Vulcan Reports Solid Results in Q4, but a Slowdown in Private Sector Spending Weighs on Volumes

Vulcan reported solid fourth-quarter results as lower volumes and rising costs were largely offset with strong price growth. Consolidated sales increased 8% year over year with strong gains in its aggregates and asphalt businesses. Gross margins were pressured in the quarter, decreasing 170 basis points year over year to 20.2%, largely driven by weather-related disruptions and sequential increases in operating costs. While demand appears to be flattening, pricing remains strong across Vulcan’s portfolio as all product lines saw double-digit price growth in 2022.