Vulcan Materials 26 Oct 232023 Q3 Earnings call transcript

Good morning. Welcome, everyone, to the Vulcan Materials Company Third Quarter 2023 Earnings Call. My name is Angela, and I will be your conference call coordinator today. Please be reminded that today's call is being recorded and will be available for replay later today at the company's website. [Operator Instructions] Now I will turn the call over to your host, Mr. of for President Materials. Vice Warren, Investor Vulcan Relations Mark Mr. Warren, begin. you may

legal Senior everyone. These are and in today's CEO; described forward-looking today earnings disclaimers, Carlisle, are a SEC to Chief our Securities release, press in other and Reconciliations operator, presentation accompanied along which measures you, company's that a to other call With Officer. and and non-GAAP and President Today's Commission. Financial of other statements, the are good filings. Andrews uncertainties. detail release and Thank release risks, our reminded the subject with by Chairman in our and include supplemental morning, in me website, discussion is Exchange reconciled be and defined and may Hill, financial with are Mary supplemental risks and Vice earnings filings posted Tom vulcanmaterials.com. Please presentation

you allow many X ask the to limit call I'll we participation Q&A, turn during possible over And as to the us have with the time that, Tom. that During available. your we will accommodate to This question. as

to Thank and officially over past target. in $X call Aggregates-led years demonstrates X that I'm business, basis. the our September, challenges and In this durability and goal the joining core high free we increasing perfectly was our on value Way that us execute of coast-to-coast shareholders. macro Today, initially despite gross of before strategic a Selling $XX fall that of our focused is you, our of And million for the footprint. back the we continuing and proud XXXX ton profitability our likely to gross disciplines per of create our and accomplishment operating our of are on [ of of cash Way basis anticipated flow Vulcan new per intensely profit morning. through same-store $XX our execution thank when teams ] ton. how a This really Cash of who cash XXX of target all our at of of across set gross key profit none profit cash at are solid the teams tons Vulcan per to Mark, XX-month a ton prior continue for to on our surpassed you trailing level. Compounding the reaching is growth we

EBITDA, improvement In the year. quarter, adjusted we the XX% over $XXX generated which a prior of million is

year-over-year Asphalt product Aggregate, of Our improvement. margin posted quarter Concrete and another gross lines all

gross gross Residential geographies. across same highway quarter, the basis expanded segment, In the seeing of improved shipments. Shipments and weakness majority declined are volumes. at in our improving the momentum with impacted XXX markets, the by points, ton while X% of cash end many our uses by variations margin despite Aggregate markets profit time, XX% per lower and in

activity nonresidential business. large manufacturing to footprint the Remember, in Private Georgia particularly the to in matters Carolinas. related drive projects healthy construction growth, continue aggregates volume and industrial and

significant. the the country private unmatched states IIJA are currently be in Southeast, will in demand and across Ours is dynamics where where most the investments strongest

inflationary Pricing prices more XX% improved momentum year-over-year continued footprint, achieving geographies the quarter with and offsetting across X% healthy increases. Average in than our all continued selling pressures. sequentially, cost

California. In profitability cash geographies Average most points. costs liquid over Asphalt, and XX%, solid and particular control. from lower unit prices and basis with gross cost margin across X%, improved asphalt XX% manufacturing increased improved improved Shipments XXX benefiting selling in strength

earnings construction the concrete New now year profitability Jersey over points. Cash basis benefited by XXX New divested Concrete the prior activity. slowdown contribution XX% the Pennsylvania from volume improved impacted despite unit margin segment and gross improved to continued lower residential York, that Concrete by be operations. in of Remember,

have we executed Through dynamics. the year, first successfully well of navigated evolving macro and X months the

briefly growth Starting recent X and use. single-family by with Let residential, the starts we're permits what currently me encouraged end last comment over we're the months. in each in in seeing on many geographies

support housing. now historically providing low high demand begin and fundamentals demographics likely hand, on in multifamily overall other back favorable for driving the have rates and but levels from housing have Vulcan to to pull starts have some to residential levels. inventory for mortgage firmly activity, higher-margin place. continue residential the remain some the markets additional impact need On are Affordability underlying

across In categories. differ private nonresidential construction, trends

Vulcan activity, nonres As category, remains has warehouse at concentrated But the high activity states. largest manufacturing is softened. in expected, and levels

large footprint and on and customers with have offer capabilities. a We numerous shipping differentiated booked solution logistics manufacturing we where projects advantaged are our

side, the infrastructure. growth Trailing indicators up XX-month are and highway in remain at public levels. and of XXXX are starts continued state both On record highway budgets leading XX%, supportive

expect in next next the years. for and to continue accelerating We construction several activity growth into growth public continued year

profitability demand unit Our improve nimble drive to our prepared customers environment sales any and for deliver to operating are our continue value shareholders. in teams to value and and for well

