Vulcan Materials (NYSE:VMC) Shares Gap Down Following Weak Earnings

Vulcan Materials Company (NYSE:VMC)’s stock price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $327.65, but opened at $295.95. Vulcan Materials shares last traded at $303.40, with a volume of 519,581 shares trading hands.

The construction company reported $1.70 earnings per share for the quarter, missing the consensus estimate of $2.11 by ($0.41). Vulcan Materials had a net margin of 13.56% and a return on equity of 12.56%. The firm had revenue of $1.91 billion during the quarter, compared to analyst estimates of $1.95 billion. During the same period last year, the business earned $2.17 EPS. The firm’s revenue was up 3.2% compared to the same quarter last year.

Vulcan Materials Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 23rd. Shareholders of record on Monday, March 9th will be issued a dividend of $0.52 per share. This is a positive change from Vulcan Materials’s previous quarterly dividend of $0.49. The ex-dividend date of this dividend is Monday, March 9th. This represents a $2.08 dividend on an annualized basis and a yield of 0.7%. Vulcan Materials’s dividend payout ratio (DPR) is presently 24.14%.

Key Stories Impacting Vulcan Materials

Here are the key news stories impacting Vulcan Materials this week:

• Positive Sentiment: Operating cash flow and full‑year results showed strength — Vulcan reported a 29% increase in operating cash flow to $1.8B and cited full‑year earnings growth and margin expansion, which supports longer‑term cash generation and capital return capacity. PR Newswire: Full Year Results
• Positive Sentiment: Portfolio rationalization announced — Management flagged downstream portfolio actions, including an agreement to sell California ready‑mixed concrete operations (expected to close Q2 2026), which could improve long‑term margins and capital allocation. QuiverQuant: Sale and Portfolio Actions
• Neutral Sentiment: 2026 adjusted EBITDA target set — Management guided to $2.4B–$2.6B adjusted EBITDA for 2026, indicating expected improvement versus some prior periods but leaving execution and timing risks; investors are weighing whether this is conservative or appropriately cautious. Seeking Alpha: 2026 EBITDA Guidance
• Negative Sentiment: Earnings and revenue missed expectations — Q4 adjusted EPS was $1.70 vs. consensus ~ $2.11 and revenue of ~$1.91B missed estimates. EPS fell y/y from $2.17, signaling near‑term margin pressure and disappointing the market. PR Newswire: Q4 Results
• Negative Sentiment: Margins pressured by project timing and data‑center demand dynamics — Analysts and call commentary pointed to timing of large projects (including data center allocations) and softer mix that weighed on fourth‑quarter margins and gross profit versus last year. Yahoo Finance: Deep Dive on Margins
• Negative Sentiment: Guidance perceived as light by investors — The 2026 profitability outlook and cadence implied a slower earnings ramp than some investors expected, prompting multiple outlets to report share weakness and analyst pushback. QuiverQuant: Market Reaction

Analyst Ratings Changes

VMC has been the subject of a number of research analyst reports. Citigroup upped their price target on Vulcan Materials from $342.00 to $345.00 and gave the company a “buy” rating in a report on Thursday, January 8th. B. Riley Financial began coverage on shares of Vulcan Materials in a research report on Thursday, January 15th. They issued a “buy” rating and a $345.00 target price on the stock. Wells Fargo & Company cut their price target on shares of Vulcan Materials from $317.00 to $315.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Weiss Ratings restated a “buy (b)” rating on shares of Vulcan Materials in a research note on Tuesday, January 27th. Finally, DA Davidson cut their target price on Vulcan Materials from $330.00 to $320.00 and set a “neutral” rating on the stock in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $320.85.

Insider Transactions at Vulcan Materials

In other Vulcan Materials news, SVP Denson N. Franklin III sold 665 shares of the company’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $295.00, for a total transaction of $196,175.00. Following the completion of the transaction, the senior vice president owned 8,284 shares in the company, valued at approximately $2,443,780. This represents a 7.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, President Thompson S. Baker II sold 7,135 shares of the firm’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $300.81, for a total transaction of $2,146,279.35. The SEC filing for this sale provides additional information. 0.62% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Vulcan Materials

A number of hedge funds have recently added to or reduced their stakes in the company. National Pension Service increased its holdings in shares of Vulcan Materials by 0.8% during the 2nd quarter. National Pension Service now owns 175,458 shares of the construction company’s stock worth $45,763,000 after buying an additional 1,455 shares during the last quarter. Principal Financial Group Inc. grew its position in Vulcan Materials by 5.8% during the third quarter. Principal Financial Group Inc. now owns 7,625,271 shares of the construction company’s stock valued at $2,345,703,000 after acquiring an additional 414,828 shares during the period. JPMorgan Chase & Co. grew its position in Vulcan Materials by 12.3% during the second quarter. JPMorgan Chase & Co. now owns 7,824,987 shares of the construction company’s stock valued at $2,040,914,000 after acquiring an additional 857,210 shares during the period. Commonwealth Equity Services LLC raised its holdings in shares of Vulcan Materials by 104.3% in the 3rd quarter. Commonwealth Equity Services LLC now owns 72,113 shares of the construction company’s stock worth $22,183,000 after purchasing an additional 36,823 shares during the period. Finally, American Century Companies Inc. raised its holdings in shares of Vulcan Materials by 19.3% in the 2nd quarter. American Century Companies Inc. now owns 256,789 shares of the construction company’s stock worth $66,976,000 after purchasing an additional 41,504 shares during the period. Institutional investors and hedge funds own 90.39% of the company’s stock.

Vulcan Materials Stock Down 0.9%

The company has a current ratio of 2.69, a quick ratio of 1.56 and a debt-to-equity ratio of 0.51. The firm has a market capitalization of $39.58 billion, a price-to-earnings ratio of 36.89, a price-to-earnings-growth ratio of 2.26 and a beta of 1.07. The firm has a 50 day moving average price of $302.21 and a two-hundred day moving average price of $296.39.

About Vulcan Materials

Vulcan Materials Company (NYSE: VMC) is a U.S.-based producer of construction materials that supplies the building and infrastructure markets. The company’s primary products include construction aggregates such as crushed stone, sand and gravel, as well as asphalt mixes and ready-mixed concrete. These materials are used in a wide range of projects including highways, commercial and residential construction, and public infrastructure.

Vulcan operates an integrated network of quarries, asphalt plants and concrete facilities to produce and deliver materials to contractors, municipalities and private developers.