MARTIN MARIETTA MATERIALS, INC. Q1 2024
SUPPLEMENTAL INFORMATION*
April 30, 2024
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All information provided in these slides is qualified in its entirety by reference to the Company's filings with the
Securities and Exchange Commission (SEC), which are available on both the Company's and the SEC's websites.
Statement Regarding Safe Harbor for Forward-Looking Statements
Investors are cautioned that all statements herein that relate to the future involve risks and uncertainties, and are based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual results. These statements, which are forward-looking statements under the Private Securities Litigation Reform Act of 1995, provide the investor with the Company's expectations or forecasts of future events. You can identify these statements by the fact that they do not relate only to historical or current facts. They may use words such as "guidance", "anticipate", "may", "expect", "should", "believe", "will", and other words of similar meaning in connection with future events or future operating or financial performance. Any or all of the Company's forward-looking statements here and in other publications may turn out to be wrong.
Non-GAAP Financial Measures
This material contains financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliations of non- GAAP financial measures to the closest GAAP measures are included in the accompanying Appendix. Management believes these non-GAAP measures are commonly used financial measures for investors to evaluate the Company's operating performance and, when read in conjunction with the Company's consolidated financial statements, present a useful tool to evaluate the Company's ongoing operations, performance from period to period and anticipated performance. In addition, these are some of the factors the Company uses in internal evaluations of the overall performance of its businesses. Management acknowledges that there are many items that impact reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
Results and Trends
Results and trends described in this Supplemental Information may not necessarily be indicative of the Company's future performance.
Q1 2024 Supplemental Information | 2 |
EXECUTIVE SUMMARY
Q1 2024 RESULTS
FINANCIAL HIGHLIGHTS
$1,251M $1,045M
Total Revenues | Net Earnings from Continuing |
-8%y-o-y | Operations Attributable to |
Martin Marietta | |
+680% y-o-y |
$291M | 23% |
Adjusted EBITDA1 | Adjusted EBITDA Margin1 |
-10%y-o-y | -70 bps |
GUIDANCE COMMENTARY
- Expect full-year 2024 Adjusted EBITDA1 of $2.37B at the midpoint, +11% compared to FY 2023
- Aggregates ASP guidance increased to +11% to +13%
- Implied aggregates gross profit per ton of $8.45 at the midpoint, or +22% as compared to FY 2023, inclusive of an estimated $30M purchase accounting headwind expected to be recognized in the second quarter.
AGGREGATES SHIPMENTS
(in Millions)
42 | -12.3% |
37 | |
Q1 2023 | Q1 2024 |
AGGREGATES GROSS PROFIT
($ in Millions)
238 | flat | 239 |
Q1 2023 | Q1 2024 |
AGGREGATES AVERAGE SELLING PRICE
($) | ||
$19.83 | +12.2% | $22.26 |
Q1 2023 | Q1 2024 |
AGGREGATES GROSS MARGIN
26% | +90 bps | 27% |
Q1 2023 | Q1 2024 |
1. Non-GAAP financial measure. See Appendix for reconciliation to nearest GAAP measure
Q1 2024 Supplemental Information | 4 |
2024 GUIDANCE SUMMARY AND END MARKET OUTLOOK
CONSOLIDATED FULL YEAR 2024 GUIDANCE
$7.10B | $2.26B | $2.37B | ||
Total | Net Earnings from Continuing | Adjusted | ||
Revenues | Operations Attributable | EBITDA2 | ||
+5% | To Martin Marietta1 | +11% | ||
+88% | ||||
AGGREGATES FULL YEAR 2024 GUIDANCE | ||||
207M | $22.24 | |||
Shipment Tons | ASP | |||
+4% | +12% | |||
$1.75B | $8.45 | |||
Gross Profit3 | Gross Profit per Shipped Ton3 | |||
+27% | +22% | |||
End Market Outlook
INFRASTRUCTURE
Supported by funding from the Infrastructure Investment and Jobs Act (IIJA), record state Department of Transportation (DOT) budgets and state and local ballot initiatives
NONRESIDENTIAL
