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Vulcan Materials Company VMC Mexico — Valuation allowance

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Other financials

Income statement

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Revenue$2.2B+2.5%
Gross profit$625.5M0.0%
Operating income$455.5M-3.3%
Net income$323.4M+0.8%
EPS (diluted)$2.48+2.5%

Balance sheet

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Cash & equivalents$288.7M-17.7%
Total debt$5.0B-10.2%
Total equity$8.5B+0.7%
Total assets$16.4B-3.1%

Cash flow

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Operating cash flow$343.5M+0.5%
CapEx$193.9M+88.4%
Free cash flow$149.6M-37.4%

Valuation

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Market cap$37.16B-0.1%
Enterprise value$41.88B-1.3%
P/E33.3×-5.8×
P/S4.6×-0.3×

Profitability

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Gross margin27.5%-0.1pp
Operating margin20.2%+1.3pp
Net margin13.7%+1.2pp
FCF margin12.7%-1.8pp

Returns & leverage

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Return on equity13.2%+1.4pp
Debt / equity0.6×-0.1×
Current ratio1.8×+0.1×

Where this comes from

Reported directly by Vulcan Materials Company in its filing.

Tagged under the XBRL concept us-gaap:DeferredTaxAssetsValuationAllowance.

The source filing: Vulcan Materials Company’s 10-K, filed February 19, 2026.

Filed
Feb 19, 2026, 11:58 AM EST
Fiscal year
FY2025
Accession
0001628280-26-009546

As discussed in Note 12, in May 2022, Mexican government officials unexpectedly and arbitrarily shut down our Calica operations in Mexico. In 2025, Calica had deferred tax assets (including NOLs) of $37.3 million. As a result of the continued shutdown, we recorded a charge of $9.8 million in 2025 to increase the valuation allowance to $37.3 million. $3.9 million of this charge was recorded as currency translation due to the increase in our deferred tax assets from appreciation of the Mexican peso during the year. The Calica NOL deferred tax asset carryforward of $30.4 million would expire between 2032 and 2035 if not utilized. Should the Mexican government lift the shutdown and/or if we are successful in our NAFTA claim, we will reevaluate the need for a valuation allowance against the deferred tax assets.

Item 8. Financial Statements and Supplementary Data

FAQ

What is Vulcan Materials Company's mexico — valuation allowance?
Vulcan Materials Company (VMC) reported mexico — valuation allowance of $37.3M in Q4 2025.
What does mexico — valuation allowance mean?
This metric represents the contra-asset account established against deferred tax assets for a specific geographic segment to reduce their carrying value to the amount more likely than not to be realized. It reflects management's assessment of the recoverability of tax benefits based on future taxable income projections and tax planning strategies within that jurisdiction. A significant balance indicates potential uncertainty regarding the future utilization of tax assets in that specific market.

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