Vulcan Materials Financial Model
Materials Company Financials Example (Free Excel Download)
Vulcan Materials Company is the largest producer of construction aggregates (primarily crushed stone, sand, and gravel) in the United States.
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About this model
This model evaluates Vulcan Materials Company's equity valuation and cash flow generation capacity, allowing an analyst to determine if the company's strong aggregates pricing power and infrastructure-driven volume growth justify its current market valuation.
Vulcan Materials Company is the largest producer of construction aggregates (primarily crushed stone, sand, and gravel) in the United States. The company also produces aggregates-based construction materials, including asphalt mix and ready-mixed concrete, which are essential for infrastructure, commercial, and residential construction.
- Business segments: Aggregates (approximately 75% of revenue, but over 90% of gross profit), Asphalt (approximately 15% of revenue), and Concrete (approximately 10% of revenue).
- Key geographies: Exclusively the United States, with a heavy concentration in high-growth Sunbelt states and major metropolitan statistical areas (MSAs).
- Business model type: Asset-heavy and resource-based. The business relies on controlling scarce, permitted mineral reserves (16.6 billion tons) and operating localised monopolies due to the high cost of transporting heavy materials.
- Competitive position: Market leader in the highly fragmented US aggregates industry. Key competitors include Martin Marietta Materials, CRH, and Holcim.
- Recent major events: In late 2024 and 2025, Vulcan completed several bolt-on acquisitions (including Wake Stone) and divested non-core assets such as its Texas mix operations and California sand business to focus capital on high-margin aggregates.
The downloadable Vulcan Materials financial model includes SEC-sourced historical financials, forecast assumptions, core operating schedules, and valuation outputs in an Excel workbook built for review and scenario analysis.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
Historicals & AssumptionsVulcan Materials financial modelCompany, Historicals & Assumptions used
Source: SEC EDGAR · values in USD
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | $5.55B | $7.32B | $7.78B | $7.42B | $7.94B |
| Gross profit | $1.37B | $1.56B | $1.95B | $2.00B | $2.17B |
| Operating income | $1.01B | $951.4M | $1.43B | $1.36B | $1.62B |
| Net income | $670.8M | $575.6M | $933.2M | $911.9M | $1.08B |
Forecast assumptions
Defaults used in the downloadable model. Forecast horizon: FY2026–FY2030.
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How to build a detailed financial model for Vulcan Materials
A complete walkthrough of every driver, margin, working-capital input, and capital-allocation assumption used in the downloadable model.
Revenue Deep Dive
Aggregates
- Segment name: Aggregates
- Revenue driver formula: Aggregates Shipments (Tons) x Freight-Adjusted Sales Price per Ton
- Historical growth rate: 5-8% CAGR (driven almost entirely by pricing, as volumes typically grow at 1-3%).
- Key growth levers and headwinds: Supported by federal infrastructure funding (IIJA) and Sunbelt population growth. Headwinds include high interest rates dampening residential construction.
- Pricing dynamics: Highly localised pricing power. Because aggregates are heavy and expensive to transport, local quarries dictate pricing. Freight-adjusted pricing grew 6% in 2025.
- Revenue recognition notes: Recognised upon delivery to the customer.
- Seasonality: Q2 and Q3 are the strongest quarters due to favourable weather for construction; Q1 and Q4 are typically weaker.
Asphalt
- Segment name: Asphalt
- Revenue driver formula: Asphalt Shipments (Tons) x Sales Price per Ton
- Historical growth rate: 2-4% CAGR.
- Key growth levers and headwinds: Driven by highway maintenance and paving contracts. Highly sensitive to liquid asphalt (oil-based) input costs.
- Pricing dynamics: Often includes escalation clauses for liquid asphalt costs in public contracts.
- Revenue recognition notes: Recognised upon delivery or placement.
- Seasonality: Highly seasonal, tracking the summer paving season (Q2 and Q3).
Concrete
- Segment name: Concrete
- Revenue driver formula: Concrete Shipments (Cubic Yards) x Sales Price per Cubic Yard
- Historical growth rate: 1-3% CAGR.
