Vulcan Materials Company is the largest producer of construction aggregates in the U.S., operating primarily in the U.S. It also produces asphalt mix and ready-mixed concrete in certain markets. The company's core business is focused on aggregates, which are essential for infrastructure and construction projects. Vulcan's competitive advantages include its extensive network of strategically located reserves, its scale, and its operational expertise. The company serves both public and private sectors, providing materials for highways, bridges, roads, ports, water systems, campuses, dams, airports and rail networks.

The company's strategy focuses on an aggregates-led business model, emphasizing durable growth through organic expansion, strategic acquisitions, and greenfield developments. Vulcan also focuses on land management, safety, health, and environmental stewardship.

• Employees: 10,382 in the United States (as of January 1, 2024)
• Geographic Footprint: Operates in 23 states, the U.S. Virgin Islands, Washington D.C., and has operations in Canada, Mexico, Honduras and the Bahamas
• Headquarters: Birmingham, Alabama
• Founded: 1956 (as a public company)
• Number of active aggregates facilities: 397 (as of December 31, 2023)
• Revenue: $7.78 billion (FY2023)
• Market Capitalization: $29.89 billion (as of June 30, 2023)
• Key Subsidiaries/Brands: Legacy Vulcan, LLC and Calizas Industriales del Carmen, S.A. de C.V. (Calica)

• CEO: J. Thomas Hill (Chairman and Chief Executive Officer)
• CFO: Mary Andrews Carlisle (Senior Vice President and Chief Financial Officer)
• Board Chair: J. Thomas Hill
• Other Key Executives: Thompson S. Baker II (President), Stanley G. Bass (Chief Strategy Officer), Ronnie A. Pruitt (Chief Operating Officer), Denson N. Franklin III (Senior Vice President, General Counsel and Secretary), Darren L. Hicks (Senior Vice President and Chief Human Resources Officer), David P. Clement (Senior Vice President, Operations Support, Procurement), Jerry F. Perkins Jr. (Senior Vice President, Business Development, Commercial Excellence, Land, Logistics), and Randy L. Pigg (Vice President, Controller and Principal Accounting Officer)

Key leaders have extensive experience in the construction materials industry and have held various leadership positions within Vulcan.

• Annual Revenue: $7.78 billion (FY2023)
• Net Income: $933.2 million (FY2023)
• Market Cap: $29.89 billion (as of June 30, 2023)
• Total Assets: $14.55 billion (as of December 31, 2023)
• Number of employees: 10,382 in the United States (as of January 1, 2024)
• Key Financial Highlights: Annual Return on Invested Capital (ROIC) increased 2.8 percentage points in 2023; Adjusted EBITDA increased 24% in 2023; Net earnings attributable to Vulcan increased 62% in 2023; Invested capital increased only 2% in 2023.

Vulcan's main product categories include:

• Aggregates: Crushed stone, sand, and gravel used as base materials for construction projects.
• Asphalt Mix: Aggregates-intensive downstream products used for paving and road construction.
• Ready-Mixed Concrete: Aggregates-intensive downstream products used in various construction applications.
• Calcium: Calcium products for animal feed, plastics, and water treatment industries.

The majority of revenue is generated from the Aggregates segment.

Vulcan operates through four main segments:

• Aggregates: Primarily crushed stone, sand, and gravel. This segment accounted for the majority of the company's gross profit in 2023.
• Asphalt: Production and sales of asphalt mix, along with asphalt construction paving services.
• Concrete: Production and sales of ready-mixed concrete.
• Calcium: Production and sales of calcium products.

The company selectively makes investments in downstream asphalt and concrete products that drive local market profitability.

Vulcan's strategy is centered around an aggregates-focused business model, which includes:

• Taking advantage of size and scale to share best practices and procure equipment efficiently.
• Building and holding substantial reserves of aggregates in strategically located areas.
• Enhancing core operations through strategic disciplines like the Vulcan Way of Selling and the Vulcan Way of Operating.
• Expanding reach through mergers, acquisitions, and greenfield developments.
• Focusing on land management to maximize the value of its land portfolio.
• Commitment to safety, health, and the environment.

The company aims to achieve long-term value creation and superior returns for its shareholders. It also focuses on sustainability and reducing its environmental impact.

Vulcan operates in the construction materials industry, which is highly fragmented and competitive. Key industry trends include:

• Market Position: Largest U.S. aggregates producer with approximately 10% market share.
• Key Competitors: Cemex S.A.B. de C.V., CRH plc, Heidelberg Materials AG, Holcim Ltd., Knife River Corp., Martin Marietta Materials, Inc., and Summit Materials, Inc.
• Industry Trends: Demand driven by construction activity, population growth, employment, and household formations; public sector spending on infrastructure; increasing use of recycled materials.

The company is well-positioned to benefit from long-term growth in demand for aggregates due to infrastructure investments and population growth in its key markets.

• Economic/Political Risks: Dependence on the construction industry, which is subject to economic cycles; reliance on federal, state, and local funding for infrastructure; risks arising from international business operations.
• Operational, Growth and Competitive Risks: Intense competition in local markets; use of aggregates substitutes; securing and permitting aggregates reserves; risks associated with open pit and underground mining.
• Financial/Accounting Risks: Capital-intensive industry; deterioration in credit ratings; reliance on accounting estimates; risks related to mineral resource estimates.
• Legal/Regulatory Compliance Risks: Changes in legal requirements and governmental policies; environmental matters and legal proceedings; climate change legislation; and product liability claims.
• Personnel Risks: Attracting and retaining qualified personnel; disputes with organized labor.
• General Risk Factors: Dependence on information technology systems; weather and climate change; reliance on third-party providers.