VMC - Vulcan Materials Company (VMC) Q4 2023 Earnings Call Transcript

2024-02-16 14:40:02 ET

Vulcan Materials Company (VMC)

Q4 2023 Earnings Conference Call

February 16, 2024 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

Stanley Elliott - Stifel

Kathryn Thompson - Thompson Research Group

Anthony Pettinari - Citigroup

Jerry Revich - Goldman Sachs

Philip Ng - Jefferies

Michael Feniger - Bank of America

Mike Dahl - RBC Capital Markets

Keith Hughes - Truist

Garik Shmois - Loop Capital

Angel Castillo - Morgan Stanley

Michael Dudas - Vertical Research

Brent Stillman - D.A. Davidson

Presentation

Operator

Please unmute your conference line Mr. Warren as we are not able to hear you.

Mark Warren

Thank you, operator. Let me start over operator and we will get started on the earnings call here. Thank you, operator. Good morning, everyone. 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 to our website, vulcanmaterials.com.

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 non-GAAP financial measures are defined and reconciled in our earnings release, our supplemental presentation, and other SEC filings. During the Q&A, we ask that you limit your participation to one question. This will allow us to accommodate as many as possible during our time we have available.

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 company. Our teams delivered an outstanding year in 2023 and achieved two significant milestones. We generated over $2 billion in adjusted EBITDA and we surpassed $9 of aggregate cash gross profit per ton. We remained focused on continued growth, consistent execution and value creation for our shoulders.

Our fourth quarter results again demonstrated the benefits of that focus and our aggregates-led business. We delivered a 27% year-over-year improvement in adjusted EBITDA. Margin expansion in each of our three primary product lines and another 90 basis points of sequential improvement in our trailing 12 months return on invested capital. ...

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