Vulcan Materials (NYSE: VMC) reported Q3 2026 revenue of $2.185 billion, down 4.7% from $2.292 billion a year earlier, while GAAP diluted EPS from continuing operations edged down to $2.81 from $2.83. Lower aggregates shipments and divested non-aggregates operations reduced sales, but higher pricing, cost control and lower administrative expense helped adjusted EBITDA margin rise to 32.3% from 32.1%.
Core Earnings Results
Revenue and earnings declined at similar rates as lower shipment volumes and portfolio changes outweighed pricing gains. Selling, administrative and general expense fell 6% to $137 million, helping Vulcan preserve its adjusted EBITDA margin despite energy inflation.
Adjusted results were close to their GAAP counterparts because quarterly adjustments were limited. Adjusted diluted EPS from continuing operations was $2.83, compared with GAAP diluted EPS from continuing operations of $2.81.
| Metric | Q3 2026 | Q3 2025 | YoY Change |
|---|---|---|---|
| Revenue | $2,184.6 million | $2,291.5 million | -4.7% |
| Gross profit, GAAP | $665.6 million | $697.2 million | -4.5% |
| Operating earnings, GAAP | $524.6 million | $543.2 million | -3.4% |
| Net earnings attributable to Vulcan, GAAP | $362.3 million | $374.9 million | -3.4% |
| Diluted EPS from continuing operations, GAAP | $2.81 | $2.83 | -0.7% |
| Adjusted diluted EPS from continuing operations | $2.83 | $2.84 | -0.4% |
| Adjusted EBITDA | $706.7 million | $735.2 million | -3.9% |
| Adjusted EBITDA margin | 32.3% | 32.1% | +20 bps |
Business and Segment Performance
Aggregates remained Vulcan’s primary earnings source. Segment revenue increased despite lower shipments, while gross profit declined as energy and other input costs rose. Asphalt and concrete comparisons were affected by previously completed divestitures.
| Segment | Q3 2026 Revenue | YoY Change | Q3 2026 Gross Profit | YoY Change |
|---|---|---|---|---|
| Aggregates | $1,822.5 million | +1.7% | $593.4 million | -3.1% |
| Asphalt | $381.2 million | -8.4% | $64.2 million | -9.6% |
| Concrete | $92.4 million | -61.1% | $8.0 million | -43.3% |
Segment revenue is presented before intersegment eliminations. The prior-year asphalt results included Vulcan’s Houston asphalt and construction business, which was divested in Q4 2025. The prior-year concrete comparison included California assets divested in Q2 2026.
Asphalt gross margin remained at 17% despite lower shipments and higher liquid asphalt costs. Concrete gross margin expanded to 9%, although the divestiture significantly reduced the segment’s reported revenue base.
Pricing Protected Unit Economics While Energy Costs Rose
Aggregates shipments declined 3% to 62.7 million tons. Management said the prior-year quarter benefited from favorable weather after severe conditions delayed activity during the first half of 2025, creating a more demanding volume comparison.
Freight-adjusted aggregates pricing increased 4% on a reported basis to $22.84 per ton and 5% after adjusting for mix. At the same time, freight-adjusted cash cost of sales increased 7%, or $0.72 per ton, to $10.89. Excluding higher diesel fuel costs, the increase was 3%.
The pricing and cost relationship explains why unit profitability held up better than total segment profit. Aggregates cash gross profit per ton increased modestly to $11.95 from $11.84, while GAAP gross profit per ton remained unchanged at $9.46. Lower total shipments, however, meant stable unit profit did not translate into higher aggregate gross profit.
Profitability, Cash Flow and Balance Sheet
Quarterly cash flow was not provided, so the available comparison covers the first nine months of 2026. Operating cash flow declined 23.5% to $971.0 million from $1.270 billion even as net earnings increased, largely reflecting a larger use of cash from changes in assets and liabilities. Nine-month capital expenditures rose to $548.0 million from $492.9 million.
During Q3, Vulcan spent $174 million on maintenance and growth capital projects. It also returned $417 million to shareholders through $350 million of share repurchases and $67 million of dividends. For the first nine months, repurchases totaled $749.8 million and dividends paid totaled $202.3 million.
At September 30, Vulcan had $106.6 million of cash and cash equivalents and $65.8 million of restricted cash. Total debt was $4.681 billion, while net debt was $4.508 billion. Total debt was 2.0 times trailing-12-month adjusted EBITDA, at the low end of management’s target range of 2.0 to 2.5 times.
Earnings Guidance
Management expects elevated energy inflation to continue into Q4 but said pricing and cost actions are intended to mitigate the pressure. Vulcan expects approximately $2.4 billion of adjusted EBITDA for full-year 2026; the release did not provide a prior figure for comparison.
For 2027, management anticipates a continuation of the current demand environment and another year of earnings growth. Its operating assumptions include mid- to high-single-digit aggregates pricing gains and further expansion in aggregates cash gross profit per ton.
| Outlook Metric | Latest Company Outlook |
|---|---|
| Full-year 2026 adjusted EBITDA | Approximately $2.4 billion |
| 2027 aggregates pricing | Mid- to high-single-digit gains |
| 2027 demand environment | Expected to remain similar to current conditions |
| 2027 earnings | Targeting another year of growth |
Recent Insider Transactions
A separate six-month insider summary reported 123,280 shares purchased across three transactions and 16,000 shares sold across two transactions, resulting in reported net purchases of 107,280 shares. The detailed transaction list included two sales and one derivative-security exercise or conversion with clear dates and reported values.
| Date | Insider | Role | Reported Action | Reported Value |
|---|---|---|---|---|
| Aug. 21, 2026 | James Thomas Hill | Director | Sale at $275.49–$277.09 per share | $3,866,404 |
| Aug. 12, 2026 | James Thomas Hill | Director | Derivative-security exercise/conversion at $113.16–$185.31 per share | $18,709,562 |
| Aug. 7, 2026 | David P. Clement | Officer | Sale at $285.10 per share | $570,200 |
All three entries were reported as direct holdings. The transaction data alone does not establish the insiders’ views on Vulcan’s future performance.
Risks Investors Should Monitor
- Energy inflation: Freight-adjusted aggregates cash cost per ton increased 7%, compared with a 4% reported pricing increase. Continued diesel and liquid asphalt inflation could pressure unit profitability if pricing or operating efficiencies do not keep pace.
- Shipment volumes: Aggregates shipments declined 3% in Q3. Stable unit economics may not support total profit growth if construction demand or shipment activity weakens further.
- Cash conversion: Nine-month operating cash flow fell by $299 million year over year despite higher net earnings, reflecting a larger working-capital use of cash.
- Portfolio and acquisition execution: Divestitures materially affected asphalt and concrete comparisons, while two bolt-on acquisitions expanded Vulcan’s presence in Tennessee and southern Ohio. The financial contribution will depend on successful integration and operating execution.
- Capital allocation and leverage: Vulcan combined acquisitions, capital spending and substantial share repurchases while total debt stood at 2.0 times trailing adjusted EBITDA. Maintaining leverage within the target range will depend on cash generation and earnings performance.
Summary
Vulcan’s Q3 2026 results showed that aggregates pricing and expense control could preserve margins despite lower volumes and energy inflation. Total revenue, net earnings and adjusted EBITDA declined, partly because of divestitures, but aggregates cash gross profit per ton still increased modestly. The main points to watch are diesel costs, shipment demand, cash conversion, acquisition integration and progress toward the approximately $2.4 billion full-year adjusted EBITDA outlook.
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