- Key growth levers and headwinds: Highly dependent on local commercial and residential building activity.
- Pricing dynamics: Competitive, local market pricing.
- Revenue recognition notes: Recognised upon delivery to the job site.
- Seasonality: Mirrors general construction seasonality (strongest in Q2 and Q3).
Cost Structure
Variable Costs / COGS
- Line-by-line breakdown: Labour, diesel fuel, explosives, electricity, repairs and maintenance, and freight/transportation costs.
- Gross margin range: Consolidated gross margin ranges from 26% to 28%. Aggregates segment gross margin is much higher, typically 30% to 32% (31.2% in 2025).
- Key input costs and commodity exposures: Diesel fuel for mobile equipment and liquid asphalt for the Asphalt segment.
- How COGS scales with revenue: High operating leverage. Once fixed quarry costs are covered, incremental tons drop straight to the bottom line.
Operating Expenses
- R&D: Negligible; not reported as a separate material line item.
- SG&A: Selling, Administrative and General expenses run at approximately 7.1% of total revenues. Driven by corporate headcount, IT investments (Process Intelligence), and sales staff.
- Depreciation, Depletion & Amortisation (DD&A): High percentage of revenue (typically 8-10%). Depletion of mineral reserves is a unique and significant non-cash expense for this company.
- Stock-Based Compensation: Modest, typically included within SG&A.
- Restructuring / one-time charges: Occasional charges related to divestitures or acquisition integration, but generally not a recurring feature of the core cost structure.
Margin Profile
- Gross margin: 26-28% consolidated.
- EBITDA margin: 27-30% (expanded to 29.3% in 2025).
- Operating margin: 19-21%.
- Net margin: 12-14%.
- Margin trend: Expanding. The company has successfully pushed price increases that outpace unit cash cost inflation, driving "cash gross profit per ton" to record highs ($11.33 in 2025).
Balance Sheet Structure
- Total assets: Approximately $22 billion to $24 billion.
- Key asset categories: Property, Plant & Equipment (PP&E) and mineral reserves make up the vast majority of assets.
- Goodwill & intangibles: Significant (roughly 25-30% of assets) due to a long history of industry consolidation and acquisitions.
- Working capital profile:
- Days Sales Outstanding (DSO): 40-45 days.
- Days Inventory Outstanding (DIO): 30-40 days (stockpiled crushed stone).
- Days Payable Outstanding (DPO): 30-35 days.
- Net working capital as % of revenue: Typically 10-12%.
- Is working capital positive or negative?: Positive. The company requires working capital to fund inventory build-ups ahead of the busy summer construction season.
- PP&E: Consists of land, mineral reserves, quarrying machinery, and transport equipment. Useful lives range from 3 to 40 years. Mineral reserves are depleted based on tons extracted.
- Right-of-use assets / operating leases: Material, primarily for railcars, distribution yards, and some mobile equipment.
Capital Expenditure & Investment
- Capex as % of revenue: 8-9% (approximately $703 million in 2025).
- Maintenance capex vs. growth capex: Roughly 60% maintenance (replacing yellow iron, plant upgrades) and 40% growth (greenfield quarry development, automation).
- Major capex programmes underway or planned: Implementation of "Process Intelligence" technology across plants and development of new distribution yards.
- Capitalised software / development costs: Minimal relative to heavy machinery capex.
- M&A pattern: Serial bolt-on acquirer. The company regularly buys independent, family-owned quarries to expand its reserve base and geographic footprint.
- Typical acquisition multiple paid: 10x to 14x EV/EBITDA before synergies.
Debt & Capital Structure
- Total debt: Approximately $4.0 billion to $4.5 billion.
- Debt/EBITDA ratio: 1.8x to 1.9x (1.9x at the end of 2025). Target is to remain below 2.5x.
- Credit rating: Investment grade (BBB+ / Baa1).
- Key debt instruments: Senior notes, a $2.0 billion delayed draw term loan facility (entered in late 2024), and a revolving credit facility.
