VMC - Takeaways From Truist Securities Industrials & Services Conference

研报英文原文证据摘录

VMC - Takeaways From Truist Securities Industrials & Services Conference

n by input cost inflation. Pricing actions taken in response to input costs have historically

Short Interest Ratio/% Of Float 3.9% proven sticky and we expect this to be the case even as diesel costs begin to moderate.

Dividend/Yield $1.96/0.7% Higher diesel costs are pressuring margins most in 2Q26, though mitigation efforts should

Enterprise Value ($M) $42,899 begin to take hold thereafter. We believe VMC could see some margin expansion in the back

half of the year as diesel prices come down. VMC comments they will take any opportunity Cash & Equivalents ($M) $144

to take price and typically see little customer resistence given customers can therefore raise Total Debt ($M) $4,363

prices as well.

6 Page Document IIJA Driving Current Infrastructure Growth... According to ARTBA, states have committed

$270 billion in highway and bridge funds, which is about 70% of the enacted budget authority

from the bill. However, only about half of these funds have actually gone to the states for

Reasons for this report reimbursement on projects. We think IIJA spending will peak in 2026/2027, but there should

be a long tail as actual dollars flow to projects, in our view.

✓ Truist Securities Conference Takeaways

....Still a Long Way to Go on the IIJA Successor Bill. Proposed in late May, the House's

BUILD America 250 Act is for a $580 billion surface transportation reauthorization, a lower

total ticket than the IIJA but less funding for non-highway spending. There is roughly a 7%

increase in funding for highways vs the IIJA. Regardless, the grant aspect of bill could see

more economically driven allocations to VMC markets versus the Biden administration's

allocation of money for other criteria.