Martin Marietta Q1 2021 Earnings Report
Key Takeaways
Martin Marietta reported a strong start to 2021 with record first-quarter revenues, profits, and safety performance. The company achieved record Adjusted EBITDA of $204 million, driven by pricing gains in aggregates and cement, and disciplined cost management. The acquisition of Tiller Corporation was announced, expected to enhance Martin Marietta's position in the Minneapolis/St. Paul region.
Delivered solid operational and financial performance, establishing first-quarter records for revenues, profits and safety.
Expanded consolidated gross margin 290 basis points to 17.8 percent.
Generated record Adjusted EBITDA of $204 million.
Building Materials business benefitted from widespread strengthening in product demand.
Martin Marietta
Martin Marietta
Martin Marietta Revenue by Segment
Martin Marietta Revenue by Geographic Location
Forward Guidance
Martin Marietta anticipates single-family housing growth, expanded infrastructure investment and notable heavy industrial projects of scale will drive increased shipment levels. Martin Marietta expects these demand drivers, combined with the ancillary construction necessary for housing community buildouts and the potential for increased infrastructure investment from a comprehensive federal surface transportation package, to result in sustained, multi-year growth in product demand.
Positive Outlook
- Favorable pricing dynamics will continue, supported by the Company’s locally-driven pricing strategy.
- Single-family housing growth is expected to increase shipment levels.
- Expanded infrastructure investment is expected to increase shipment levels.
- Notable heavy industrial projects of scale is expected to increase shipment levels.
- Potential for increased infrastructure investment from a comprehensive federal surface transportation package.
Challenges Ahead
- Challenges posed by the COVID-19 pandemic and implementation of any such related response plans
- Fluctuations in COVID-19 cases in the United States and the extent that geography of outbreak primarily matches the regions in which the Company’s Building Materials business principally operates
- Resiliency and potential declines of the Company’s various construction end-use markets
- Potential negative impact of the COVID-19 pandemic on the Company’s ability to continue supplying heavy-side building materials and related services at normal levels or at all in the Company’s key regions
- The duration, impact and severity of the impacts of the COVID-19 pandemic on the Company, including the markets in which we do business, our suppliers, customers or other business partners as well as on our employees