NYSE$MLM

Martin Marietta Materials Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Achieved record quarterly revenues and gross profit, driven by double-digit pricing growth across all building materials’ product lines. Pricing momentum is expected to drive margin expansion in the fourth quarter.

Martin Marietta reported record quarterly revenues and gross profit, driven by double-digit pricing growth across all building materials’ product lines. The company expects a return to expanding margins in the fourth quarter as the compounding effect of multiple pricing actions throughout the year offsets continued inflationary pressure and a slowdown in single-family residential construction.

  • Building Materials generated record products and services revenues of $1.61 billion, a 15.9 percent increase, driven primarily by acquisitions and double-digit pricing growth across all product lines.
  • Third-quarter organic aggregates shipments were flat, largely due to logistical constraints, cement shortages and inclement weather in certain key markets. Importantly, organic pricing increased 11.9 percent, or 11.3 percent on a mix-adjusted basis, due to the cumulative effect of price increases throughout the year.
  • Cement shipments increased 2.3 percent to 1.1 million tons, a third-quarter record. Additionally, pricing increased 21.4 percent, or 20.6 percent on a mix-adjusted basis, driven by continued strong demand and the impact of multiple price increases during the year.
  • On August 9, 2022, the Company signed a definitive agreement to sell the Tehachapi, California cement plant and related distribution terminals to CalPortland Company for $350 million in cash.

Headline financials

Total Revenue

$1.81B

Previous: $1.56B+16.3%
EPS (adj)

$4.69

Previous: $4.25+10.4%
Aggregates Shipments (tons)

60.2M

Previous: 57.0M+5.6%
Average Selling Price per Ton

$16.65

Previous: $14.93+11.5%
Capital Expenditures

-$309M

Previous: -$321M+3.8%
Free Cash Flow

-$13.8M

Previous: -$66.7M+79.3%
Net Income

$295M

Previous: $255M+16.0%
Operating Income

$406M

Previous: $357M+13.7%
Gross Profit

$488M

Previous: $442M+10.4%
Cash & Equivalents

$136M

Previous: $2.38B-94.3%
Total Assets

$14.7B

Previous: $13.8B+6.8%
Stock-Based Comp

$9.8M

Previous: $12.2M-19.7%

Revenue & EPS history

Martin Marietta · Revenue · Quarterly

$1.81B

Q3 2022+16.3%vs Q3 2021
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 updated 2022 guidance reflects actual results through nine months as well as the impact of lower expected aggregates volumes and continued inflationary pressure.

Tailwinds

  • Consolidated Products and services revenues between $5,740 million and $5,845 million
  • Gross profit between $1,445 million and $1,510 million
  • Net earnings from continuing operations attributable to Martin Marietta between $740 million and $800 million
  • Adjusted EBITDA between $1,610 million and $1,675 million
  • Total volume % growth for aggregates between 4.0% and 5.0%

Headwinds

  • Aggregates Organic volume % growth between (1.0)% and 0.0%
  • Selling, general and administrative expenses (SG&A) between $390 million and $400 million
  • Interest expense between $165 million and $170 million
  • Estimated tax rate (excluding discrete events) between 22% and 23%
  • Capital expenditures between $450 million and $500 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 Q3 2022

Historical avgQ3 2022

+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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