Speaker #2: As Ronnie said, we are pleased with the first half execution and results that our teams delivered and are reaffirming our full-year adjusted EBITDA outlook.

Mary Andrews Carlisle: As Ronnie said, we are pleased with the H1 execution and results that our teams delivered and are reaffirming our full year Adjusted EBITDA outlook. Before we take your questions, I'll pass back to Ronnie to provide an update on Vulcan's arbitration against Mexico.

Speaker #2: Now, before we take your questions, I'll pass back to Ronnie to provide an update on Vulcan's arbitration against Mexico.

Speaker #3: Thanks, Mary Andrews. As previously disclosed, Vulcan pursued an arbitration against Mexico under the North American Free Trade Agreement, commonly referred to as NAFTA. We received the award on Monday.

Ronnie A. Pruitt: Thanks, Mary Andrews. As previously disclosed, Vulcan pursued an arbitration against Mexico under the North American Free Trade Agreement, commonly referred to as NAFTA. We received the award on Monday. All three members of the tribunal found that Mexico's actions were arbitrary, grossly unfair, and unjust. All three members of the tribunal also found that numerous actions taken by Mexico clearly violated NAFTA, including those related to the claims associated with the large majority of damages. However, the two members of the tribunal, who wrote the majority opinion, awarded us only immaterial damages. The third member dissented, disagreeing with the low damages award.

Ronnie Pruitt: Thanks, Mary Andrews. As previously disclosed, Vulcan pursued an arbitration against Mexico under the North American Free Trade Agreement, commonly referred to as NAFTA. We received the award on Monday. All three members of the tribunal found that Mexico's actions were arbitrary, grossly unfair, and unjust. All three members of the tribunal also found that numerous actions taken by Mexico clearly violated NAFTA, including those related to the claims associated with the large majority of damages. However, the two members of the tribunal, who wrote the majority opinion, awarded us only immaterial damages. The third member dissented, disagreeing with the low damages award.

Speaker #3: All three members of the tribunal found that Mexico's actions were arbitrary grossly unfair and unjust. All three members of the tribunal also found that numerous actions taken by Mexico clearly violated NAFTA including those related to the claims associated with the large majority of damages.

Speaker #3: However, the two members of the tribunal who wrote the majority opinion awarded us only immaterial damages. The third member dissented, disagreeing with the low damages award.

Speaker #3: As we look ahead, we remain focused on driving improved profitability in our business, and I would like to thank the men and women of Vulcan Materials for a great performance during the quarter, controlling our costs and expanding our cash gross profit per ton while keeping each other safe.

Ronnie A. Pruitt: As we look ahead, we remain focused on driving improved profitability in our business, and I would like to thank the men and women of Vulcan Materials for a great performance during the quarter, controlling our cost and expanding our cash gross profit per ton while keeping each other safe. Mary Andrews and I will be happy to take your questions.

Ronnie Pruitt: As we look ahead, we remain focused on driving improved profitability in our business, and I would like to thank the men and women of Vulcan Materials for a great performance during the quarter, controlling our cost and expanding our cash gross profit per ton while keeping each other safe. Mary Andrews and I will be happy to take your questions.

Speaker #3: Now, Mary Andrews and I will be happy to take your questions.

Speaker #1: Thank you, Mr. Pruitt. Ladies and gentlemen, at this time, if you do have any questions or comments, please press star one. If your question has been addressed, you may remove yourself from the queue by pressing star two.

Operator 2: Thank you, Mr. Pruitt. Ladies and gentlemen, at this time, if you do have any questions or comments, please press star one. If your question has been addressed, you may remove yourself from the queue by pressing star two. Once again, that's star one for questions. We'll go first this morning to Anthony Pettinari with Citi.

Operator: Thank you, Mr. Pruitt. Ladies and gentlemen, at this time, if you do have any questions or comments, please press star one. If your question has been addressed, you may remove yourself from the queue by pressing star two. Once again, that's star one for questions. We'll go first this morning to Anthony Pettinari with Citi.

Speaker #1: Once again, that's star one for questions. We'll go first this morning to Anthony Pedinari with Citi.

Anthony Pettinari: Good morning. Ronnie, can you talk a little bit more about the puts and takes on demand and maybe specifically what gives you confidence in the H2 to meet the full year volume guidance?

Speaker #4: Good morning.

Speaker #2: Morning.

Speaker #4: Ronnie, hey, can you talk a little bit more about the puts and takes on demand, and maybe specifically, what gives you confidence in the second half of the year to meet the full-year volume guidance?

Speaker #3: Yes, thank you. Good morning, Anthony. I would say, first of all, demand is tracking as we expected, and we're an outdoor sport, so we're always going to have some weather disruptions.

Ronnie A. Pruitt: Yes. Thank you. Good morning, Anthony. I would say, first of all, demand is tracking as we expected. We're an outdoor sport, so we're always going to have some weather disruptions. I would say overall, tracking is expected. As we entered the year, we had healthy backlogs, and as we sit here today, we have healthy backlogs, and our quoting activity continues to remain very robust. On the positive side, trends across public infrastructure, public highways, data centers, and other forms of manufacturing are all good. We've also seen a pickup in LNG projects, along with energy generation and power infrastructure expansion, which is really being driven by the data centers. Conversely, we continue to see single family and residential growth remain weak.

Ronnie Pruitt: Yes. Thank you. Good morning, Anthony. I would say, first of all, demand is tracking as we expected. We're an outdoor sport, so we're always going to have some weather disruptions. I would say overall, tracking is expected. As we entered the year, we had healthy backlogs, and as we sit here today, we have healthy backlogs, and our quoting activity continues to remain very robust. On the positive side, trends across public infrastructure, public highways, data centers, and other forms of manufacturing are all good. We've also seen a pickup in LNG projects, along with energy generation and power infrastructure expansion, which is really being driven by the data centers. Conversely, we continue to see single family and residential growth remain weak.

Speaker #3: But I would say, overall, tracking is as expected. As we entered the year, we had healthy backlogs, and as we sit here today, we have healthy backlogs, and our quoting activity continues to remain very robust.

Speaker #3: On the positive side, trends across public infrastructure, public highways, data centers, and other forms of manufacturing are all good. We've also seen a pickup in LNG projects, along with energy generation and power infrastructure expansion, which has really been driven by the data centers.

Speaker #3: Conversely, we continue to see single-family and residential growth remain weak. But other parts of light non-res they're going to follow rooftops and so that's another area that as we see single-family start to recover, I think light non-res will follow.

Ronnie A. Pruitt: Other parts of light non-res, they're going to follow rooftops, and so that's another area that as we see single family start to recover, I think light non-res will follow. I will also remind you of our advantage footprint. Where we're at, and that matters, and when we start seeing single family recovery, I like our footprint, and I think we're in a really good position to capture that.

Ronnie Pruitt: Other parts of light non-res, they're going to follow rooftops, and so that's another area that as we see single family start to recover, I think light non-res will follow. I will also remind you of our advantage footprint. Where we're at, and that matters, and when we start seeing single family recovery, I like our footprint, and I think we're in a really good position to capture that.

Speaker #3: But I will also remind you of our advantaged footprint. I mean, where we're at, and that matters. And when we start seeing single-family recovery, I like our footprint, and I think we're in a really good position to capture that.

Speaker #4: Okay. That's helpful. I'll turn it over.

Anthony Pettinari: Okay. That's helpful. I'll turn it over.

Speaker #1: Thank you. We go next now to Tyler Browne with Raymond James.

Operator 2: Thank you. We go next now to Tyler Brown with Raymond James.

Operator: Thank you. We go next now to Tyler Brown with Raymond James.

Speaker #5: Hey, good morning.

Patrick Tyler Brown: Hey, good morning.

Tyler Brown: Hey, good morning.

Speaker #4: Hey, Tyler.

Ronnie A. Pruitt: Hey, Tyler.

Ronnie Pruitt: Hey, Tyler.

Speaker #2: Tyler.

Speaker #5: Hey, so I have a couple of questions on cost. Cost performance was pretty solid here in Q2. It maybe came in slightly better than the guidance, despite fuel and—let's call it—some weather friction.

Mary Andrews Carlisle: Hi, Tyler.

Patrick Tyler Brown: Hey. I got a couple questions on cost performance was pretty solid here in Q2. It maybe came in slightly better than the guidance despite fuel and let's call it some weather friction. Mary Andrews, if we look at the full year guide, it seems to imply that cost inflation is maybe a bit better in H2 than H1. Can you just give us any color on what's driving that and just your confidence in hitting those trends? Thanks.

Tyler Brown: Hey. I got a couple questions on cost performance was pretty solid here in Q2. It maybe came in slightly better than the guidance despite fuel and let's call it some weather friction. Mary Andrews, if we look at the full year guide, it seems to imply that cost inflation is maybe a bit better in H2 than H1. Can you just give us any color on what's driving that and just your confidence in hitting those trends? Thanks.

Speaker #5: But Mary Andrews, if we look at the full-year guide, it seems to imply that cost inflation is maybe a bit better in the second half than in the first half.

Speaker #5: Can you just give us any color on what's kind of driving that and just your confidence in hitting those trends? Thanks.

Speaker #3: Yeah, Tyler, thank you. I'll address the first part, and then I'll hand it over to Mary Andrews to talk about some of the numbers. As I look at our Q2 performance, it was really good.

Ronnie A. Pruitt: Yeah. Tyler, thank you. I'll address the first part, and then I'll give it to Mary Andrews to talk about some of the numbers. As I look at our Q2 performance, it was really good. And I would say it was better than a lot of expectations. And we dampened the impact of a $26 million diesel headwind. And we really did that through our Vulcan Way of Operating disciplines. When I look at our production efficiencies that we continue to focus on with VWO, as well as our labor scheduling and how we continue to focus on how we're going to get the most out of that, and really in the backdrop of wet weather, that does impact our cost as well.

Ronnie Pruitt: Yeah. Tyler, thank you. I'll address the first part, and then I'll give it to Mary Andrews to talk about some of the numbers. As I look at our Q2 performance, it was really good. And I would say it was better than a lot of expectations. And we dampened the impact of a $26 million diesel headwind. And we really did that through our Vulcan Way of Operating disciplines. When I look at our production efficiencies that we continue to focus on with VWO, as well as our labor scheduling and how we continue to focus on how we're going to get the most out of that, and really in the backdrop of wet weather, that does impact our cost as well.

Speaker #3: And I would say it was better than a lot of expectations and we dampened the impact of a 26 million dollar diesel head one.

Speaker #3: And we really did that through our Vulcan way of operating disciplines. I mean, when I look at our production efficiencies that we continue to focus on with VWO, as well as our labor scheduling, and how we continue to focus on how we're going to get the most out of that, and really, in the backdrop of wet weather that does impact our cost as well.

Speaker #3: So I'm very pleased with where we're at, and I think VWO continues to be something that is evident in our results and the productivity of that.