I'll for Mary upgraded turn outlook. performance Andrews? the over Now to Andrews XXXX additional third on commentary Mary quarter and our call some

Thanks, good Tom, morning. and

$XXX the points improved dividends points, debt repurchases, basis our to Over margin improved by to reserve basis XXX our invested our to last XX posted and adjusted XXX shareholders on strategic ratio net flow a via by purchases, our cash adjusted EBITDA reduced X.Xx. XX% capital have months, before million EBITDA leverage conversion and returned return free we

our with balance continued sound for allocation robust sheet, operational Tom strategic us position our that and reach. expanding highlighted, objectives well of our capital enhancing further on coupled our and strong success Our performance core

are ongoing for asset. our Texas our concrete we disposition agreement of finalize of to optimization, part the As currently an portfolio working

as result, sale million quarter, these value during a recorded a $XX pretax held fair we and the carrying for As assets to the charge adjust value. classified to

invested the capital. in million $XXX During X have and maintenance first we months, growth

year. increased basis X% points for improved a our expect on and maintenance modest reserve and full revenue. Year-to-date, by $XXX million expenses growth strategic to percentage between XX the and have spend as $XXX continue We on and million to $XXX of capital SAG million purchases a

increases higher incentive accruals, Year-over-year mostly due are earnings. with improved to congruent

billion paying objectives achieve in results, After operational than to and now this are the into momentum adjusted Our quarter talent $X.XX year. XX% our we expect financial support EBITDA improvement XXXX, the results. between strong of the to a off strong carrying investments in for billion and year full We versus execution year on greater at prior of and operational business $X technology another midpoint. plan next

over provide closing So remarks. to a turn back commentary the I'll XXXX now some on to initial few and Tom call

Thank you, Mary Andrews.

X confident in start offer XXXX, While we're our regarding I'm me let some expectations, with on commentary things still most XXXX. the operating for our plans early and finalizing I'll

momentum. pricing aggregate First,

last aggregate For environment positive. historical exceeded pricing the prices remains X quite quarters, have the norms, and

Our Vulcan is Way driving our commercial execution. of Selling

at improve digits single We least high expect in prices XXXX. to

demand. public Second,

We budgets supported demand, are growing recent for in and by growth the state DOT confident award XXXX. in public contract healthy activity

activity next year. to construction public expect accelerate We

more bit is that the too the uncertainty call. there early private on to Now regarding macroeconomic demand frankly, a environment of impact little makes it,

could single-family to not nonresidential next sector While are overall. affordability demand, the challenges how activity as similar exist current or in as overall how to positive, year. that influence returns to remains uncertainty may whether environment In growth impact higher and sector it private residential higher trends rate impact uncertainties a rates and

may activity and the key in the will degree manufacturing Additionally, back continues in further decline of current nonresidential match demand. pull decline driver activity recent levels, the from if warehouse a be it to strength high of the -- historical

our any confident an February in that aggregate for And you XXXX. to they give equipped unfolding track deliver we am so. of shipments dynamics environment. how update We'll macro what I these in well have unit to and teams proven record growth in as a see that profitability doing means are

of XX last per macro average and improved shipments, ton cash gross the expanded has XX%, our in a backdrop adjusted aggregate our the lower XX%. Over months, has by volatile EBITDA even and face profit

XXXX questions. now year this couple shareholders. strong to the of and Vulcan Vulcan and and keeping work next happy we remain As Andrews committed we will take deliver Way be over disciplines stay for value of And to Way safe finalize Selling our continue your plans to our our Mary on for our months, focused people I operating of to and finish

