On this page of StockholderLetter.com we present the latest annual shareholder letter from Vulcan Materials CO — ticker symbol VMC. Reading current and past VMC letters to shareholders can bring important insights into the investment thesis.
Enhance Our Core,
Expand Our Reach
2023 Annual Report

Chairman   s Letter
Chairman   s Letter
to Shareholders
ENHANCE OUR CORE, EXPAND OUR REACH
Re   ecting on 2023, I am encouraged by the achievements of
Our disciplined execution enables us to create value regardless
the dedicated men and women at Vulcan Materials Company.
of the challenges we may face. We focus on the fundamentals
Their commitment to enhancing our core and expanding our
and controlling what we can control.
reach continues to position Vulcan as the nation   s leading
Our culture bonds us as the Vulcan Family and guides us to
producer of construction aggregates, and I am optimistic
do the right thing, the right way, at the right time.
about our continued durable growth in 2024.
These are common threads that have propelled our growth
Our people are   and always have been   at the heart of this
through the years. Vulcan started as a family owned and
business. Their dedication to safety, to one another, to our
operated aggregates business. We transformed into
neighbors and communities, and to creating value for our
a public company to enable rapid expansion and harness
customers is unmatched.
the opportunities borne from the Federal Aid Highway
Our focus is on providing the right products in the right markets.
Act. Our locally led operations are still our backbone,
We are aggregates-led and aim to be positioned as the number
supported by a One Vulcan organization that leverages
one or number two supplier in the fastest growing markets in the
our collective strengths and generates a superior return
United States.
for our shareholders.
Vulcan Materials Company
1
2023 Annual Report
Chairman   s Letter
2023 FINANCIAL OVERVIEW
2023 was an exceptional year, and we carry strong
The attractive cash generation of our business yielded
momentum into 2024. We delivered net earnings of $935
$1.5 billion of operating cash    ow, a 34% increase over
million and surpassed $2 billion in adjusted earnings before
the prior year. We ended the year with a ratio of total debt
interest, taxes, depreciation, and amortization (Adjusted
to Adjusted EBITDA of 1.9 times and net debt to Adjusted
EBITDA, a non-GAAP measure), which is a 24% increase
EBITDA of 1.5 times. Our strong balance sheet and
over the prior year.
investment grade credit rating give us the    nancial    exibility
to continue to grow.
1.9x
10 years 4.9%
Total Debt to
Adjusted EBITDA
Weighted Average
Debt Maturity
At the close of 2023, our stock price outperformed the
broader market and improved 30% year-over-year.
Weighted Average
Interest Rate
Reaching signi   cant milestones requires dedication to
Aggregates Cash Gross Pro   t per Ton
continuous improvement and a uni   ed vision of success. In
$9.46
2023, we further expanded our industry leading aggregates
$7.83
unit pro   tability. Our cash gross pro   t per ton increased 21
$7.43
percent to $9.46, eclipsing our long-stated goal of $9 per ton
$7.11
and moving us quickly toward our most recently communicated
$6.74
$6.32
target of $11 to $12 of cash gross pro   t per ton. Importantly,
on a trailing twelve-month basis, cash gross pro   t per ton has
increased in 19 of 20 quarters over the past    ve years. This
consistent execution demonstrates the bene   ts of our Vulcan
Way of Selling and Vulcan Way of Operating disciplines.
2018
2019
2020
2021
2022
2023
Our strong balance sheet and investment grade credit rating give us
the    nancial    exibility to continue to grow.
Vulcan Materials Company
2
2023 Annual Report
Chairman   s Letter
SAFETY IS OUR TOP PRIORITY
Vulcan Legacy Operations MSHA
Incident Rate vs. Industry
The safety, health, and well-being of our employees will always
Incidents per 200,000 work hours
be our top priority. We take pride in our history of exceptional
safety performance. In 2023, we experienced a Mine Safety
Not yet available
and Health Administration (MSHA) rate of 1.2 injuries per
1.20
200,000 employee hours worked, which is better than the
industry average.
1.80
1.00
However, 2023 was a devastating year for us as well as the
construction materials industry as a whole. We lost four
1.55
employees to accidents this year, two at our quarries and two
0.98
in on-road incidents. In addition, two contractors were fatally
injured while working on a Vulcan site. These tragic events
1.51
have rocked us to our core.
0.95
We are committed to continuous improvement and
1.64
implementing holistic safety measures, including proactive
engagement with MSHA.
1.08
We continue to concentrate on critical controls and building
1.68
in the capacity to fail safely. Our Serious Injury and Fatality
0.89
(SIF) program is a forward-looking approach that engages
VMC
employees to assess and eliminate potential hazards in high-
Industry
risk activities.
Employee empowerment is critical.
Employees are encouraged to
speak up and listen up. Every
employee has the authority to stop
work if they see a potential hazard.
Our Under the Hard Hat initiative emphasizes attention to
mental health, provides resources and creates an environment
that encourages employees to address those challenges.
We will continue to take every measure to ensure our
employees return home in the same condition as when
they arrived at work. Zero is our goal!
Vulcan Materials Company
3
2023 Annual Report
 • shareholder letter icon 3/25/2024 Letter Continued (Full PDF)
 • stockholder letter icon 3/27/2023 VMC Stockholder Letter
 • stockholder letter icon More "Metals & Mining" Category Stockholder Letters
 • Benford's Law Stocks icon VMC Benford's Law Stock Score = 81