Ronnie A. Pruitt: I'm very pleased with where we're at, and I think VWO continues to be something that is evident in our results, and the productivity is that. For the rest of the year, I think there's other levers that we'll continue to look at as far as oil continues to be inflated. We're going to continue to really think about our operating efficiencies and how we drive that through our process intelligence and labor efficiencies. Also there's things, levers we can pull with our stripping, we're focused on things that are heavily consuming of diesel, stripping is one of those. We'll continue to focus on that. Also leverage our liquid asphalt storage that we've had. We've got one in Southern California.

Ronnie Pruitt: I'm very pleased with where we're at, and I think VWO continues to be something that is evident in our results, and the productivity is that. For the rest of the year, I think there's other levers that we'll continue to look at as far as oil continues to be inflated. We're going to continue to really think about our operating efficiencies and how we drive that through our process intelligence and labor efficiencies. Also there's things, levers we can pull with our stripping, we're focused on things that are heavily consuming of diesel, stripping is one of those. We'll continue to focus on that. Also leverage our liquid asphalt storage that we've had. We've got one in Southern California.

Speaker #3: For the rest of the year, I think there are other levers that we'll continue to look at, as far as oil continues to be inflated.

Speaker #3: So we're going to continue to really think about our operating efficiencies and how we drive that through our process intelligence and labor efficiencies. But also there's things levers we can pull with our stripping and so we're focused on things that are heavily consuming of diesel.

Speaker #3: So stripping is one of those. We'll continue to focus on that. Also leverage our liquid asphalt storage that we've had. We've got one in Southern California where we we recently closed on another one in Northern California.

Ronnie A. Pruitt: We recently closed on another one in Northern California. That's another way for us on the downstream business to fight some of those headwinds of volatility and cost.

Ronnie Pruitt: We recently closed on another one in Northern California. That's another way for us on the downstream business to fight some of those headwinds of volatility and cost.

Speaker #3: And that's another way for us on the downstream business to fight some of those headwinds of volatility and cost.

Speaker #2: Yeah. And Tyler, just to add to what Ronnie covered on some of the levers that we have in the second half, another dynamic in the second half is how unusual the second half of last year was from a cost standpoint, particularly the fourth quarter.

Mary Andrews Carlisle: Tyler, just to add to what Ronnie covered on some of the levers that we have in H2. Another dynamic in H2 is how unusual the H2 of last year was from a cost standpoint, particularly the Q4. We faced unusually concentrated repair costs and higher insurance costs last year that we don't expect to repeat this year. Those anomalies and some benefit of seasonally higher tonnage in H2 compared to H1, are also things that should drive both a much improved year-over-year performance and an improved absolute cost performance in the back half. As Ronnie said, even as those diesel prices remain sticky, quite likely, and right now at levels, still similar to the Q2.

Speaker #2: We faced unusually concentrated repair cost and higher insurance cost last year that we don't expect to repeat this year. So those anomalies and some benefit of seasonally higher tonnage in the second half compared to the first are also things that should drive both a much improved year-over-year performance and an improved absolute cost performance in the back half.

Speaker #2: Even as Ronnie said, even as those diesel prices remain sticky—likely, and right now, at levels still similar to the second quarter. And one other thing I'd mention, since we're talking about cost, is our year-to-date SAG expense, which we've maintained at levels lower than last year.

Mary Andrews Carlisle: One other thing I'd mention is, since we're talking about cost, is our year-to-date SAG expense, which we've maintained at levels lower than last year. In fact, I would expect full year SAG expenses to probably be $10 to 15 million lower now than the initial range we provided of $580 to 590 million back in February. Overall, we are pleased with the cost execution in H1 and confident in a solid performance in H2 as well.

Speaker #2: In fact, I would expect full-year SAG expenses to probably be $10 million to $15 million lower now than the initial range. We provided a range of $580 million to $590 million back in February.

Speaker #2: So, overall, we are pleased with the cost execution in the first half and confident in a solid performance in the second half as well.

Speaker #5: All right. Yep. Excellent detail. Thank you.

Philip Ng: All right. Yep. Excellent detail. Thank you.

Tyler Brown: All right. Yep. Excellent detail. Thank you.

Speaker #3: Thanks, Tyler.

Ronnie A. Pruitt: Thanks, Tyler.

Ronnie Pruitt: Thanks, Tyler.

Speaker #1: We'll go next now to Trey Grooms with Stevens.

Operator 2: We'll go next now to Trey Grooms with Stephens.

Operator: We'll go next now to Trey Grooms with Stephens.

Speaker #6: Hey, good morning, everyone. Thanks for taking my question. Ronnie, you guys talked about some mid-years out there and some market mid-year price increases and some markets and given the diesel backdrop.

Trey Grooms: Hey, good morning, everyone. Thanks for taking my question. Ronnie, you guys talked about some mid-years out there in some market, mid-year price increases in some markets, and given the diesel backdrop. Any update you can give us on mid-year increases? Then if I could sneak just one more in, just given the Mexico situation. I really appreciate your prepared comments there, but any additional color you could give us at this time around the tribunal's decision there? I think they said unfair and unjust, which is I think an understatement here. At any rate, any additional color there? Thank you.

Speaker #6: But any update you can give us on mid-year increases? And then if I could sneak just one more in, just given the Mexico situation I really appreciate your prepared comments there.

Speaker #6: But any additional color you could give us at this time around the tribunal's decision there? I think they said unfair and unjust, which is I think an understatement here.

Speaker #6: But at any rate, any additional color there? Thank you.

Speaker #3: Yeah, Trey, thanks. I'll take the second part first, and then I'll talk about mid-year second. So, with regards to Mexico, really what I said in my prepared remarks, I'll reiterate from the standpoint that the decision was disconcerting to us.

Ronnie A. Pruitt: Yeah, Trey, thanks. I'll take the second part first, then I'll talk about mid-years second. With regards to Mexico, really what I said in my prepared remarks, I'll reiterate from a standpoint of the decision was disconcerting to us. All three arbitrators agreed that Mexico had clearly violated NAFTA, yet they awarded immaterial damages. That's really all I'm going to say about that. What I will also say, though, is that, look, we've continued to move forward with running our business. Even since the illegal taking of Calica back in 2022, we've successfully continued to supply the Gulf Coast and really meet the needs of our customers in a very dynamic market. I would say overall, our EBITDA has grown more than 50% over those 4 years. We've done things to continue to grow the company.

Ronnie Pruitt: Yeah, Trey, thanks. I'll take the second part first, then I'll talk about mid-years second. With regards to Mexico, really what I said in my prepared remarks, I'll reiterate from a standpoint of the decision was disconcerting to us. All three arbitrators agreed that Mexico had clearly violated NAFTA, yet they awarded immaterial damages. That's really all I'm going to say about that. What I will also say, though, is that, look, we've continued to move forward with running our business. Even since the illegal taking of Calica back in 2022, we've successfully continued to supply the Gulf Coast and really meet the needs of our customers in a very dynamic market. I would say overall, our EBITDA has grown more than 50% over those 4 years. We've done things to continue to grow the company.

Speaker #3: All three arbitrators agreed that Mexico had clearly violated NAFTA, yet they awarded immaterial damages. And so, that's really all I'm going to say about that.

Speaker #3: What I will also say, though, is that we've continued to move forward with running our business, and even since the illegal taking of Calica back in 2022, we've successfully continued to supply the Gulf Coast and really meet the needs of our customers in a very dynamic market.

Speaker #3: And I would say overall, our EBITDA has grown more than 50%. And over those four years and so we've done things to continue to grow the company.

Speaker #3: I'm very pleased with the efforts that our people have given for that. When I look at the Gulf Coast today, it's still a very dynamic area.

Ronnie A. Pruitt: I'm very pleased with the efforts that our people have given for that. When I look at the Gulf Coast today, it's still a very dynamic area, and it's still going to be challenged on how material gets to the Gulf Coast. We've still got the best distribution network along the Gulf Coast, and we're going to continue to serve that through different forms and fashions. We will remain very well positioned to supply our customers there. Remember, we still own the land, and we still own the land around the port, which are two very valuable things when it comes to Mexico. With regards to your second part, or your first part, really, your pricing question.

Ronnie Pruitt: I'm very pleased with the efforts that our people have given for that. When I look at the Gulf Coast today, it's still a very dynamic area, and it's still going to be challenged on how material gets to the Gulf Coast. We've still got the best distribution network along the Gulf Coast, and we're going to continue to serve that through different forms and fashions. We will remain very well positioned to supply our customers there. Remember, we still own the land, and we still own the land around the port, which are two very valuable things when it comes to Mexico. With regards to your second part, or your first part, really, your pricing question.

Speaker #3: And it's still going to be challenged on how material gets to the Gulf Coast. And so we've still got the best distribution network along the Gulf Coast and we're going to continue to serve that through different forms of fashions.

Speaker #3: And so we remain very well positioned to supply our customers there. And remember, we still own the land and we still own the land around the port, which are two very valuable things when it comes your second part or your first part, really your pricing question, when I look at mid-years, I would say they went as expected and when I really compare them year over year and so that's we do a lot of comparisons sequentially.

Ronnie A. Pruitt: When I look at mid-years, I would say they went as expected, and when I really compare them year-over-year, we do a lot of comparisons. Sequentially, we're almost two times better than we were last year. We intentionally pulled mid-years forward. We pulled those forward to June. I think we've had some success in that shows in our mix adjusted as we sit today of 5% on our pricing. I would tell you our biggest lever to overcome fuel continues to be price. What you will continue to see from us is discipline around that. I'm confident in our commercial team, our execution on Vulcan Way of Selling, that we will continue to use price as our biggest lever.

Ronnie Pruitt: When I look at mid-years, I would say they went as expected, and when I really compare them year-over-year, we do a lot of comparisons. Sequentially, we're almost two times better than we were last year. We intentionally pulled mid-years forward. We pulled those forward to June. I think we've had some success in that shows in our mix adjusted as we sit today of 5% on our pricing. I would tell you our biggest lever to overcome fuel continues to be price. What you will continue to see from us is discipline around that. I'm confident in our commercial team, our execution on Vulcan Way of Selling, that we will continue to use price as our biggest lever.

Speaker #3: I mean, we're almost two times better than we were last year. And so we intentionally pulled mid-years forward. We pulled those forward to June and I think we've had success in that that shows in our mix adjusted as we sit today of 5% on our pricing I would tell you our biggest lever to overcome fuel continues to be price.

Speaker #3: And so what you will continue to see from us is discipline around that. And I'm confident in our commercial team, our execution, on the Vulcan way of selling, that we will continue to use price as our biggest lever.

Speaker #3: So if we continue to see fuel being as sticky as it is, I think you'll see us continue to be very aggressive in moving price throughout the remainder of the year.

Ronnie A. Pruitt: If we continue to see fuel being as sticky as it is, I think you'll see us continue to be very aggressive in moving price throughout the remainder of the year.