Instructions] Stephens. question [Operator Grooms first Trey The comes with from

Good everyone. morning,

follow of possible would at look in lot and it next of commentary high-level there's enough to of or you could of And give to be on kind your color X around X here. could us color additional I some any possibilities, where volume that and here, call the could if at as understanding this point, end around but wanted I -- year you of we markets the positive your end a bit uncertainty helpful. if give up triangulate be demand of territory to us But you markets. the Tom, So the comments last appreciate maybe try is kind could maybe

say to to the year, the and there that year. saw call get Trey. But is position footprint different of surprise little next similar a because Probably I'd wouldn't we decline seen Yes, like a Southeast. what early going to we me It this if matter, we've modest ours specifics. in I a way.

full side. private know, when family, at will we as think to be think XXXX. year the hit is and on growth bottom headwind. get the improving. I Single challenges Some looking can you we has And for a Multifamily,

in warehouse big gotten little mixed and I got non-res, a We the by have partially fit light wells industrial [ really in which side headwinds think, some weaker. light we've a challenges it's projects, -- some bag. ] offset, So the got be warehouses, will The think on our us. starts I

local year. big lead highways strong that that decline. should growth we that could IIJA if a see on your all and point, next next growth in side, us to we'll to still volume. -- in point, scenario both do funding. realize see you'll a have volume the this decline I the a at earnings said, that state think I modest driven Now summer now modest really But and all All non-highway being flat get -- even remember make year infrastructure, definitely said, probably this I'd year, by to But private we

it. Got

it I'll pass Okay. on.

Tyler question comes next Raymond James. The from Brown with

about lot just to want chatter Volumes know there's kind come revenues stubbornly about to be remaining I unit of versus because unit are sticky. to feels opaque. costs going I back obviously of like idea but stubbornly are it volumes, this costs a

of So margins. despite you those, guys unit both expanded have though,

of could durability kind any your year, on So the expanding about regardless cost throws market those unit in Mary confidence Andrews, can thoughts just inflation the ex-fuel you? of And next into you of what be? at margins what just talk

Yes.

with in that I it's Let is rising really up I carry a prices really me see think, January take and healthy into you're with of because That unit good And we'll customers another right, think price. Conversations really have pricing gone margins, it momentum demand margin sets face -- we'll energy really even growth really for XXXX. expand think year couple we strong of inflation. environment I'll very our the take visibility -- first. I price and into good well. growth, increases, public a for price you And

our I'd expect If we also at very path you healthy. And at backlog a I digit, least I look prices, pricing. look see but think can as XXXX to single prices, at low-double-digit they're high

point, good So at and than XXXX into really to carry inflation we momentum will we've -- strong offset pricing this margin more growth. see carried excellent

XX-month about in Tyler. a year, next to it's think trailing on and And recent terms evaluating trends our probably I of Yes, cost helpful think basis.

ramp Its year. the moderated We And in to year-over-year quarter And think continue. peaking remember, rising XX-month we quarters trailing that for the cost it's year. last modestly. a began of just that total we of going X cost in last to X since it sale trend be You'll gradual. -- this cash first the before first expect delta for saw quarters on quarter considerably basis,

as as next what But next improvement single pricing year, definitely in gross average high with Tom you So that XXXX, increases unit is we than possibly can deliver higher the think started still I margin profitability means momentum cost that historical year. even think attractive into we described, and digits. improvement

Thank Excellent. you. Okay.

Garik Shmois from Capital. Loop comes question next with The

pricing low-double-digit single to you conversations it next seeing increases year? discussions? I the just can additional high last was expect respect a path that to Tom, get double require based if any pricing be pricing you to with carryover don't we any midyear perhaps formal on any are do Is you a least have you next to comment, and low year, recognizing on just it digits require wondering having better-than-expected midyear that digits. expand yet, and Or that now the customers how in on with guidance from on at this XXXX. does Just Does we color got guys year? additional

out, have years, Yes. increase think, it's our color look January a on price that conversations On the The for with I Well, you now. pointed customers. as gone digit. all, lot price, of midyear And forward, digit, just first would we'll have that as good very seen we'll increases, well. more double single have from of the a part few say high we've low check last I of little discussions think a price into it clearer again, view February it. we norm But price back It's pretty as guess perspective. with looks I and I

Andrews than -- it's ago. year, On for think said, but this low is would us. we've we're place I the single cost, XXXX. low stubborn months digit, digit up starting as And each have looked slower year at double it's maybe past, Mary off, it's fall just Mary Andrews I X but said, until expected This to year, as where had

Got it.

