Martin Marietta Q1 2020 Earnings Report
Key Takeaways
Martin Marietta reported strong first-quarter results with a new record for consolidated revenues. The company's Building Materials business saw improved shipments and pricing. They strengthened their balance sheet through a debt offering but withdrew full-year 2020 guidance due to COVID-19 uncertainty.
Established a new first-quarter record for consolidated revenues.
Shipments and pricing increased across the majority of the Building Materials business.
Cement and Magnesia Specialties delivered first-quarter margin expansion.
Strengthened balance sheet through long-term debt offering in early March.
Martin Marietta
Martin Marietta
Martin Marietta Revenue by Segment
Martin Marietta Revenue by Geographic Location
Forward Guidance
The Company has withdrawn its 2020 full-year guidance issued on February 11, 2020, given the economic disruptions driven by the COVID-19 pandemic.
Positive Outlook
- Infrastructure construction is expected to be the most near-term resilient.
- Most state Departments of Transportation (DOTs) are currently operational and continue to advance transportation projects.
- Nonresidential construction activity on existing projects has continued in most regions.
- Warehouses, distribution centers and data centers are expected to perform relatively well in the current environment.
- Large energy-sector projects along the Gulf Coast of Texas that are actively underway are expected to continue.
Challenges Ahead
- Economic disruptions driven by the COVID-19 pandemic.
- Commercial projects in the design or planning stages are being delayed or canceled.
- Residential construction activity is expected to decline in 2020.
- Homebuilders and homebuyers delay plans in the wake of unprecedented economic uncertainty.
- State DOTs are experiencing lower revenue collections and states may have other short-term funding needs relating to the COVID-19 impact that may decrease the scale and/or postpone the timing of future construction.
Revenue & Expenses
Visualization of income flow from segment revenue to net income