Martin Marietta Materials Inc. released results for the first quarter ended March 31, reporting total revenues of $1.251 billion, compared to $1.354 billion in the first quarter of 2023, a decrease of 8%.
First-quarter aggregates shipments decreased 12.3% to 36.6 million tons due largely to a more weather-impacted start to the year in the company’s East and Southwest divisions coupled with softening demand in warehouse, office and retail construction, partially offset by more favorable weather and relative strength in the company’s Central and West divisions.
Average selling price (ASP) increased 12.2% to $22.26 per ton, or 12.7% on an organic mix-adjusted basis, due to strong realization of Jan. 1, 2024, pricing actions. Aggregates gross profit increased modestly to $239 million, as pricing growth more than offset lower shipments.
Cement and ready mixed concrete revenues decreased 22% to $265 million and gross profit decreased 47% to $31 million compared with the prior-year quarter, primarily due to the February 2024 divestiture of the South Texas cement plant and related concrete operations, as well as extremely wet weather in Texas.
Asphalt and paving revenues increased 1% to a first-quarter record of $59 million. Consistent with the company’s historical first-quarter trends, the business posted a gross loss of $22 million due to seasonal winter operational shutdowns in Minnesota and unfavorable winter conditions in Colorado.
Ward Nye, chairman and CEO of Martin Marietta, stated, “The first quarter was highlighted by numerous significant events that, taken together, should be very beneficial to the company this year and into the future. Namely, Martin Marietta completed over $4.5 billion of portfolio-enhancing transactions thus far in 2024, increased our aggregates gross profit per ton by more than 14% for the quarter, and achieved record quarterly gross profit in our Magnesia Specialties business – all notwithstanding the year’s weather-challenged start in our most profitable markets. Collectively, these notable accomplishments give us confidence in our ability to increase our full-year 2024 Adjusted EBITDA guidance to $2.37 billion at the midpoint.
“Our positive outlook also reflects continued pricing momentum together with the product demand we expect from record federal- and state-level infrastructure investments, large-scale heavy industrial activity, data centers and energy projects, which should counterbalance softer residential and warehouse construction demand, as well as an anticipated moderation in light nonresidential activity,” Nye continued. “Despite near-term interest rate uncertainty, single-family housing remains historically underbuilt, particularly in key Martin Marietta markets with notable population growth. As such, we expect Martin Marietta will disproportionately benefit from new single-family home construction once interest rates moderate and affordability headwinds recede.
“Consistent with our SOAR 2025 priorities, we have continued to strengthen our portfolio by reducing cyclical downstream exposure, while expanding our aggregates footprint through the additions of the Albert Frei & Sons and Blue Water Industries operations,” Nye said. “Combined, these pure-play aggregates transactions are expected to add approximately 17 million tons of annual shipments in key markets including Denver, Knoxville, Miami and Nashville, while enhancing our ability to generate consistently higher margins.”
Nye concluded, “Martin Marietta’s unrivaled growth opportunities, steady advancement of our strategic plan and fidelity to disciplined pricing and operational excellence, together with multi-year infrastructure tailwinds across our purposefully curated geographic footprint, underpins our confidence to continue delivering sustainable growth and superior value for shareholders for the foreseeable future.”