Executive Summary
Vulcan Materials reported QQ1 2025 revenue of $1.6346 billion, up 5.75% year-over-year, accompanied by a gross margin of 22.35% and an operating margin of 13.85%. Net income was $128.9 million with earnings per share of $0.98, reflecting a 25.6% year-over-year increase in EPS despite a meaningful sequential revenue and margin slowdown quarter-on-quarter. EBITDA stood at $410.2 million (EBITDA margin ~25.1%), underscoring strong cash generation from operations even as the business remains highly capital-intensive.
On the balance sheet and cash flow fronts, Vulcan generated $251.5 million of operating cash flow in the quarter, deployed $168 million in capex, and delivered free cash flow of $83.5 million. However, a substantial financing activity slate drove negative net cash flow for the period: debt repayments of $400.4 million, repurchases of $38.1 million, and dividends of $66.0 million, resulting in a net cash decrease of $407.9 million and ending cash of $192.9 million. Net debt stood at approximately $5.28 billion, yielding a leveraged position with a net debt to EBITDA of roughly 12.9x, highlighting sensitivity to cyclical volumes and interest costs.
Industry backdrop remains cyclical, with a QoQ revenue decline of 11.82% and a margin compression versus Q4 2024, likely reflecting seasonality and fixed-cost leverage in a commodity-intensive business. Management commentary (where available) emphasized resilient end-market demand and the importance of disciplined capital allocation, though no formal forward-looking guidance was disclosed in the QQ1 2025 filing. Investors should monitor leverage normalization efforts, commodity input costs, and the pace of infrastructure-led volume growth as key drivers of the medium-term earnings trajectory.
Key Performance Indicators
QoQ: -32.00% | YoY:19.81%
QoQ: -43.54% | YoY:30.94%
QoQ: -56.11% | YoY:25.51%
QoQ: -55.86% | YoY:25.64%
Key Insights
Revenue: $1,634,600,000; YoY growth: +5.75%; QoQ change: -11.82% (Q4 2024 to Q1 2025)
Gross Profit: $365,300,000; Gross Margin: 22.35%; YoY gross margin increase: +19.81%; QoQ: -32.00%
Operating Income: $226,400,000; Operating Margin: 13.85%; YoY: +30.94%; QoQ: -43.54%
Net Income: $128,900,000; Net Margin: 7.89%; YoY: +25.51%; QoQ: -56.11%
EPS: $0.98; EPS YoY: +25.64%; QoQ: -55.86%
EBITDA: $410,200,000; EBITDA Margin: ~25.1%
Interest Expense: $59,700,000; Depreciation & Amortization: $186,40...
Financial Highlights
Revenue: $1,634,600,000; YoY growth: +5.75%; QoQ change: -11.82% (Q4 2024 to Q1 2025)
Gross Profit: $365,300,000; Gross Margin: 22.35%; YoY gross margin increase: +19.81%; QoQ: -32.00%
Operating Income: $226,400,000; Operating Margin: 13.85%; YoY: +30.94%; QoQ: -43.54%
Net Income: $128,900,000; Net Margin: 7.89%; YoY: +25.51%; QoQ: -56.11%
EPS: $0.98; EPS YoY: +25.64%; QoQ: -55.86%
EBITDA: $410,200,000; EBITDA Margin: ~25.1%
Interest Expense: $59,700,000; Depreciation & Amortization: $186,400,000
Cash Flow: Operating Cash Flow $251,500,000; Capex $168,000,000; Free Cash Flow $83,500,000
Balance Sheet: Total Assets $16.712B; Total Liabilities $8.5536B; Total Equity $8.1341B; Net Debt ≈ $5.2832B
Liquidity & Leverage: Current ratio 2.42; Quick ratio 1.51; Debt to capitalization 0.402; Interest coverage 3.79x; Payout ratio 0.512; Dividend Yield 0.214%
Valuation Context: Price-to-Book ~3.80x; EV/EBITDA ~88.18x; P/E ~59.91x; P/S ~18.90x; Cash position modest relative to gross debt
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.63B |
5.75% |
-11.82% |
| Gross Profit |
365.30M |
19.81% |
-32.00% |
| Operating Income |
226.40M |
30.94% |
-43.54% |
| Net Income |
128.90M |
25.51% |
-56.11% |
| EPS |
0.98 |
25.64% |
-55.86% |
Key Financial Ratios
operatingProfitMargin
13.9%
operatingCashFlowPerShare
$1.9
freeCashFlowPerShare
$0.63
dividendPayoutRatio
51.2%
Management Commentary
No earnings call transcript data provided for QQ1 2025 in the supplied materials. Consequently, management quotes and thematic highlights from the call cannot be extracted. If transcripts become available, a corresponding section with quotes by executives (e.g., CEO, CFO) and thematic grouping (strategy, operations, market conditions) will be added.
Forward Guidance
No formal forward guidance was disclosed in the QQ1 2025 filing. Given the cyclicality of construction materials, the near-term trajectory will hinge on: (1) US infrastructure and public works spending pace, (2) housing and non-residential construction activity, (3) input cost dynamics (oil, energy, freight), and (4) leverage reduction progress. Investors should monitor quarterly volume trends by segment, progress on debt repayments and deleveraging, and any commentary on pricing discipline or mix-shift that could support margin stability in a rising-rate environment.