Vulcan Materials CO

NOTE 15: SEGMENT REPORTING

Our operating segments are based on our internal management reporting structure. Our chief operating decision maker, the Chief Executive Officer, evaluates our operating results through reportable segment gross profit. This financial metric is used to review operating trends, perform analytical comparisons between periods and monitor budget-to-actual variances on a monthly basis in order to assess performance and allocate resources. We have three operating (and reportable) segments organized around our principal product lines: Aggregates, Asphalt and Concrete.

The Aggregates segment produces and sells aggregates (crushed stone, sand and gravel, sand, and other aggregates) and related products and services. During 2025, the Aggregates segment principally served markets intwenty-three states, the U.S. Virgin Islands, Washington D.C., and the local markets surrounding our operations in Freeport, Bahamas; British Columbia, Canada; and previously Puerto Cortés, Honduras and Quintana Roo, Mexico (see Note 12, NAFTA Arbitration) with a full line of aggregates. Aggregates are used primarily in the construction and maintenance of highways, streets and other public works and in the construction of housing and commercial, industrial and other nonresidential facilities. Customers are served by truck, rail and water distribution networks from our production facilities and sales yards. Due to the high weight-to-price ratio of aggregates, markets generally are local in nature. Quarries located on waterways and rail lines allow us to serve remote markets where local aggregates reserves may not be available.

The Asphalt segment produces and sells asphalt mix insix states (Alabama, Arizona, California, New Mexico, Tennessee and Texas) and provides asphalt construction paving services intwo states (Alabama and Tennessee).

The Concrete segment produces and sells ready-mixed concrete inthree states (California, Maryland and Virginia) in addition to the U.S. Virgin Islands and Washington D.C. In the fourth quarter of 2025, we entered into an agreement to divest our concrete business in California (see Note 19, Divestitures and Pending Divestitures).

Aggregates comprise approximately 95% of asphalt mix by weight and 80% of ready-mixed concrete by weight. Our Asphalt and Concrete segments are primarily supplied with their aggregates requirements from our Aggregates segment. These intersegment sales are made at local market prices for the particular grade and quality of product used in the production of asphalt mix and ready-mixed concrete and are excluded from total revenues. Customers for our Asphalt and Concrete segments are generally served locally at our production facilities or by truck. Because asphalt mix and ready-mixed concrete harden rapidly, delivery is time constrained and generally confined to a radius of approximately 20 to 25 miles from the producing facility.

The vast majority of our activities are domestic. We sell a relatively small amount of construction aggregates outside the United States. Total domestic revenues were $7,926.2 million, $7,401.0 million and $7,769.7 million in 2025, 2024 and 2023, respectively. Nondomestic Aggregates segment revenues were $14.9 million, $16.7 million and $12.2 million in 2025, 2024 and 2023, respectively; there wereno significant nondomestic revenues in our Asphalt or Concrete segments. Long-lived assets outside the United States, which consist primarily of property, plant & equipment, were $440.0 million, $501.4 million and $524.1 million in 2025, 2024 and 2023, respectively. Equity method investments of $26.6 million in 2025, $26.6 million in 2024 and $26.6 million in 2023 are included in the identifiable assets for the Aggregates segment and in Investments and long-term receivables on the accompanying Consolidated Balance Sheets.

Segment Financial Disclosure

1. Includes product sales, as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 2) related to our aggregates business.

2. Includes product sales, as well as service revenues (see Note 2) from our asphalt construction paving business.

Segment Financial Disclosure (Continued)

1. Depreciation, Depletion, Accretion & Amortization (DDA&A) for each segment is included in cost of revenues.

2. Capital expenditures include changes in accruals for purchases of property, plant & equipment. Capital expenditures exclude property, plant & equipment obtained by business acquisitions.

3. Certain temporarily idled assets are included within a segment's Identifiable Assets, but the associated DDA&A is shown within Other in the DDA&A section above as the related DDA&A is excluded from segment gross profit.

NOTE 16: SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental information referable to the Consolidated Statements of Cash Flows is summarized below:

1. Excludes changes in accruals.