Vulcan Materials Company (holding Company) · NYSE:VMC
Vulcan Materials Company (holding Company) — Q2 2023 Earnings Presentation
16 slides from Vulcan Materials Company (holding Company)'s earnings presentation, Aug 3, 2023
Slide 1: 2Q 2023 Supplemental Information
2Q 2023 SUPPLEMENTAL INFORMATION AUGUST 3, 2023 1
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Safe Harbor and Non-GAAP Financial Measures This presentation contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance
Slide 3: 2Q 2023 Highlights
2Q 2023 Highlights Top-line growth and execution drove earnings improvement and margin expansion Solid top-line Compounding Aggregates is a Margin Continued growth driven benefits of price/cost winner expansion in earnings growth by pricing consistent both asphalt and disciplined momentum execution
Slide 4: 2Q 2023 Key Performance Indicators – Aggregates
2Q 2023 Key Performance Indicators – Aggregates Pricing momentum and operational execution more than offset the earnings impact of lower volumes Volume 63.4M tons, -1% Freight-Adjusted Price Cash Gross Profit* $18.69/ton, +15% $9.76/ton, +22% Cash Cost of Sales* $8.93/ton, +8% *Non-GAAP measure. See
Slide 5: Aggregates Pricing
Aggregates Pricing Underlying pricing environment remains positive with continued momentum Trailing-Twelve-Months Aggregates Freight-Adjusted Price $18.86 +$2.46 $17.76 $17.10 $16.40 $15.91 +$1.53 $15.41 $15.06 $14.87 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 4Q '23 Guidance 5
Slide 6: 2Q 2023 Key Performance Indicators – Asphalt
2Q 2023 Key Performance Indicators – Asphalt Strong earnings improvement driven by revenue growth and lower liquid asphalt cost Volume 4.0M tons, +16% Average Sales Price Cash Gross Profit* $75.52/ton, +9% $16.48/ton, +156% Cash Cost of Sales* $59.04/ton, -6% *Non-GAAP measure. See appendix for reco
Slide 7: 2Q 2023 Key Performance Indicators – Concrete
2Q 2023 Key Performance Indicators – Concrete Strong unit profitability improvement despite lower volumes Volume 2.1M cyds, -26% Average Sales Price Cash Gross Profit* $163.82/cyd, +10% $22.27/cyd, +24% Cash Cost of Sales* $141.55/cyd, +8% *Non-GAAP measure. See appendix for reconciliation. Prior ye
Slide 8: Financial Position
Financial Position Financial strength and flexibility to sustain and strengthen business operations Committed to target Well positioned for range of 2.0 to 2.5x future growth 2.0x 10.4 years Net Debt to Adjusted Weighted-Average EBITDA* Debt Maturity *Non-GAAP measure. See appendix for reconciliatio
Slide 9: Financial Position
Financial Position Strong cash generation coupled with disciplined capital management drives shareholder value Invested in Deployed capital Returned capital Returned capital maintenance and for strategic to shareholders to shareholders growth capital, acquisitions to through dividends through includ
Slide 10: End Market Outlook Commentary
End Market Outlook Commentary Private • Rate of decline in residential starts is slowing; permits have turned positive in recent months in many markets • Nonresidential activity benefiting from significant federal investment and incentives, led by manufacturing projects Public • Visibility and avail
Slide 11: 2023 Outlook
2023 Outlook First half execution supports upward adjustment in EBITDA guidance Aggregates shipment trends benefiting from large industrial and manufacturing projects and Adjusted EBITDA* better than expected residential construction activity $1.9 to $2.0 billion +17% to +23% Momentum in asphalt dri
Slide 12: Serving the Right U.S. Markets
Serving the Right U.S. Markets Well positioned to capture U.S. market opportunities 90% 60% Revenues tied to Population living markets where Vulcan within 60 miles of a has a #1 or #2 position Vulcan operation 20 of top 25 $20B Fastest growing Aggregates opportunity markets served by in Vulcan-serve
Slide 13: Competing and Winning, Locally
Competing and Winning, Locally Strengthening existing capabilities to drive the next horizon of growth and profitability VWS VWO The Vulcan Way of Selling The Vulcan Way of Operating Commercial Logistics Operational Strategic Excellence Innovation Excellence Sourcing 13
Slide 14: Proven Track Record of Our Aggregates-led Business
Proven Track Record of Our Aggregates-led Business Best-in-class execution leads to resiliency and durability regardless of macro challenges Trailing-Twelve-Months Aggregates Cash Gross Profit / Ton* $8.64 $7.45 $7.26 $6.98 $6.56 $6.02 2Q '18 2Q '19 2Q '20 2Q '21 2Q '22 2Q '23 *Non-GAAP measure. See
Slide 15: Well Positioned for Continued Growth and Value Creation
Well Positioned for Continued Growth and Value Creation Durable Business Industry Leader with Strong Cash Flow Model to Extend the Clear Competitive Generation and Cycle and Sustain Advantages Investment-Grade Growth Balance Sheet 15
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations EBITDA Aggregates Segment Cash Gross Profit and Cash Cost of Sales EBITDA is an acronym for "Earnings Before Interest, Taxes, Depreciation and Amortization" and excludes discontinued operations. GAAP does Aggregates segment cash gross profit adds back noncash charges for dep
Vulcan Materials Company — Q2 2023 Earnings Presentation on 6ix