Martin Marietta Materials Inc. announced results for the first quarter ended March 31, reporting revenues of $1,353 billion, versus $1,251 billion in the first quarter of 2024, an 8% increase.
First-quarter aggregates shipments increased 6.6% to 39.0 million tons due to contributions from acquisitions, partially offset by challenging winter weather in January and February across many Southeast, Southwest and Midwest markets.
As the winter weather eased in March, organic shipments increased double digits, reflecting underlying strength in key Sunbelt markets. Pricing momentum continued as average selling price (ASP) increased 6.8% to $23.77 per ton, inclusive of acquisitions.
Aggregates gross profit increased 24% to $297 million and gross margin expanded 260 basis points to 30%, both first-quarter records, driven by organic price/cost improvement and margin-accretive acquisitions.
Cement and ready mixed concrete revenues decreased 12% to $233 million compared with the prior-year quarter due to the February 2024 divestiture of the South Texas cement plant and related concrete operations, winter weather in February 2025 and reduced residential demand.
Gross profit decreased 23% to $24 million as the year-over-year gross profit improvement in cement was more than offset by a decline in ready mixed concrete gross profit due to higher raw material costs.
Asphalt and paving revenues increased 37% to $80 million due to increased asphalt shipments in California. The business posted a gross loss of $23 million due to seasonal winter operational shutdowns in Minnesota, consistent with historical first-quarter trends, as well as higher raw material costs in Colorado.
Magnesia Specialties delivered all-time quarterly records for revenues and gross profit of $87 million and $38 million, respectively, reflecting pricing improvement and continued cost discipline.
Ward Nye, chair and CEO of Martin Marietta, stated, “The first three months are off to a strong start with our teams delivering several first-quarter records, including consolidated gross profit, gross margin, Adjusted EBITDA and Adjusted EBITDA margin. Aggregates gross profit per ton increased over 16% to a new first-quarter record, reflecting continued pricing momentum and effective cost management. Additionally, our Magnesia Specialties business established new quarterly records for revenues, gross profit and gross margin, building upon its record full-year 2024 results.
“Infrastructure demand remains a continuing bright spot amidst an uncertain macroeconomic backdrop. Construction activity in this countercyclical sector is expected to grow in 2025 as work advances on projects supported by federal and state investments. Importantly, with only about one-third of the Infrastructure Investment and Jobs Act (IIJA) funds reimbursed to states through the end of February 2025, we expect IIJA contributions will peak in 2026 followed by a typical tail thereafter. That said, Congressional focus is increasingly geared toward the reauthorization of federal surface transportation programs, with committee hearings already underway. Early indications are that the successor bill may prioritize programs with national or regional benefits, such as more aggregates intensive roads, bridges and ports, over local transit, rail, and bike/pedestrian trails. Nonresidential construction continues to be led by attractive and growing data center demand and, more recently, warehouse construction appears to have reached a cyclical bottom. Importantly, while residential affordability headwinds are not expected to abate in the near term, Martin Marietta’s leading positions in key markets with notable population growth provide attractive opportunities to capitalize on structurally underbuilt markets with pent-up demand when single-family housing construction recovers.”
Nye concluded, “Martin Marietta’s resilient aggregates-led business in markets with favorable growth dynamics provides sustainable competitive advantages throughout various business cycles. This strong foundation, together with our talented teams, recent portfolio actions and long track record of successfully navigating through evolving macroeconomic environments, underpins our confidence in delivering relative outperformance and compelling shareholder value for years to come.”
The company’s previously announced full-year outlook remains unchanged and does not assume any material tariff-related positive or negative impacts. Consistent with customary practice, the company will revisit its full-year outlook after the second quarter.