Okay.

next Pettinari from Anthony Citigroup. comes from The question

was you Good expected? I'm past was on few kind faster Or offset helping morning. megaprojects? these private wondering, in on you some or something manufacturing over and seen impacting than any as about kind to Southeast know just look don't lighter or in we've that these or your stories individual seeing they something slowdown some talked contractors, some some we 'XX, availability I labor I and in if of nonresidential, that months have cases, about set. with that widespread of you the the delays of Tom, maybe large projects of weakness some categories. maybe But skilled customer as of coming you're are projects. And guess think seen incremental new time the of about in

of At It I more booked Actually, that tons. and those. think the XX up XX on large projects, point, I'm starting those of XXXX thinking ship I opposite. will think million seen just XX about very We've come this Those of them a to strong. make play. be we

As we X another XX X, constitute the probably we'll over would million tons. of look that -- bid out, I projects we're think year, next these big another X,

helps Mississippi, large really footprint. going the lot in XXXX. So for Geography industrials here. move us Alabama, are Georgia, in a our needle the are of where There's right to those Tennessee,

little our than perspective, So But we they've has our anticipated. geography really gone here. probably a have helped us from faster

coming we're So out first -- ground. but remember, of the

than probably chain others supply us So maybe impacts less does.

turn Okay. over. it That's helpful. I'll very

The next comes question Elliott Stanley with Stifel. from

to bit at Tom, could next the you kind markets talk into about budget a little state from It how a the the more of seeing seems just what can and accelerate years, of public different that kind maybe prior of help level? be year. part you're story,

it's Yes. going well. actually, Good And question.

you work. money November you As takes we X always the remember, was know, years to past 'XX. say for IIJA go And to it if of

growth time. [ to starting it It XX%, and We'll growth So is [ X-year over gradual see awards. rate see in on. XX months the mark, awards we're up a trailing be XXXX. in on ], ] we're will a see come We

look if they're for the at point, at you if actually you big. capital the look state your to But budgets really DOT XXXX, --

of You in it well. won't see sure probably 'XX, sets us will all that but up

money For budget flow XX% be California so, that we're X doubles, see is example, will Texas capital but up in through. I over years budget. is starting up XX%. is to Alabama up up think California Florida Tennessee's or XX%. XX% X%, and

up. play. be that sets but this to in They money So sure can't put will a all work XXXX, multiyear us

for it of us but it 'XX will 'XX. be 'XX, also and in sets Some work up

well really and 'XX is again, 'XX. that, think up setting all for 'XX, I us this

Thompson Kathryn with Thompson Research Group. from The next question comes

positioned company an from of rumblings for and which a rest there's in a industry for be about questions in in of economy growth But stepping yourself. opportunities the bit of and been as just the 'XX there's the some the outlook and and lot our XXXX. the greater well picture, Now back for standpoint XXXX, M&A making can big activity of slowdown as

And opportunities As in concession Vulcan? you geographies initiatives for are of and for of growth type think at top how and/or terms you yourself? these about Vulcan, of of growth what do this areas just products

of Yes. us be footprint And will top at Well, the best aggregates bolt-ons is to the the our returns. going give always in list.

or at from, market As X up. months ago, the picked I look M&A say, X now it's right actually

I think opportunities good over next got the bolt-on see quarters, some think that some I there. we've acquisitions. next several several months, And over we really the should strategic

also, some over opportunities facilities been the last X X add in working next new -- to for years. that to see years, in got adjacent greenfield we we'll a I good some on as think markets starts marked really the XX we've to pickup

So both will I think pick up.

biggest had is in to I in we've also disciplines 'XX, gross conversation, think pricing think to year we As engine ton have of momentum strong heard as I a earlier be always, growth really and operating improving in year going And per our this out because a aggregates. profit as cash look our we'll we've great XXXX. while

So on point. this growth I'm with all very at fronts encouraged

Revich question comes Goldman Jerry next with The Sachs. from

outside Mary, you good from the and I the Tom, that of just about initiatives folks if logistics services other opportunity morning. wonder price/cost. talk could you have

You've and profitability. had, compounded XX XX% over past years, CAGR the

of of over the from on contribution we initiatives. ask had how can those And update outside you You've opportunity and just next the price/cost that's for some tracking years? an couple set

gone not can't there complex, I you're these and project customers, think, the it's delivery because our if more if and projects. quality have aggregates. Yes. those big get projects -- for the time. strategic on of price us. particularly the They're they're That's them on -- you a makes difference servicing been, it's some to worth well it's a hold there a very quietly and than of and advantage And product large up, get on frame, have right damages time And very

I a a quietly perspective has strategic been think from So perspective, advantage volume price that a both us. and for

any And CAGR, the here, profitability acceleration? about from points, particular unit X generally. X Because contributed Tom, it the like outlook to it's seems to

Yes.

it will continue to I that think grow.

