Revenues: $1.2 billion in the Building Materials business, a decrease of 8%.
Gross Profit: $248 million for the Building Materials business, a decrease of 10%.
Aggregates Gross Profit: Increased modestly to $239 million, with a gross margin increase of 90 basis points to 27%.
Cement and Concrete Revenues: Decreased 22% to $265 million; gross profit decreased 47% to $31 million.
Magnesia Specialties Gross Profit: Achieved a record of $29 million despite a 3% decrease in revenues to $81 million.
Net Debt-to-EBITDA Ratio: Was 0.8x as of March 31.
Future Guidance
Adjusted EBITDA Guidance for FY 2024: Raised to a range of $2.30 billion to $2.44 billion, with a midpoint of $2.37 billion, reflecting an 11% increase over the previous year.
Aggregates Gross Profit Guidance: Updated to $1.75 billion at the midpoint for FY 2024, including a $30 million nonrecurring noncash purchase accounting impact.
Capital Expenditures: $200 million invested in the first quarter, with expectations of further investments including potential opportunistic land purchases.
Share Repurchases: $150 million used to repurchase over 255,000 shares at an average price of $586.85.
Aggregates Pricing: Fundamentals remain attractive, increasing 12.2% or 12.7% on an organic mix adjusted basis.
Infrastructure Investment: Robust multiyear demand expected, driven by Infrastructure Investment and Jobs Act (IIJA), with highway, bridge, and tunnel contract awards growing 11% to $116 billion.
Nonresidential Construction: Heavy nonresidential market supported by reshoring of critical product supply chains and investments in domestic manufacturing and data center construction.
Residential Market: Seeing recovery signs, especially in single-family housing starts.
Operational Excellence: Commitment to safety, commercial and operational excellence, and disciplined execution of strategic priorities highlighted.
Acquisitions: Successful integration of Albert Frei & Sons and Blue Water Industries acquisitions expected to contribute meaningfully to growth and profitability.
Notable Quotes
”Martin Marietta’s continued growth and results demonstrate our industry-leading performance and disciplined adherence to and execution of our proven strategic operating analysis and review or SOAR plan."
"These 2 pure-play aggregates transactions are expected to add approximately 17 million tons of annual shipments and generate approximately $180 million of annualized EBITDA."
"We expect robust multiyear demand in public infrastructure, U.S.-based manufacturing, energy projects, and data center construction will partially offset near-term softness in warehouse, light nonresidential, and residential end markets."
"Our net debt-to-EBITDA ratio was 0.8x as of March 31… providing a strong balance sheet to capitalize on a robust acquisition pipeline."
"To conclude, we expect 2024 will be another year of significant achievement for Martin Marietta. We’re well positioned to benefit from infrastructure tailwinds, providing steady product demand and favorable commercial dynamics across our coast-to-coast footprint.”
