VMC - Earnings call transcript Q2 2022 | Vulcan Materials Company

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Operator

Good morning, ladies and gentlemen, and welcome to the Vulcan Materials Company's Second Quarter Earnings Call. My name is Katie, and I will be your conference 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. begin. may you Warren,

Mark Warren

any and is thank today Today's your website. and are forward-looking described Please along at to uncertainties. Vice earnings measures may Financial our and available in to by Wood, non-GAAP a and and vulcanmaterials.com. the reconciled Vice Materials. be CEO; reminded in are for that will With and our be release our A SEC risks, recording detail replay in President a today's call Senior Officer; release, defined Chief press risks presentation financial and today statements, supplemental discussion and me include earnings Tom in President other with Andrews filings These of of the you morning accompanied disclaimers, are our with company's Carlisle, presentation Securities Finance. interest for call filings. and later Vulcan subject which posted Suzanne Mary website, Good legal supplemental other Hill, Reconciliations in Exchange other are and release of Chairman Commission. this

turn the call please operator Q&A now your to over question. As With will I to limit one Tom. that, participation indicated, the

Tom Hill

and to Company. Mark, interest in for call joining Vulcan the morning. you, Thank thanks Materials We everyone this appreciate your

to on allows period. These in unit cash rate of trailing our our delivered our and our expanded growth teams strategic grown quarters improvement actually capitalize business aggregates-led stands over of XX-month of pressures drive consistent unwavering pricing us profit to environment. another a these. to on to the X-year unit out in nature We've from which XX Our solid times XX compounded resilient opportunities mitigate performance macro in and that at per challenging annual our profitability. The profitability disciplines, last in results come like ton executing a cost commitment gross X.X%

per grew ton gross we our despite significant aggregates quarter, headwinds. profit cash external second the During

year-over-year our improvement month. expanded each sequentially Importantly,

cash in unit growth We XX% the were ready-mix operation momentum We an to in and price EBITDA The arbitrary improvement pressures. These Mexico this increased year. of improvement, Pricing include poised set million EBITDA quarters. other product by and are aggregates double-digit energy generated which has prior growth unexpected carry price of year. impact robust costs. X $XX all profitability in deliver the in aggregates and from our delivered $XXX adjusted results million quarter, across May. cost strong an hampered energy results headwinds approximate sequentially shutdown ongoing double-digit both also over increase adjusted forward Year-over-year the and for asphalt helped and was cost growth mix-adjusted Both lines. inflationary rising this

Ongoing prior X% X% momentum the XX%. Mix-adjusted Freight year's or remained in $XXX same-store Demand growth increased healthy growth. margins quarter. pricing to return Turning volume X% on pricing adjusted a X% quarter. gross our over helped each with second profit during of improved improved Aggregates to to million. the now across showing quarter Overall, shipment majority basis. footprint the segment. second improved the pricing geographies

benefit XXXX balance begin prices It's of into at backlog the noting third to second in flow continued into project new continue momentum quarter. the pricing will the and to We work XXXX. as that expect increases price higher building momentum through through half year worth deliver

due the energy year-over-year expected, pressures. on significantly quarter elevated inflationary basis and to costs a in were As costs our higher other

Volumes improved the gross addition year. costs. liquid X% quarter costs. our in gross the improved in the significant remain benefited gas and price energy Asphalt profit the Pricing continue efficiencies as year the actions focused control, cash the prices impacts second Concrete higher and of can in and higher plans a dispersed. in Concrete, that by growing cash cash margins million mitigate from second began material XX% million and U.S. natural $XX asphalt to quarter, $XX helped $XX higher the gross segment, the Operators X%, pricing increases improvement driving million on the profit selling to to they from ton. XXXX asphalt headwind. offset of year-over-year year per in controlling In prior usually in improvements improved last Our levels, selling geographically quarter input despite $X.XX both improved In profit to volume held this in Volume, material were all quarter a offsetting prices average what costs. aggregates

investment in the activity improvement concrete for the construction private remain and Continued infrastructure nonresidential onset segment. catalysts of

