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Sep 30, 2020
Martin Marietta Q3 2020 Earnings Report
Established new quarterly records for consolidated and aggregates gross margin. Increased pricing and disciplined cost management helped offset shipment declines.
Key Takeaways
Martin Marietta reported outstanding financial and operational performance in Q3 2020, with expanded consolidated gross margin and significant Adjusted EBITDA. Increased pricing and disciplined cost management helped offset the decrease in shipment volumes. The company also achieved record year-to-date profitability and the best safety performance in its history.
Expanded consolidated gross margin 100 basis points to 30.6 percent, a new record.
Generated Adjusted EBITDA of $501.7 million (inclusive of nonrecurring gains).
Increased pricing across all product lines and disciplined cost management helped offset the anticipated decrease in shipment volumes.
Sold certain non-core land and assets, generating a record $69.9 million in gains.
Martin Marietta
Martin Marietta
Martin Marietta Revenue by Segment
Martin Marietta Revenue by Geographic Location
Revenue by Segment
Building Materials Business Revenue
CapyFin.comMagnesia Specialties Revenue
CapyFin.comRevenue by Geographic Location
East Group Revenue
CapyFin.comWest Group Revenue
CapyFin.com Forward Guidance
Martin Marietta anticipates continued industry-wide fluctuations in product demand over the next few quarters due to the COVID-19 pandemic and related governmental actions. The Company remains confident that its favorable pricing trends are sustainable and durable.
Positive Outlook
- Favorable pricing trends are sustainable and durable, aided in part by the continued success of its locally-driven pricing strategy.
- Attractive underlying fundamentals and long-term secular growth trends in its key geographies.
- The Company’s record 2019 and year-to-date 2020 performance remain intact and will again be evident as the U.S. economy stabilizes and recovers.
- Well-positioned geographically, financially and otherwise to drive long-term sustainable growth and shareholder value.
- Collective commitment to our strategic priorities, disciplined pricing and operational excellence.
Challenges Ahead
- Continued industry-wide fluctuations in product demand over the next few quarters due to the COVID-19 pandemic and related governmental actions.
- Anticipate product demand to remain modest through the first half of 2021 due to COVID-19 and related governmental actions.
- Potential negative impact of the COVID-19 pandemic on the Company’s ability to continue supplying heavy-side building materials and related services at normal levels or at all in the Company’s key regions.
- The duration, impact and severity of the impacts of the COVID-19 pandemic on the Company, including the markets in which we do business, our suppliers, customers or other business partners as well as on our employees.
- The economic impact of government responses to the pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income