Martin Marietta reports strong first-quarter profit, raises full-year guidance

RALEIGH, N.C. – Martin Marietta Materials, Inc. (NYSE: NYSE:), a prominent supplier of aggregates and heavy construction materials, announced a significant increase in first-quarter earnings, reporting earnings of $16.87 per share, beating analysts Expected $1.83. However, the company's revenue of $1.25 billion fell short of consensus estimates of $1.32 billion.

The company's total gross profit per ton increased significantly by 14% in the first quarter, reaching $6.53, and its Magnesia Specialties business achieved a record quarterly gross profit. Although total revenue fell by 8% compared with the same period last year, Martin Marietta's operating income increased significantly by 625%, and the net profit from continuing operations attributable to the company soared by 680%.

Chairman and Chief Executive Officer Ward Nye attributed the strong quarter to more than $4.5 billion in portfolio-enhancing transactions, total gross profit growth and record performance in the Magnesia Specialties business. He noted that these factors, coupled with weather challenges at the start of the year, bolstered Martin Marietta's confidence in raising full-year 2024 adjusted EBITDA guidance to the mid-range of $2.37 billion.

Looking ahead, the company has raised its full-year 2024 revenue guidance to a range of $69 billion to $7.3 billion, with the midpoint of $7.1 billion slightly higher than analysts' expectations of $7.09 billion. This optimistic outlook is supported by continued pricing momentum and anticipated product demand driven by federal and state infrastructure investment, heavy industrial activity, data centers and energy projects.

Martin Marietta's strategic moves, including the acquisition of the Albert Frei & Sons and Blue Water Industries businesses, are expected to add approximately 17 million tons of annual shipments and improve profit margins. Instead, divesting South Texas Cement and related concrete businesses is part of the company's strategy to reduce its cyclical downstream exposure.

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The company's cash position remains strong with $2.6 billion in unrestricted cash and cash equivalents and $1.2 billion of unused borrowing capacity as of March 31, 2024. The company's commitment to shareholder returns was evident as it returned $197 million through dividends and share repurchases in the first One quarter.

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