let's environment. demand broader Now shift to the

remains leading and basis, private now bulk-and-serve has manufacturing growth. grown starts beyond aggregate-intensive like now categories the projects and hit territory, Index distribution footage is XX% include at demand outperform trailing continue warehouses single-family high to nonresidential continue slowing Momentum Other to high after showing Dodge office, in markets will growth Index average. and expect Vulcan Dodge and the growth, and strong Billings construction has in starts, in remains levels. in to second positive total square XXXX XXXX Architecture institutional of half grow ABI nonresidential permits the returned and and have pre-COVID multifamily to good the construction On public The the indicators in and growth in levels, activity a permits XX-year construction are broadened XX-month multiple remain and particular work. Headwinds point but Private Residential demand Momentum single-family has private above to states to a XXXX. also nonresidential years other in June. We and Index U.S. and strength. resulted starts of for like towards

the in On the public in the in saw -- year, highways bidding first both anticipate booking quarter activity The and growth side, demand of half we've reflected has second secondhand public mode. And record the while we levels funding. somewhat muted public entered been somewhat and we infrastructure. has of growth

Jobs the flow and to investment that for In Act infrastructure years addition, begin will come. shipments funding we to into XXXX and in anticipate federal

Suzanne outlook. the which turn results country, will upon to horizon continue to now unit additional our our tireless to the Mary commitment to design to from impact to depend comment pace remember, other to call shareholders. we will value that the are Now to I further needed over and margins strong on move continue execution for time Suzanne? the and full year and Andrews expanding timing of and ensure will our construction. the to our ultimate and the at drive parts states funds letting outperform to the markets Overall, positioned of continue IIJA allocate our the of

Suzanne Wood

to Tom, good morning everyone. Thanks, and

I performance with the adjusted described, driven this EBITDA aggregates, our As growth year, cost a strong first reflect SAG of and on leverage. was Tom which by in half I'm that pleased XX%

of of further and I'm by to Our environment. strategic revenue operating discipline end percentage cost target In the first this us net leverage are top reduced also XX reduced Xx EBITDA, current year. positioned pleased cost to we the helped of by X.X%, of the dynamic to overcome SAG, X.Xx to half end confront as stated in the basis to our X.Xx. range we and leverage challenges our in that regards macro was the a points

management both give our our significant opportunities. to strong, organic Disciplined Our inorganic capital fundamental capacity balance strategy. the remains growth capabilities cash invest is and continue generation sheet to and in us to

XX.X%. the was are made at maintaining goal investment-grade ROIC Our return financial ratings. capital trailing improving our shareholder invested decisions flexibility basis, on our of end quarter On capital, and a months with returns and while credit XX

turn over the adjusted for the Our horizon Andrews by EBITDA expect the to over increased I'll call Mary Mary to we XX%, remainder XXXX. details provide our more improvement. same and now of on time continued Andrews. outlook

Mary Andrews Carlisle

pleasure take billion. update In all. February, adjusted $X.XX and part in good is communicated It we Today, between guidance. and providing Suzanne, we for to call. full this XXXX are to billion EBITDA $X.XX of a Thanks, our year morning expectations an delivering quarter's

Our EBITDA pressures. loss full in for adjustments $X.X update our $XXX to $X.X disclosed to between and Mexico inflationary the the of to million addition year both higher-than-anticipated impact business, We reflects now the related previously other billion. expect adjusted from million billion $XX

ton in prices we pricing mid-single-digit expect continue, the aggregates gross is year. expected expect to for in full cash The XX% We X% between seen half now to profit momentum increase freight adjusted per first strong we the growth the for have and aggregates year. and

aggregates to expect to We improvement of volume X%. continue X%

We expectations escalation are our continued to for also revising the segment the Asphalt costs. of asphalt due liquid

depletion, $XXX and turn rate to from is $XXX for modeling are on approximately closing amortization growth to include costs. We Interest are approximately and the tax both earnings and call solid over Depreciation, shipment approximate I'll million is estimated XX% capital year $XXX expected and to year the purposes. between through $XXX expense be are actions aggressive $XXX components maintenance the between is to higher helpful These expected XX%. to expected spend energy in between and that expenditures expenses expected benefiting accretion $XXX offsetting may for XXXX, the expenditures and million effective year XXXX. million. Tom plan that other be growth remarks. million. few The be a be back projects. I'll pricing for to Asphalt now run million significantly full for SAG now full million.

