Vulcan Materials CO

AGGREGATES SEGMENT FREIGHT-ADJUSTED REVENUES

Aggregates segment freight-adjusted revenues is not a Generally Accepted Accounting Principle (GAAP) measure and should not be considered as an alternative to metrics defined by GAAP. We present this measure as it is consistent with the basis by which we review our operating results. We believe that this presentation is consistent with our competitors and meaningful to our investors as it excludes revenues associated with freight & delivery, which are pass-through activities. It also excludes other revenues related to services, such as landfill tipping fees, that are derived from our aggregates business. Additionally, we use this metric as the basis for calculating the average sales price of our aggregates products. Reconciliation of this metric to its nearest GAAP measure is presented below:

1. At the segment level, freight & delivery revenues include intersegment freight & delivery (which are eliminated at the consolidated level) and freight to remote distribution sites.

CASH GROSS PROFIT

GAAP does not define “cash gross profit,” and it should not be considered as an alternative to earnings measures defined by GAAP. We and the investment community use this metric to assess the operating performance of our business. Additionally, we present this metric as we believe that it closely correlates to long-term shareholder value. Cash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization to gross profit. Segment cash gross profit per unit is computed by dividing segment cash gross profit by units shipped. Segment cash cost of sales per unit is computed by subtracting segment cash gross profit per unit from segment freight-adjusted sales price. Segment freight-adjusted sales price is calculated by dividing revenues generated from the shipment of product (excluding service revenues generated by the segments) by the total units of the product shipped. Reconciliation of these metrics to their nearest GAAP measures are presented below:

EBITDA AND ADJUSTED EBITDA

GAAP does not define “Earnings Before Interest, Taxes, Depreciation and Amortization” (EBITDA), and it should not be considered as an alternative to earnings measures defined by GAAP. We use this metric to assess the operating performance of our business and as a basis for strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value. We do not use this metric as a measure to allocate resources. We adjust EBITDA for certain items to provide a more consistent comparison of earnings performance from period to period. Reconciliation of this metric to its nearest GAAP measure is presented below (numbers may not foot due to rounding):

1. Represents charges associated with acquisitions requiring clearance under federal antitrust laws.

2. Represents employee termination and other discrete charges directly related to organizational changes resulting from the appointment of Ronnie Pruitt as Chief Executive Officer, effective January 1, 2026.

ADJUSTED DILUTED EPS ATTRIBUTABLE TO VULCAN FROM CONTINUING OPERATIONS

Similar to our presentation of Adjusted EBITDA, we present Adjusted diluted earnings per share (EPS) attributable to Vulcan from continuing operations to provide a more consistent comparison of earnings performance from period to period. This metric is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP. Reconciliation of this metric to its nearest GAAP measure is presented below:

NET DEBT TO ADJUSTED EBITDA

Net debt to Adjusted EBITDA is not a GAAP measure and should not be considered as an alternative to metrics defined by GAAP. We, the investment community and credit rating agencies use this metric to assess our leverage. Net debt subtracts cash and cash equivalents and restricted cash from total debt. Reconciliation of this metric to its nearest GAAP measure is presented below:

RETURN ON INVESTED CAPITAL

We define “Return on Invested Capital” (ROIC) as Adjusted EBITDA for the trailing-twelve months divided by average invested capital (as illustrated below) during the trailing-five quarters. Our calculation of ROIC is considered a non-GAAP financial measure because we calculate ROIC using the non-GAAP metric EBITDA. We believe that our ROIC metric is meaningful because it helps investors assess how effectively we are deploying our assets. Although ROIC is a standard financial metric, numerous methods exist for calculating a company’s ROIC. As a result, the method we use to calculate our ROIC may differ from the methods used by other companies. This metric is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP. Reconciliation of this metric to its nearest GAAP measure is presented below (numbers may not foot due to rounding):

2026 PROJECTED ADJUSTED EBITDA

Projected Adjusted EBITDA is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP. Reconciliation of this metric to its nearest GAAP measure is presented below:

Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, other than the reconciliation of Projected Adjusted EBITDA as noted above. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.

