Vulcan Materials Highlights Aggregates Business and Robust Demand Outlook at Investor Day

Narrow-moat Vulcan Materials held its investor day on Sept. 29, during which it provided updates on its segment operations and end-market outlook. Following the event, our $141 fair value estimate is unchanged, as our long-term thesis remains intact. Vulcan’s end-market demand was strong through the first half of 2022 thanks to an increase in aggregate-intensive construction projects. Top-line growth has been robust as aggregate volume growth was met with higher selling prices. While inflationary pressure is likely to persist in the near term, we think Vulcan’s pricing power will enable the firm to offset rising operating costs.