Mar 31, 2023

Martin Marietta Q1 2023 Earnings Report

Achieved record first-quarter results for revenues, profitability, and unit margins, driven by pricing actions and strong execution.

Key Takeaways

Martin Marietta reported a remarkable start to the year with record first-quarter results across various measures. The company saw robust margin expansion due to prior pricing actions, despite inflationary pressures and slightly lower aggregates shipments. They achieved a record for aggregates pricing growth and a substantial increase in aggregates gross profit per ton.

Achieved record first-quarter revenues, profitability, and unit margins.

Aggregates gross profit per ton increased significantly due to pricing actions.

Solid near-term product demand driven by infrastructure and heavy nonresidential projects.

Confident in expanding margins throughout the year and delivering compelling full-year financial results.

Total Revenue
$1.35B
Previous year: $1.15B
+17.9%
EPS
$2.16
Previous year: $0.39
+453.8%
Aggregates tons shipped
41.7M
Previous year: 42.1M
-1.0%
Aggregates avg. price
$19.8
Previous year: $16.2
+22.6%
Cement tons shipped
1M
Previous year: 1M
+0.0%
Gross Profit
$303M
Previous year: $156M
+94.0%
Cash and Equivalents
$229M
Previous year: $190M
+21.0%
Free Cash Flow
-$13M
Previous year: $30.1M
-143.2%
Total Assets
$14.9B
Previous year: $14.2B
+4.6%

Martin Marietta

Martin Marietta

Martin Marietta Revenue by Segment

Martin Marietta Revenue by Geographic Location

Forward Guidance

The Company’s 2023 guidance excludes businesses classified as discontinued operations. Forecasting $1.9 Billion of 2023 Adjusted EBITDA Consistent with the High End of Guidance Range.

Positive Outlook

  • Consolidated Total revenues between $6,600 and $6,815 millions
  • Aggregates Volume % growth between (2.0)% and 2.0 %
  • ASP % growth between 13.0 % and 15.0 %
  • Gross profit between $1,225 and $1,295 millions
  • Adjusted EBITDA between $1,800 and $1,900 millions

Challenges Ahead

  • Interest expense between $165 and $170 millions
  • Estimated tax rate (excluding discrete events) between 21 % and 22 %
  • Net earnings from continuing operations attributable to Martin Marietta between $880 and $990 millions
  • Capital expenditures between $575 and $625 millions
  • Cement, Ready Mixed Concrete and Asphalt and Paving Gross profit between $380 and $420 millions