- Maturity profile: Well-laddered, with an average maturity of approximately 14 years.
- Interest rate profile: Predominantly fixed-rate bonds with a weighted average interest rate of approximately 5.0%.
- Covenants: Maximum debt-to-EBITDA ratio of 3.50x (steps up to 4.00x temporarily following material acquisitions).
- Share repurchase programme: Highly active. The company repurchased $438 million of common stock in 2025.
- Dividend policy: Progressive dividend policy. Paid $260 million in 2025, yielding approximately 0.8-1.0%.
Cash Flow Characteristics
- Operating cash flow conversion: Strong. OCF is typically 1.5x to 1.7x Net Income ($1.8 billion OCF vs $1.077 billion Net Income in 2025).
- Free cash flow margin: 13-15% of revenue.
- Major non-cash items: Depreciation, depletion, accretion, and amortisation (DD&A) is the largest bridge between net income and OCF.
- Working capital cash flow impact: Seasonal use of cash in Q1/Q2, source of cash in Q3/Q4.
- Capex intensity: Moderate to high. Quarries require constant reinvestment in heavy machinery.
- Cash tax rate vs. GAAP effective tax rate: Cash taxes are often lower than the GAAP effective rate due to accelerated depreciation on heavy equipment and statutory depletion allowances for mineral extraction.
Sheet Structure
- Assumptions: Hardcoded inputs for macroeconomic drivers, segment volumes, pricing growth, cost margins, capex, and capital return policies.
- Revenue & Gross Profit: Detailed build for Aggregates (Tons, Freight-Adjusted Price, Cash Gross Profit per Ton), Asphalt, and Concrete.
- Income Statement: Consolidated view mirroring the 10-K (Total Revenues, Cost of Revenues, Gross Profit, SG&A, Gain/Loss on sale of assets, Operating Earnings, Interest Expense, Income Taxes, Net Earnings).
- Balance Sheet: Assets (Cash, Receivables, Inventories, PP&E, Goodwill), Liabilities (Accounts Payable, Current Debt, Long-Term Debt, Deferred Taxes), and Equity.
- Cash Flow Statement: Operating (Net Income, DD&A, Working Capital changes), Investing (Capex, Acquisitions, Proceeds from sales), and Financing (Debt issuance/repayment, Dividends, Share Repurchases).
- Debt & Interest Schedule: Tranche-by-tranche debt build, interest expense calculation, and debt-to-EBITDA tracking.
- PP&E & Depletion Schedule: Roll-forward of PP&E, calculation of maintenance vs growth capex, and specific calculation for mineral reserve depletion based on tons mined.
- DCF Valuation: Unlevered free cash flow calculation, WACC build, terminal value (using EV/EBITDA multiple and perpetuity growth), and implied share price.
Key Financial Relationships
- `Aggregates Revenue = Aggregates Shipments (Tons) * Freight-Adjusted Sales Price per Ton`
- `Aggregates Cash Gross Profit = Aggregates Shipments (Tons) * Cash Gross Profit per Ton`
- `Aggregates Gross Profit = Aggregates Cash Gross Profit - Aggregates Depreciation & Depletion`
- `Asphalt Revenue = Asphalt Shipments (Tons) * Asphalt Sales Price per Ton`
- `Concrete Revenue = Concrete Shipments (Cubic Yards) * Concrete Sales Price per Cubic Yard`
- `Total Revenues = Aggregates Revenue + Asphalt Revenue + Concrete Revenue`
- `SG&A Expense = Total Revenues * SG&A Margin (historically ~7.1%)`
- `Depletion Expense = (Aggregates Shipments (Tons) / Total Permitted Reserves) * Capitalised Reserve Value`
- `Adjusted EBITDA = Operating Earnings + Depreciation, Depletion, Accretion and Amortisation + Stock-Based Compensation`
- `Free Cash Flow = Operating Cash Flow - Capital Expenditures`
- `Ending Share Count = Beginning Share Count - (Share Repurchase Amount / Average Share Price)`
- `Interest Expense = Average Total Debt * Weighted Average Interest Rate (5.0%)`
Cross-Sheet Dependencies
- The Assumptions sheet dictates the volume and pricing inputs on the Revenue & Gross Profit sheet.
