In 2019, 75% of Vulcan’s total revenues, and over 90% of Vulcan’s gross profit, came from aggregates — significantly more than any other company in the industry. Aggregates are essential for building and construction. Nearly all public and private sector construction products require them. And the end-use is balanced, with about half of the aggregates produced going to public construction projects and half to private. In addition, there are high barriers to entry into the market, including having permitted and producing quarries, as Vulcan does, positioned in growing markets where aggregates are needed. Both the essential nature of aggregates and the high barriers to entry have supported consistent price growth over the years. We are confident that with our superior markets and operational focus our products will continue to drive sustainable, long-term shareholder value.

The balance of our total revenues comes largely from asphalt, which is a highly complementary product to our aggregates business. Aggregates are a major component of asphalt (about 95% by weight) and asphalt is used in the same construction markets.

Attractive Fundamentals Lead To Compounding Results

Industry price growth in aggregates through all parts of a cycle

Source: BLS and Company estimates. Demand in billions of tons. Price is indexed (1982 = 100)

Broad End-Market for Aggregates

Highways are the most aggregates intensive use