Ronnie Pruitt: If we continue to see fuel being as sticky as it is, I think you'll see us continue to be very aggressive in moving price throughout the remainder of the year.

Speaker #6: Great. Thanks for all the color there. And I did want to say hats off on the cost. You guys did a great job.

Trey Grooms: Great. Thanks for all the color there. I did want to say hats off on the cost. You guys did a great job.

Speaker #3: Thanks, Trey.

Ronnie A. Pruitt: Thanks, Trey.

Ronnie Pruitt: Thanks, Trey.

Speaker #1: Thank you. We'll go next now to Philip Ng with Jefferies.

Operator 2: Thank you. We'll go next now to Philip Ng with Jefferies.

Operator: Thank you. We'll go next now to Philip Ng with Jefferies.

Speaker #7: Hey, guys. Ronnie, great color. Any more color in terms of how demand is shaping up in July, and certainly on Q2? You had some weather-related issues.

Philip Ng: Hey, guys. Ronnie, great color. Any more color in terms of how demand is shaping up in July? I know certainly Tucson had some weather-related issues, color on that front. You talked about orders and backlogs quite good right now, good momentum. Can you quantify how things were to start the year and I guess how orders and backlogs, perhaps from a growth standpoint, are shaping up today?

Speaker #7: Color on that front. And you talked about orders and backlogs—quite good right now, good momentum. Can you kind of quantify how things were to start the year, and I guess how orders and backlogs, perhaps from a growth standpoint, are shaping up today?

Speaker #3: Yeah, I would tell you that as we sit today, backlogs look very similar to what they did as we entered the year. And a lot of that is the puts and takes of where weather happens—geography matters.

Ronnie A. Pruitt: Yeah. I would tell you that as we sit today, backlogs look very similar as they did as we entered the year. A lot of that is the puts and takes of where weather happens, geography matters, where those weather patterns. We had probably abnormal weather in Texas, and a little bit of abnormal weather in the Southeast. As we sit here in July, I would tell you we've continued to see strange weather patterns, shipments are continuing as expected. There's a lot of puts and takes around that and where it's raining at, maybe dry somewhere else. That's why we continue to look at the mix adjustment of the geography impact because all markets are not the same.

Ronnie Pruitt: Yeah. I would tell you that as we sit today, backlogs look very similar as they did as we entered the year. A lot of that is the puts and takes of where weather happens, geography matters, where those weather patterns. We had probably abnormal weather in Texas, and a little bit of abnormal weather in the Southeast. As we sit here in July, I would tell you we've continued to see strange weather patterns, shipments are continuing as expected. There's a lot of puts and takes around that and where it's raining at, maybe dry somewhere else. That's why we continue to look at the mix adjustment of the geography impact because all markets are not the same.

Speaker #3: And so, with those weather patterns, we had probably abnormal weather in Texas and a little bit of abnormal weather in the Southeast. As we sit here in July, I would tell you we've continued to see strange weather patterns.

Speaker #3: But shipments are continuing, kind of as expected. But there's a lot of puts and takes around that, and where it's raining at, it may be dry somewhere else.

Speaker #3: And so that's why we continue to look at the mix adjustment of the geography impact, because all markets are not the same. As I look forward and think about the dynamics of where we're at with the end uses, I mean, I look at some of our starts momentum and referring to Dodge Awards.

Ronnie A. Pruitt: As I look forward and thinking about the dynamics of where we're at with the end uses, I look at some of our starts momentum, and referring to Dodge awards. On the highway side, North Georgia on a trailing 12 is up 189%. These are large USD projects, and we can give you some specifics of those projects, but a lot of this is the 400-series highways and some of this public-private partnership and other ways of looking at things that are funding mechanisms outside of the federal program. Total infrastructure in the Gulf Coast is up 360% over the last 12 months. A lot of public. That's where we get our confidence in public. On the private side, continues to be really driven by data centers.

Ronnie Pruitt: As I look forward and thinking about the dynamics of where we're at with the end uses, I look at some of our starts momentum, and referring to Dodge awards. On the highway side, North Georgia on a trailing 12 is up 189%. These are large USD projects, and we can give you some specifics of those projects, but a lot of this is the 400-series highways and some of this public-private partnership and other ways of looking at things that are funding mechanisms outside of the federal program. Total infrastructure in the Gulf Coast is up 360% over the last 12 months. A lot of public. That's where we get our confidence in public. On the private side, continues to be really driven by data centers.

Speaker #3: On the highway side, I mean, North Georgia on a trailing 12 is up 189%. I mean, those are now these are large dollar projects and we can give you some specifics of those projects.

Speaker #3: But a lot of this is the 400 toll roads, and some of this is public-private partnership and other ways of looking at things that are funding mechanisms outside of the federal program.

Speaker #3: Total infrastructure in the Gulf Coast is up 360% over the last 12 months. So that's where we get our confidence in public.

Speaker #3: On the private side, it continues to be really driven by data centers. But we are seeing some other manufacturing things. And I would tell you that I think the power side of power generation and power infrastructure is going to continue to be a tailwind as we move throughout the data center build-out.

Ronnie A. Pruitt: We are seeing some other manufacturing things, and I would tell you that I think the power side of power generation and power infrastructure is going to continue to be a tailwind as we move throughout the data center build-out. Those are projects that are being reflected both in our quoting activity as well as some booking activity. We also talked about some LNG projects. We've seen that along the coast as well. Those are different types of projects that we've seen in the past. Those have been relifted. Really, the only part that we see continue to be on the negative side is single family. I believe that with the two legs of our stool, we continue to be confident in a year of growth.

Ronnie Pruitt: We are seeing some other manufacturing things, and I would tell you that I think the power side of power generation and power infrastructure is going to continue to be a tailwind as we move throughout the data center build-out. Those are projects that are being reflected both in our quoting activity as well as some booking activity. We also talked about some LNG projects. We've seen that along the coast as well. Those are different types of projects that we've seen in the past. Those have been relifted. Really, the only part that we see continue to be on the negative side is single family. I believe that with the two legs of our stool, we continue to be confident in a year of growth.

Speaker #3: And those are projects that are being reflected both in our quoting activity as well as some booking activity. We also talked about some LNG projects.

Speaker #3: We've seen that along the coast as well. So those are different types of projects that we've seen in the past—those have been re-lifted.

Speaker #3: And really, the only part that we see continue to be on the negative side is single-family. And so, I believe that with the two legs of our stool, we continue to be confident in a year of growth.

Speaker #3: And if the other leg of the stool would kick in, I think, again, our footprint is a really dynamic footprint—very advantaged—and we would get the benefit of that.

Ronnie A. Pruitt: If the other leg of the stool would kick in, I think, again, our footprint is a really dynamic footprint, very advantaged, and we would get the benefit of that.

Ronnie Pruitt: If the other leg of the stool would kick in, I think, again, our footprint is a really dynamic footprint, very advantaged, and we would get the benefit of that.

Speaker #7: Ronnie, any color on warehouses? You really haven't talked much about that.

Philip Ng: Ronnie, any color on warehouses? You really haven't talked much about that.

Speaker #3: Yeah, I mean, I would tell you we're seeing a couple of green shoots in very specific markets. But overall, warehousing continues to be flat.

Ronnie A. Pruitt: Yeah. I would tell you we're seeing a couple of green shoots in very specific markets. Overall, warehousing continues to be overall flat. We're not seeing any green shoots in warehouses from an overall perspective, but I do think it's one that as we see that kind of recovery as well, again, our footprint is very advantaged on that as well.

Ronnie Pruitt: Yeah. I would tell you we're seeing a couple of green shoots in very specific markets. Overall, warehousing continues to be overall flat. We're not seeing any green shoots in warehouses from an overall perspective, but I do think it's one that as we see that kind of recovery as well, again, our footprint is very advantaged on that as well.

Speaker #3: I mean, we're not seeing any green shoots in warehouses from an overall perspective. But I do think it's one that as we see that kind of recovery as well, again, our footprint is very advantaged on that as well.

Philip Ng: Okay. Thank you. Appreciate the call.

Speaker #3: Thank you.

Ronnie A. Pruitt: Thank you.

Ronnie Pruitt: Thank you.

Speaker #1: We'll go next now to Stephen Fisher with UBS.

Operator 2: We'll go next now to Steven Fisher with UBS.

Operator: We'll go next now to Steven Fisher with UBS.

Speaker #5: Thanks. Good morning. And congrats again on the cost management. Just to follow up on the discussion about the large project activity, we too are hearing a lot about the momentum there.

Steven Fisher: Thanks. Good morning. Congrats again on the cost management. Just to follow up on the discussion about the large project activity, we too are hearing a lot about the momentum there. Just curious what that might look like from a timing perspective for aggregates. Based on what you're seeing and hearing, is there a particular time frame when you think those will start to be more visible in your shipments? Is that just on a rolling basis, or is it more that these things are going to take a little time to ramp up, so maybe H1 2027 or H2 2027? Just curious when we could really start to see these big projects really show up in the shipments. Thank you.

Speaker #5: Just curious what that might look like from a timing perspective for aggregates, and based on what you're seeing and hearing, is there a particular timeframe when you think those will start to be more visible in your shipments?

Speaker #5: Is that sort of just on a rolling basis or is it more that these things are going to take a little time to ramp up?

Speaker #5: So maybe like first half of '27 or second half of '27? Just curious when we could really start to see these big projects really kind of show up in the shipments.

Speaker #5: Thank you.

Speaker #3: Yeah. Thank you. I mean, great question. I would tell you we see them every day. I mean, and it is going to be more of that consistent approach.

Ronnie A. Pruitt: Yeah. Thank you. Great question. I would tell you, we see them every day. It is going to be more of that consistent approach, even though you think about the way these bookings come into us and the influence they can have on our backlog. When you actually go to put the work in place, it's still a customer out there that's taking the material, putting it down on a public job or on a private job, and it still takes their scheduling and their tools to do that. In the end, you're not going to see these big, massive swings because a bigger job starts one place, and you're always wrapping one up and you're starting another one.

Ronnie Pruitt: Yeah. Thank you. Great question. I would tell you, we see them every day. It is going to be more of that consistent approach, even though you think about the way these bookings come into us and the influence they can have on our backlog. When you actually go to put the work in place, it's still a customer out there that's taking the material, putting it down on a public job or on a private job, and it still takes their scheduling and their tools to do that. In the end, you're not going to see these big, massive swings because a bigger job starts one place, and you're always wrapping one up and you're starting another one.

Speaker #3: Even though you think about the way these bookings come into us and the influence they can have on our backlog, when you actually go to put the work in place, it's still a customer out there that's taking the material, putting it down on a public job or on a private job.

Speaker #3: And it still takes their scheduling and their tools to do that. And so in the end, you're not going to see these big massive swings because a bigger job starts one place and you're always wrapping one up and you're starting another one.

Speaker #3: And so, we love slow and steady. I mean, especially with the compounding interest of the nature of our business and how we're focused on growing our cash gross profit per ton.

