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Jun 30, 2024
Martin Marietta Q2 2024 Earnings Report
Reported second-quarter results with record aggregates gross profit per ton and pricing gains across all product lines. The acquisition and integration of Blue Water reinforced aggregates-led business model and revised full-year guidance.
Key Takeaways
Martin Marietta reported a decrease in revenues and gross profit for the second quarter of 2024 compared to the previous year. Despite challenges from weather and restrictive monetary policy, the company achieved record aggregates profitability and expanded Adjusted EBITDA margin. The acquisition of Blue Water Industries operations was completed, strengthening the business and enhancing the margin profile. The company lowered its 2024 full-year Adjusted EBITDA guidance to $2.2 billion at the midpoint.
Aggregates gross profit per ton increased by 9 percent, reaching a second-quarter record of $7.41.
The acquisition of Blue Water Industries operations was completed on April 5th, expanding Martin Marietta's presence into attractive SOAR 2025 target markets.
Second-quarter aggregates shipments decreased 2.8 percent to 53.0 million tons due to poor weather and softening demand.
The company lowered its 2024 full-year Adjusted EBITDA guidance to $2.2 billion at the midpoint.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company’s 2024 revised guidance includes the BWI Southeast acquisition as of its closing date. The guidance below for net earnings from continuing operations attributable to Martin Marietta and aggregates gross profit is burdened with a $20 million purchase accounting impact for the fair market value write-up of inventory related to the BWI Southeast acquisition, which was fully realized in the second quarter.
Positive Outlook
- Consolidated Revenues between $6,500 and $6,940 million
- Building Materials Business Aggregates Volume % change between (4.0)% and (1.0)%
- ASP % change between 11.0% and 13.0%
- Gross profit between $1,510 and $1,620 million
- Magnesia Specialties Business Gross profit between $100 and $110 million
Challenges Ahead
- Interest expense, net of interest income between $130 and $140 million
- Estimated tax rate between 22.5 % and 23.5 %
- Net earnings from continuing operations attributable to Martin Marietta between $2,030 and $2,165 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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