Vulcan Materials Company (VMC) Q2 2023 Earnings Call Transcript

Vulcan Materials Company (NYSE:VMC) Q2 2023 Results Conference Call August 3, 2023 11:00 AM ET

Company Participants

Mark Warren - VP, IR

Tom Hill - Chairman and CEO

Mary Andrews Carlisle - SVP and CFO

Conference Call Participants

Trey Grooms - Stephens

Garik Shmois - Loop Capital

Stanley Elliott - Stifel

Mike Dahl - RBC Capital Markets

Anthony Pettinari - Citi

Jerry Revich - Goldman Sachs

Tyler Brown - Raymond James

Timna Tanners - Wolfe Research

Phil Ng - Jefferies

Brian Biros - Thompson Research Group

Adam Thalhimer - Thompson Davis

Keith Hughes - Truist

David MacGregor - Longbow Research

Michael Dudas - Vertical Research

Brent Thielman - D.A. Davidson

Operator

Good morning, ladies and gentlemen, and welcome to Vulcan Materials Company's Second Quarter 2023 Earnings Call. My name is Angela, and I will be your conference call coordinator today. [Operator Instructions]

Now I will turn the call over to your host, Mr. Mark Warren, Vice President of Investor Relations for Vulcan Materials. Mr. Warren, you may begin.

Mark Warren

Good morning, and thank you for your interest in Vulcan Materials. With me today are Tom Hill, Chairman and CEO; and Mary Andrews Carlisle, Senior Vice President and Chief Financial Officer.

Today's call is accompanied by a press release and a supplemental presentation posted at our website. Please be reminded that today's discussion may include forward-looking statements, which are subject to risks and uncertainties. These risks, along with other legal disclaimers, are described in detail in the company's earnings release and in other filings with the Securities and Exchange Commission. Reconciliations of any non-GAAP financial measures are defined and reconciled in our earnings release, our supplemental presentation and other SEC filings. As the operator said, in the interest of time, please limit your Q&A participation to one question.

And with that, I'll turn the call over to Tom.

Tom Hill

Thank you, Mark, and thank all of you for your interest in Vulcan Materials today. Our results through the first half of 2023 highlight both the attractive fundamentals of our aggregates-led business and Vulcan's commitment to compounding profitability through our solid execution of our Vulcan web selling and both with operating strategic disciplines. I'm proud of our teams for delivering yet another quarter of improvement in our trailing 12-month aggregates cash gross profit per ton. That marks 20 of the last 22 quarters. This exceptional execution, coupled with better-than-expected demand environment gives us confidence in our ability to deliver between $1.9 billion and $2 billion in adjusted EBITDA this year. In the quarter, we generated $595 million of adjusted EBITDA, which is a 32% improvement over the prior year. Gross margin expanded by 480 basis points, and importantly, each product line delivered year-over-year improvement.