Martin Marietta Materials Inc. reported results for the third quarter ended Sept. 30, noting revenues of $1,889 billion versus $1,994 in the third quarter of 2023, a 5% decline.
Third-quarter aggregates shipments declined 3.9% to 53.7 million tons, largely due to historically wet weather in the company’s East Division and softer warehouse and residential demand across the company’s footprint, partially offset by acquisitions. Average selling price (ASP) increased 7.7% to $21.52 per ton, or 8.9% on an organic mix-adjusted basis.
Aggregates gross profit decreased modestly to $438 million, driven primarily by lower operating leverage from reduced shipments and weather-driven inefficiencies, which were largely offset by acquisition contributions. Aggregates gross profit per ton increased 3% to a quarterly record of $8.16.
Cement and ready mixed concrete revenues decreased 30% to $296 million and gross profit decreased 37% to $89 million compared with the prior-year quarter, primarily due to the February 2024 divestiture of the South Texas cement plant and related concrete operations.
Asphalt and paving revenues decreased 5% to $343 million as shipments were negatively impacted by wet weather, project delays and a softer nonresidential market. Gross profit decreased 8% to $61 million due to lower revenues and higher aggregates costs.
Magnesia Specialties delivered revenues and gross profit of $82 million and $29 million, respectively, both third-quarter records, as pricing growth and improved lime shipments more than offset lower chemical shipments.
Ward Nye, chairman and CEO of Martin Marietta, stated, “In the third quarter, our team achieved record quarterly aggregates gross profit per ton, record third-quarter cash flows from operations, record third-quarter revenues and gross profit in our Magnesia Specialties business, and the best year-to-date safety performance in our company’s history. While these achievements demonstrate our continued success managing those factors we can control, well-chronicled weather-related events had major impacts on our third-quarter business results. Significant July precipitation together with Tropical Storm Debby in North Carolina, Hurricane Beryl in Texas and Hurricane Helene across much of our Southeast footprint all occurred during the quarter. Although these events are short-term and temporary, they nonetheless adversely impacted our third-quarter product shipments, geographic mix and financial results and, as a result, we revised our full-year 2024 Adjusted EBITDA guidance to $2.1 billion at the midpoint.
“In October, we acquired pure aggregates assets in South Florida and Southern California, both attractive growing markets. These bolt-on acquisitions are consistent with our Strategic Operating and Analysis (SOAR) plan and, together with the transactions completed in the first half of this year, further enhance our gross profit contribution from the aggregates product line and improve the long-term durability of our business.
“Looking ahead to 2025 and beyond, we expect to benefit from record levels of federal and state investments in highways, streets and bridges. Additionally, reshoring and the build-out of artificial intelligence infrastructure should provide steady growth in these aggregates-intensive end markets for years to come. Further, although higher interest rates continue to affect residential construction activity, we are encouraged by recent Federal Reserve policy actions and the likelihood of more interest rate cuts later this year, which should support a recovery in housing and, subsequently, light nonresidential construction activity.”
Nye concluded, “Importantly, we fully expect our aggregates price/cost spread to continue to expand over time, driving improvement in unit profitability through macroeconomic cycles. With our resilient aggregates-led business model, strategically positioned footprint in the country’s fastest-growing markets and continued disciplined execution of SOAR, Martin Marietta is firmly positioned to generate continued earnings growth and superior shareholder value creation.”