I features do new including for office customers business continue think easier us. back with we add our it to to make to that that, features

So and with to we not we're continue done again, learn I it, improve it. upon and think,

Dahl The from with Markets. Mike comes question RBC next Capital

you're this thoughts give initial similar kind any about outlined for thinking Talk how the them great. then for within that Maybe volume businesses. you on your on do update if And the or outlook, us for have you would and about next the downstream an year, of price/cost downstream be businesses guide. price aggregates to year how

Yes.

and a been a asphalt up strong margins all, it's great momentum XX%, first It liquid we're asphalt, but markets, on for top we really So really -- year. Volumes of of was following we're helped up liquid obviously pricing really good really hot and were by mix. quarter. in that, also -- good XX%, helped

say As the look still we're we to work. XXXX, I'd doing

liquid I think going up. from there's some pricing potentially challenges

okay, give will I color think a be demand in February. we'll I more you but lot think

and were same-store up a unit margins the as mix, we inflation margins I got construction, single-family were called but struggle little to we kind prices look year, driven by predicted. over were we Volumes as and XX%. that's out XX% challenged As last price, year, and of ready with because on in up really basis, unit past in of that energy where with quarter we a early the

little got said, into concrete. think pricing good think We it's private do to of going just That have on momentum I I pretty volatility in 'XX the the we see early more. a because call year, to Next side.

gross single through asphalt. now that businesses towards high recovery expect that just we'll double of business kind back the think about maybe And that ahead, And improving as of the ahead low on longer and both is continue. we'd of move but low energy to ready-mix on continue cycle, I in thing we that double-digit because Same the think digits, I digits. We're margin. probably right exciting, is timing think we term, margin

Timna The question Research. next with Wolfe comes from Tanners

because yet, that government figured and the the north asked I touch I know guess on there was of recently something I'd was quarry accepted. news updates I some million, not you offered I $XXX Mexican that

is, $X maybe that So know I latest reports timing any wondering you're sense to what out over of trying for? in to what quoted billion. But holding there the there the just press process. some just closer or get of latest you've a

Yes.

the remember, As -- a to far is NAFTA we as with far as got as concerned, you number have a confidentiality tribunal. agreement

in quote we There's can't press. Mexican quoted some numbers. So been the

As property and the We ownership. our August, as that the simple results business for claim. that of waiting of should the we hearing next position. ownership in value we're rights simply concerned, far in our that the is sometime property is Mexico. NAFTA like story our the just we'll our The protect NAFTA down went. like results We as business And We'll heard tribunal how get there, protect case those of our year. far the land as

try So was seems what, to result, ultimate that That maybe? them the to offering around NAFTA just before strange. of you get something results the panel

-- I can't the of I Mexican to want you. to the can't don't I government. dealings that explain predict

comes Ng question from next Jefferies. with The Phil

end percentage help intensity And called out non-res between some between from notably a tons? manufacturing Can you You you different warehouse. the cross markets up business these or of X end in these for currents any markets? size of business, and nuances your guys X aggregates your

big are I would and up the I see kind let they're Well, tell non-res of first just if of can you, flat. sector Yes. you. they're aggregate-intensive me all, really because them for But both of size

manufacturing I been projects. in than in by the demand we much think, supported back Really nonresidential 'XX warehouses has all, better February. large originally and anticipated first of

I backlogged a are have aggregates are in almost good segments 'XX, up Vulcan, and them. we've will manufacturing The dozen down. for segments to footprint right construction and good out, pointed where you I pointed really as particularly think larger those nonresidential and some already look which of for our out many some demand of we As projects so

but a that So year, will 'XX. it we'll little most of into of go this bit service

'XX. see had as slowing get good, 'XX. really now up good we're at levels. at so far, some we'd risk record Warehousing some so thought that are I but held But anticipating of demand think in 'XX. that We probably with some starts anticipated. It's in we hit of as But we

to because to large be of with the continue some light because to will I markets of even macroeconomics. challenges But some and challenges industrials think nonres, our how backlog. big, see We'll outperform many