Ronnie A. Pruitt: We love slow and steady, especially with the compounding interest of the nature of our business and how we're focused on growing our cash gross profit per ton. I would tell you our backlog shapes up as we see it today. It's very predictable, and I would tell you slow and steady for us is what we would want to continue to see.

Ronnie Pruitt: We love slow and steady, especially with the compounding interest of the nature of our business and how we're focused on growing our cash gross profit per ton. I would tell you our backlog shapes up as we see it today. It's very predictable, and I would tell you slow and steady for us is what we would want to continue to see.

Speaker #3: And so I would tell you our backlog shapes up as we see it today. It's very predictable. And I would tell you slow and steady for us is what we would want to continue to see.

Speaker #5: Thank you very much.

Steven Fisher: Thank you very much.

Speaker #1: We'll go next now to Keith Hughes with Truist.

Operator 2: We'll go next now to Keith Hughes with Truist.

Operator: We'll go next now to Keith Hughes with Truist.

Speaker #6: Thank you. What kind of mix adjusted price are you anticipating in the guide in the second half of the year given the mid-years have been rolling on all second quarter?

Keith Hughes: Thank you. What kind of mix adjusted price are you anticipating in the guide in the H2 of the year, given that these years have been rolling in all Q2?

Speaker #2: Yeah. So Keith, for pricing cadence, I think is playing out exactly like we saw at the beginning of the year, which would mean the lower end of the range in the first half and will be at the exiting at the upper end.

Mary Andrews Carlisle: Yeah. Keith, for pricing cadence, I think is playing out exactly like we saw at the beginning of the year, which would mean the lower end of the range in the H1 and will be exiting at the upper end in the H2. That is really reported and mix adjusted. It'll just depend on what those comps look like. I would tell you that compared to our pricing plans coming into the year, we are executing just as we expected, playing out like we thought.

Speaker #2: In the back half—and that is really reported and mix adjusted—it'll just depend on what those comps look like. But I would tell you that, compared to our pricing plans coming into the year, we are executing just as we expect. It is playing out like we thought.

Speaker #6: And on volume, would that be dissimilar to where you're at the higher end of the range in the second half versus the first half?

Keith Hughes: On volume, would it be the similar to where you're at the higher end of the range in the H2 versus the H1? Same trend?

Speaker #6: Same trend?

Speaker #3: I think the volume was the opposite. We were at the higher end of the first half. And I think it'll continue to be consistent in the second half.

Ronnie A. Pruitt: I think the volume was the opposite. We were at the higher end at the H1, and I think it'll continue to be consistent in the H2. Obviously, weather's always a factor in the Q4. I would say that we look at it today, and we think to hit our range that we said, it really is kind of continuing the shipping paces that we've seen throughout the Q2, and the H2 would be similar to that.

Ronnie Pruitt: I think the volume was the opposite. We were at the higher end at the H1, and I think it'll continue to be consistent in the H2. Obviously, weather's always a factor in the Q4. I would say that we look at it today, and we think to hit our range that we said, it really is kind of continuing the shipping paces that we've seen throughout the Q2, and the H2 would be similar to that.

Speaker #3: And obviously, weather is always a factor in the fourth quarter. But I would say that we look at it today and we think to hit our range that we said, I mean, it really is kind of continuing the shipping paces that we've seen throughout the second quarter.

Speaker #3: The second half would be similar to that. Thanks, Keith.

Keith Hughes: Okay. Thank you.

Ronnie A. Pruitt: Thanks, Keith.

Ronnie Pruitt: Thanks, Keith.

Speaker #1: We'll go next now to Catherine Thompson with Thompson Research Group.

Operator 2: We'll go next now to Kathryn Thompson with Thompson Research Group.

Operator: We'll go next now to Kathryn Thompson with Thompson Research Group.

Speaker #4: Hi. Thank you for taking my question today. You give a lot of great color on end markets and what's driving demand. We'd like to step back and look at the forest for the trees and just conceptually, more things are going to be made in the U.S., built in the U.S., for a variety of different parts.

Kathryn Thompson: Hi. Thank you for taking my question today. You gave a lot of great color on end markets and what's driving demand. We'd like to step back and look at the forest for the trees and just conceptually, more things are going to be made in the US, built in the US from a variety of different parts. Granted, as you said earlier, there's been a lot of focus on data centers, but it's a bit more than that. You did touch on comments on power. It'd be helpful if you could pull the string a little bit more on that on a couple of different levels. First, where are you seeing the power expansion? Then what type? Because there's now a variety of different power type structures. It's not just in Texas, but it's also in other parts of the US.

Speaker #4: And granted, as you said earlier, there's been a lot of focus on data centers, but it's a bit more than that. You did touch on comments on power.

Speaker #4: It'd be helpful if you could pull the string a little bit more on that, on a couple of different levels. First, where are you seeing the power expansion?

Speaker #4: And then what type? Because there's now a variety of different power type structures. So it's not just in Texas, but it's also in other parts of the US.

Kathryn Thompson: Maybe just give a broader, a more fleshed out view of what you're seeing in power and how Vulcan is supporting that growth. Thank you.

Speaker #4: And maybe just give a broader more fleshed out view of what you're seeing in power and how Vulcan is supporting that growth. Thank you.

Kathryn Thompson: Maybe just give a broader, a more fleshed out view of what you're seeing in power and how Vulcan is supporting that growth. Thank you.

Speaker #3: Yeah, you're absolutely right, Catherine. Thank you. I would tell you it's a lot of different forms, and so we've still got a combination of renewables.

Ronnie A. Pruitt: Yeah, you're absolutely right, Kathryn. Thank you. I would tell you it's a lot of different forms. We've still got a combination of renewables, we're still seeing solar work. We bid several solar manufacturing ones. I think the first phase of this, we're seeing we have four projects that are converting coal-fired power plants back to natural gas. We're seeing Georgia Power, Alabama Power be very active in those kind of projects. Obviously in Texas, we're seeing a lot of growth there, but we're also seeing this combination of some of the dollars you see tied up with these data centers is because they include power. It's hard when you look at the data center numbers, when you talk about dollars, then you start kind of stripping that out. Well, what is that?

Ronnie Pruitt: Yeah, you're absolutely right, Kathryn. Thank you. I would tell you it's a lot of different forms. We've still got a combination of renewables, we're still seeing solar work. We bid several solar manufacturing ones. I think the first phase of this, we're seeing we have four projects that are converting coal-fired power plants back to natural gas. We're seeing Georgia Power, Alabama Power be very active in those kind of projects. Obviously in Texas, we're seeing a lot of growth there, but we're also seeing this combination of some of the dollars you see tied up with these data centers is because they include power. It's hard when you look at the data center numbers, when you talk about dollars, then you start kind of stripping that out. Well, what is that?

Speaker #3: So we're still seeing solar work. We've bid several solar manufacturing ones. And then we're seeing—I think the first phase of this—we're seeing, like, we have four projects that are converting coal-fired power plants back to natural gas.

Speaker #3: We're seeing Georgia Power Alabama Power be very active in those kind of projects. Obviously, in Texas, we're seeing a lot of growth there, but we're also seeing this combination of some of the dollars you see tied up with these data centers is because they include power.

Speaker #3: And so, it's hard when you look at the data center numbers, when you talk about dollars, and then you start kind of stripping that out.

Speaker #3: Well, what is that? Is the real data center itself and what part of that is power? But I would tell you a lot of these are now to get them approved, they're coming with full power supply to the data center.

Ronnie A. Pruitt: Is the real data center itself, what part of that is power? I would tell you a lot of these are now, to get them approved, they're coming with full power supply to the data center. We're seeing a mix of that. I would say overall, when we look at our quoting activity in the category of power generation, we're just seeing a lot more quoting activity. Now, I'm not going to tell you it's going to go as fast as data centers because you and I both know that approval process is going to look a little different. We just see it as another form of healthy, forward-looking demand of our products. Again, we like slow and steady and we like our ability to continue to compound our cash gross profit over the future.

Ronnie Pruitt: Is the real data center itself, what part of that is power? I would tell you a lot of these are now, to get them approved, they're coming with full power supply to the data center. We're seeing a mix of that. I would say overall, when we look at our quoting activity in the category of power generation, we're just seeing a lot more quoting activity. Now, I'm not going to tell you it's going to go as fast as data centers because you and I both know that approval process is going to look a little different. We just see it as another form of healthy, forward-looking demand of our products. Again, we like slow and steady and we like our ability to continue to compound our cash gross profit over the future.

Speaker #3: So we're seeing a mix of that. I would say overall, when we look at our quoting activity and the category of power generation, we're just seeing a lot more quoting activity.

Speaker #3: Now, I'm not going to tell you it's going to go as fast as data centers, because you and I both know that the approval process is going to look a little different.

Speaker #3: And so, we just see it as another form of healthy, forward-looking demand for our products. And again, I mean, we like slow and steady.

Speaker #3: And we like our ability to continue to compound our cash gross profit over the future. And so, I just see this as another area of future aggregate demand that's going to be needed.

Ronnie A. Pruitt: I just see this as another area of future aggregate demand that's going to be needed, and it's very aggregate intensive.

Ronnie Pruitt: I just see this as another area of future aggregate demand that's going to be needed, and it's very aggregate intensive.

Speaker #3: And it's very aggregate intensive.

Speaker #4: Great, thanks so much. And good luck.

Kathryn Thompson: Great. Thanks so much, and good luck.

Speaker #3: Thank you.

Ronnie A. Pruitt: Thank you.

Ronnie Pruitt: Thank you.

Speaker #1: We'll go next now to Angel Castillo at Morgan Stanley.

Operator 2: We'll go next now to Angel Castillo at Morgan Stanley.

Operator: We'll go next now to Angel Castillo at Morgan Stanley.

Speaker #7: Good morning. Thanks for taking my question. Ronnie, just wanted to go back to price a little bit. You noted I guess a little bit of a pull forward here on price.

Angel Castillo: Morning. Thanks for taking my question. Ronnie, wanted to go back to price a little bit. You noted, I guess, a little bit of a pull forward here on price, and if I heard correctly, I think you mentioned that you might still pull the price lever throughout the remainder of the year. Wanted to make sure or clarify, I guess. Does that mean that you might still be announcing additional price increases in H2? If that's right, I guess, how should we think about the likelihood of that? Is it just energy price dependent? To the extent that you do move forward with any additional price, I guess, how should we think about the implications on Jan one increases and the ability to do those?

Speaker #7: And if I heard correctly, I think you mentioned that you might still pull the price lever throughout the remainder of the year, so I just wanted to make sure—or clarify, I guess.

Speaker #7: Does that mean that you might still be announcing additional price increases in the second half? And if that's right, how should we think about the likelihood of that?

Speaker #7: Is it just energy price dependent? And to the extent that you do move forward with any additional price, I guess, how should we think about the implications on January 1 increases and the ability to do those?

Speaker #3: Yeah, I think we'll be giving you a lot more color on that by our next call. I mean, look, as we went into the mid-years, we pulled them forward, anticipating what all was happening to us at the time.

