About Vulcan Materials

Vulcan Materials Company supplies construction aggregates (primarily crushed stone, sand and gravel) and produces aggregates-intensive downstream products, such as asphalt mix and ready-mixed concrete. The company provides the basic materials for the infrastructure needed to maintain and expand the U.S. economy. Delivered by trucks, ships, barges and trains, the company's products are the indispensable materials building homes, offices, places of worship, schools, hospitals and factories, as well as vital infrastructure, including highways, bridges, roads, ports and harbors, water systems, campuses, dams, airports and rail networks. Almost all of the company's products are produced and consumed outdoors. Business Strategy The company's strategy and competitive advantage are based on its strength in aggregates which are used in most types of construction and in the production of asphalt mix and ready-mixed concrete. The company's strategy for long-term value creation is built on an aggregates-focused business, an emphasis on durable growth, a holistic approach to land management, and its commitment to safety, health and the environment. Product Lines The company's products are used to build the roads, tunnels, bridges, railroads and airports that connect it, and to build the hospitals, schools, shopping centers, factories and places of worship that are essential to its lives, its communities and the economy. Segments The company operates through four operating segments: Aggregates, Asphalt, Concrete and Calcium. Aggregates segment This segment's construction aggregates are used in a number of ways, such as a base material underneath highways, walkways, airport runways, parking lots and railroads; to aid in water filtration, purification and erosion control; and as a raw material used in combination with other resources to construct many of the items it relies on to sustain its quality of life, including houses and apartments, roads, bridges and parking lots, schools and hospitals, commercial buildings and retail space, sewer systems, power plants, and airports and runways. As the largest U.S. supplier of construction aggregates, the company has mining properties across the U.S. and in the Bahamas, Canada, Honduras, Mexico and the U.S. Virgin Islands. The company principally serves markets in 23 states, the U.S. Virgin Islands, Washington D.C., and the local markets surrounding its operations in Freeport, Bahamas; British Columbia, Canada; Puerto Cortés, Honduras and Quintana Roo, Mexico. The company's primary focus is serving states and metropolitan markets in the U.S. that are expected to experience the most significant growth in population, households and employment. The company's mining properties are categorized as follows: Production Stage - properties with reported proven or probable reserves where we are actively mining aggregates, Development Stage - properties with reported proven or probable reserves and Exploration Stage - properties with no reported reserves. Aggregates Markets The company focuses on the U.S. markets with above-average long-term expected population growth and where construction is expected to expand. The company produces and sells aggregates (crushed stone, sand and gravel, sand, and other aggregates) and related products and services in 23 states, the U.S. Virgin Islands, Washington D.C., Freeport (Bahamas), British Columbia (Canada), Puerto Cortes (Honduras) and Quintana Roo (Mexico). The company serves both the public and the private sectors. Asphalt segment This segment produces and sells asphalt mix in Alabama, Arizona, California, New Mexico, Tennessee and Texas and provides asphalt construction paving services in Alabama, Tennessee and Texas. This segment relies on the company's reserves of aggregates, functioning essentially as a customer to its aggregates operations. Aggregates are a major component in asphalt mix, comprising approximately 95% by weight of this product. The company meets the aggregates requirements for its Asphalt segment primarily through its Aggregates segment. The company serves its Asphalt segment customers directly from its local production facilities. Concrete segment This segment produces and sells ready-mixed concrete in California, Maryland, Virginia, the U.S. Virgin Islands and Washington D.C. In April and August 2022, the company strengthened its concrete positions in Virginia and California by acquiring additional concrete operations. In 2021, through the company's acquisition of U.S. Concrete, it entered the New Jersey, New York, Pennsylvania and U.S. Virgin Islands concrete markets and expanded its service of the California, Texas and Washington D.C. concrete markets. Subsequently, the company took steps to optimize its asset portfolio consistent with its aggregates-focused business model and in November 2023, the company exited the Texas concrete market, and in November 2022, it exited the New Jersey, New York and Pennsylvania concrete markets. This segment relies on the company's reserves of aggregates, functioning essentially as a customer to the company's aggregates operations. Ready-mixed concrete consists of cement and other cement-related materials (such as fly ash and slag), aggregates (crushed stone and sand), chemical admixtures and water and is measured in cubic yards. Aggregates are a major component in ready-mixed concrete, comprising approximately 80% by weight of this product. The company meets the aggregates requirements of its Concrete segment primarily through its Aggregates segment. These product transfers are made at local market prices for the particular grade and quality of material required. Cement is the binding agent used to bind water, crushed stone and sand in the production of ready-mixed concrete. Other industrial byproducts, such as fly ash from coal burning power plants and slag from the manufacture of iron and silica fume, have cement-related properties that allow them to be used as substitutes for cement depending on the specifications. The company purchases cement-related materials from a few suppliers in each of its major geographic markets. Chemical admixtures are generally purchased from suppliers under national purchasing agreements. Calcium This segment consists of a single calcium operation in Brooksville, Florida. This facility produces calcium products for the animal feed, plastics and water treatment industries with high-quality calcium carbonate material mined at the Brooksville quarry. The company's Calcium segment operates a quarry at Brooksville, Florida that provides feedstock for the ground calcium operation. Customers Although approximately 40% to 55% of the company's aggregates shipments have historically been used in publicly-funded construction, such as highways, airports and government buildings, a relatively small portion of its sales are made directly to federal, state, county or municipal governments/agencies. Therefore, although reductions in state and federal funding can curtail publicly-funded construction, the vast majority of the company's business is not directly subject to renegotiation of profits or termination of contracts with local, state or federal governments. In addition, the company's sales to government entities span several hundred entities coast-to-coast, ensuring that negative changes to various government budgets would have a muted impact across such a diversified set of government customers. Governmental Regulation The company's operations are subject to numerous laws and regulations relating to the protection of the environment and worker health and safety, including regulation of facility air emissions and water discharges, waste management, protection of wetlands, listed and threatened species, noise and dust exposure control for workers, and safety regulations under both Mine Safety and Health Administration (MSHA) and Occupational Safety and Health Administration (OSHA). The company has received notices from the United States Environmental Protection Agency or similar state or local agencies that it is considered a potentially responsible party (PRP) at a limited number of sites under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund) or similar state and local environmental laws. History Vulcan Materials Company was founded in 1909. The company, a New Jersey corporation, was incorporated in 2007.