Vulcan Materials Company (NYSE:VMC) Upgraded at Fitch Ratings amid Strong Financials

Vulcan Materials Company (NYSE:VMC) is one of the best cement stocks to buy according to analysts. The company’s strong EBITDA and free cash flow margins have already caught the attention of Fitch Ratings. On August 28, the ratings firm upgraded the company’s Long-term Issuer Default Rating to BBB+ from BBB.

The firm also upgraded its Short-Term IDR commercial paper to F1 from F2, affirming a stable outlook. The upgrades underscore Fitch Ratings’ confidence in Vulcan Materials’ leading market position, its diverse quarry network spanning 23 states, and its substantial financial flexibility.

Vulcan Materials has affirmed its strong financial position following the $2.3 billion acquisition in 2024. Its leverage levels have moved to 2.2x from 2.6x and are now expected to average between 2x and 2.5x in the coming years. While the company’s EBITDA margin improved by 200 basis points in 2024, Fitch Ratings expects it to improve by between 100 and 150 basis points in 2025, driven by strong pricing and operational efficiencies.

Vulcan Materials Company (NYSE:VMC) is one of the largest producers of construction aggregates in the United States, providing essential materials like crushed stone, sand, and gravel. It also manufactures aggregates-based construction materials such as asphalt and ready-mixed concrete.

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Disclosure: None. This article is originally published at Insider Monkey.