Martin Marietta Materials Inc (NYSE:MLM) reported a first-quarter 2024 revenue decline of 7.6% year-over-year to $1.251 billion.
The company missed the consensus of $1.318 billion.
EPS from continuing operations was $16.87, compared to $2.16 a year ago.
Gross profit was $272 million (-9.7% Y/Y), and the margin contracted to 21.7% from 22.4% a year ago.
Building Materials business revenue was $1.17 billion (-8% Y/Y), and the corresponding gross profit was $248 million (-10% Y/Y).
Aggregate shipments decreased by 12.3%, while the average selling price increased by 12.2%, or 14.3%, on a mix-adjusted basis.
Adjusted EBITDA declined 10.2% Y/Y to $291 million in the quarter, with a margin of 23.3%, down 67 bps.
Martin Marietta operating cash flow was $172 million compared with $161 million for the prior year.
The company held $2.6 billion of unrestricted cash, and $1.2 billion of unused borrowing capacity on its existing credit facilities as of March 31.
The company returned $197 million to shareholders through dividend payments and share repurchases in the quarter.
"Martin Marietta completed over $4.5 billion of portfolio-enhancing transactions thus far in 2024, increased our aggregates gross profit per ton by over 14 percent 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," commented Ward Nye, Chairman and CEO of Martin Marietta.
2024 Guidance revised: Martin Marietta Materials expects total revenues of $6.9 billion-$7.3 billion vs. consensus $7.07 billion and adjusted EBITDA of $2.3 billion-$2.44 billion.
The company expects average selling price growth of 11%-13% for Aggregates.
Price Action: MLM shares are trading lower by 2.72% at $586.22 at the last check Tuesday.
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