Dec 31, 2020

Martin Marietta Q4 2020 Earnings Report

Martin Marietta reported record fourth-quarter results, delivering record full-year profitability and the best safety performance.

Key Takeaways

Martin Marietta reported a strong fourth quarter and full-year 2020, overcoming challenges posed by the COVID-19 pandemic. The company achieved record fourth-quarter revenues and Adjusted EBITDA, driven by shipment growth, pricing gains, and disciplined cost management. Underlying demand fundamentals are expected to reset in 2021, with anticipated growth in single-family housing, infrastructure investment, and heavy industrial projects.

Record fourth-quarter revenues and Adjusted EBITDA were achieved.

Consolidated gross margin expanded 410 basis points to 27.6 percent.

Aggregates gross profit per ton shipped improved 17.9 percent.

Cement shipments increased 11.7 percent, a fourth-quarter record.

Total Revenue
$1.11B
Previous year: $1.1B
+1.0%
EPS
$2.93
Previous year: $2.09
+40.2%
Aggregates tons shipped
45.2M
Previous year: 43.92M
+2.9%
Aggregates avg. price
$14.9
Previous year: $14.4
+3.5%
Cement tons shipped
1.1M
Previous year: 948K
+16.0%
Gross Profit
$325M
Previous year: $259M
+25.8%
Cash and Equivalents
$207M
Previous year: $21M
+888.2%
Free Cash Flow
$257M
Previous year: $206M
+25.0%
Total Assets
$10.6B
Previous year: $10.1B
+4.4%

Martin Marietta

Martin Marietta

Martin Marietta Revenue by Segment

Martin Marietta Revenue by Geographic Location

Forward Guidance

Martin Marietta remains confident that favorable pricing dynamics will continue and attractive underlying fundamentals and long-term secular growth trends in its key geographies remain intact, particularly as the U.S. economy stabilizes and recovers.

Positive Outlook

  • Favorable pricing dynamics are expected to continue.
  • Underlying fundamentals and long-term secular growth trends in key geographies remain intact.
  • The U.S. economy is expected to stabilize and recover.
  • Single-family housing growth is anticipated.
  • Expanded infrastructure investment is expected.

Challenges Ahead

  • Guidance excludes any benefit from additional fiscal stimulus or relief funds beyond those already enacted.
  • Guidance excludes any benefit from a potential successor federal surface transportation bill.
  • Macroeconomic uncertainty will persist.
  • Potential impact of COVID-19 pandemic.
  • Potential declines of the Company’s various construction end-use markets.