Ronnie A. Pruitt: Yeah, I think we'll be giving you a lot more color of that by our next call. Look, as we went into the mid-years, we pulled them forward anticipating what oil was doing to us at the time. At that time, we were also anticipating that this was going to be short-lived. As we see it continue to drag on, that's where we've told you in the past and will continue to be very disciplined around price is our biggest lever when it comes to overcoming headwinds like this and inflationary pressures. What I'm saying is that continues to be our strongest lever, and we're evaluating that as we speak. We will continue to protect our margins, and we have to. These inflationary things are hitting us, they're hitting our customers, they're hitting everyone.

Ronnie Pruitt: Yeah, I think we'll be giving you a lot more color of that by our next call. Look, as we went into the mid-years, we pulled them forward anticipating what oil was doing to us at the time. At that time, we were also anticipating that this was going to be short-lived. As we see it continue to drag on, that's where we've told you in the past and will continue to be very disciplined around price is our biggest lever when it comes to overcoming headwinds like this and inflationary pressures. What I'm saying is that continues to be our strongest lever, and we're evaluating that as we speak. We will continue to protect our margins, and we have to. These inflationary things are hitting us, they're hitting our customers, they're hitting everyone.

Speaker #3: At that time, we were also anticipating that this was going to be short-lived. As we see it continue to drag on, I mean, that's where we've told you in the past, and we'll continue to be very disciplined around that.

Speaker #3: Prices are the biggest lever when it comes to overcoming headwinds like this and inflationary pressures. And so what I'm saying is, that continues to be our strongest lever.

Speaker #3: And we're evaluating that as we speak, and we will continue to protect our margins—and we have to. I mean, that's what these inflationary things are hitting us.

Speaker #3: They're hitting our customers. They're hitting everyone. So it's not like there's one side of the supply chain that's isolated in that. And so our expectations would be that we continue to be very disciplined around our pricing approach.

Ronnie A. Pruitt: It's not like there's one side of the supply chain that's isolated in that. Our expectations would be that we continue to be very disciplined around our pricing approach. I would tell you more color on that as we work through the year. It's a very fluid situation with what we see oil prices doing, and they just became more sticky than three months ago, we thought it would be a little less sticky than this, and they haven't been. We're going to continue to look at that. Again, that's our biggest lever. We'll continue to exercise our ability to protect the margins that we have.

Ronnie Pruitt: It's not like there's one side of the supply chain that's isolated in that. Our expectations would be that we continue to be very disciplined around our pricing approach. I would tell you more color on that as we work through the year. It's a very fluid situation with what we see oil prices doing, and they just became more sticky than three months ago, we thought it would be a little less sticky than this, and they haven't been. We're going to continue to look at that. Again, that's our biggest lever. We'll continue to exercise our ability to protect the margins that we have.

Speaker #3: And so I would tell you more color on that as we work through the year. But it's a very fluid situation with what we see oil prices doing.

Speaker #3: And they just became more sticky than three months ago. We thought it would be a little less sticky than this, and they haven't been.

Speaker #3: And so we're going to continue to look at that. But again, that's our biggest lever, so we'll continue to exercise our ability to protect the margins that we have.

Speaker #7: That's very helpful. And then, maybe just on the M&A pipeline—I guess some of your closest peers have done some larger, more kind of transformative deals.

Angel Castillo: That's very helpful. Maybe on the M&A pipeline, I guess some of your closest peers have done some larger, more kind of transformative deals. Was hoping you could talk about your pipeline of potential M&A, whether that includes anything more transformative or remind us how we should be thinking about the evolution of your strategy, key areas of interest and potential size of that pipeline and what you have coming forward.

Speaker #7: So, we're hoping you could just talk about your, I guess, your pipeline of potential M&A—just whether that includes anything more transformative, or just remind us how we should be thinking about the evolution of your strategy. Just key areas of interest and the potential size of that pipeline, and what you have coming forward.

Speaker #3: Yeah. I would say, in my prepared remarks, I said we have a healthy pipeline, and we will most likely see some of those transitions or transactions closed.

Ronnie A. Pruitt: Yeah, I would say, in my prepared remarks, I said we have a healthy pipeline. We will most likely see some of those transition or transactions closed in H2 of the year. Those transactions for us are going to continue to be very aggregate discipline. Look, we're good at what we do. We're good at aggregates. We're going to be the most pure play aggregate company when all these other deals that are announced in the market gets done. We like what we do. What you will see out of us is very much a disciplined approach to continuing to do what we're good at. That's producing and driving value for our shareholders based on the aggregate business.

Ronnie Pruitt: Yeah, I would say, in my prepared remarks, I said we have a healthy pipeline. We will most likely see some of those transition or transactions closed in H2 of the year. Those transactions for us are going to continue to be very aggregate discipline. Look, we're good at what we do. We're good at aggregates. We're going to be the most pure play aggregate company when all these other deals that are announced in the market gets done. We like what we do. What you will see out of us is very much a disciplined approach to continuing to do what we're good at. That's producing and driving value for our shareholders based on the aggregate business.

Speaker #3: In the second half of the year. But those transactions for us are going to continue to be very, very aggregate. Discipline. I mean, look, we're good at what we do.

Speaker #3: We're good at aggregates. We're going to be the most pure-play aggregate company when all these other deals that are announced in the market get done.

Speaker #3: And so we like what we do. And so what you will see out of us is very much disciplined approach to continuing to do what we're good at.

Speaker #3: And that's producing and driving value for our shareholders based on the aggregate business. So, nothing we do, nothing we have in the pipeline, or anything you see us announce in the future will be of any surprise.

Ronnie A. Pruitt: Nothing we do or nothing we have in the pipeline or anything you see us announce in the future will be of any surprise.

Ronnie Pruitt: Nothing we do or nothing we have in the pipeline or anything you see us announce in the future will be of any surprise.

Speaker #7: Very helpful. Thank you.

Angel Castillo: Very helpful. Thank you.

Speaker #1: We'll take our next question now from Rohit Seth at B. Riley.

Operator 2: We'll take our next question now from Rohit Seth at B. Riley.

Operator: We'll take our next question now from Rohit Seth at B. Riley.

Speaker #6: Hey, thanks for taking my question. Just on your prepared remarks—you had touched on the Build 250 Act, and you compared and contrasted it to the IJA. You mentioned something about more new construction in the Build 250.

Rohit Seth: Thanks for taking my question. Just on your prepared remarks, you had touched on the BUILD 250 Act, and you compared contrast to the IIJA. You mentioned something about more new construction in the BUILD 250. I just wonder if you can elaborate on that.

Speaker #6: I just wonder if you can elaborate on that.

Speaker #3: Yeah, Rohit, I would tell you, as we look at the Build America 250, there are two things there. Really, when we look at the aggregate intensity of the projects that we believe will happen because of going back to a matching program instead of the grants program.

Ronnie A. Pruitt: Yeah. Rohit, I would tell you as we look at the BUILD America 250, two things there, really, when we look at the aggregate intensity of the projects that we believe will happen because of going back to a matching program instead of the grants program. That's one that we believe when you go back to the old formulas that we've experienced in the past, you're really going to rely on getting money to states where the miles are, which is where Vulcan's footprint is. That's why we continue to say that's going to be better aggregate intensive for us, as well as the bridge program. As you unwind kind of the headline number, remember with IIJA, there was a lot of other stuff in it.

Ronnie Pruitt: Yeah. Rohit, I would tell you as we look at the BUILD America 250, two things there, really, when we look at the aggregate intensity of the projects that we believe will happen because of going back to a matching program instead of the grants program. That's one that we believe when you go back to the old formulas that we've experienced in the past, you're really going to rely on getting money to states where the miles are, which is where Vulcan's footprint is. That's why we continue to say that's going to be better aggregate intensive for us, as well as the bridge program. As you unwind kind of the headline number, remember with IIJA, there was a lot of other stuff in it.

Speaker #3: And that's one that we believe, when you go back to the old formulas that we've experienced in the past, you're really going to rely on getting money to states where the miles are, which is where Vulcan's footprint is.

Speaker #3: And so that's why we continue to say that's going to be better aggregate-intensive for us, as well as the Bridge Program. And so as you unwind kind of the headline number—and remember, with IJA, there was a lot of other stuff in it.

Speaker #3: There was a lot of green projects, a lot of buses, and other things that had no aggregate consumption whatsoever. It was a great headline number.

Ronnie A. Pruitt: There was a lot of green projects, a lot of buses and other things that had no aggregate consumption whatsoever. It was a great headline number. We really focused on what was moving the needle with aggregates. You really talk about highway, those infrastructure projects, and then you layer in the bridge side. As we look at it today with what came out of the House version of it, we're pleased with that, and I think the Senate will take that on. As I said, we're most likely going to get a continued resolution. We're fine with that. We think we're in a good place with the House version of it. We're pleased with, we think the Senate has the ability to add more to that. It's going to be more aggregate intense, which is good for us.

Ronnie Pruitt: There was a lot of green projects, a lot of buses and other things that had no aggregate consumption whatsoever. It was a great headline number. We really focused on what was moving the needle with aggregates. You really talk about highway, those infrastructure projects, and then you layer in the bridge side. As we look at it today with what came out of the House version of it, we're pleased with that, and I think the Senate will take that on. As I said, we're most likely going to get a continued resolution. We're fine with that. We think we're in a good place with the House version of it. We're pleased with, we think the Senate has the ability to add more to that. It's going to be more aggregate intense, which is good for us.

Speaker #3: But when you unpack it all, we really focused on what was moving the needle with aggregates. You really talk about highway, those infrastructure projects, and then you layer in the bridge side.

Speaker #3: And so, as we look at it today with what came out of the House version of it, we're pleased with that. And I think the Senate will take that on.

Speaker #3: And as I said, we're most likely going to get a continuing resolution. We're fine with that. We think we're in a good place with the House version of it.

Speaker #3: We're pleased with it, and we think the Senate has the ability to add more to that. But it's going to be more aggregate-intensive, which is good for us.

Speaker #6: So ultimately, the takeaway for you guys is the Build 250 is better for the business than the IJA was?

Rohit Seth: Ultimately, the takeaway for you guys is the BUILD 250 is better for the business than the IIJA was?

Speaker #3: I think, when you wind back to what was truly focused on highway infrastructure and bridges, yes. Thank you.

Ronnie A. Pruitt: I think when you wind back to what was truly focused on highway infrastructure and bridges, yes.

Ronnie Pruitt: I think when you wind back to what was truly focused on highway infrastructure and bridges, yes.

Rohit Seth: Mm-hmm. Okay. Thank you.

Ronnie A. Pruitt: Thank you.

Ronnie Pruitt: Thank you.

Speaker #1: We'll go next now to Ivan Yee with Wolfe Research.

Operator 2: We'll go next now to Ivan Gee with Wolfe Research.

Operator: We'll go next now to Ivan Yi with Wolfe Research.

