Vulcan Materials Misses On Q2 Earnings Estimate, Reiterates FY21 Adjusted EBITDA Outlook

Vulcan Materials Company VMC reported a second-quarter revenue increase of 2.9% year-over-year to $1.36 billion, missing the estimate of $1.38 billion.
Sales by segments: Aggregates $1.13 billion (+5.1% Y/Y), Asphalt $212.58 million (-4.6% Y/Y), Concrete $96.2 million (-4.5% Y/Y) and Calcium $1.96 million (+3.7% Y/Y).
Aggregates gross profit margin improved 40 bps to 33.2%, and cash gross profit grew by 2% to $7.83 per ton. Shipments increased 4% Y/Y, reflecting improving demand across all end-market segments.
Overall gross margin contracted by 70 bps to 29.3%.
Adjusted EPS decreased to $1.57 from $1.60 in 2Q20, missing a consensus of $1.69.
Vulcan Materials generated cash from operating activities year-to-date of $397.87 million, compared to $425.59 million a year ago.
Adjusted EBITDA was $406 million (-0.4% Y/Y), and margin contracted by 100 bps to 29.8%.
As of June 30, 2021, the total debt to trailing-twelve-month Adjusted EBITDA was 2.0 times, or 1.3 times on a net debt basis reflecting $968 million of cash on hand.
FY21 outlook: Vulcan Materials expects an Adjusted EBITDA of $1.380 to $1.460 billion. It expects to spend between $450 and $475 million on capital expenditures, including growth projects.
Price action: VMC shares traded 0.40% lower at $180.14 on the last check Wednesday.

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