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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.
Martin Marietta
Martin Marietta
Martin Marietta Revenue by Segment
Martin Marietta Revenue by Geographic Location
Revenue by Segment
Magnesia Specialties Revenue
CapyFin.comRevenue by Geographic Location
East Group Revenue
CapyFin.comWest Group Revenue
CapyFin.com 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