Liquidity and Financial Resources

Our primary sources of liquidity are cash provided by our operating activities, a substantial, committed bank line of credit and our commercial paper program. Additional sources of capital include access to the capital markets, the sale of surplus real estate and dispositions of nonstrategic operating assets. We believe these financial resources are sufficient to fund our business requirements for 2026 including:

•contractual obligations

•capital expenditures

•debt service obligations

•dividend payments

•potential acquisitions

•potential share repurchases

Our balanced approach to capital deployment remains unchanged. We intend to balance reinvestment in our business, growth through acquisitions and return of capital to shareholders, while sustaining financial strength and flexibility.

We actively manage our capital structure and resources in order to balance the cost of capital and the risk of financial stress. We seek to meet these objectives by adhering to the following principles:

•maintain substantial bank line of credit borrowing capacity

•proactively manage our debt maturity schedule such that repayment/refinancing risk in any single year is low

•maintain an appropriate balance of fixed-rate and floating-rate debt

•minimize financial and other covenants that limit our operating and financial flexibility

CASH

Included in our September 30, 2026 cash and cash equivalents and restricted cash balances of $172.4 million is $65.8 million of restricted cash as described in Note 1 to the condensed consolidated financial statements under the caption "Restricted Cash."

Cash from Operating Activities

1. Primarily reflects changes to working capital balances.

Net cash provided by operating activities was $971.0 million during the nine months ended September 30, 2026, a $299.0 million decrease compared to the same period of 2025. The decrease was primarily attributable to negative cash flow changes in deferred income taxes of $109.2 million and working capital balances of $203.4 million.

Days sales outstanding, a measurement of the time it takes to collect receivables, were 43.3 days at September 30, 2026 compared to 42.4 days at September 30, 2025. Additionally, our over 90 day receivables balance was $20.3 million at September 30, 2026, a decrease of $8.9 million from the $29.2 million balance at September 30, 2025. All customer accounts are actively managed, and no losses in excess of amounts reserved are currently expected.

Cash from Investing Activities

Net cash used for investing activities was $244.6 million during the first nine months of 2026, a $206.3 million decrease in cash used compared to the same period of 2025. During the first nine months of 2026, we sold our ready-mixed concrete operations in California and our aggregates and ready-mixed concrete operations in the U.S. Virgin Islands for combined proceeds of $722.1 million ($572.1 million cash and a $150.0 million receivable due December 2027). During the first nine months of 2025, we sold non-strategic operations for cash proceeds of $19.0 million. Additionally, during the first nine months of 2026, we invested $548.0 million in our existing operations (includes changes in accruals for property, plant & equipment) compared to $492.9 million in the prior year period. This $548.0 million investment includes both maintenance and internal growth projects to enhance our distribution capabilities, develop new production sites and improve existing production facilities. Furthermore, during the first nine months of 2026, we completed several business acquisitions for combined cash consideration of $290.6 million (see Note 16 to the condensed consolidated financial statements).

Cash from Financing Activities

Net cash used for financing activities was $743.4 million during the first nine months of 2026, a $481.3 million decrease compared to cash used of $1,224.7 million in the same period of 2025. The current year includes $315.0 million of commercial paper borrowings partially offset by a $50.0 million note payment to the sellers of an acquisition completed in 2022. The prior year includes $550.0 million of commercial paper payments and $400.5 million of current maturities of long-term debt payments. Additionally, during the first nine months of 2026 we returned $952.1 million to shareholders through $202.3 million of dividends ($0.52 per share quarterly compared to $0.49 per share quarterly in 2025) and $749.8 million of common stock repurchases (2.7 million shares repurchased at $279.76 average price per share in 2026 compared to 0.2 million shares repurchased at $224.36 average price per share in 2025).

DEBT

Certain debt measures are presented below:

1. Reflects the margin above SOFR for SOFR-based borrowings; we also paid upfront fees that are amortized to interest expense and pay fees for unused borrowing capacity and standby letters of credit.

At September 30, 2026, total debt to trailing-twelve months Adjusted EBITDA was 2.0 times (1.9 times on a net debt basis reflecting $172.4 million of cash on hand). Our weighted-average debt maturity was 12.3 years, and our total weighted-average effective interest rate was 4.97%.