Tom Hill

Andrews, special and a thank you Suzanne. Thank you, to Mary

call. As Suzanne's we last previously earnings announced, this will be

is, Vulcan ability what it's enhanced we Suzanne's this like most profitability leadership. Vulcan grandbabies. for inflation. success in take rest we're You organization beyond. critical one about And Suzanne, think think also hard our a been the returns your sure, and a tenure, is miss greatly. how the and in skills Vulcan I and of I'll accomplish place feel where thank tremendous, family. we're And XXXX your hear over work your welcomes I'm are business going And the despite about what has and go sure appreciate years X best of retirement. made people. touch. your part she want your grateful played you our capital leadership and to deliver role to what for of the but And us care more while me and to say this miss you we pandemics all it's We her excited I you. is the you -- a in I'm team special. Suzanne We'll want higher in excited lot, last to I will of wish caring make but the pressures thank entire -- Suzanne, we've people Well, make and been those for miss the to success. those your of been, on

safety recent we acquisitions. by shareholders September our And margin are seeing driving executing First all to from synergies New people at your for we've Mary industry-leading our performance. Investor and local foremost, shown in the value unit focused our safe as to through you in We look the delivering York keeping level, maximizing on And our in be our I happy Suzanne, expansion forward on Andrews, and and disciplines questions. to of Day. take will now strategic

Operator

Stifel. [Operator Instructions] Stanley from Our first will Elliott question come with

Stanley Elliott

right volatility all that you're market seeing could Starting of amount mean, in it there's really where in And haven't confidence are that give on cycle? tremendous you the point your in that off, to the changed things we I that maybe view you a market Has things changed materially? the now. some

Tom Hill

critical I'd as questions. think I Stanley, an X ask investor,

the going The first And Price it's and it's we going that's It's good. easy when to is double-digit future. with happens, very continue usually a a what's think trend. to pricing, times pretty better, answer. question price? getting multiyear that to had for happen We've and seen where question be foreseeable would I

they mid-single can We Second back yes. inflation, line? in May, in growth of face low be, digit June. take point in question bottom second And saw you okay, price to kind in digit, Margins would then single were the the of simply, to an that quarter. inflection in the grew

are margins we're going in mode. So price then have expansion And mid-year increases. to

And little the is and then I'd aggregates shipments inelastic, lot now pricing to And cost format, pricing outpacing the So a and would more really continuing a is future? in different growing diesel that critical that our is and to business, infrastructure. single-family, And to more is bit the demand foreseeable of that think what's going multifamily, or third demand to in non-res take be to less question answer grow, one like but aggregate inflation. fundamental we not. a you so with see happen I maybe back

those for all X think our put success up I business So the you questions set for few next together, years. is

Stanley Elliott

best great. wishes That's And to Suzanne, you.

Suzanne Wood

Thank Stanley. you,

Operator

next come Our Grooms question Trey with will from Stephens.

Trey Grooms

mid-single-digit quarter, which a gross which in year, looking a it Cash guide the I revised ton increased in for profit, pickup headwinds, that. pretty the does impressive on gross you're I to the half. is the is touch cash and profit The wanted the pretty strong improvement per think, back for, given imply

I'm year. should how will pretty exit thinking we that progression rate the for profitability about strong be well a into next bode imply assuming and So there? And going that,

you color could any give So would helpful. there be

Tom Hill

Yes.

about X%. talked of I at you up, we say, say, as earlier, So were looked X% June, unit margins; May, if

another say got what We're also it's continue it second the has. in half. I'd would adding go see bidding that cost in You've like to inflation, second single-digit down, in And going prices price us higher margins it's not accelerating just unit jump We July. half. to but to -- the not going high the point

inflationary the So hit. always recovered -- we'll take we really, we've as do,

unit in the mode. will very half, be and And that momentum but good back in into lags, say it we'll that growth Our jump 'XX. pricing I'd the and carry second we'll margins go we'll

