Producers making gains despite aggregate shipment declines

The 2023 growth narrative continued in the third quarter for the aggregate industry’s public producers, with further price increases once again offsetting declines in sales volumes for most.

Here’s a rundown of some the industry’s public companies that reported their third-quarter financials to date.

Vulcan Materials

Vulcan Materials Co. reported increases in total revenues, gross profit and adjusted EBITDA in the third quarter. Additionally, Vulcan says aggregate pricing continued on its upward path.

The company’s aggregate shipments, however, dipped 2 percent.

“Through the first nine months of 2023, adjusted EBITDA has improved 23 percent over the prior year, and margin has expanded 340 basis points,” says Tom Hill, chairman and CEO of Vulcan. “Aggregates cash gross profit per ton has improved 21 percent and now exceeds $9 per ton.”

The gross profit within Vulcan’s aggregate business increased 17 percent in the third quarter to $508 million. Cash gross profit per ton, meanwhile, improved 18 percent to $9.92 per ton.

Martin Marietta

Martin Marietta made financial gains within its building materials business in the third quarter, with revenues and gross profit related to aggregates both up.

Martin Marietta’s quarterly revenue in aggregates increased 7.5 percent to $1.21 billion, and its gross profit in aggregates jumped 36.2 percent to $440.6 million. The company’s revenues and gross profit in cement, ready-mixed concrete, and asphalt and paving were also up in the quarter.

Martin Marietta made its quarterly financial gains in aggregates despite a dip in shipments. Shipments of aggregates slipped 7.3 percent in the quarter due to softer demand in certain Midwest and Southwest markets, the company says. The Southeast exuded strength with shipments, however, and the company was able to further increase prices (20 percent) due to the cumulative effect of Jan. 1 and midyear actions.

CRH

CRH offered an update on its Americas Materials Solutions business through three-quarters of the year, noting that the group’s sales are 7 percent ahead of 2022.

According to CRH, strong commercial gains across all Americas Materials Solutions lines, coupled with robust construction sales, partly offset lower activity in regions that were weather impacted.

Nine-month EBITDA was 11 percent ahead of the prior year, the company adds, with “good pricing” contributing along with “strong operational efficiencies.”

Aggregate volumes in the Americas Materials Solutions business through nine months lagged 2022 by 2 percent, CRH says. Unfavorable weather in the West was a factor, the company adds, although demand in the Great Lakes region and the Northeast remained strong. Those regions benefited from higher levels of infrastructure funding, according to CRH.

Holcim

Holcim detailed how third-quarter net sales to external customers in North America were flat versus the prior-year period. The company’s EBIT in North America, however, was up 5.3 percent in the quarter.

Holcim also published specifics on its global aggregate business through nine months of the year. According to Holcim, net sales of aggregates are up 5.8 percent this year. Recurring EBIT of aggregates, meanwhile, is up 5.6 percent.

In terms of net sales, Holcim’s aggregate business is its top growth business in 2023. Net sales of cement are down 19.8 percent while net sales of ready-mixed concrete are up 4 percent.

Heidelberg Materials

Heidelberg Materials noted that its global revenues increased 6 percent in the third quarter. The increase occurred despite reduced demand for construction materials, the company says.

“We have closed the first three quarters of 2023 with a strong result despite declining demand for our building materials,” says Dominik von Achten, chairman of the managing board at Heidelberg Materials. “On a like-for-like basis, all group areas have contributed to this result.”

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