Line of Credit and Commercial Paper Program

Our $1,600.0 million unsecured commercial paper program was established in August 2022 and matures in November 2029. Our commercial paper is fully back-stopped by our line of credit and contains covenants customary for an unsecured investment-grade facility. As of September 30, 2026, we were in compliance with the commercial paper covenants. Commercial paper borrowings bear interest at rates determined at the time of borrowing and as agreed between us and the commercial paper investors. As of September 30, 2026, outstanding commercial paper borrowings were $315.0 million.

Our $1,600.0 million unsecured line of credit was amended in November 2024 to extend the maturity date from August 2027 to November 2029. Our line of credit contains covenants customary for an unsecured investment-grade facility. Covenants, borrowings, cost ranges and other details are described in Note 7 to the condensed consolidated financial statements. As of September 30, 2026, we were in compliance with the covenants, the margin for SOFR borrowings was 1.125%, the margin for base rate borrowings was 0.125% and the commitment fee for the unused amount was 0.100%.

As of September 30, 2026, our available borrowing capacity under the line of credit was $1,585.1 million. Utilization of the borrowing capacity was as follows:

•none was borrowed

•$14.9 million was used to support standby letters of credit

Term Debt

All of our $4,440.1 million (face value) of term debt is unsecured. All of the covenants in the debt agreements are customary for investment-grade facilities. As of September 30, 2026, we were in compliance with all term debt covenants. In March 2025, we redeemed the $400.0 million senior notes due April 2025 using cash on hand.

Additionally, in February 2026, we paid a $50.0 million note payable (included in Other current liabilities in the accompanying Condensed Consolidated Balance Sheet at December 31, 2025) related to an acquisition completed in 2022.

Current Maturities of Long-term Debt

The $400.0 million of current maturities of long-term debt as of September 30, 2026 is due as follows:

Debt Ratings

Our debt ratings and outlooks as of September 30, 2026 are as follows:

EQUITY

The number of our common stock issuances and purchases for the year-to-date periods ended are as follows:

As of September 30, 2026, there were 2,592,781 shares remaining under the February 2017 share purchase authorization by our Board of Directors. Depending upon market, business, legal and other conditions, we may purchase shares from time to time through the open market (including plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934) and/or privately negotiated transactions. The authorization has no time limit, does not obligate us to purchase any specific number of shares and may be suspended or discontinued at any time.

The detail of our common stock purchases (all of which were open market purchases) for the year-to-date periods ended are as follows:

There were no shares held in treasury as of September 30, 2026, December 31, 2025 and September 30, 2025.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements such as financing or unconsolidated variable interest entities.

Standby Letters of Credit

For a discussion of our standby letters of credit, see Note 7 to the condensed consolidated financial statements.

Critical Accounting Policies

We follow certain significant accounting policies when preparing our consolidated financial statements. A summary of these policies is included in our Annual Report on Form 10-K for the year ended December 31, 2025 (Form 10-K).

We prepare these financial statements to conform with accounting principles generally accepted in the United States of America. These principles require us to make estimates and judgments that affect our reported amounts of assets, liabilities, revenues and expenses, and the related disclosures of contingent assets and contingent liabilities at the date of the financial statements. We base our estimates on historical experience, current conditions and various other assumptions we believe reasonable under existing circumstances and evaluate these estimates and judgments on an ongoing basis. The results of these estimates form the basis for our judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Our actual results may materially differ from these estimates.

We believe that the accounting policies described in the “Management's Discussion and Analysis of Financial Condition and Results of Operations” section of our Form 10-K require the most significant judgments and estimates used in the preparation of our consolidated financial statements, so we consider these to be our critical accounting policies. There have been no changes to our critical accounting policies during the nine months ended September 30, 2026.

New Accounting Standards

For a discussion of the accounting standards recently adopted or pending adoption and the effect such accounting changes will have on our results of operations, financial position or liquidity, see Note 17 to the condensed consolidated financial statements.