Trey Grooms

to And for Suzanne best wish retirement. the

Suzanne Wood

much. so Thanks

Operator

Garik Our will come Capital. Loop next with question from Shmois

Garik Shmois

I'm if little bit to back an ground a you're just little half were Coming speak could I'm and into slides to this an some wondering that reflect the expectations last what reflected still moving activity you in you've side. the that just Just kind got seeing bit are slower increase. [indiscernible] of just more of the wondering, what year on have if due forward...? of expecting bit wondering year. was of first you this bidding the pocket the half quarter, a -- a air on the infrastructure

Tom Hill

And I'm of specific about use couldn't you the sorry, entire your Are talking [mark] highways? end the hear part first question. or I like

Garik Shmois

Yes.

highways. Sorry, speaking was I specifically to

Tom Hill

Sure.

first state, is going their very kind think, see with kind got year of I was half for fundamentals, in substantial is infrastructure I IIJA. last work in multiyear in budgets. backlog infrastructure you've because happen think growth the in pause that revenues point, the had it good. at slow seen XX of And We've prior and this what's county, the projects the in states button At days. the as to embedded and big, highways as that to high hit booked recent half levels, we of a in predicted tax number to again, multiyear to IIJA. extremely big in second The city of and bidding last prior

I that, of So for XX% forward should are backlog look growth year. next budgets think as the the this from substantial this. DOT bidding the plus, continue year, to top we and starting balance the reflect funding going of IIJA And into their then to funding increase on

well we So 'XX for that the predicted second year biddings We and the it the in We saw continues quarter. think into 'XX. this in and growth.

Operator

will from come question next Anthony with Pettinari Our Citi.

Anthony Pettinari

out right. thinking know, be you put million I Mexico, costs, point there's million energy, there's there? that updated $XX the should if if got on On or don't about can labor other if guidance, we any strip that things that I $XX I we just from wondering finer if think diesel higher I'm

Tom Hill

that mean, really diesel we line, half inflationary It's and to But pressures primarily of escalate and second all the the to little you that have first half the the labor still bit. a to it's about I inputs Yes. flow-through And, second is in all continue inflationary in services from half but other energy. business. in the there just probably -- have

Suzanne Wood

legal related that know raised that related half. Anthony. to business then some higher extra in Asphalt just the the million, and to is liquid I'd other $XX And just the due expenses costs Mexico. majority SAG that, to bit, see which development we Yes, the segment in also add a of you'll guide continued you'll back

Anthony Pettinari

on very the that Okay. there? of and timeline helpful. remedies just can then sort adjustment, arbitration just you NAFTA Mexico, potential remind And us understanding guidance you're That's the for pursuing the of

Tom Hill

Yes.

Tribunal So sometime to claims, those In hear and July, with decision seek we hope application filed arbitration application shutdown. additional in May, a an our XXXX. in we the should the NAFTA further of shutdown the in the to because claims to granted seek

Anthony Pettinari

all the years. helpful. the Okay. thanks That's for over help much so And very Suzanne,

Suzanne Wood

Thank I Sure. it. enjoyed you.

Operator

Our will Jerry with next come question Goldman Sachs. from Revich

Jerry Revich

to we could over we'll you outlook wondering what if Mary based with you is the quarter about margin if percent year-over-year at out Suzanne the you And once of Suzanne similarly, the expect contend quarters? in percent just aggregates pricing folks do every I'm that back it expansion from expectations volume of like impact the working actions the of again fourth able to just ship balance the and look unfortunate congratulations can being talk that embedded looks margin with miss now you gross in I as ask, have both. for organic Mexico, performance Andrews, couple you have just of cadence folks year, over the you. we next Mexico, situation on the not announced? to

Suzanne Wood

Yes.

in the with an as back said, to I the really quarter having beginning second we the Tom think the point than on view cost. pricing half, faster accelerate inflection gross been like margins

