Vulcan Materials Company

Vulcan Materials Company reported second-quarter mix-adjusted aggregates pricing up 5% and cash gross profit per ton rising to $12.02 from $11.88, while unit cash costs increased 7% with diesel a major contributor. Management targets 4-6% aggregate price growth for 2026 and expects to finish near the high end of the range, with cost growth decelerating to support further unit-profitability gains. Aggregates shipments increased 1% in the second quarter and 3% in the first half despite disruptive weather, and trailing 12-month highway awards in Vulcan markets remained up double digits while other public infrastructure awards increased 20%. VMC trades at a forward 12-month price-to-earnings ratio of 27.86, compared with 20.91 for its Zacks sub-industry, 20.28 for the Zacks sector and 20.69 for the S&P 500, and the ratio is slightly below Vulcan's five-year median of 28.68. Diesel produced a $26 million second-quarter headwind, part of almost $40 million of energy-related inflation, and management said third-quarter gross margins may remain below the prior-year level before improving in the fourth quarter. Total debt to trailing-12-month adjusted EBITDA stood at 1.9 times, below management's 2-2.5-times target range, and Vulcan had $1.58 billion of available capacity under its unsecured credit line. The stock currently carries a Zacks Rank #3 (Hold), with a Value Score of D and a VGM Score of D, alongside a Growth Score of C and a Momentum Score of C.

Vulcan Materials Company reported second-quarter adjusted earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.50 by 3.6%, while revenues rose 2.5% year over year to $2.16 billion. Management maintained its 2026 adjusted EBITDA outlook of $2.4-$2.6 billion despite weather disruption and almost $40 million of energy-related inflation. Aggregates segment sales increased 6.9% to $1.76 billion, with cash gross profit per ton advancing to $12.02 from $11.88. Mix-adjusted aggregate pricing increased 5%, while freight-adjusted unit cash cost of sales rose 7%, driven primarily by higher diesel prices. Vulcan also sold its California ready-mixed concrete operations and its aggregates and ready-mixed concrete operations in the U.S. Virgin Islands for combined proceeds of $722.1 million, and acquired a southern Colorado quarry and a Dallas-Fort Worth rail yard from Brannan Sand & Gravel for $75 million.

StockStory has added LSI, Granite Construction, and Vulcan Materials to its watchlist of resilient industrials stocks. LSI, a lighting and display solutions provider with an $833.8 million market cap, posted 16.7% annual revenue growth over five years and 35.2% annual EPS growth, while its free cash flow margin expanded by 8.9 percentage points. Granite Construction, an infrastructure solutions firm valued at $5.54 billion, achieved 13.2% annual revenue growth over two years and saw its free cash flow margin rise by 11.5 percentage points over five years. Vulcan Materials, a $35.67 billion construction aggregates producer, recorded 10.6% annual revenue growth over five years and a 5.4 percentage point increase in free cash flow margin.

Zacks Investment Research identifies Vulcan Materials, Eagle Materials, and Suncrete as three concrete and aggregates stocks set to benefit from steady infrastructure spending in 2026. Remaining funds under the Infrastructure Investment and Jobs Act and healthy state and local transportation budgets are expected to support public works such as highways, bridges, airports, and water systems. Heavy nonresidential construction, including data centers, semiconductor plants, and LNG projects, also drives demand for aggregates, cement, and concrete. Eagle Materials carries a Zacks Rank #1 (Strong Buy), while Vulcan and Suncrete hold a Zacks Rank #3 (Hold). The industry currently trades at a forward 12-month price-to-earnings ratio of 21.78X, slightly above the S&P 500's 21.03X.

Building materials stocks reported mixed first-quarter earnings, with aggregate revenues beating analyst estimates by 1.4% but next-quarter guidance coming in 2.5% below expectations. Tecnoglass posted revenue of $249 million, a 12% year-over-year increase that exceeded estimates by 2.7%, though its full-year guidance was the weakest among the nine companies tracked. Vulcan Materials delivered the strongest performance with revenue of $1.76 billion, up 7.4% and beating estimates by 5.8%, while UFP Industries was the weakest, with revenue falling 8.4% to $1.46 billion and missing estimates by 3.5%. Sherwin-Williams reported revenue of $5.67 billion, up 6.8% and beating estimates by 2.1%, and Carlisle posted revenue of $1.05 billion, down 4% and slightly below estimates. Share prices of the group have held steady, rising 2.5% on average since the latest earnings results.

StockStory identifies Vulcan Materials and Visa as two profitable stocks worth investigating while flagging LifeStance Health Group as facing challenges. Vulcan Materials, with a trailing 12-month GAAP operating margin of 20.6%, has posted 10.6% annual revenue growth over five years and expanded its free cash flow margin by 5.4 percentage points. Visa, boasting a 61.1% operating margin, delivered 15% annual revenue growth and 20.1% annual earnings per share growth over the same period, supported by share repurchases. In contrast, LifeStance Health Group, which operates a network of over 6,600 mental health professionals, has a slim 3% operating margin, a poor free cash flow margin of 0.9% over five years, and negative returns on capital, raising doubts about its competitive position.

StockStory identified three S&P 500 stocks that could deliver good returns. CrowdStrike, with a market cap of $176 billion, showed billings growth averaging 24.9% over the last year and projected revenue growth of 22.7% for the next 12 months. Vulcan Materials, valued at $36.36 billion, achieved 10.6% annual revenue growth over five years and expanded its free cash flow margin by 5.4 percentage points. S&P Global, at a $122.3 billion market cap, posted 10.7% annual revenue growth over two years and 17% annual earnings per share growth, aided by share repurchases.

StockStory identifies Vulcan Materials and First BanCorp as two unpopular stocks deserving investor attention while recommending avoiding Bank of Hawaii. Vulcan Materials, trading at $294.83, posted 10.6% annual revenue growth over five years and expanded its operating margin by 5.5 percentage points. First BanCorp, priced at $24.94, boasts a best-in-class net interest margin of 4.6% and annual earnings per share growth of 23.6%. Bank of Hawaii, at $77.30, carries a consensus price target of $86.67 but shows weak net interest margin of 2.4% and annual EPS growth of just 2.4%.