Forward-Looking Statements

Certain matters discussed in this report, including expectations regarding future performance, contain forward-looking statements that are subject to assumptions, risks and uncertainties that could cause actual results to differ materially from those projected. These assumptions, risks and uncertainties include, but are not limited to:

•general economic and business conditions

•our dependence on the construction industry, which is subject to economic cycles

•the timing and amount of federal, state and local funding for infrastructure

•changes in the level of spending for private residential and private nonresidential construction

•changes in our effective tax rate

•domestic and global political, economic or diplomatic developments, including the military conflict in the Middle East involving the United States, Israel and Iran

•the increasing reliance on information technology infrastructure, including the risks that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks

•the impact of the state of the global economy on our businesses and financial condition and access to capital markets

•international business operations and relationships, including actions taken by the Mexican government with respect to our property and operations in that country

•the highly competitive nature of the construction industry

•a pandemic, epidemic or other public health emergency

•the impact of future regulatory or legislative actions, including those relating to climate change, biodiversity, land use, wetlands, greenhouse gas emissions, the definition of minerals, tax policy and domestic and international trade

•the outcome of pending legal proceedings

•pricing of our products

•weather and other natural phenomena, including the impact of climate change and availability of water

•availability and cost of trucks, railcars, barges and ships, as well as their licensed operators, for transport of our materials

•energy costs

•costs of hydrocarbon-based raw materials

•healthcare costs

•labor relations, shortages and constraints

•the amount of long-term debt and interest expense we incur

•changes in interest rates

•volatility in pension plan asset values and liabilities, which may require cash contributions to the pension plans

•the impact of environmental cleanup costs and other liabilities relating to existing and/or divested businesses

•our ability to secure and permit aggregates reserves in strategically located areas

•our ability to identify, close and successfully integrate acquisitions

•the effect of changes in tax laws, guidance and interpretations

•significant downturn in the construction industry may result in the impairment of goodwill or long-lived assets

•changes in technologies, which could disrupt the way we do business and how our products are distributed

•the risks of open pit and underground mining

•expectations relating to sustainability considerations

•claims that our products do not meet regulatory requirements or contractual specifications

•other assumptions, risks and uncertainties detailed from time to time in our periodic reports filed with the Securities and Exchange Commission

All forward-looking statements are made as of the date of filing or publication. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. Investors are cautioned not to rely unduly on such forward-looking statements when evaluating the information presented in our filings, and are advised to consult any of our future disclosures in filings made with the Securities and Exchange Commission and our press releases with regard to our business and consolidated financial position, results of operations and cash flows.

Investor Information

We make available on our website, www.vulcanmaterials.com, free of charge, copies of our:

•Annual Report on Form 10-K

•Quarterly Reports on Form 10-Q

•Current Reports on Form 8-K

Our website also includes amendments to those reports filed with or furnished to the Securities and Exchange Commission (SEC) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as well as all Forms 3, 4 and 5 filed with the SEC by our executive officers and directors, as soon as the filings are made publicly available by the SEC on its EDGAR database (www.sec.gov).

In addition to accessing copies of our reports online, you may request a copy of our Annual Report on Form 10-K, including financial statements, by writing to the Office of the General Counsel, Vulcan Materials Company, 1200 Urban Center Drive, Birmingham, Alabama 35242.

We have a:

•Business Conduct Policy applicable to all employees and directors

•Code of Ethics for the CEO and Senior Financial Officers

Copies of the Business Conduct Policy and the Code of Ethics are available on our website under the “Investor Relations” tab (“Corporate Governance” section). If we make any amendment to, or waiver of, any provision of the Code of Ethics, we will disclose such information on our website as well as through filings with the SEC.

Our Board of Directors has also adopted:

•Corporate Governance Guidelines

•Charters for our Audit, Compensation & Human Capital, Executive, Finance, Governance and Safety, Health & Environmental Affairs Committees

These documents meet all applicable SEC and New York Stock Exchange regulatory requirements.

The Charters of the Audit, Compensation & Human Capital and Governance Committees are available on our website under the “Investor Relations” tab (“Governance – Committee Composition” section) or you may request a copy of any of these documents by writing to the Office of the General Counsel, Vulcan Materials Company, 1200 Urban Center Drive, Birmingham, Alabama 35242.

Information included on our website is not incorporated into, or otherwise made a part of, this report.