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Jun 30, 2022
Martin Marietta Q2 2022 Earnings Report
Martin Marietta achieved record quarterly revenues and Adjusted EBITDA driven by robust pricing, acquisitions and product demand.
Key Takeaways
Martin Marietta reported record second-quarter revenues for aggregates and cement shipments, gross profit, Adjusted EBITDA and Adjusted earnings per diluted share. The company's performance was driven by the successful execution of its strategic business plan and the focus of its team. Despite increased inflationary pressure and a challenging macroeconomic environment, the company capitalized on an attractive commercial environment and executed its value-over-volume commercial strategy.
Martin Marietta delivered second-quarter records for aggregates and cement shipments, revenues, gross profit, Adjusted EBITDA and Adjusted earnings per diluted share.
In the second-quarter the company closed two previously announced transactions finalizing the divestiture of Colorado and Central Texas ready mixed concrete businesses and completing the divestiture of certain West Coast cement and ready mixed concrete operations.
Martin Marietta is well positioned to capitalize on strong demand trends across its coast-to-coast geographic footprint as increased infrastructure investment coupled with a recovery in light nonresidential construction, large scale energy projects and domestic manufacturing.
The company expects to see a positive inflection in the current price/cost dynamic, as well as record second-half pricing growth rates which will facilitate attractive margin expansion and accelerated unit profitability growth going forward.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company has updated its full-year 2022 guidance to reflect expected second-half pricing cadence, ongoing inflationary pressure and volume constraints driven by continued supply chain and logistics challenges. This guidance excludes businesses classified as discontinued operations.
Positive Outlook
- Consolidated Products and services revenues between $ 5,770 million and $ 5,910 million
- Gross profit between $ 1,500 million and $ 1,585 million
- Net earnings from continuing operations attributable to Martin Marietta between $ 780 million and $ 870 million
- Adjusted EBITDA between $ 1,670 million and $ 1,750 million
- Total ASP growth between 10.0% and 12.0%
Challenges Ahead
- Organic volume % growth between 0 % and 2.5 %
- Selling, general and administrative expenses (SG&A) between $ 390 million and $ 400 million
- Interest expense between $ 160 million and $ 165 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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