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Martin Marietta
🇺🇸 NYSE:MLM
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Jun 30, 2023

Martin Marietta Q2 2023 Earnings Report

Established quarterly records for revenues, profitability, and unit margins. Aggregates gross profit per ton increased, and full-year Adjusted EBITDA guidance was raised.

Key Takeaways

Martin Marietta reported exceptional second-quarter performance with record revenues, profitability, and unit margins. The company's value-over-volume strategy and business model durability drove impressive results, despite lower aggregates shipments. Revised full-year Adjusted EBITDA guidance is now $2.0 – $2.1 billion, a 28 percent increase at the midpoint compared to the prior year.

Exceptional performance across safety, financial, and operational measures.

Value-over-volume commercial strategy success.

Revised full-year Adjusted EBITDA guidance to $2.0 – $2.1 billion.

Aggregates demand expected to accelerate in the second half of 2023.

Total Revenue
$1.82B
Previous year: $1.52B
+19.5%
EPS
$5.6
Previous year: $3.96
+41.4%
Gross Profit
$560M
Previous year: $425M
+31.8%
Cash and Equivalents
$422M
Previous year: $772M
-45.4%
Free Cash Flow
$238M
Previous year: $35.4M
+572.6%
Total Assets
$15.2B
Previous year: $14.5B
+4.8%

Martin Marietta

Martin Marietta

Martin Marietta Revenue by Segment

Martin Marietta Revenue by Geographic Location

Forward Guidance

The company anticipates aggregates demand will accelerate in the second half of 2023, driven by record-setting public funds for infrastructure and manufacturing. This increased investment should largely offset the residential construction air pocket, expected to bottom in Q3 2023. Continued commercial momentum and moderating cost inflation should contribute to a record-setting year in 2023 and a solid foundation for 2024.

Positive Outlook

  • Aggregates demand acceleration in the second half of 2023.
  • Record-setting public funds entering the U.S. economy.
  • Residential construction air pocket expected to bottom in Q3 2023.
  • Continued commercial momentum.
  • Moderating cost inflation.

Challenges Ahead

  • Shipment declines resulting from economic events beyond the Company’s control
  • A widespread decline in aggregates pricing, including a decline in aggregates shipment volume negatively affecting aggregates price
  • The history of both cement and ready mixed concrete being subject to significant changes in supply, demand and price fluctuations
  • The termination, capping and/or reduction or suspension of the federal and/or state fuel tax(es) or other revenue related to public construction
  • The level and timing of federal, state or local transportation or infrastructure or public projects funding and any issues arising with such federal and state budgets

Company Overview

Full financial data and analysis

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