Speaker #5: Hey. Good morning, guys. Thanks for the time. Speaking with pricing, just a quick clarification. Are any of the mid-year price increases included in your unchanged guidance or the mid-year's incremental to that?

Ivan Gee: Hey, good morning, guys. Thanks for the time. Sticking with pricing, just a quick clarification. Are any of the mid-year price increases included in your unchanged guidance, or are the mid-years incremental to that? Also, costs exceeded pricing by about 200 basis points. When do you expect this price cost spread to inflect positive? Can we see pricing exceed costs in Q3, in Q4? Thank you.

Ivan Yi: Hey, good morning, guys. Thanks for the time. Sticking with pricing, just a quick clarification. Are any of the mid-year price increases included in your unchanged guidance, or are the mid-years incremental to that? Also, costs exceeded pricing by about 200 basis points. When do you expect this price cost spread to inflect positive? Can we see pricing exceed costs in Q3, in Q4? Thank you.

Speaker #5: And then also, costs exceeded pricing by about 200 basis points. When do you expect this price-cost spread to inflect positive? Can we see pricing exceed costs in 3Q, in 4Q?

Speaker #5: Thank you.

Speaker #3: Yeah, I would say, as we exit the year—we talked about that on our last call. Look, when we came into the year, we said costs were going to be higher on the front end, and price was going to be slower to develop.

Ronnie A. Pruitt: Yeah, I would say as we exit the year, we talked about that on our last call. Look, when we came into the year, we said costs were going to be higher on the front end and price was going to be slower to develop, and we would exit the year with price being higher and costs being lower, which is what's in our guidance, and you can see that. I would tell you that when we look at our guidance, all of it's in. When we think about what's happening in the mid-years, we think about where we're at in all the markets, that's what our best view of it is today. What's not in it is if we decide to pull things forward and try to move the price again for the remainder of the year. That's not in there.

Ronnie Pruitt: Yeah, I would say as we exit the year, we talked about that on our last call. Look, when we came into the year, we said costs were going to be higher on the front end and price was going to be slower to develop, and we would exit the year with price being higher and costs being lower, which is what's in our guidance, and you can see that. I would tell you that when we look at our guidance, all of it's in. When we think about what's happening in the mid-years, we think about where we're at in all the markets, that's what our best view of it is today. What's not in it is if we decide to pull things forward and try to move the price again for the remainder of the year. That's not in there.

Speaker #3: And we would exit the year with price being higher and costs being lower, which is what's in our guidance. And you can see that.

Speaker #3: I would tell you that, when we look at our guidance, all of it's in. I mean, when we think about what's happening in the mid-years, we think about where we're at in all the markets.

Speaker #3: I mean, that's what our best view of it is today. And again, what's not in there is if we decide to pull things forward and try to move the price again for the remainder of the year.

Speaker #3: That's not in there. But as we sit today, with the success we had in mid-years and where we see things as we sit today, that is in our numbers.

Ronnie A. Pruitt: As we sit today with the success we had in mid-years and where we see things as we sit today, that is in our numbers. That's where we're saying that 4% to 6%, and we say we'll exit the year at the higher end of that range of the 4% to 6%. The pricing will continue to accelerate throughout the year and cost will continue to decelerate.

Ronnie Pruitt: As we sit today with the success we had in mid-years and where we see things as we sit today, that is in our numbers. That's where we're saying that 4% to 6%, and we say we'll exit the year at the higher end of that range of the 4% to 6%. The pricing will continue to accelerate throughout the year and cost will continue to decelerate.

Speaker #3: I mean, that's where we're saying that 4 to 6. And we say we'll exit the year at the higher end of that range, the 4 to 6.

Speaker #3: And so the pricing will continue to accelerate throughout the year, and costs will continue to decelerate.

Speaker #2: Yeah. And in terms of margin, Ivan, obviously the second quarter was pressured with the higher energy. And we do expect those inflationary energy headwinds to continue in the second half.

Mary Andrews Carlisle: Yeah, in terms of margin, Ivan, obviously Q2 was pressured with the higher energy. We do expect those inflationary energy headwinds to continue in H2. I think for H2, we should see some expansion in gross margin year over year, driven largely by Q4. Margins likely will still on a gross margin basis, are likely to still be pressed down in Q3, growing in Q4 and up a little bit overall in H2.

Speaker #2: But I think for the second half, we should see some expansion in gross margin year over year driven largely by the fourth quarter. So margins likely will still on a gross margin basis are likely to still be down in the third quarter.

Speaker #2: Growing in the fourth quarter and up a little bit overall in the back half.

Speaker #5: Thank you so much.

Ivan Gee: Thank you so much.

Ivan Yi: Thank you so much.

Speaker #3: Thanks, Ivan.

Ronnie A. Pruitt: Thanks, Ivan.

Ronnie Pruitt: Thanks, Ivan.

Speaker #1: We'll go next now to Michael Dudis with Vertical Research.

Operator 2: We'll go next now to Michael Dudas with Vertical Research.

Operator: We'll go next now to Michael Dudas with Vertical Research.

Speaker #6: Good morning, Mark. Mary Andrews or Ronnie.

Michael Dudas: Good morning, Mark, Mary Andrews, Ronnie.

Speaker #3: Hey, Mark.

Ronnie A. Pruitt: Hey, Michael.

Ronnie Pruitt: Hey, Michael.

Mary Andrews Carlisle: Morning.

Speaker #2: Good morning.

Speaker #6: Hey, maybe you can, Ronnie, share some thoughts on, over the last 18 to 24 months, some of the acquisitions and assets you've made? Certainly, we think about the one in North Carolina.

Michael Dudas: Hey, maybe you can, Ronnie, share some thoughts on, over the last 18, 24 months, some of the acquisitions, asset positions you've made. Certainly, we think about the one in North Carolina. How progress has been on a pricing, marketing front, product mix front, getting to the targets where you'd anticipate. Just quickly on the Colorado, it seems like that was opportunistic, but is that a focus area part of the country that you are taking another look at?

Speaker #6: How progress has been on a pricing marketing front, product mix front, getting to the targets where you'd anticipate. And just quickly on the Colorado or the it seems like that was opportunistic, but is there any is that a focus area part of the country that you are taking another look at?

Speaker #3: Yeah. Let me talk about the past first, and then we'll talk about the present. When I think about the acquisitions that we did over the last two years, and really referring to Saphir as well as WAC, in Saphir—look, we've executed exactly what we said.

Ronnie A. Pruitt: Yeah. Let me talk about the past first, and then we'll talk about the present. When I think about the acquisitions that we did over the last 2 years and really referring to Superior as well as Wake. In Superior, look, we've executed exactly what we said. We said we're going to go buy this business. We were going to evaluate the downstream. We wanted it for its aggregates. We were able to execute that. We were able to spin off and redeploy the downstream assets to a very good company in CalPortland, will be a very good customer of ours long term. In the end, we were able to do exactly what we said. We're going to buy the business for the aggregates we wanted.

Ronnie Pruitt: Yeah. Let me talk about the past first, and then we'll talk about the present. When I think about the acquisitions that we did over the last 2 years and really referring to Superior as well as Wake. In Superior, look, we've executed exactly what we said. We said we're going to go buy this business. We were going to evaluate the downstream. We wanted it for its aggregates. We were able to execute that. We were able to spin off and redeploy the downstream assets to a very good company in CalPortland, will be a very good customer of ours long term. In the end, we were able to do exactly what we said. We're going to buy the business for the aggregates we wanted.

Speaker #3: We said we're going to go buy this business. We're going to evaluate the downstream. We wanted it for its aggregates. We were able to execute that.

Speaker #3: We were able to spin off and redeploy the downstream assets. To a very good company, and California Portland, will be a very good customer of ours long-term.

Speaker #3: But in the end, we were able to do exactly what we said. We’re going to buy the business for the aggregates we wanted. I would tell you, in the market there—and in that market—there wasn’t as much separation between where a Vulcan price market would have been and where Saphir was.

Ronnie A. Pruitt: I would tell you in the market there, in that market, there wasn't as many separation between where a Vulcan price market would have been and where Superior was. There was some, and we've been able to focus on getting those operations up to more like a Vulcan standard market when it comes to pricing. I'm very pleased with the execution of our California team. It's not easy when you buy these companies to integrate them and then spin things off, and our California team really stepped up and performed well through all of this time and uncertainty of getting that thing done. When it comes to Wake, I'm extremely pleased with where we're at.

Ronnie Pruitt: I would tell you in the market there, in that market, there wasn't as many separation between where a Vulcan price market would have been and where Superior was. There was some, and we've been able to focus on getting those operations up to more like a Vulcan standard market when it comes to pricing. I'm very pleased with the execution of our California team. It's not easy when you buy these companies to integrate them and then spin things off, and our California team really stepped up and performed well through all of this time and uncertainty of getting that thing done. When it comes to Wake, I'm extremely pleased with where we're at.

Speaker #3: But there was some, and we've been able to focus on getting those operations up to more like a Vulcan standard market when it comes to pricing and I'm very pleased with the execution of our California team and it's not easy.

Speaker #3: When you buy these companies to integrate them and then spin things off and our California team really stepped up and performed well through all of this time and uncertainty of getting that thing done.

Speaker #3: When it comes to Wake, I'm extremely pleased with where we're at. I would tell you, we said going into, when we closed on Wake, that it was significantly below the Vulcan standards when it came to what we felt like the value of those products should be.

Ronnie A. Pruitt: I would tell you, we said going into when we closed on Wake, that it was significantly below the Vulcan standard when it came to what we felt like the value of those products should be. That team and instituting our Vulcan Way of Selling and the disciplines around that, and really the ownership of that local team as well, has really performed well. I would tell you, we said it was going to take a couple of years, I would tell you we're right on schedule. I'm very pleased with where we're at. The acquisition is doing exactly what we thought it would. As we look forward, that's the things that we're going to be really good at.

Ronnie Pruitt: I would tell you, we said going into when we closed on Wake, that it was significantly below the Vulcan standard when it came to what we felt like the value of those products should be. That team and instituting our Vulcan Way of Selling and the disciplines around that, and really the ownership of that local team as well, has really performed well. I would tell you, we said it was going to take a couple of years, I would tell you we're right on schedule. I'm very pleased with where we're at. The acquisition is doing exactly what we thought it would. As we look forward, that's the things that we're going to be really good at.

Speaker #3: And that team, in instituting our Vulcan web selling and the disciplines around that, and really the ownership of that local team as well, has really performed well.

Speaker #3: And I would tell you we said it was going to take a couple of years, and I would tell you we're right on schedule.

Speaker #3: I mean, and I'm very pleased with where we're at. The acquisition is doing exactly what we thought it would. And so as we look forward, I mean, that's the things that we're going to be really good at.

Speaker #3: We're going to continue to focus on those kind of businesses that are aggregates led, the things we can institute Vulcan web selling, institute Vulcan web operating, and continue to drive margin improvement.

