Feb 17 (Reuters) – Construction supplies manufacturer Vulcan Materials reported fourth-quarter results below Wall Street estimates on Tuesday, as weak residential construction activity curbed demand for its concrete, asphalt and aggregates.
Shares of the company were down more than 7% in premarket trading.
High mortgage rates have cooled homebuying and slowed the pace of new project launches, while persistent inflation continues to drive up material and labor costs, a combination that has weighed on demand for construction supplies from companies such as Vulcan.
The company expects total shipments in 2026 to rise 1% to 3% from 2025 levels. It also forecast full-year adjusted earnings before interest, taxes, depreciation and amortization between $2.4 billion and $2.6 billion.
“We expect continued strength in public construction activity and improving private nonresidential opportunities, a combination that should benefit an already healthy pricing environment,” CEO Ronnie Pruitt said.
The company reported $1.91 billion in revenue for the quarter ended December 31, up 3.2% from a year earlier. Analysts had on average expected $1.96 billion in revenue according to data compiled by LSEG.
Construction aggregates, Vulcan’s largest segment, which include sand, gravel and crushed stone, reported a revenue of $1.52 billion, from $1.47 billion a year earlier.
On an adjusted basis, Vulcan reported a profit of $1.70 per share. Analysts on average had expected a profit of $2.11 per share.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Krishna Chandra Eluri)
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