Segment Results
Aggregates
Third quarter segment sales were $1.17 billion, while gross profit increased 10 percent to $372 million. The year-over-year earnings improvement was widespread across the Company's footprint and resulted from both volume and price growth, as well as effective cost control. This year's third quarter results include a $3 million unfavorable impact from selling acquired inventory after its markup to fair value as part of acquisition accounting. The quarter's results also include significantly higher diesel fuel costs, lowering segment gross profit by $13 million.

Total aggregates shipments were 60.2 million tons versus 55.9 million in last year's third quarter, an increase of 8 percent. Same-store aggregates shipments increased 5 percent, reflecting improving demand across all end-market segments and despite severe wet weather in certain key markets. The pricing environment continues to be positive across the Company's footprint as demand visibility improves. The rate of pricing growth has improved sequentially each quarter this year. In the third quarter, same-store freight-adjusted pricing increased 3.1 percent year-over-year (mix-adjusted pricing increased 3.5 percent) with the growth widespread across geographies.

In the third quarter, solid execution helped to offset a more than 50 percent increase in the average unit cost of diesel fuel, inflation for certain parts and supplies, and operational disruptions caused by wet weather in the Southeast and along the Gulf Coast due in part to Hurricane Ida. Same-store freight-adjusted unit cost of sales increased 1.7 percent over the prior year's third quarter but decreased almost 1 percent excluding the impact of higher diesel prices. Total cash gross profit improved 3 percent from the prior year's third quarter to $7.74 per ton. Positive pricing opportunities and improved operating efficiencies are expected to continue to help offset some of the cost inflation going forward.

Asphalt, Concrete and Calcium
Asphalt segment gross profit was $7 million in the quarter compared to $30 million in the prior year period. The decrease in earnings was driven primarily by the impact of sharply higher energy costs and weather-related impacts on volumes.

The average cost of liquid asphalt during the third quarter was over $100 per ton higher than in the same period last year (a $16 million impact in the quarter). A rise in the cost of natural gas, used in plant production, also negatively affected quarterly gross profit. Average selling prices for asphalt mix increased 2 percent, or $1.07 per ton, versus the prior year's third quarter as pricing actions began to gain traction. Efforts to mitigate the earnings impact of energy inflation will continue with positive results expected in the first half of next year. Asphalt volumes declined 8 percent as volume growth in California was more than offset by lower volumes in Arizona. A record-setting number of rainy days disrupted asphalt shipments in Arizona, the Company's second largest asphalt market. Additionally, construction activity in Tennessee was also negatively impacted by hurricane-related wet weather.

Third quarter Concrete segment gross profit increased 18 percent to $14 million. The current year's third quarter includes results from USCR's operations. Same-store shipments decreased 7 percent versus the prior year due to fewer large projects in the current year's quarter, while same-store average selling prices increased 2 percent compared to the prior year. Segment results were negatively impacted by higher diesel prices and by the availability of drivers in certain markets.

Calcium segment gross profit was $0.3 million compared to $0.2 million the prior year quarter.

Selling, Administrative and General (SAG)
SAG expense was $104 million in the quarter, or 6.8 percent of total revenues. The current year's third quarter includes overhead expenses associated with the USCR business that were not in the prior year's quarter. Additionally, increased routine business development activities and more normalized travel expenses, due in part to integration activities, contributed to the year-over-year increase.

Financial Position, Liquidity and Capital Allocation
Capital expenditures in the third quarter were $127 million, including $69 million for growth projects. Year-to-date capital expenditures total approximately $292 million. For the full year 2021, the Company expects to spend between $450 and $475 million on capital expenditures, including growth projects. The Company will continue to review its plans and will adjust as needed, while being thoughtful about preserving liquidity.

At September 30, 2021, the ratio of total debt to Adjusted EBITDA was 2.8 times (2.7 times on a net debt basis) reflecting financing actions taken to complete the USCR acquisition during the quarter. The Company remains committed to its stated target leverage range of 2.0 to 2.5 times.

Interest expense, net of interest income, was $37 million in the third quarter compared with $36 million in the prior year. Year-to-date, interest expense, net of interest income, was $112 million compared to $101 million in the prior year. This increase includes $9 million of cost in the second quarter associated with financing the pending acquisition of USCR. The Company expects full year interest expense to be approximately $145 million.

On a trailing-twelve month basis, return on invested capital was 14.2 percent, reflecting the investment in USCR and its earnings contribution since August 26, 2021. The Company remains committed to driving further improvement through solid operating earnings growth coupled with disciplined capital management and a balanced approach to growth.

Outlook
Regarding the Company's current expectations for 2021, Mr. Hill said, "We are increasing our full-year Adjusted EBITDA range to reflect the earnings contribution of U.S. Concrete as well as the recent trends in demand, price and cost inflation. As a result, we expect full-year Adjusted EBITDA to be between $1.430 to $1.460 billion in 2021 (excluding the $115 million gain from a land sale completed in the first quarter and including the U.S. Concrete acquisition)."

Mr. Hill concluded, "As we look ahead, we believe our aggregates-focused business is uniquely positioned for broad participation in improving demand and is capable of navigating any changes in the macro environment. The USCR acquisition extends our growth platform, and we are excited about the opportunities in front of us. The prospects continue to be positive for the most significant federal investment in infrastructure since the creation of the Interstate Highway System in 1956, and we are well situated with leading positions in attractive growth areas where the need is greatest. Finally, we expect favorable pricing dynamics to continue, leading to attractive price growth."

Conference Call
Vulcan will host a conference call at 9:00 a.m. CT on November 4, 2021. A webcast will be available via the Company's website at www.vulcanmaterials.com. Investors and other interested parties may access the teleconference live by calling 866-831-8713, or 203-518-9797 if outside the U.S., approximately 10 minutes before the scheduled start. The conference ID is 8413025. The conference call will be recorded and available for replay at the Company's website approximately two hours after the call.

About Vulcan Materials Company
Vulcan Materials Company, a member of the S&P 500 Index with headquarters in Birmingham, Alabama, is the nation's largest supplier of construction aggregates – primarily crushed stone, sand and gravel – and a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete. For additional information about Vulcan, go to www.vulcanmaterials.com.

FORWARD-LOOKING STATEMENT DISCLAIMER
This document contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned divestitures and asset sales. These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe," "should," "would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document. These statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.

Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary significantly from those expressed in or implied by the forward-looking statements. The following risks related to Vulcan's business, among others, could cause actual results to differ materially from those described in the forward-looking statements: general economic and business conditions; a pandemic, epidemic or other public health emergency, such as the COVID-19 outbreak; Vulcan's 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 Vulcan's effective tax rate; 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 Vulcan's businesses and financial condition and access to capital markets; the highly competitive nature of the construction industry; the impact of future regulatory or legislative actions, including those relating to climate change, wetlands, greenhouse gas emissions, the definition of minerals, tax policy or international trade; the outcome of pending legal proceedings; pricing of Vulcan's 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 Vulcan's materials; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by Vulcan; changes in interest rates; the impact of a discontinuation of the London Interbank Offered Rate (LIBOR); 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; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage 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 Vulcan does business and how Vulcan's products are distributed; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with the SEC. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement. Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as required by law.

Investor Contact: Mark Warren (205) 298-3220
Media Contact: Janet Kavinoky (205) 298-3220

Vulcan Reports Third Quarter 2021 Results