Vulcan Materials Company (0LRK.L) Q1 2025 Earnings Report

Vulcan Materials reported QQ1 2025 revenue of $1.6346 billion, up 5.75% year-over-year, accompanied by a gross margin of 22.35% and an operating margin of 13.85%. Net income was $128.9 million with earnings per share of $0.98, reflecting a 25.6% year-over-year increase in EPS despite a meaningful sequential revenue and margin slowdown quarter-on-quarter. EBITDA stood at $410.2 million (EBITDA margin ~25.1%), underscoring strong cash generation from operations even as the business remains highly capital-intensive.

On the balance sheet and cash flow fronts, Vulcan generated $251.5 million of operating cash flow in the quarter, deployed $168 million in capex, and delivered free cash flow of $83.5 million. However, a substantial financing activity slate drove negative net cash flow for the period: debt repayments of $400.4 million, repurchases of $38.1 million, and dividends of $66.0 million, resulting in a net cash decrease of $407.9 million and ending cash of $192.9 million. Net debt stood at approximately $5.28 billion, yielding a leveraged position with a net debt to EBITDA of roughly 12.9x, highlighting sensitivity to cyclical volumes and interest costs.

Industry backdrop remains cyclical, with a QoQ revenue decline of 11.82% and a margin compression versus Q4 2024, likely reflecting seasonality and fixed-cost leverage in a commodity-intensive business. Management commentary (where available) emphasized resilient end-market demand and the importance of disciplined capital allocation, though no formal forward-looking guidance was disclosed in the QQ1 2025 filing. Investors should monitor leverage normalization efforts, commodity input costs, and the pace of infrastructure-led volume growth as key drivers of the medium-term earnings trajectory.