Heavy: Healthy reshoring activity of critical product supply chains continues to support domestic manufacturing, heavy-side energy construction and green shoots in data centers due to long term secular trends in cloud and AI
Light: Light commercial construction demand softening in 2024 given higher-for-longer interest rates and residential weakness in 2023
RESIDENTIAL
Positioned along the nation's top growth corridors, supported by a structural housing deficit and favorable population trends in key Martin Marietta markets
1. Net earnings from continuing operations attributable to Martin Marietta includes $0.9 billion for a gain on a divestiture partially offset by acquisition, divestiture and integration expenses, impact of selling acquired inventory after its markup to fair value as part of acquisition
accounting and a noncash asset and portfolio rationalization change. | Q1 2024 Supplemental Information | 5 | |
2. | Adjusted EBITDA is a Non-GAAP financial measure; see Appendix for reconciliation to nearest GAAP measure. | ||
3. | Aggregates Gross Profit and Aggregates Gross Profit Per Shipped Ton includes an estimated $30 million impact of selling acquired | ||
inventory after its markup to fair market value as part of acquisition accounting. |
STRATEGIC PLAN EXECUTION: CEMENT AND READY MIXED CONCRETE AS CONSIDERATION FOR PURE AGGREGATES
ACTIVE PORTFOLIO MANAGEMENT…
AcquisitionsDivestitures
1 S. TX Cement and RMC | |
2 CA Cement and RMC | |
3 CO and Central TX RMC | |
Total Enterprise Value: | Total Enterprise Value: |
$2.5 BN | $3.1 BN |
✓ | ✓ |
Margin Accretive and | Swaps Cyclical |
Enhances Aggregates | Cement and RMC for |
Profitability Contribution | Durable Aggregates |
✓ | ✓ |
Expands Geographic | |
Diversification and | Maintains Balance Sheet |
Complements Existing | Strength for Further Growth |
Footprint |
…ENHANCES DURABILITY THROUGH CYCLES
2023 Revenues | 2023 Gross Profit | ||
Cement & | Mag 5% | Cement & | Mag 5% |
Downstream | Downstream | ||
36% | 27% | ||
Aggregates | Aggregates | ||
68% | |||
59% | |||
2024 Guidance Revenues | 2024 Guidance Gross Profit | ||
Cement & | Mag 5% | Cement & | Mag 5% |
Downstream | Downstream | ||
29% | 18% | ||
Aggregates | Aggregates | ||
66% | 77% |
Q1 2024 Supplemental Information | 6 |
END USE OUTLOOK
UNPRECEDENTED PUBLIC INVESTMENT IN HIGHWAYS AND DOMESTIC MANUFACTURING
FEDERAL | STATE AND LOCAL |
$72B
FY2023 Total Federal Highway Investment
$53B
CHIPS Act Funding for Semiconductor
Research, Development, and Manufacturing
$250B
Green Energy Tax Credits from the
Inflation Reduction Act (Wind, Solar, Nuclear)
$7B
Transportation Funding Approved in 2023 by
State and Local Ballot Initiatives
+10% | $82 B |
$74 B
20232024
YOY Increase in Martin Marietta's
Top-10 State DOT Budgets
Source: ARTBA, NSSGA, White House, State DOTs
Q1 2024 Supplemental Information | 8 |
SIGNIFICANT INCREASE IN HIGHWAY CONTRACT AWARDS…
Highway, bridge and tunnel contract awards increased to $116B for LTM February 2024, driven by the Infrastructure Investment
and Jobs Act and COVID relief funds; a positive leading indicator of future infrastructure construction activity
($ in Billions)
$116
$104
$88
$83
$76
LTM Feb '20 | LTM Feb '21 | LTM Feb '22 | LTM Feb '23 | LTM Feb '24 | |
Source: ARTBA | |||||
Q1 2024 Supplemental Information | 9 |
NONRESIDENTIAL ACTIVITY VARIES BY SECTOR
CATEGORIES | OUTLOOK | COMMENTARY |
Manufacturing
Energy
Warehouses
Data Centers
Light Commercial
- Reshoring of U.S.-based manufacturing of critical products (e.g., semiconductors, batteries and electric vehicles)
- Industrial construction strength along the Gulf Coast continues to drive robust demand
- Renewable energy project tailwinds supported by Inflation Reduction Act credits
- Moderating from robust pandemic-led growth
- Long-termsecular e-commerce, cloud and AI trends remain positive
- New project funding may be difficult due to restrictive lending conditions
- Office vacancy rates expected to impact new office construction
Q1 2024 Supplemental Information | 10 |
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Disclaimer
Martin Marietta Materials Inc. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 11:29:04 UTC.