And see in improve back half. to so to we gross expect begin margins would the

Tom Hill

ahead. I'm sorry. Go

Jerry Revich

apologize, or I just margin I Tom that year-over-year sequential? to expansion was going a is ask,

Suzanne Wood

in first challenges I we've think margin the some in the in the half we'll inflationary and pressures second see half. had sequentially abate will that the gross

Jerry Revich

Tom, did add I on the point? you apologize, And to want volume

Tom Hill

Yes.

the we're I that, I I and roughly of lot nonres You tell in underlying think, point low infrastructure. and in a demand is market, asked you to about would the tell growth you the that than in what's digit. particularly with single seeing guidance volumes, the would that growth is out stronger

one And there. The Mexico. it's got going but we'll as said, -- I headwinds namely half, growth, be biggest the to second you've is some see

And product and service. market. fourth get shortages then just just be can't We in enough truck at the the peak markets. one the and cement coastal Second third would would capacity time rail to be some charges lack of

demand we shifting. further look drivers the think As out, are I

robust, XX we really strong; three, we single-family about, as think still in you that think that's that second IIJA And this two, high that's population leading offset -- continues are get highways not prior 'XX. to markets it's remains only that showing improve; considerable better the Vulcan remember construction You've but in into will strength days, half by indicators, enjoy One, of talked going as last bookings growth. non-residential got the extremely at and factors: multifamily X to levels, year to and but got considerable and -- well, infrastructure remember we construction and that

So grow our will the the country. faster than demand of rest profile

Operator

Our next Group. question Thompson will come with Research from Kathryn Thompson

Brian Biros

hearing their is actually from been work that address Brian We've Kathryn. Biros to DOTs state ability is their beginning This to increased on for concern impact inflation programs.

guess, impact seeing the in shortages, labor and all? you programs material public addition I work to are inflation at So

Tom Hill

because in don't they You they due is The would see I norm. the with normally over that's happens where we not to away go X%. inflation. underline hear But Georgia. inflation, of exception, about going postpone, work seen not do estimates X% to they And and Georgia, that the jobs wait place and awarded postponed about in being engineers' of hey, just said, a they think really even with it, we're of what that bit little being the we've

they're DOTs despite Most about levels federal the so away. for big states now, DOT have example, of through have that jobs work with states that's their to that's in high right increase prior pushing of that ahead think, Arizona to And been real most the funds. programs. Texas and are the inflationary costs, and And don't the extremely scheduled going clear funds rule. remember exception those you I -- But go are more

insanely You've got high levels. at tax gas revenues

funds. extra got COVID You

And point, seeing work have March. bookings bidding that as at the we're this about. aggressively been since So their in our talked backlogs and DOTs February, we

So I a DOTs. it's actually think big for issue don't of most the

Operator

Mike Markets. from come RBC Capital will question next Our with Dahl

Chris Kalata

Kalata Mike. It's actually for Chris on

how could lost disruptions. those to out flesh more backfill is was utilize quarry ships the to help I to hoping you do to to there that Just through disruptions an going the you mean, you detail serve to back I made markets? the those and still how plan over you've plan M&A, shipments. opportunity backfill Mexican the plan years? potentially address Gulf And continue

Tom Hill

point, this not guidance. At our in Yes. that's

not In million fact, those backfilling that's took -- hit. the well, tons. $XXX million We're to $XX we

You'd normal we get say, there? can't the use. increases down for the just fact well, that our rail is we rail can't The you service business of normally matter

at this we in have point, So our plan. don't that

Chris Kalata

of Understood. were contingency to And follow-up. if I just if to access can that Is place in any part? sort there plan lose primarily you

Tom Hill

service. updated. see -- this because rail the we'll of To as time -- of we be you But we'll point as at I goes seen. on, don't keep lack

Operator

Michael Feniger next will America. Bank with from Our of question come

Michael Feniger

September, hosting framework Day I in Investor in You're was provider mean, XXXX.

seeing is higher to peak. likely you're strong diesel as now stick that So costs cost control, pricing,

a go exit would that is going have gross trying that incremental and the see higher peaked? ton to to costs term? you lead cash year now pricing Just forward long going we how to the in XXXX per So forward of assess based and margins profit this not kind on likely as operating margin,

