Martin Marietta Materials, Inc. MLM reported mixed results for fourth-quarter 2024, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Both the top and bottom lines increased on a year-over-year basis.
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Following the results, shares of this producer and supplier of construction aggregates and other heavy building materials plunged more than 2% in the pre-market trading session.
Despite challenges in 2024—such as bad weather, reduced construction demand, and tighter monetary policies—the company still achieved earnings growth and record profits in the fourth quarter. Key accomplishments included record safety performance, nearly double-digit growth in unit margins, and increased EBITDA margins. This was driven by $6 billion in strategic acquisitions and divestitures, reshaping the portfolio to focus more on aggregates, improving margins, and maintaining a strong balance sheet.
Looking ahead, the company is confident that strong infrastructure and data center demand will help the company meet its 2025 adjusted EBITDA target of $2.25 billion.
Martin Marietta Materials, Inc. Price, Consensus and EPS Surprise
Martin Marietta Materials, Inc. Price, Consensus and EPS Surprise
Martin Marietta Materials, Inc. price-consensus-eps-surprise-chart | Martin Marietta Materials, Inc. Quote
Inside Martin Marietta’s Q4 Results
Martin Marietta reported adjusted earnings per share (EPS) from continuing operations of $4.79, which beat the Zacks Consensus Estimate of $4.60 by 4.1% and increased 3% from the year-ago quarter’s $4.63.
Total revenues of $1.63 billion missed the consensus mark of $1.65 billion by 1.3% but inched up 1% from the year-ago figure of $1.61 billion.
The gross margin remained flat year over year at 30% in the reported quarter (we had predicted the gross margin to be 29.2% for the quarter). Adjusted EBITDA of $545 million gained 8.3% year over year. Our model predicted an adjusted EBITDA of $549.9 million.
MLM’s Segmental Discussion
Building Materials reported revenues of $1.56 billion, which grew 1.5% year over year. For this segment’s revenues, our model predicted a value of $1.6 billion. The segment’s gross margin remained flat at 30% in the fourth quarter.
Within the Building Materials umbrella, Aggregates’ revenues grew 11.3% to $1.14 billion from the year-ago quarter. Aggregates shipments rose 2.7% year over year to 47.9 million tons, and the average selling price grew 8.6% year over year to $21.95 (up 7.6% on an organic mix-adjusted basis). Shipments grew owing to the contributions from acquisitions, partially offset by softer residential, warehouse and manufacturing demand.
Aggregates gross profit per ton increased 12% to a fourth-quarter record of $7.92.
Cement and ready mixed concrete revenues fell 23.9% year over year to $261 million. Cement shipments declined 44.4% year over year. Ready mixed concrete shipments declined 20% from the year-ago period. This was due to the divestiture of the South Texas cement plant and related concrete operations.
Asphalt and Paving revenues decreased 2.2% to $223 million from the year-ago period due to softer demand. Asphalt shipments fell 8.3% year over year.
Magnesia Specialties reported record fourth-quarter revenues of $77 million, slightly up from $76 million a year ago. This was backed by pricing growth and improved lime shipments, which more than offset lower chemical shipments. We predicted a comparatively higher value of $79.2 million year over year. The gross margin was down 100 bps, which rose to 29% from 30% a year ago.
2024 Highlights of MLM
Adjusted EPS was $32.41, up 68% from 2023. Revenues were down 4% to $6.54 billion.
Martin Marietta’s Financial Position
As of Dec. 31, 2024, Martin Marietta had cash and cash equivalents of $670 million compared with $1.27 billion at 2023-end. It had $1.2 billion of unused borrowing capacity on its existing credit facilities at 2024-end. Long-term debt (excluding current maturities) was $5.29 billion, up from $3.95 billion at 2023 end.
Net cash provided by operations was $1.46 billion in 2024, down from $1.53 billion in the year-ago period. In this period, MLM returned $639 million to shareholders through dividend payments and share repurchases. As of Dec. 31, 2024, 11.9 million shares remained under the current repurchase authorization.
MLM’s 2025 Guidance
Martin Marietta expects total revenues of $6.830-$7.230 billion, up from $6.54 billion in 2024. Adjusted EBITDA is projected to be between $2.150 billion and $2.350 billion, up from $2.07 billion reported in 2024.
Net earnings from continuing operations attributable to Martin Marietta are anticipated to be $1.005-$1.175 billion, down from $1.995 billion in 2024.
Aggregate shipment is expected to be down 2.5-5.5%. Total aggregate pricing per ton is now anticipated to rise 5.5-7.5%.
Aggregate gross profit is expected to be in the $1.61-$1.71 billion range.
Cement and Downstream gross profit are expected to be in the $305-$385 million range. Magnesia Specialties’ gross profit is now expected to be in the $110-$120 billion range.
Capital expenditures are now anticipated to be in the range of $725-$775 million.
Zacks Rank & Recent Construction Releases
Martin Marietta currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AECOM ACM reported impressive results for first-quarter fiscal 2025, where earnings surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. Revenues also increased from the prior year, backed by solid organic net service revenue (NSR) growth in its design business. Also, the strong improvement was backed by the benefits received from high-returning organic growth initiatives.
As of the fiscal quarter’s end, AECOM’s total backlog was $23.88 billion compared with $23.32 billion reported in the prior-year period. The current backlog level includes 55.2% contracted backlog growth. ACM’s pipeline of opportunities increased to a new record, driven by double-digit growth in later-stage opportunities, with award decisions expected over the next several quarters. The company anticipates to generate 5-8% organic NSR growth in fiscal 2025.
PulteGroup Inc. PHM has reported remarkable fourth-quarter 2024 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate and grew year over year. The quarter’s result reflects the company’s success in addressing the affordability issues of the housing market due to a still high mortgage rate.
By implementing several operational changes, including targeted sales incentives and faster construction cycle times, PulteGroup was able to drive its home sales and foster new orders. Also, the increase in the average selling price of homes closed aided the quarter’s top-line growth. In 2024, PHM invested about $5.3 billion into its business, returned $1.4 billion to its shareholders through stock repurchases and dividends and generated a return on equity of 27.5%.
Weyerhaeuser Company WY reported mixed results for the fourth quarter of 2024. Its earnings beat the Zacks Consensus Estimate, while net sales missed the same. On a year-over-year basis, both metrics declined due to lower fee harvest volumes in the West.
For first-quarter 2025, for Timberland, Weyerhaeuser expects earnings and adjusted EBITDA to be approximately $20 million higher than the fourth quarter. In the Real Estate, Energy and Natural Resources segment, Weyerhaeuser expects first-quarter earnings and adjusted EBITDA to be comparable sequentially. Within the Wood Products segment, Weyerhaeuser expects its first-quarter earnings before special items and adjusted EBITDA to slightly exceed fourth-quarter levels.
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