VM

Vulcan Materials Company stock research

Jun 30, 2024

FY2024 Q2

Vulcan Materials (VMC) Gross Margin — Quarter Ended Jun 30, 2024

Revenue increased from the prior quarter but decreased from the same quarter last year. Gross profit and gross margin improved compared to both periods, driven by a favorable relationship between revenue and cost of revenue.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue increased from the prior quarter but decreased from the same quarter last year. Gross profit and gross margin improved compared to both periods, driven by a favorable relationship between revenue and cost of revenue.

  • The improvement in gross margin was primarily due to a proportionally larger increase in revenue relative to cost of revenue when compared to the previous quarter, and a proportionally larger decrease in cost of revenue relative to revenue when compared to the same quarter last year.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower but gross profit was slightly higher, and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

29.4%

Gross profit

$592.2M

Revenue

$2.0B

Cost of revenue

$1.4B

Quarter-over-quarter change

+9.7 pts

Year-over-year change

+1.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$2.2B$591.0M$1.6B27.0%
Dec 31, 2023$1.8B$472.2M$1.4B25.7%
Mar 31, 2024$1.5B$304.9M$1.2B19.7%
Jun 30, 2024$2.0B$592.2M$1.4B29.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+9.7 pts

Year-over-year change

Jun 30, 2023

+1.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The improvement in gross margin was primarily due to a proportionally larger increase in revenue relative to cost of revenue when compared to the previous quarter, and a proportionally larger decrease in cost of revenue relative to revenue when compared to the same quarter last year.

Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower but gross profit was slightly higher, and gross margin improved.

Monitor the trend of cost of revenue relative to revenue to see if the margin improvement can be sustained.