Tom Hill

Now, my for we're Investor at the Yes, Look, you're you pointed per steal to going we said out. my $X.XX ton. remarks, as prepared Day. in thunder

have So -- our long $X. range and been

is rapidly a approaching Obviously, continuous So improvement journey. that. we're this

give some new as at and September, end have to a goals we some you the we'll I think and hope goals we'll that talk of full September. -- morning you guys to so And a in those path of

Operator

come David MacGregor Research. Our next will question with Longbow from

David MacGregor

you mentioned earlier one number question, that of an was volume. about to tightness. And talked just responding cement in were factors a of you influencing Tom, those

not and just to becoming to may the the in in of revenues? last the just or just there's XX X the your What's that expectation about visible X your timing out then I may, inflection book there And talk quarters. in aggregates seen heading you've of quarter, a way if I'm days. you So the terms the talked this but business the which next about adversely lack extent or wondering cement through availability impacting be business, thereof if

Tom Hill

Yes.

the for trucks the I of It's to the you -- it not and as kind the put the the volumes, of have the there. But that you deal itself. deliver cement, sure the not the Mexico a or rail. trucks cement that's I'm bit with bit here, deliver issue why a cement big or the concrete it's you'd little -- have as little aggregates trucking. a So aggregates if kind

So I it is as headwind. be governors if I there. would don't that a was see big take And there there. cement all think it the would other over

As I your far as think -- and -- what margin of was about the second question part expansion?

David MacGregor

Well, which but I inflect. more -- you're could that and concern moment, delve if XXXX just for that constrained to I on next cement, cement guess, seems like the much in with on interested capacity the and ramps, was sorry, thinking to ahead. go is my the as thinking a this it how quarters. about X respect about extent so quarter, I'm then more And not might volume

Tom Hill

'XX, ones. a year, into of for really this that to this it's of I think of but didn't advance get I balance don't major little the My was but governor answer the applied a one bit year,

David MacGregor

the business was your booked XX part terms days, timing visible the you just Okay. estimate in revenues you? the of for What's of best And that over that becoming then see last inflection. second the that

Tom Hill

high digits single half. visible May. up went the became They We're second where in go it became visible up It more unit June. X% predicting I were in in think up them margins Well, X%.

of growing So the I and and we're rapidly. in middle it's think it, here we're

Operator

Adam will come from with Davis. question Thalhimer next Thompson Our

Adam Thalhimer

of -- you do Tom, demand about you to could from I percentage about wanted this rotation. ask revenue increase the think that talked When materially? infrastructure

Tom Hill

ramps more in 'XX then lot in and ramping of year, 'XX. I half second think you it see a in some the up more this it and up

funds, you've funds. not probably -- second 'XX fund 'XX. is and then the got half increase, funds, the federal first the hitting gas majority half you've in this tax and impacting year think, 'XX, is in of it That is So mean, in ramp-up really what's jump of the and and COVID got big federal I I the federal

Operator

Our will next Vertical from Research. question Dudas Michael come with

Michael Dudas

Mary. Maybe for or Suzanne

this highlighted You the year. outlook spending capital

the So spending little that given released. second the be for cash allocation debt but budgets without given that's And deposit something Xx for Day? giving if next delays is on flow there from growth? it's half, ahead the we ratio, a that to a Investor is going multiyear and half versus Maybe projects to COVID? the And of you're capital the with year save September accelerate for? given first be generating, you've growth maybe what could level on out shareholders some Is there of X.Xx where to spending more target could that bit the net bought

Suzanne Wood

Yes, sure.

supply higher As has to Mary million little that to equipment the what had some made the That's and Andrews $XXX it outlook years before. $XXX recently, difficult been take chain of year. has we planned than had remains talked the year pandemic, this to indicated, at the of a various this namely that for We've last CapEx has it million. about most in things delivered we that, last just because couple impacting be in

