Vulcan Materials COVMC
Vulcan Materials CO Debt Disclosure
DEBT
Debt at December 31 is detailed as follows:
| in millions | Effective Interest Rates | 2025 | 2024 | ||||||||||||||||||||
Bank line of credit expires 2029 1 | $ | 0.0 | $ | 0.0 | |||||||||||||||||||
Commercial paper expires 2029 1 | 0.0 | 0.0 | |||||||||||||||||||||
| Total short-term debt | $ | 0.0 | $ | 0.0 | |||||||||||||||||||
Commercial paper expires 2029 1 | $ | 0.0 | $ | 550.0 | |||||||||||||||||||
4.50% notes due 2025 | 0.0 | 400.0 | |||||||||||||||||||||
3.90% notes due 2027 | 4.00 | % | 400.0 | 400.0 | |||||||||||||||||||
4.95% notes due 2029 | 5.17 | % | 500.0 | 500.0 | |||||||||||||||||||
3.50% notes due 2030 | 3.94 | % | 750.0 | 750.0 | |||||||||||||||||||
5.35% notes due 2034 | 5.48 | % | 750.0 | 750.0 | |||||||||||||||||||
7.15% notes due 2037 | 8.05 | % | 129.2 | 129.2 | |||||||||||||||||||
4.50% notes due 2047 | 4.59 | % | 700.0 | 700.0 | |||||||||||||||||||
4.70% notes due 2048 | 5.42 | % | 460.9 | 460.9 | |||||||||||||||||||
5.70% notes due 2054 | 5.82 | % | 750.0 | 750.0 | |||||||||||||||||||
| Other notes | 0.5 | 1.0 | |||||||||||||||||||||
| Total long-term debt - face value | $ | 4,440.6 | $ | 5,391.1 | |||||||||||||||||||
| Unamortized discounts and debt issuance costs | (78.5) | (83.7) | |||||||||||||||||||||
| Total long-term debt - book value | $ | 4,362.1 | $ | 5,307.4 | |||||||||||||||||||
| Current maturities | (0.4) | (400.5) | |||||||||||||||||||||
| Total long-term debt - reported value | $ | 4,361.7 | $ | 4,906.9 | |||||||||||||||||||
| Estimated fair value of long-term debt | $ | 4,333.3 | $ | 4,762.6 | |||||||||||||||||||
1.Borrowings on the bank line of credit and commercial paper are classified as long-term if we have the intent and ability to extend payment beyond twelve months.
Discounts and debt issuance costs are amortized using the effective interest method over the terms of the respective notes resulting in $5.2 million and $11.4 million of net interest expense for these items for 2025 and 2024, respectively.
Line of Credit and Commercial Paper Program
Our $1,600.0 million unsecured commercial paper program was established in August 2022 and matures in November 2029. Our commercial paper is fully back-stopped by our unsecured line of credit and contains covenants customary for an unsecured investment-grade facility. As of December 31, 2025, we were in compliance with the commercial paper covenants. Commercial paper borrowings bear interest at rates determined at the time of borrowing and as agreed between us and the commercial paper investors. As of December 31, 2025, there were no outstanding commercial paper borrowings.
Our $1,600.0 million unsecured line of credit was amended in November 2024 to extend the maturity date from August 2027 to November 2029. Our line of credit contains covenants customary for an unsecured investment-grade facility. As of December 31, 2025, we were in compliance with the line of credit covenants. Borrowings on the line of credit bear interest, at our option, at either SOFR plus a margin or Truist Bank’s base rate plus a margin. The margins are determined by our credit ratings. Standby letters of credit, which are issued under the line of credit and reduce availability, are charged a fee equal to the margin for SOFR borrowings plus 0.175%. We also pay a commitment fee on the daily average unused amount of the line of credit that ranges from 0.090% to 0.225% determined by our credit ratings. As of December 31, 2025, the margin for SOFR borrowings was 1.125%, the margin for base rate borrowings was 0.125% and the commitment fee for the unused amount was 0.100%.
As of December 31, 2025, our available borrowing capacity under the line of credit was $1,576.9 million. Utilization of the borrowing capacity was as follows:
•None was borrowed
•$23.1 million was used to support standby letters of credit
Term Debt
All of our $4,440.6 million (face value) of term debt is unsecured. All of the covenants in the debt agreements are customary for investment-grade facilities. As of December 31, 2025, we were in compliance with all term debt covenants.
In November 2024, we issued $500.0 million of 4.95% senior notes due 2029, $750.0 million of 5.35% senior notes due 2034 and $750.0 million of 5.70% senior notes due 2054. Total proceeds of $1,975.0 million (net of discounts and transaction costs), together with cash on hand, were used to provide liquidity for acquisitions in 2024 and debt maturing in 2025.
In March 2025, we redeemed the $400.0 million senior notes due April 2025 using cash on hand.
The total scheduled (principal and interest) debt payments, excluding the line of credit, for the five years subsequent to December 31, 2025 are as follows:
| in millions | Total | Principal | Interest | ||||||||||||||||||||
| Scheduled Debt Payments (excluding the line of credit) | |||||||||||||||||||||||
| 2026 | $ | 212.3 | $ | 0.4 | $ | 211.9 | |||||||||||||||||
| 2027 | 604.1 | 400.0 | 204.1 | ||||||||||||||||||||
| 2028 | 196.3 | 0.0 | 196.3 | ||||||||||||||||||||
| 2029 | 696.3 | 500.0 | 196.3 | ||||||||||||||||||||
| 2030 | 908.3 | 750.0 | 158.3 | ||||||||||||||||||||
Standby Letters of Credit
We provide, in the normal course of business, certain third-party beneficiaries with standby letters of credit to support our obligations to pay or perform according to the requirements of an underlying agreement. Such letters of credit typically have an initial term of one year, renew automatically and can only be modified or canceled with the approval of the beneficiary. Except for $5.2 million of letters of credit related to acquisitions completed in 2024, our standby letters of credit are issued by banks that participate in our $1,600.0 million line of credit and reduce the borrowing capacity thereunder. Our standby letters of credit as of December 31, 2025 are summarized by purpose in the table below:
| in millions | |||||||||||
| Risk management insurance | $ | 9.8 | |||||||||
| Reclamation/restoration requirements | 18.5 | ||||||||||
| Total standby letters of credit | $ | 28.3 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.