NYSE$MLM

Martin Marietta Materials Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record first-quarter consolidated revenues, gross profit, and earnings per diluted share, driven by pricing gains in upstream aggregates and cement businesses and improved aggregates unit profitability.

Martin Marietta reported a strong start to 2021 with record first-quarter revenues, profits, and safety performance. The company achieved record Adjusted EBITDA of $204 million, driven by pricing gains in aggregates and cement, and disciplined cost management. The acquisition of Tiller Corporation was announced, expected to enhance Martin Marietta's position in the Minneapolis/St. Paul region.

  • Delivered solid operational and financial performance, establishing first-quarter records for revenues, profits and safety.
  • Expanded consolidated gross margin 290 basis points to 17.8 percent.
  • Generated record Adjusted EBITDA of $204 million.
  • Building Materials business benefitted from widespread strengthening in product demand.

Headline financials

Total Revenue

$982M

Previous: $958M+2.5%
EPS (adj)

$1.04

Previous: $0.41+153.7%
Aggregates Shipments (tons)

37.1M

Previous: 38.3M-3.1%
Average Selling Price per Ton

$15.31

Previous: $14.80+3.4%
Capital Expenditures

-$110M

Previous: -$104M-6.0%
Free Cash Flow

-$45M

Previous: -$78.2M+42.5%
Net Income

$65.3M

Previous: $25.9M+152.1%
Operating Income

$99.3M

Previous: $57.8M+71.8%
Gross Profit

$175M

Previous: $142M+22.7%
Cash & Equivalents

$314M

Previous: $424M-26.0%
Total Assets

$10.7B

Previous: $10.5B+1.5%
Stock-Based Comp

$10.9M

Previous: $12.5M-12.8%

Revenue & EPS history

Martin Marietta · Revenue · Quarterly

$982M

Q1 2021+2.5%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Martin Marietta · $1.15B total across 1 segment · Q1 2022

  • Building Materials Business
    $1.15B

Forward guidance

Martin Marietta anticipates single-family housing growth, expanded infrastructure investment and notable heavy industrial projects of scale will drive increased shipment levels. Martin Marietta expects these demand drivers, combined with the ancillary construction necessary for housing community buildouts and the potential for increased infrastructure investment from a comprehensive federal surface transportation package, to result in sustained, multi-year growth in product demand.

Tailwinds

  • Favorable pricing dynamics will continue, supported by the Company’s locally-driven pricing strategy.
  • Single-family housing growth is expected to increase shipment levels.
  • Expanded infrastructure investment is expected to increase shipment levels.
  • Notable heavy industrial projects of scale is expected to increase shipment levels.
  • Potential for increased infrastructure investment from a comprehensive federal surface transportation package.

Headwinds

  • Challenges posed by the COVID-19 pandemic and implementation of any such related response plans
  • Fluctuations in COVID-19 cases in the United States and the extent that geography of outbreak primarily matches the regions in which the Company’s Building Materials business principally operates
  • Resiliency and potential declines of the Company’s various construction end-use markets
  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.2%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+0.6%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+17.6%

Q4 2014

Best reaction

-8.5%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-1.1%-5.0%
Q4 2025-6.6%-4.1%-17.6%
Q3 2025+1.0%-1.4%-0.1%
Q2 2025+0.4%+2.9%+4.1%
Q1 2025+3.8%+7.4%+8.5%
Q4 2024-2.2%-0.3%-9.7%
Q3 2024+1.4%-0.3%+2.8%
Q2 2024-0.9%-2.1%-6.7%
Q1 2024-2.0%-1.9%-5.9%
Q4 2023+1.6%+2.4%+13.1%
Q3 2023+7.8%+8.0%+14.3%
Q2 2023-2.1%-1.1%-4.6%
Q1 2023+7.9%+8.2%+12.6%
Q4 2022+3.6%+4.3%-10.0%
Q3 2022-0.8%+2.5%+9.4%
Q2 2022+4.8%+4.9%+4.7%
Q1 2022+6.2%-2.6%-2.3%
Q4 2021-1.0%+0.5%-3.2%
Q3 2021+4.5%+5.6%+6.0%
Q2 2021-1.1%-1.3%+4.6%
Q1 2021+5.6%+6.7%+1.4%
Q4 2020+5.0%+9.9%+13.2%
Q3 2020+7.6%+11.6%+9.5%
Q2 2020-6.1%-9.1%-8.3%
Q1 2020-8.5%-7.4%+10.9%
Q4 2019-6.1%-4.8%-32.9%
Q3 2019-0.8%-2.1%+1.1%
Q2 2019+10.6%+9.8%+13.1%
Q1 2019+2.3%+3.4%-0.8%
Q4 2018-3.0%+2.2%+3.1%
Q3 2018+8.5%+5.4%+6.5%
Q2 2018-7.7%-10.6%-7.7%
Q1 2018+3.9%+5.3%+12.2%
Q4 2017+1.4%+1.6%-3.4%
Q3 2017-2.5%-3.3%-6.7%
Q2 2017-4.5%-5.3%-6.4%
Q1 2017+7.2%+6.6%+2.3%
Q4 2016-4.1%-6.0%-9.1%
Q3 2016+2.7%+3.7%+19.2%
Q2 2016+2.0%+1.0%-6.5%
Q1 2016+5.0%
Q4 2015+11.5%
Q3 2015-6.1%
Q2 2015+8.7%
Q1 2015+8.5%
Q4 2014+17.6%
Q3 2014-4.6%
Q2 2014-0.2%
Q1 2014+6.4%
Q4 2013+5.1%
Q3 2013+1.2%
Q2 2013-1.8%
Q1 2013+1.0%
Q4 2012+1.5%
Q3 2012+2.2%
Q2 2012-4.5%
Q1 2012+0.1%
Q4 2011-1.2%
Q3 2011+2.8%
Q2 2011-1.5%
Q1 2010-3.2%
Q1 2011+2.1%
Q4 2010+2.1%
Q4 2008+2.1%
Q3 2009+2.5%
Q3 2010+2.5%
Q2 2010-6.6%
Q2 2009-6.6%
Q4 2009-6.6%

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