NYSE$MLM

Martin Marietta Materials Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Established quarterly records for revenues, profitability, and unit margins. Aggregates gross profit per ton increased, and full-year Adjusted EBITDA guidance was raised.

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.

Headline financials

Total Revenue

$1.82B

Previous: $1.64B+10.9%
EPS (adj)

$5.60

Previous: $3.96+41.4%
Capital Expenditures

-$293M

Previous: -$221M-32.9%
Free Cash Flow

$54.9M

Previous: $146M-62.3%
Net Income

$348M

Previous: $367M-5.0%
Operating Income

$463M

Previous: $479M-3.2%
Gross Profit

$560M

Previous: $425M+31.8%
Cash & Equivalents

$422M

Previous: $772M-45.4%
Total Assets

$15.2B

Previous: $14.5B+4.8%
Stock-Based Comp

$13.7M

Previous: $12.5M+9.6%

Revenue & EPS history

Martin Marietta · Revenue · Quarterly

$1.82B

Q2 2023+10.9%vs Q2 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

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

  • Building Materials Business
    $1.15B

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.

Tailwinds

  • 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.

Headwinds

  • 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

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 Q2 2023

Historical avgQ2 2023

+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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