Ronnie A. Pruitt: We're going to continue to focus on those kind of businesses that are aggregates led, the things we can institute Vulcan Way of Selling, institute Vulcan Way of Operating, and continue to drive margin improvement. Brannan was an opportunity for us. When you look at Brannan, it's a small one. It's an entrance into Colorado, yes. About half of the volume out of that, let's roughly say about 1 million to 1.5 million tons of annual production out of Brannan. About half of that stays locally. It's on the south side of Denver, so it does reach into the southern Denver market. The other half comes to DFW in Dallas-Fort Worth, and the rail facility that we acquired there, if you were leaving Fort Worth driving west, the rail facility is just on the west side of Fort Worth, and then you would hit our Weatherford quarry.

Ronnie Pruitt: We're going to continue to focus on those kind of businesses that are aggregates led, the things we can institute Vulcan Way of Selling, institute Vulcan Way of Operating, and continue to drive margin improvement. Brannan was an opportunity for us. When you look at Brannan, it's a small one. It's an entrance into Colorado, yes. About half of the volume out of that, let's roughly say about 1 million to 1.5 million tons of annual production out of Brannan. About half of that stays locally. It's on the south side of Denver, so it does reach into the southern Denver market. The other half comes to DFW in Dallas-Fort Worth, and the rail facility that we acquired there, if you were leaving Fort Worth driving west, the rail facility is just on the west side of Fort Worth, and then you would hit our Weatherford quarry.

Speaker #3: Brandon was an opportunity for us. When you look at Brandon, it's a small one. It's an entrant into Colorado, yes. About half of the volume out of that, let's roughly say about a man to a man and a half tons of annual production out of Brandon.

Speaker #3: About half of that stays locally. It's on the south side of Denver. So it does reach into the southern Denver market. But the other half comes to DFW and Dallas-Fort Worth.

Speaker #3: And the rail facility that we acquired there, if you were leaving Fort Worth driving west, the rail facility is just on the west side of Fort Worth.

Speaker #3: And then you would hit our Weatherford Quarry, and so very complementary to our market strategy there. Again, dealing with selling to the same customers that we're already familiar with, that are familiar with Vulcan and our strategy, and what we're going to do.

Ronnie A. Pruitt: Very complimentary to our market strategy there. Again, dealing with selling to the same customers that we're already familiar with, that are familiar with Vulcan and our strategy and what we're going to do. I'd say Brannan is a small, it's pretty much a bolt-on, but it also gives us some access to a new market. I would say the things that I talk about in the future, those are the things that we're going to continue to focus on. The ones that we can do, the ones that are very aggregate intensive, the ones that are easy for us to integrate, and the ones that we can continue to institute Vulcan Way of Operating and Vulcan Way of Selling disciplines in and drive margin improvement. I'm very pleased with where we're at.

Ronnie Pruitt: Very complimentary to our market strategy there. Again, dealing with selling to the same customers that we're already familiar with, that are familiar with Vulcan and our strategy and what we're going to do. I'd say Brannan is a small, it's pretty much a bolt-on, but it also gives us some access to a new market. I would say the things that I talk about in the future, those are the things that we're going to continue to focus on. The ones that we can do, the ones that are very aggregate intensive, the ones that are easy for us to integrate, and the ones that we can continue to institute Vulcan Way of Operating and Vulcan Way of Selling disciplines in and drive margin improvement. I'm very pleased with where we're at.

Speaker #3: And so, I'd say Brandon is a small—it's pretty much a bolt-on, but it also gives us some access to a new market. And I would say, the things that I talk about in the future, those are the things that we're going to continue to focus on.

Speaker #3: The ones that we can do, the ones that are very aggregate-intensive, the ones that are easy for us to integrate, and the ones where we can continue to institute Vulcan web operating and Vulcan web selling disciplines.

Speaker #3: And drive margin improvement. So I'm very pleased with where we're at. Thank you.

Michael Dudas: Excellent, Ronnie. Thank you.

Mark D. Warren: Thank you.

Mark Warren: Thank you.

Speaker #1: We'll go next now to Brent Thielman of Oppenheimer.

Operator 2: We'll go next now to Brent Thielman of Oppenheimer.

Operator: We'll go next now to Brent Thielman of Oppenheimer.

Brent Thielman: Hey, thanks. Hey, Ronnie, when you look across the footprint, wanted to get your reaction just to how competitors have responded with price increases. Are you seeing any higher frequency of attempts to capture share by competitors just by holding price? Maybe there was a view energy cost inflation would be temporary, so they're in a holding pattern. Has the response been pretty rational just to higher costs? I guess also just wondering if any of that's implicit in your volume outlook as well.

Speaker #6: Hey. Thanks. Hey, Ronnie, when you look across the footprint, wanted to get your reaction just to how competitors have responded with price increases. Are you seeing any higher frequency of attempts to capture share by competitors just by holding price?

Speaker #6: Maybe there was a view that energy cost inflation would be temporary, so they're in a holding pattern. Or has the response just been pretty rational to higher costs?

Speaker #6: And I guess, also just wondering if any of that's implicit in your volume outlook as well.

Speaker #3: Yeah. I would tell you, look, I mean, at the end of the day, inflationary pressures—whether they're diesel or whether they're other factors involved in it—no one's immune to that.

Ronnie A. Pruitt: Yeah, I would tell you, look, at the end of the day, inflationary pressures, whether they're diesel or whether there are other factors involved in it, no one's immune to that. Everybody feels it, and that includes our downstream customers feel it. Everyone feels it. I would tell you the reactions and the disciplines and all those things have been as expected. Everyone's in this for the long term, even though we're measured in very short-term increments of Q2 to Q2. We still have to focus on this business long term, and I would tell you we're in a great position to continue to execute on what we do with Vulcan Selling and Vulcan Operating. I think our competitors feel the same pressures that we do. In the end, no one is immune to diesel.

Ronnie Pruitt: Yeah, I would tell you, look, at the end of the day, inflationary pressures, whether they're diesel or whether there are other factors involved in it, no one's immune to that. Everybody feels it, and that includes our downstream customers feel it. Everyone feels it. I would tell you the reactions and the disciplines and all those things have been as expected. Everyone's in this for the long term, even though we're measured in very short-term increments of Q2 to Q2. We still have to focus on this business long term, and I would tell you we're in a great position to continue to execute on what we do with Vulcan Selling and Vulcan Operating. I think our competitors feel the same pressures that we do. In the end, no one is immune to diesel.

Speaker #3: And so everybody feels it. That includes our downstream customers—they feel it as well. So everyone feels it. I would tell you the reactions, the disciplines, and all those things have been as expected.

Speaker #3: I mean, I would hope everyone's in this for the long term, even though we're measured in very short-term increments of quarter to quarter. I mean, we still have to focus on this business long term.

Speaker #3: And I would tell you we're in a great position to continue to execute on what we do with Vulcan web selling and Vulcan web operating.

Speaker #3: I mean, I think our competitors feel the same pressures that we do. And so in the end, no one is immune to diesel. Everyone has to use it.

Ronnie A. Pruitt: Everyone has to use it, and it's just a part of the production process and everything we touch. I would tell you, when things like that happen, everybody feels it. Will everybody react the same? I don't know. In the end, I think we're in a very disciplined market, and I like the position we're in.

Ronnie Pruitt: Everyone has to use it, and it's just a part of the production process and everything we touch. I would tell you, when things like that happen, everybody feels it. Will everybody react the same? I don't know. In the end, I think we're in a very disciplined market, and I like the position we're in.

Speaker #3: And it's just part of the production process and everything we touch. And so I would tell you, when things like that happen, everybody feels it.

Speaker #3: Will everybody react the same? I don't know. But in the end, I think we're in a very disciplined market. And I like the position we're in.

Speaker #6: Okay. Thank you.

Brent Thielman: Okay. Thank you.

Speaker #1: We'll go next now to David McGregor at Longbow Research.

Operator 2: We'll go next now to David MacGregor at Longbow Research.

Operator: We'll go next now to David MacGregor at Longbow Research.

Speaker #7: Yeah. Good morning, everyone. Thanks for taking my question. Ronnie, I guess I wanted you to talk about the continuing resolution, and it's pretty clear that's where we're heading.

David MacGregor: Yeah, good morning, everyone, thanks for taking my question.

Ronnie A. Pruitt: Good morning.

Ronnie Pruitt: Good morning.

David MacGregor: Ronnie, you talked about the continuing resolution, and it's pretty clear that's where we're heading. I wonder if I could get you to just talk a little bit about how you grow shipments in that kind of environment. I guess the quick and dirty is nothing changes in a continuing resolution. We just kind of stay the course. I wonder if I could get you to just maybe give us a little more of a nuanced look. What changes in terms of the competitive position? Does it trigger change in how you may win in non-res business? How do people respond to that condition?

Speaker #7: I wonder if I could get you to just talk a little bit about how you grow shipments in that kind of an environment. And I guess—sorry about that.

Speaker #7: I guess the quick and dirty answer is: nothing changes in a continuing resolution—we just kind of stay the course. But I wonder if I could get you to maybe give us a little more of a nuanced look at what changes in terms of the competitive position?

Speaker #7: Does it trigger change in how you may win in non-res business? How do people respond to that condition?

Speaker #3: Yeah. I mean, look, this is not abnormal for us to go through a continued resolution. We've had lots of them in the past. And we'll have probably lots of them in the future.

Ronnie A. Pruitt: Yeah, look, this is not abnormal for us to go through a continuing resolution. We've had lots of them in the past, and we'll have probably lots of them in the future, and that's just kind of the way that the DC model and getting things through the House and the Senate work. I would tell you, we don't see it as any change. Look, the continuing resolution continues to spend at current levels. You got a lot of carryover with IIJA, I think that's going to be the unique thing about the transition of this bill. Historically, we haven't had that much carryover between bill to bill. We still, when we talk about the 60% of funds that are still going to be spent as a carryover, so you got that. You got really healthy state budgets as well.

Ronnie Pruitt: Yeah, look, this is not abnormal for us to go through a continuing resolution. We've had lots of them in the past, and we'll have probably lots of them in the future, and that's just kind of the way that the DC model and getting things through the House and the Senate work. I would tell you, we don't see it as any change. Look, the continuing resolution continues to spend at current levels. You got a lot of carryover with IIJA, I think that's going to be the unique thing about the transition of this bill. Historically, we haven't had that much carryover between bill to bill. We still, when we talk about the 60% of funds that are still going to be spent as a carryover, so you got that. You got really healthy state budgets as well.

Speaker #3: And that's just kind of the way that the D.C. model and getting things through the House and the Senate work. I would tell you we don't see it as any change.

Speaker #3: Look, the continuing resolution continues to spend at current levels. You have a lot of carryover with IIJA, and I think that's going to be the unique thing about the transition of this bill.

Speaker #3: Historically, we haven't had that much carryover between bill to bill. And so we still when we talk about the 60% of funds that are still going to be spent as the carryover.