- The Revenue & Gross Profit sheet feeds the top line and COGS of the Income Statement.
- The Income Statement generates Net Income, which is the starting point for the Cash Flow Statement.
- The PP&E & Depletion Schedule calculates DD&A, which feeds the Income Statement (as an expense) and the Cash Flow Statement (as a non-cash add-back).
- The Debt & Interest Schedule calculates interest expense for the Income Statement and ending debt balances for the Balance Sheet.
- The Cash Flow Statement determines the ending cash balance, which flows to the Balance Sheet to ensure Total Assets = Total Liabilities + Equity.
Sign Convention
- All revenues, sales volumes, and pricing metrics are entered and displayed as positive numbers.
- All expenses (COGS, SG&A, Interest, Taxes) are entered as positive numbers and subtracted in subtotal formulas (e.g., `Gross Profit = Revenue - COGS`).
- On the Cash Flow Statement, cash inflows are positive and cash outflows (Capex, Dividends, Repurchases) are negative.
- Balance sheet items are positive; contra-assets (like accumulated depreciation) are positive but subtracted from gross assets.
Things Most Likely to Go Wrong
- Confusing Freight-Adjusted vs Reported Pricing: Vulcan reports both. The model must use "Freight-Adjusted Sales Price per Ton" as it is the true driver of aggregates profitability.
- Miscalculating Depletion: Depletion is based on units of production (tons mined), not straight-line time. If volume spikes, depletion expense must spike proportionally.
- Ignoring Cash Gross Profit: Vulcan focuses heavily on "Cash Gross Profit per Ton". The model must calculate this before deducting non-cash D&A to accurately reflect unit economics.
- Seasonality in Working Capital: If building a quarterly model, failing to account for the massive inventory build in Q1 and cash collection in Q4 will break the cash flow profile.
- Overestimating Volume Growth: Aggregates is a low-volume-growth, high-price-growth industry. Modelling >5% volume growth is historically inaccurate and will invalidate the model.
- Excluding Divested Revenue: Vulcan recently sold its Texas mix and California sand operations. Historical financials include these; forward projections must exclude them to avoid overstating revenue.
- Misaligning Debt Covenants: The model must track Gross Debt to EBITDA. If the model triggers the 3.5x limit, it should flag a warning.
- Double Counting Freight: Freight is both a revenue and an expense for delivered materials. Ensure the model uses freight-adjusted metrics to isolate the core material margin.
Validation Checks
- "Aggregates gross margin should be in the 30-33% range; flag if outside this band."
- "SG&A as a percentage of total revenue should remain between 7.0% and 7.5%."
- "Debt/EBITDA should remain below 2.5x per management targets; flag if it exceeds 3.5x (covenant limit)."
- "Operating Cash Flow to Net Income conversion should be >1.3x due to heavy non-cash DD&A."
- "Capex as a percentage of revenue should run between 8.0% and 9.5%."
- "Balance sheet must balance: Total Assets = Total Liabilities + Equity in every period."
- "Aggregates volume growth should not exceed 4% without a specific macro justification."
- "Effective tax rate should be 22-24% (reflecting statutory depletion benefits)."