And you if macro because you for perspective, your needed in shape gives ability keep the times remain pillar towards of CapEx. X/X is we utility the therefore, good That's it's as operating is directed little in year a valuable so good look a that that to equipment good we from our what important CapEx that Probably very first forward, certainly, allocation important as and have. important order. refer it's to bit we maintain potentially that the of franchise going And super because value strategy we this a forward it's higher. So reduce that of or capital the you working equipment years. our volatile few

CapEx. the aggregates distribute for that quarries we of to have us as we're So certain invested we sales customers. comfortable to over and respect us with where help in years certainly, a yards on virtual With growth, in are number markets act

interested We also that which greenfield a company from we're isn't we of have an in number have M&A number projects, we there quarter growth a perspective. in if which a a do of those

been have California, Georgia, Some of South greenfield recent Texas Carolina. sites those more and

we're think us following was leverage of the U.S. and back spending. going level in important us the our respect with forward. it for So comfortable size within for target, the puts appropriate business good now to the to range. shape We acquisition ourselves get the it's of With Concrete

to And front were I range that pleased with the within we the having top stay we at X.Xx. important of of within end down in range that the think get will what us. it's we range, that have path of So gotten to continue to

do to long able in well for that. time. in put us the a have are been we think I good They And place priorities shape. have allocation capital

or on or points return increased years. XX XX Our the X basis X last over investment has

And will continue allocation follow priorities. those so we capital to

Operator

Our will Ng come from with question Jefferies. next Phil

Collin Verron

Phil. on This is pricing. wanted actually touch I Collin on for aggregates to just

You implementing midyear the price guys are increases.

increasing work large pricing. talked price of And You increases. about your talked even about one targeted competitors XQ bid

these the And given would the just thinking you're in how about us you QX? So expect think you of price help magnitude that XXXX? dynamics, pricing can QX and sequential improvement about in talk of carryover about magnitude

Tom Hill

Yes.

X%, said, as adjusted. quarter, we it was the XX% mix of in up So

it's the think important pricing of cadence to I note within to your point quarter. the

increases, bid To to progress continue we'll pricing X%, May widespread through old X%, and up replacing got work you're price see by point, to the up up higher half. was your price as it's April bid continue June XX% work. So with supported second July was that we up, sequential was work go you've

us so probably at if for the we're to the as the months, in or XX% XX% second XX% I we at ended think And second we half, and XX% that you quarter fourth out, pointed will well set the X third go in we're will will so the as up most And we the in up year. your probably half, really point, that to range. you XXXX that bid continue as the next -- XX%, total look for work through also of And to ship year. quarter step

we the go a big with advantage XXXX we'll higher us pricing. significantly prices it kick so much So into year, with off as to to start higher

Operator

Jean come with will question Davidson. next Our Ramirez from D.A.

Jean Ramirez

the and second Jean what half? that Brent Should Thielman. outages are to is, impacting first is in and Ramirez This for your extent volumes question allocations innovate ready-mix? My cement

Tom Hill

It's also little of peak not truck tell times. It's I minor, trucking So and some you just for would it's operators. cement, ready-mix bit here there a kind also aggregates.

whole into that. that plays a bunch there's So of things

a say So but together. that piece I'd all kind of is it, it blends of just

end besides it's time the it's there's little so a lot peak more a -- but but of other of factors of it's So bit, week, cement. kind just

Jean Ramirez

Great. don't you a And if quick mind, just follow-up.

the any rely to alternatively today plans of product? operations, there the serve Given on those that impact and are markets that Mexico try

Tom Hill

by service. this that's driven of and at point, Not really lack rail

Operator

to I additional any Tom At further this questions. now over the turn am or no showing for back program remarks. I'll closing time,

Tom Hill

of and this look all the end you healthy, have appreciate and to Thank and for in at morning. you and We really York. interest great families remain that your your much. your time Materials we a We you Thank Investor day. New our safe September very for for you seeing Vulcan it hope forward and Day

Suzanne Wood

everyone. Thanks,

Operator

and Thank you. gentlemen, event. Ladies today's this concludes

You may now disconnect.

Vulcan Materials (VMC) 4 Aug 222022 Q2 Earnings call transcript