Martin Marietta Materials Inc (MLM) Reports Record Quarterly Revenues and Profitability in Q3 2023
MLM reported record quarterly consolidated revenues, profitability, and margins for Q3 2023.
The company's gross profit per ton increased by 42.4% to $7.89.
MLM's net earnings from continuing operations attributable to the company rose by 47.8%.
The company raised its adjusted EBITDA guidance.
On November 1, 2023, Martin Marietta Materials Inc (NYSE:MLM), a leading national supplier of aggregates and heavy building materials, announced its results for the third quarter ended September 30, 2023. The company reported record quarterly consolidated revenues, profitability, and margins. MLM's gross profit per ton increased by 42.4% to $7.89, reinforcing the benefits of its value-over-volume strategy.
Financial Highlights
The company's total revenues for Q3 2023 were $1,994.1 million, marking a 10.1% increase from $1,811.7 million in Q3 2022. Gross profit rose by 38.6% to $676.0 million, while earnings from operations surged by 39.6% to $566.6 million. MLM's net earnings from continuing operations attributable to the company increased by 47.8% to $430.3 million. Adjusted EBITDA also saw a significant rise of 32.3% to $705.2 million.
CEO's Commentary
Ward Nye, Chairman and CEO of Martin Marietta, stated, We are pleased to again report record quarterly results for nearly every financial and operational measure, including continued world-class safety incidence rates. These extraordinary results demonstrate the earnings power of our business, driven by our teams disciplined execution of our proven value-over-volume commercial strategy."
Financial and Operating Results
The Building Materials business generated record revenues of $1.9 billion, a 10.5% increase. Gross profit increased 38.4% to a record of $649.5 million. Aggregates gross profit increased 32.1% to a record of $440.6 million. Cement gross profit increased 61.5% to a record $108.7 million. Ready mixed concrete revenues increased 25.3% to $285.2 million while gross profit increased 81.8% to $34.1 million.
Revised Full-Year 2023 Guidance
The company revised its full-year 2023 guidance, projecting total revenues between $6,735 million and $6,855 million. Net earnings from continuing operations attributable to Martin Marietta are expected to be between $1,095 million and $1,195 million. Adjusted EBITDA is anticipated to be between $2,050 million and $2,150 million.
Looking Ahead
For 2024, MLM expects aggregates shipments to be relatively flat, with strong demand from public infrastructure and heavy nonresidential projects partially offsetting an anticipated softening in the interest-rate sensitive, private light nonresidential and residential sectors. The company anticipates low double-digit aggregates pricing growth.
Explore the complete 8-K earnings release (here) from Martin Marietta Materials Inc for further details.
This article first appeared on GuruFocus.