Key Assumptions (Default Values)
| Assumption | Default Value | Unit | Rationale |
|---|---|---|---|
| Aggregates Volume Growth | 2.0 | % | Aligns with management's 2026 outlook of 1-3% volume growth. |
| Aggregates Price Growth | 5.0 | % | Aligns with management's 2026 outlook of 4-6% price growth. |
| Asphalt Volume Growth | 1.0 | % | Flat to low-single-digit historical trend. |
| Concrete Volume Growth | 1.0 | % | Flat to low-single-digit historical trend. |
| SG&A Margin | 7.1 | % | Matches actual reported FY2025 SG&A as a percentage of revenue. |
| Capex as % of Revenue | 8.8 | % | Based on $703M capex on $7.941B revenue in FY2025. |
| Effective Tax Rate | 23.0 | % | Historical average accounting for statutory depletion benefits. |
| DSO (Days Sales Outstanding) | 42 | Days | Historical average based on receivables and revenue. |
| DIO (Days Inventory Outstanding) | 35 | Days | Historical average based on inventory and COGS. |
| DPO (Days Payable Outstanding) | 32 | Days | Historical average based on payables and COGS. |
| Weighted Average Interest Rate | 5.0 | % | Actual reported weighted average interest rate as of late 2025. |
| Annual Share Repurchases | 450 | $ Millions | In line with $438M executed in FY2025. |
| Dividend Payout Ratio | 25.0 | % | Approximates the $260M dividend on $1.077B net income in FY2025. |
| WACC | 8.5 | % | Standard discount rate for large-cap building materials companies. |
| Terminal EV/EBITDA Multiple | 14.0 | x | Historical trading average for VMC and premium aggregates peers. |
Data Sources & Benchmarks
- Filings: SEC EDGAR (Form 10-K, 10-Q, 8-K) and the Vulcan Materials Investor Relations page.
- Key peers for benchmarking: Martin Marietta Materials (MLM), CRH plc (CRH), Summit Materials (SUM), and Eagle Materials (EXP).
- Industry data sources: US Geological Survey (USGS) for national crushed stone production data, Dodge Construction Network for construction starts, and the Federal Highway Administration (FHWA) for infrastructure funding data.
- Consensus estimates source: FactSet or Bloomberg for forward-looking analyst estimates on EBITDA and EPS.
Sources
- Vulcan Materials Company Q4 and Full Year 2025 Earnings Release (February 17, 2026).
- Vulcan Materials Company 2026 Investor Day Presentation (March 12, 2026).
- Vulcan Materials Company 2025 Annual Report (Form 10-K).
- Capstone Partners Aggregates Industry M&A Report (2024/2025).
- Macrotrends and Stock Analysis historical revenue data for VMC.
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Frequently asked
What does Vulcan Materials Company primarily produce?+
Vulcan Materials Company is the largest producer of construction aggregates in the United States, including crushed stone, sand, and gravel. They also produce aggregates-based construction materials like asphalt mix and ready-mixed concrete, which are essential for various construction projects.
How does Vulcan Materials Company generate its revenue?+
Vulcan Materials generates revenue primarily from its Aggregates segment, which accounts for approximately 75% of total revenue and over 90% of gross profit. Additional revenue comes from their Asphalt and Concrete segments. The company benefits from strong aggregates pricing power and infrastructure-driven volume growth, particularly in high-growth Sunbelt states.
What is the assumed revenue growth rate in the Vulcan Materials financial model?+
The financial model for Vulcan Materials Company assumes a revenue growth rate of approximately 12.1% for the FY2026–FY2030 forecast horizon. This is a key assumption used to project the company's future financial performance. Other significant assumptions include COGS as a percentage of revenue at about 75.4% and SGA at approximately 7.3%.
What is the main purpose of the Vulcan Materials Company financial model?+
The primary purpose of the Vulcan Materials financial model is to evaluate the company's equity valuation and its capacity for cash flow generation. Analysts can use this model to determine if the company's strong aggregates pricing power and infrastructure-driven volume growth justify its current market valuation.
Is there a downloadable Excel financial model available for Vulcan Materials?+
Yes, an Excel financial model for Vulcan Materials Company is available for download. This model allows users to analyze the company's financial performance and input their own assumptions for forecasting.
What is Vulcan Materials Company's approach to capital expenditure and M&A?+
Vulcan Materials allocates approximately 8-9% of its revenue to capital expenditure, with roughly 60% dedicated to maintenance and 40% to growth initiatives. The company is also a serial bolt-on acquirer, regularly purchasing independent quarries to expand its mineral reserve base and geographic footprint.
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