Martin Marietta Materials, Inc. (NYSE: MLM) (“Martin Marietta” or the “Company”), a leading national supplier of aggregates and heavy building materials, today reported results for the fourth quarter and year ended December 31, 2024.
Fourth-Quarter and Full-Year Highlights
(Financial highlights are for continuing operations)
| Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||||
| (in millions, unless otherwise noted) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||
| Revenues1 | $ | 1,632 | $ | 1,608 | 1 | % | $ | 6,536 | $ | 6,777 | (4 | )% | |||||
| Gross profit2 | $ | 489 | $ | 484 | 1 | % | $ | 1,878 | $ | 2,023 | (7 | )% | |||||
| Earnings from operations3 | $ | 399 | $ | 370 | 8 | % | $ | 2,707 | $ | 1,596 | 70 | % | |||||
| Net earnings from continuing operations attributable to Martin Marietta3 | $ | 294 | $ | 288 | 2 | % | $ | 1,995 | $ | 1,199 | 66 | % | |||||
| Adjusted EBITDA4 | $ | 545 | $ | 503 | 8 | % | $ | 2,066 | $ | 2,128 | (3 | )% | |||||
| Earnings per diluted share from continuing operations3 | $ | 4.79 | $ | 4.63 | 3 | % | $ | 32.41 | $ | 19.32 | 68 | % | |||||
| Aggregates product line: | |||||||||||||||||
| Shipments (tons) | 47.9 | 46.6 | 3 | % | 191.1 | 198.8 | (4 | )% | |||||||||
| Average selling price per ton | $ | 21.95 | $ | 20.22 | 9 | % | $ | 21.80 | $ | 19.84 | 10 | % | |||||
| Gross profit per ton2 | $ | 7.92 | $ | 7.04 | 12 | % | $ | 7.58 | $ | 6.93 | 9 | % | |||||
| 1 | Revenues include the sales of products and services to customers (net of any discounts or allowances) and freight revenues. |
| 2 | Year ended December 31, 2024, gross profit and aggregates gross profit per ton include $20 million, or $0.10 per ton, negative impact of selling acquired inventory after its markup to fair value as part of acquisition accounting. |
| 3 | Year ended December 31, 2024, earnings from operations, net earnings from continuing operations attributable to Martin Marietta and earnings per diluted share from continuing operations include $1.2 billion, $0.9 billion and $14.49 per diluted share, respectively, for a nonrecurring gain on divestiture, partially offset by acquisition, divestiture and integration expenses, the impact of selling acquired inventory after markup to fair value as part of acquisition accounting and a noncash asset and portfolio rationalization charge. |
| 4 | Earnings from continuing operations before interest; income taxes; depreciation, depletion and amortization expense; the earnings/loss from nonconsolidated equity affiliates; acquisition, divestiture and integration expenses and the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting subject to the limitations described below; nonrecurring gain on divestiture; and noncash asset and portfolio rationalization charge, or Adjusted EBITDA, is a non-GAAP financial measure. Effective January 1, 2024, transaction expenses and inventory acquisition accounting impacts are only excluded for transactions with at least $2 billion in consideration and transaction expenses expected to exceed $15 million. See Appendix to this earnings release for a reconciliation to net earnings from continuing operations attributable to Martin Marietta. |
Ward Nye, Chair and CEO of Martin Marietta, stated, “In 2024, we faced several challenging dynamics beyond our control, including inclement weather, softening construction demand in both nonresidential and residential sectors, and tighter-than-expected monetary policy. Despite these headwinds, we remained steadfast in executing our strategic priorities and concluded the year with a return to earnings growth and margin expansion, resulting in record fourth quarter profits.
”The Company delivered our safest year on record, achieved nearly double-digit growth in unit margins, expanded Adjusted EBITDA margins and reshaped our portfolio. This was accomplished through approximately $6 billion in aggregates-led acquisitions and non-core asset divestitures. These portfolio-optimizing transactions created a more durable business, increased the gross profit contribution from our core aggregates product line, and enhanced our margin profile, all while maintaining a strong balance sheet for continued acquisitive growth.
“Looking ahead, the strategic actions we completed in 2024, combined with strong infrastructure and data center demand, should more than offset ongoing softness in residential construction demand. Consequently, we are confident in achieving the midpoint of our 2025 full year Adjusted EBITDA guidance of $2.25 billion, a 9% improvement compared to the prior year.”
Mr. Nye concluded, “Our long history of successfully identifying, executing and integrating operations into our business, while managing controllable factors and navigating economic cycles, gives us great confidence in our ability to continue delivering industry-leading safety, operational and financial performance. Martin Marietta’s dedicated employees remain committed stewards of our shareholders’ investment, working together to build and maintain the safest, best-performing, aggregates-led public company. We are positioned to generate sustainable earnings growth and superior shareholder value for years to come.”