VMC Shareholder/Stockholder Letter Transcript:

Enhance Our Core,
Expand Our Reach
2023 Annual Report


Chairman   s Letter
Chairman   s Letter
to Shareholders
ENHANCE OUR CORE, EXPAND OUR REACH
Re   ecting on 2023, I am encouraged by the achievements of
Our disciplined execution enables us to create value regardless
the dedicated men and women at Vulcan Materials Company.
of the challenges we may face. We focus on the fundamentals
Their commitment to enhancing our core and expanding our
and controlling what we can control.
reach continues to position Vulcan as the nation   s leading
Our culture bonds us as the Vulcan Family and guides us to
producer of construction aggregates, and I am optimistic
do the right thing, the right way, at the right time.
about our continued durable growth in 2024.
These are common threads that have propelled our growth
Our people are   and always have been   at the heart of this
through the years. Vulcan started as a family owned and
business. Their dedication to safety, to one another, to our
operated aggregates business. We transformed into
neighbors and communities, and to creating value for our
a public company to enable rapid expansion and harness
customers is unmatched.
the opportunities borne from the Federal Aid Highway
Our focus is on providing the right products in the right markets.
Act. Our locally led operations are still our backbone,
We are aggregates-led and aim to be positioned as the number
supported by a One Vulcan organization that leverages
one or number two supplier in the fastest growing markets in the
our collective strengths and generates a superior return
United States.
for our shareholders.
Vulcan Materials Company
1
2023 Annual Report

Chairman   s Letter
2023 FINANCIAL OVERVIEW
2023 was an exceptional year, and we carry strong
The attractive cash generation of our business yielded
momentum into 2024. We delivered net earnings of $935
$1.5 billion of operating cash    ow, a 34% increase over
million and surpassed $2 billion in adjusted earnings before
the prior year. We ended the year with a ratio of total debt
interest, taxes, depreciation, and amortization (Adjusted
to Adjusted EBITDA of 1.9 times and net debt to Adjusted
EBITDA, a non-GAAP measure), which is a 24% increase
EBITDA of 1.5 times. Our strong balance sheet and
over the prior year.
investment grade credit rating give us the    nancial    exibility
to continue to grow.
1.9x
10 years 4.9%
Total Debt to
Adjusted EBITDA
Weighted Average
Debt Maturity
At the close of 2023, our stock price outperformed the
broader market and improved 30% year-over-year.
Weighted Average
Interest Rate
Reaching signi   cant milestones requires dedication to
Aggregates Cash Gross Pro   t per Ton
continuous improvement and a uni   ed vision of success. In
$9.46
2023, we further expanded our industry leading aggregates
$7.83
unit pro   tability. Our cash gross pro   t per ton increased 21
$7.43
percent to $9.46, eclipsing our long-stated goal of $9 per ton
$7.11
and moving us quickly toward our most recently communicated
$6.74
$6.32
target of $11 to $12 of cash gross pro   t per ton. Importantly,
on a trailing twelve-month basis, cash gross pro   t per ton has
increased in 19 of 20 quarters over the past    ve years. This
consistent execution demonstrates the bene   ts of our Vulcan
Way of Selling and Vulcan Way of Operating disciplines.
2018
2019
2020
2021
2022
2023
Our strong balance sheet and investment grade credit rating give us
the    nancial    exibility to continue to grow.
Vulcan Materials Company
2
2023 Annual Report

Chairman   s Letter
SAFETY IS OUR TOP PRIORITY
Vulcan Legacy Operations MSHA
Incident Rate vs. Industry
The safety, health, and well-being of our employees will always
Incidents per 200,000 work hours
be our top priority. We take pride in our history of exceptional
safety performance. In 2023, we experienced a Mine Safety
Not yet available
and Health Administration (MSHA) rate of 1.2 injuries per
1.20
200,000 employee hours worked, which is better than the
industry average.
1.80
1.00
However, 2023 was a devastating year for us as well as the
construction materials industry as a whole. We lost four
1.55
employees to accidents this year, two at our quarries and two
0.98
in on-road incidents. In addition, two contractors were fatally
injured while working on a Vulcan site. These tragic events
1.51
have rocked us to our core.
0.95
We are committed to continuous improvement and
1.64
implementing holistic safety measures, including proactive
engagement with MSHA.
1.08
We continue to concentrate on critical controls and building
1.68
in the capacity to fail safely. Our Serious Injury and Fatality
0.89
(SIF) program is a forward-looking approach that engages
VMC
employees to assess and eliminate potential hazards in high-
Industry
risk activities.
Employee empowerment is critical.
Employees are encouraged to
speak up and listen up. Every
employee has the authority to stop
work if they see a potential hazard.
Our Under the Hard Hat initiative emphasizes attention to
mental health, provides resources and creates an environment
that encourages employees to address those challenges.
We will continue to take every measure to ensure our
employees return home in the same condition as when
they arrived at work. Zero is our goal!
Vulcan Materials Company
3
2023 Annual Report



shareholder letter icon 3/25/2024 Letter Continued (Full PDF)
 

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