Yes. composition track shipments, And of Phil, in that it we don't about necessarily to think But level. of shipments in terms contract I think awards. could you of terms

XX% And now in warehouses awards, nonres, to private the to make the and up manufacturing so is close XX%. probably probably of contract industrial XX%

of Okay. if Am in high-single-digit and the to good XXXX us I to potentially zone? guys ton year? strike inflation. unpack I Andrews, color generally single-digit potentially in guess, volume low-teen I the double-digit for cost next profit big gave terms gross that, price you And had decline some cash Mary growth per in ags, low drivers, I then get

-- us Well, we it's come I to continued to go more But February profitability we've growth back with good you give talked -- next as year. early unit opportunities for specifics. We'll think see really. about, definitely in as for too there

Yes.

I -- at February. could assumptions assumptions we some I by are But to are think again, think point, this fluctuate off. we of overall, your the way -- got your time that don't get

comes The Keith question Truist. next from with Hughes

guidance start in like the that playing look quarter would to the A prices, next year? fourth is and on that question current at what for What role diesel.

Yes.

forward, up -- benefit. in be September, saw essentially the quarter a -- the quarter, was in at was diesel was the move fourth in net down, but push. third and if we really Thinking we quarter as probably levels a diesel So stays

will year, exactly next into Looking but to diesel too it's year-over-year, look be call higher early will probably average, like. on that think we what

it's As us, be you diesel challenge, opportunity. for but temporary can also an a know,

costs, other your run know world of stay hearing to suppliers, inputs, are long I more in from has 'XX? to question. of you Will calendar -- high. a components increases X And the the begin other this continued potential kind lot

Yes.

think sequentially staying in those I everything up. negotiations. is We're

lot up diesel that little think that movers. now up. both far will it's and more be next for single but electricity call a as operating call But right we -- anticipated. I point. stubborn will plans be and think energy, -- I the negotiations early up other to at big we're really The high the year, a I think early as than don't stayed too have call to we're think the it's at we would with probably X be suppliers we doing from as this the point, inputs, this will for probably our

Dudas from The Michael comes with question next Research. Vertical

Andrews, on in Maybe Are talked closer how those think much Mary rather million capital basis, picture if the are and that how $XXX Tom you progress there here to about into to relative types than a For big allocated and when you timing like the this share of projects? kind about is you some And you capital others? the about towards opportunities? of up quarter, greenfield the on that acquisitions land is that talked can you some of investing XXXX. what's medium-, longer-term

Yes.

as purchases, And have would varying at completed quarter. now, pipeline capital third planning So next we you do stages. majority reserve Tom and of that the working a this greenfield strategic the for in our on year opportunities mentioned those healthy right have seen, of earlier, year, we we're

to define will that now look working for we're what XXXX. spending So like

our business think needs maintenance and think think into for the current appropriate and operating we if kind current for overall, as year, are CapEx of we CapEx levels next you where year year. next the of go as wouldn't the we bit the purchases more, we is cycle. in little this expect same but a growth level part are The of that will around move I land

be you to others capacity longer in potential growth as states for And there's continue term those at would as so markets you're Okay. looking attractive add guys? medium to you those -- or

Yes.

of that, is effective go quarters answer to the beauty the all the don't -- you user the I of logistics once. -- looking timing do where position you greenfield that's the growth and the most at have you -- also those yes. putting how is the a to get you're can capital and what time can It's at of what's in And is, capital growth think and are you quarters in.

if you to out faster-growing if growth, So plan. -- market -- if greenfield big And you a got you just there you've you put want where in a is, you're slow it's go and a in. right [ getting or portal of ] think the maybe most plan I strategic in time. those in a these, a smaller put markets the that position it at number a is But

MacGregor Research. with The from Longbow next question David comes

is on starts. the between expected awards, is this question And mean the my change I point? that you just much aggregate lag guess guess, are greater at of would in otherwise and announcements have seeing timing I I in lag terms shipments? you project on than

