NYSE$MLM

Martin Marietta Materials Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$1.76B

Previous: $1.82B-3.1%
EPS

$4.76

Previous: $5.60-15.0%
Aggregates Shipments (tons)

53.0M

No prior period
Average Selling Price per Ton

$21.61

No prior period
Capital Expenditures

-$339M

Previous: -$293M-15.5%
Free Cash Flow

-$45M

Previous: $54.9M-182.0%
Net Income

$294M

Previous: $348M-15.6%
Operating Income

$398M

Previous: $463M-14.1%
Gross Profit

$517M

Previous: $560M-7.7%
Cash & Equivalents

$109M

Previous: $422M-74.1%
Total Assets

$16.3B

Previous: $15.2B+7.1%
Stock-Based Comp

$18M

Previous: $13.7M+31.4%

Revenue & EPS history

Martin Marietta · Revenue · Quarterly

$1.76B

Q2 2024-3.1%vs Q2 2023
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’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.

Tailwinds

  • 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

Headwinds

  • 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
  • Adjusted EBITDA between $2,100 and $2,300 million
  • Capital expenditures between $675 and $725 million

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 2024

Historical avgQ2 2024

+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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