Speaker #3: So you got that. You got really healthy state budgets as well. And so remember, federal spending is only a third of the way we look at public funding.

Ronnie A. Pruitt: Remember, federal spending is only a third of the way we look at public funding. I think we're in a good position. Look, we want slow and steady growth. We've said through all of IIJA, everyone was waiting on, well, when's that big step change coming? It wasn't going to happen. It's going to be slow and steady because that's the way work gets performed. That's the way the states let it, that's the way the contractors look at it, and that's the way they actually perform the work. I look at it, I don't see any disruption as far as the public side. I think we're going to continue to be slow and steady. I think public will continue to be in growth mode. I think we got healthy states. I think we got healthy local measures.

Ronnie Pruitt: Remember, federal spending is only a third of the way we look at public funding. I think we're in a good position. Look, we want slow and steady growth. We've said through all of IIJA, everyone was waiting on, well, when's that big step change coming? It wasn't going to happen. It's going to be slow and steady because that's the way work gets performed. That's the way the states let it, that's the way the contractors look at it, and that's the way they actually perform the work. I look at it, I don't see any disruption as far as the public side. I think we're going to continue to be slow and steady. I think public will continue to be in growth mode. I think we got healthy states. I think we got healthy local measures.

Speaker #3: And so I think we're in a good position. But I mean, look, we want slow and steady growth. And we've said through all of IJA, everyone was waiting on, well, when's that big step change coming?

Speaker #3: It wasn't going to happen. I mean, it's going to be slow and steady because that's the way work gets performed. That's the way the states let it.

Speaker #3: That's the way the contractors look at it, and that's the way they actually perform the work. So, when I look at it, I don't see any disruption as far as the public side.

Speaker #3: I think we're going to continue to be slow and steady. I think public will continue to be in growth mode. I think we got healthy states.

Speaker #3: I think we've got healthy local measures. I think we've got other ways that we're funding projects as well. And so I don't see any disruption. Is it going to change the way you look at private non-res and large projects and all that?

Ronnie A. Pruitt: I think we got other ways that we're funding projects as well. I don't see any disruption of, is it going to change the way you look at private non-res and large projects and all that? No, I don't believe so. We got good visibility, and we continue to rely on public being very steady.

Ronnie Pruitt: I think we got other ways that we're funding projects as well. I don't see any disruption of, is it going to change the way you look at private non-res and large projects and all that? No, I don't believe so. We got good visibility, and we continue to rely on public being very steady.

Speaker #3: No, I don't believe so. We've got good visibility, and we continue to rely on public being very steady.

Speaker #7: Does it change how you think about CapEx when you get into that state?

David MacGregor: Does it change how you think about CapEx when you get into that state?

Speaker #3: No. No. It does not.

Ronnie A. Pruitt: No. It does not.

Ronnie Pruitt: No. It does not.

Speaker #7: very much.

David MacGregor: Thanks very much.

Speaker #3: Thank you.

Ronnie A. Pruitt: Thank you.

Ronnie Pruitt: Thank you.

Speaker #1: We'll go next now to Brian Brophy at Stiefel.

Operator 2: We'll go next now to Brian Brophey at Stifel.

Operator: We'll go next now to Brian Brophey at Stifel.

Speaker #5: Yeah, thanks. Good morning, everybody. Appreciate you taking my question. Just kind of continuing the conversation on the public side. Realize it's a moving target, but what are your latest thoughts on when we may see a new federal infrastructure bill?

Brian Brophey: Yeah, thanks. Good morning, everybody. Appreciate you taking my question. Just kind of continuing the conversation on the public side. Realize it's a moving target, but what are your latest thoughts on when we may see a new federal infrastructure bill? Thanks.

Brian Brophy: Yeah, thanks. Good morning, everybody. Appreciate you taking my question. Just kind of continuing the conversation on the public side. Realize it's a moving target, but what are your latest thoughts on when we may see a new federal infrastructure bill? Thanks.

Speaker #5: Thanks.

Speaker #3: I would tell you we're definitely headed straight towards a continuing resolution. And then time will tell whether that's before midterms or not. I wouldn't get caught up in it, because in the end, I think a continuing—we've had them where they've lasted a year.

Ronnie A. Pruitt: I would tell you, we're definitely headed straight towards a continuing resolution, time will tell whether that's before midterms or not. I wouldn't get caught up in it because at the end, I think a continuing res-- We've had them where they've lasted a year. We've had them where they've lasted longer than a year. In the end, we've got a healthy level of spending. Remember, a continuing resolution continues that healthy level of spending. I don't want to try to predict that. If you can predict anything in DC today, good luck. In the end, let's just focus on, we've got methods in place to continue public funding at a very healthy spot, and we're pleased with that.

Ronnie Pruitt: I would tell you, we're definitely headed straight towards a continuing resolution, time will tell whether that's before midterms or not. I wouldn't get caught up in it because at the end, I think a continuing res-- We've had them where they've lasted a year. We've had them where they've lasted longer than a year. In the end, we've got a healthy level of spending. Remember, a continuing resolution continues that healthy level of spending. I don't want to try to predict that. If you can predict anything in DC today, good luck. In the end, let's just focus on, we've got methods in place to continue public funding at a very healthy spot, and we're pleased with that.

Speaker #3: We've had them where they've lasted longer than a year. In the end, we've got a healthy level of spending. And remember, a continuing resolution continues that healthy level of spending.

Speaker #3: And so I don't want to try to predict that. I mean, if you can predict anything in D.C. today, good luck. So, in the end, let's just focus on the fact that we've got methods in place to continue public funding at a very healthy spot.

Speaker #3: And we're pleased with that. Thank you.

Brian Brophey: Appreciate it.

Brian Brophy: Appreciate it.

Ronnie A. Pruitt: Thank you.

Ronnie Pruitt: Thank you.

Speaker #1: Thank you. We'll go next to Garrett Greenblatt at J.P. Morgan.

Operator 2: Thank you. We'll go next now to Garrett Greenblatt at JPMorgan.

Operator: Thank you. We'll go next now to Garrett Greenblatt at JPMorgan.

Speaker #6: All right. Thanks for taking my question. I'm going to manside power generation has come up a few times earlier in the call. I'm curious if you could help us size out the impact of that to demand volumes.

Garrett Greenblatt: Thanks for taking my question. On the demand side, power generation has come up a few times earlier in the call. I'm curious if you could help us size out the impact of that to demand volumes. I think, when we think about data centers, it's something like 3% to 5% of your overall volumes. I wonder if you could put some numbers around power generation and where that could go over the next couple of years into 2027, 2028.

Speaker #6: I think when we think about data centers, it's something like 3% to 5% of your overall volumes. I wonder if you could put some numbers around power generation and where that could go over the next couple of years, into 2027 or 2028.

Speaker #3: Yeah, I mean, it's hard to predict today. It represents a very low percentage because, if you think about power generation in the country, it's been a very slow growth area because of the way that they have to plan capital and the way they have to get their approvals.

Ronnie A. Pruitt: Yeah. It's hard to predict today. It represents a very low percentage because if you think about power generation in the country, it's been a very slow growth area because of the way that they have to plan capital, the way they have to get their approvals. We haven't seen power generation being a tailwind for a long time. I think you look at it in terms of the next four to five years and not the next year, because it's not going to be a short-term blip. These are things that take a lot of planning, a lot of regulatory. Each individual state has its own ways if they're going to have to address that. I would look at it as another form of aggregate consumption long-term that's going to build in consistency in aggregate supply.

Ronnie Pruitt: Yeah. It's hard to predict today. It represents a very low percentage because if you think about power generation in the country, it's been a very slow growth area because of the way that they have to plan capital, the way they have to get their approvals. We haven't seen power generation being a tailwind for a long time. I think you look at it in terms of the next four to five years and not the next year, because it's not going to be a short-term blip. These are things that take a lot of planning, a lot of regulatory. Each individual state has its own ways if they're going to have to address that. I would look at it as another form of aggregate consumption long-term that's going to build in consistency in aggregate supply.

Speaker #3: We haven't seen power generation being a tailwind for a long time, and so I think you look at it in terms of the next four to five years and not the next year, because it's not going to be a short-term blip.

Speaker #3: I mean, these are things that take a lot of planning, a lot of regulatory work. Each individual state has its own ways if they're going to have to address that.

Speaker #3: And so I would look at it as another form of aggregate consumption long-term that's going to build in consistency and aggregate supply. But I wouldn't get ahead of it, saying it's going to look similar to data centers, because it just can't move that fast.

Ronnie A. Pruitt: I wouldn't get ahead of it saying it's going to look similar to data centers because it just can't move that fast.

Ronnie Pruitt: I wouldn't get ahead of it saying it's going to look similar to data centers because it just can't move that fast.

Speaker #6: Gotcha. Makes sense. Thank you.

Garrett Greenblatt: Got you. Makes sense. Thank you.

Speaker #3: Thank you.

Speaker #1: Thank you. Mr. Pruitt, it appears we have no further questions, sir. I'd like to turn the conference back to you for any closing comments.

Ronnie A. Pruitt: Thank you.

Ronnie Pruitt: Thank you.

Operator 2: Thank you. Mr. Pruitt, it appears we have no further questions, sir. I'd like to turn the conference back to you for any closing comments.

Operator: Thank you. Mr. Pruitt, it appears we have no further questions, sir. I'd like to turn the conference back to you for any closing comments.

Speaker #3: Thank you, Beau. And thank you all for joining our call today. Our first-half results demonstrate the resiliency of our uniquely advantaged, pure-play aggregates business.

Ronnie A. Pruitt: Thank you, Bo. Thank you all for joining our call today. Our H1 results demonstrate the resiliency of our uniquely advantaged pure-play aggregates business. I am confident that we have the right strategy and the right people to execute that strategy to create long-term value for our shareholders. We look forward to speaking with you next quarter. Thank you.

Ronnie Pruitt: Thank you, Bo. Thank you all for joining our call today. Our H1 results demonstrate the resiliency of our uniquely advantaged pure-play aggregates business. I am confident that we have the right strategy and the right people to execute that strategy to create long-term value for our shareholders. We look forward to speaking with you next quarter. Thank you.

Speaker #3: I am confident that we have the right strategy and the right people to execute that strategy to create long-term value for our shareholders. We look forward to speaking with you next quarter.

Speaker #3: Thank you.

Speaker #1: Thank you, Mr. Pruitt, and thank you, Ms. Carlisle. Again, ladies and gentlemen, this will conclude the Vulcan Materials Company second quarter earnings call. Again, thanks so much for joining us, everyone.

Operator 2: Thank you, Mr. Pruitt, and thank you, Ms. Carlisle. Again, ladies and gentlemen, this will conclude the Vulcan Materials Company Q2 earnings call. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.

Operator: Thank you, Mr. Pruitt, and thank you, Ms. Carlisle. Again, ladies and gentlemen, this will conclude the Vulcan Materials Company Q2 earnings call. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.

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