Fourth-Quarter Financial and Operating Results
(All financial and operating results are for continuing operations and comparisons are versus the prior-year fourth quarter, unless otherwise noted)
Building Materials Business
The Building Materials business achieved revenues of $1.6 billion and gross profit of $472 million, both fourth-quarter records.
Aggregates
Fourth-quarter aggregates shipments increased 2.7 percent to 47.9 million tons, reflecting acquisition contributions that were partially offset by softer residential, warehouse and manufacturing demand. Average selling price (ASP) increased 8.6 percent to $21.95 per ton, or 7.6 percent on an organic mix-adjusted basis.
Aggregates gross profit increased 16 percent to $379 million due to contributions from acquired operations, organic pricing growth and lower diesel costs. Aggregates gross profit per ton increased 12 percent to $7.92 and gross margin improved 120 basis points to 33 percent, both fourth-quarter records.
Cement and Downstream Businesses
Cement and ready mixed concrete revenues decreased 24 percent to $261 million and gross profit decreased 36 percent to $68 million primarily due to the February 2024 divestiture of the South Texas cement plant and certain of its related ready mixed concrete operations.
Asphalt and paving revenues decreased 2 percent to $223 million, driven by slower market demand. Gross profit decreased 7 percent to $25 million due to lower revenues and higher aggregates costs partially offset by lower liquid asphalt costs.
Magnesia Specialties Business
Magnesia Specialties delivered revenues of $77 million, a fourth-quarter record, as strong lime and chemicals pricing more than offset lower shipments; gross profit decreased 3 percent to $22 million from unfavorable cost absorption on reduced production and higher supplies expense.
Portfolio Optimization
During the fourth quarter, the Company acquired aggregates-led, bolt-on assets in Southwest Florida, Southern California and West Texas.
Cash Generation, Capital Allocation and Liquidity
Cash provided by operating activities was $1.5 billion for both the year ended December 31, 2024 and 2023.
Cash provided by operating activities for the fourth quarter was $685 million, an increase of 23 percent compared with the prior-year quarter. This growth was primarily driven by improvements in working capital and deferred income tax payments due to disaster tax relief for North Carolina businesses affected by Hurricanes Debby and Helene.
Cash paid for property, plant and equipment additions for the year ended December 31, 2024, was $855 million, which included the purchase of aggregates reserves, land and processing plants in Southern California.
For the year ended December 31, 2024, the Company returned $639 million to shareholders through dividend payments and share repurchases. As of December 31, 2024, 11.9 million shares remained under the current repurchase authorization.
The Company had $670 million of cash and cash equivalents on hand and $1.2 billion of unused borrowing capacity on its existing credit facilities as of December 31, 2024.
Full-Year 2025 Guidance
| 2025 GUIDANCE | ||||||||
| (Dollars in Millions) | Low * | High * | ||||||
| Consolidated | ||||||||
| Total revenues | $ | 6,830 | $ | 7,230 | ||||
| Interest expense | $ | 220 | $ | 230 | ||||
| Estimated tax rate (excluding discrete events) | 20.5 | % | 21.5 | % | ||||
| Net earnings from continuing operations attributable to Martin Marietta | $ | 1,005 | $ | 1,175 | ||||
| Adjusted EBITDA1 | $ | 2,150 | $ | 2,350 | ||||
| Capital expenditures | $ | 725 | $ | 775 | ||||
| Building Materials Business | ||||||||
| Aggregates | ||||||||
| Volume % growth2 | 2.5 | % | 5.5 | % | ||||
| ASP % growth3 | 5.5 | % | 7.5 | % | ||||
| Gross profit | $ | 1,610 | $ | 1,710 | ||||
| Cement, Ready Mixed Concrete and Asphalt and Paving | ||||||||
| Gross profit | $ | 305 | $ | 385 | ||||
| Magnesia Specialties Business | ||||||||
| Gross profit | $ | 110 | $ | 120 | ||||
* Guidance range represents the low end and high end of the respective line items provided above.
| 1 | Adjusted EBITDA is a non-GAAP financial measure. See Appendix to this earnings release for a reconciliation to net earnings from continuing operations attributable to Martin Marietta. |
| 2 | Volume change is for total aggregates shipments, inclusive of internal tons, acquired operations and divestitures, and is in comparison to 2024 shipments of 191.1 million tons. |
| 3 | ASP change is for aggregates average selling price and is in comparison to 2024 ASP of $21.80 per ton. |
