AGB 2023.1 - Vulcan Materials (VMC)

Benefiting from Infrastructure Tailwinds

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Vulcan Materials

Vulcan Materials is the leading producer of aggregates in the U.S. with ~10% market share in 2021. The company has the #1 or #2 position in ~90% of its markets and its facilities are strategically located in 35 of the top 50 MSAs in the U.S. across 22 states. Vulcan also provides asphalt and ready-mix concrete in certain states, which are vertically integrated with its aggregates production facilities. The company has over 22k customers.

Aggregates are primarily crushed stone, sand and gravel, usually sourced from a local quarry. Once mined, the stones are crushed and separated into various sizes for different use cases. Aggregates are a key material used for the construction of highways, parking lots, bridges, schools, commercial and residential buildings and other key infrastructure. As an example, a typical interstate highway requires 21 inches of aggregates laid on compacted soil and another 11 inch…