Vulcan Materials Company

Good morning, everyone. Welcome to the Vulcan Materials Company third quarter 2025 earnings call. My name is Beau, and I will be your conference call coordinator today. Please be reminded that today's call is being recorded and will be available for replay after today's call later today on the company's website. All lines have been placed in a listen-only mode. After the company's prepared remarks, there will be a question-and-answer session. Now I will turn the call over to your host, Mr. Mark Warren, Vice President of Investor Relations for Vulcan Materials. Please go ahead, sir.

Thank you, Operator. Joining me today are Tom Hill, Chairman and CEO, Ronnie Pruitt, Chief Operating Officer, and Mary Andrews Carlisle, Senior Vice President and Chief Financial Officer. Today's call is accompanied by a press release and a supplemental presentation posted to our website, balkanmaterials.com. Please be advised that today's discussion may include forward-looking statements which are subject to risks and uncertainties. These risks, along with other legal disclaimers, are described in detail in the company's earnings release and in other filings with the Securities and Exchange Commission. Reconciliations of non-GAAP financial measures are defined and reconciled in our earnings release supplemental presentation, and other SEC filings. During the Q&A, we ask that you limit your participation to one question. This will allow us to accommodate as many as possible during our time we have available. And with that, I'll turn the call over to Tom.

Thank you, Mark, and thank all of you for joining our call this morning. Mary Andrews and I are happy to have Ronnie joining us today as we discuss the third quarter results and what lies ahead for the remainder of 2025 and moving into 2026. The third quarter financial results clearly demonstrate the consistent solid execution of our teams across the footprint. Gross margin and unit profitability expanded in each segment and adjusted EBITDA margin expanded 310 basis points. Adjusted EBITDA of $735 million improved 27% compared to the prior year. Thankfully, this year, we were not confronted with the same extreme weather events as the prior year. Aggregate shipments increased 12% in the quarter, resulting in 3% higher shipments on a year-to-date basis. Aggregate's cash gross profit per ton grew 9% in the quarter through a combination of commercial and operational execution. As anticipated, the prior year acquisitions and a higher percentage of base shipments contributed to 150 basis points of mixed headwinds in our aggregate freight adjusted selling price. Mixed adjusted pricing improved 5 percent in the quarter and 7 percent on a year-to-date basis. Our vocal way of operating efforts continue to benefit our cost performance. Aggregate's freight adjusted unit cash cost of sales was 2 percent lower than the prior year in the third quarter. I'm proud of the way our operators are adopting new tools and disciplines to drive plant efficiencies. And I'm excited about the runway ahead for continued profitability improvements, especially as private demand recovers. Currently, strong momentum continues in public construction activity. The private non-residential end use is improving, while residential demand remains weak. Since there has been little relief in affordability to date, single-family housing starts and permits continue to decelerate across most U.S. markets. With our leading footprint, we are confident we are in the right markets to benefit from an eventual single-family residential recovery. In multi-family residential end use, current data is more varied across geographies. Some states are already showing growth in starts, which should begin to help offset weakness in single-family activity. Private non-residential construction activity is improving. Overall starts in our markets are positive on a trending six-month basis. Data center activity remains robust, with approximately 60 million square feet under construction and another 140 million square feet proposed and in the planning stages. Nearly 80% of data center projects in the planning stage are within 30 miles of a Vulcan operation. For both data centers and large project opportunities like LNG, which are also gaining momentum, Vulcan is in the right markets and well-positioned to supply these projects and help create value for our customers. The same is true on the public side. Growth in public contract awards in our markets continues to outpace other markets. Trading 12-month awards are up 17% year-over-year in our footprint. And importantly, there's a long tail to public strength since approximately 60% of the IIJ funds are still yet to be spent. Given shipment trends year-to-date, coupled with the demand I just described, we now anticipate full-year shipments to increase approximately 3%, yielding full-year adjusted EBITDA of $2.35 to $2.45 billion, a 17% increase over the prior year at midpoint. Now I'll turn the call over to Ronnie to discuss our continued execution of our agri-led two-pronged growth strategy. Ronnie?