And for a of inflation, better had to obviously, guessing and get engineers' might a and down And bit being of held a labor defer, the in delayed were that they number estimates. Any consequence the and economics above we've projects I'm are these road? services. materials quite concerns they if of as back or projects running expectations inflationary

months a back, -- as that not at little far we seeing people that saw As of all. ago. in projects I'd a far are as of states, as say, couple X delay today getting bit We're pushed

out. fact, year -- despite demand year, in seeing Inflation growth states working we'll project inflation. projects demand, get still and the costs, are definitely see had an on this to we're hard next we'll In in and growth but impact has

in earlier, what number states, you are talk dramatically. say as I'd up about of a And me heard budgets

again, really I worry cost they of because projects to think that. I it's perspective. If getting understand to into being delays I the that about from growth of the don't and capacity pushed I back So the next and to it highway think in, delays demand into a year next and growing is we think lettings But year projects, continue funding. DOTs next next see the in taken year gradual year. all

Are way estimates? to the you of revisions seeing much engineers' of

you. I'm sorry, I misunderstood

seeing estimates? way you of to revisions much the engineers' of Are

But because a catch-up I think adjusting up, they're and bit a playing little Yes, lag of inflation. and they're they're going of appropriately. it to there's there,

Michael The comes of next Bank question with from Feniger America.

great XXXX. some us You on gave color

versus you But in just same, we kind guys in it. the when a the is think put or cost of moving QX, price achieved kind of spread cost of to the pieces earlier? price that on point versus indicating Just were staying XXXX spread given finer expanding you

single it I price, We're out. early a think very call. figuring trying you you color doing high the still on with now, operating work maybe high on negotiating cost. a costs in is, early double on we're to was price simple little estimating that said but including the give really to digit, have costs, digit, We're because answer we're I vendors lag, the when right and digit early think on And and plans. the low our doing single we

the in complete I of program a the back of the point, We'll bit this we're improved I we've efficiencies operating. I cost call February. Way But at just in done to margin to think you Vulcan that growth what on think about of because what -- the I the perspective see am think operating plants, also and we'll but is encouraged automation be little the early.

have of these you to in year? year, And kind you that. actually You could how next comps year? help start of half? Is potential light kind cadence you pieces, kind we for it cadence through shipments outlined I'm of moving of Or the potentially year. plays us how if public, easier of kind think did next that better versus we Just of kind out understand you second rolls next strong? think do the it in residential, movement you get Appreciate of how think of heavy. the just the of through when when curious think kind how

that got that we've know yet. have -- don't down I I

this. side shipments would at us And more speed answering question and work think the quarterly, like what of and is your sequencing as I'm on as takes -- this year to not and dollars And I going for high be far to really going and but what think, the speed go puts I highway next be of would the drive to one, number important, lower. -- will forefront.

fighting single-family does come far. the And for we'll macro It's you're in maybe the fundamentals demand the cost the a and little I Second pressures demand would see price be, inflationary -- there, obviously, is slower? a macroeconomic the think I is back? fast -- but single-family single how hopefully and family. Or -- of roaring growth in it house. -- how in

of with versus the big projects it will nonres, the what happens be On warehouses. speed

we not as end, I get will end high those sequencing takes of those be I'm takes. So the do and when far as puts are I puts low think the quarter-to-quarter, the February. of in and some guidance the the got to kind that, have the sure where that we think we but if work on

Seaport from next Rohit comes question with The Research Seth Partners.

question on Vulcan operating. is of the My Way

forward mentioned made stuff there's years. can but if needle past year? next think in think looking help I to you needle we movers what I if some that think new Do had touched you and works, about investments can on be You still you past that to potentially quantify calls guys XXXX. be would us over the couple expect to are in logistics and going plant-level that on we're some And of the you side, those impact, you movers the great. had have know And any

-- hard It's presented in the high quantify, of and XX% a facilities be particularly in operating level, really will investment probably operating tons perspective, we our this a top to as did from at December. is being are and plans investment From us point, developed or Yes. that we the place. to those volume

technical that each piece on place, come in for we We're the out. get working it to to get got as you you've has once plant Now speak.

that at year. least through the we year of we'll next be time next to I midyear the or second by think get first, quarter

believe, won't now, some work Putting back to we'll right on -- with dollars efficiencies. in to December, we going February. it in we'll that cents and so get marked have that I improvement, done be until So operating is and you see to

have appears program over now remarks. further additional presenters It turn to this any time. I no the our will we back for at questions

look and Please yourselves quarter. for you keep to Thank throughout Materials. the your you. much healthy. to Thank We you talking forward interest in Vulcan very your families and safe

This does your participation. program. Thank today's for conclude you

any disconnect may at time. You