Vulcan Materials: CEO & CFO Meeting Takeaways: Price Pulled Forward

Research evidence excerpt

Vulcan Materials: CEO & CFO Meeting Takeaways: Price Pulled Forward

Equity Research

U.S. Machinery & Construction

22 June 2026

Vulcan Materials

CEO & CFO Meeting Takeaways:

Price Pulled Forward

Mid-year price hikes pulled into June reinforce pricing VMC OVERWEIGHT

POSITIVEdiscipline. Tone more constructive vs. “checks”. Q2 margins U.S.ConstructionMachinery &

pressured by costs with 2H recovery. Public demand still Price Target USD 340.00

growing despite likely IIJA funding extension; resi weaker, Price (18-Jun-26) USD 302.84 Potential Upside/Downside +12.3%

Source: Bloomberg, Barclays Researchprivate non-res stronger. LT cost actions and tech add upside.

We hosted VMC’s CEO Ronnie Pruitt for a webinar and CFO Mary Andrews Carlisle for a few U.S. Machinery & Construction

days of meetings this past week. We found their views to be in lockstep with ours across Adam Seiden, CFA

+1 212 526 2212various topics including price, end-markets, and policy. Most incremental is that mid-year

adam.seiden@barclays.com

price increases (i.e. not surcharges) on fixed plant work were pushed forward from July/August

BCI, US

to June 1st. Fixed plant is ~50% of Vulcan’s business. A June follow-on is ahead of pace vs. prior

Vraj Patel

mid-years and a reflection of input cost escalation (i.e. diesel). Vulcans primary goal is to protect

+1 212 526 2773

their HSD unit margin aspirations. We anticipate a drag in Q2’s unit margins, due to cost, with vraj.patel1@barclays.com

more favorability in Q3/Q4 as price catches up. Mid-years though should still primarily be seen BCI, US

as a benefit to next year and likely won’t be even across all markets. The tone though is

Tyler Russell

significantly more positive than “channel checks” which we addressed in our “What’s the Fuss”

+1 212 526 7584