MARTIN MARIETTA MATERIALS, INC. Q3 2023
SUPPLEMENTAL INFORMATION*
November 1, 2023
-
All information provided in these slides is qualified in its entirety by reference to the Company's filings with the
Securities and Exchange Commission (SEC), which are available on both the Company's and the SEC's websites.
Statement Regarding Safe Harbor for Forward-Looking Statements
Investors are cautioned that all statements herein that relate to the future involve risks and uncertainties, and are based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual results. These statements, which are forward-looking statements under the Private Securities Litigation Reform Act of 1995, provide the investor with the Company's expectations or forecasts of future events. You can identify these statements by the fact that they do not relate only to historical or current facts. They may use words such as "guidance", "anticipate", "may", "expect", "should", "believe", "will", and other words of similar meaning in connection with future events or future operating or financial performance. Any or all of the Company's forward-looking statements here and in other publications may turn out to be wrong.
Non-GAAP Financial Measures
This material contains financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliations of non- GAAP financial measures to the closest GAAP measures are included in the accompanying Appendix. Management believes these non-GAAP measures are commonly used financial measures for investors to evaluate the Company's operating performance and, when read in conjunction with the Company's consolidated financial statements, present a useful tool to evaluate the Company's ongoing operations, performance from period to period and anticipated performance. In addition, these are some of the factors the Company uses in internal evaluations of the overall performance of its businesses. Management acknowledges that there are many items that impact reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
Results and Trends
Results and trends described in this Supplemental Information may not necessarily be indicative of the Company's future performance.
Q3 2023 Supplemental Information | 2 |
FINANCIAL HIGHLIGHTS
Q3 2023 RESULTS
FINANCIAL HIGHLIGHTS
AGGREGATES
CEMENT
$1,994M $430M
Total Revenues | Net Earnings from Continuing |
+10% y-o-y | Operations Attributable to |
Martin Marietta | |
+48% y-o-y |
$705M | 42% |
Adjusted EBITDA* | Aggregates Gross Profit |
+32% y-o-y | per Ton improvement y-o-y |
Shipments (MM Tons)
60.2 | -7% |
55.9 | |
Q3 2022 | Q3 2023 |
ASP | |
+20% | $19.98 |
$16.65 | |
Q3 2022 | Q3 2023 |
Shipments (MM Tons)
+0%
1.1 1.1
Q3 2022 | Q3 2023 |
ASP | |
+19% | $177.48 |
$149.24 | |
Q3 2022 | Q3 2023 |
REVISED GUIDANCE HIGHLIGHTS
ASPHALT
READY MIX CONCRETE
- Raised full-year 2023 Adjusted EBITDA* to $2.05 - $2.15 billion, +31% at the midpoint as compared to FY 2022
- 2023 Aggregates ASP guidance increased to
+18% - 20% - Implied aggregates gross profit per ton of $6.96 at the midpoint, or +47% as compared to FY 2022
Shipments (MM Tons)
+6% | |
3.7 | 3.9 |
Q3 2022 | Q3 2023 |
ASP | |
+7% | |
$61.45 | $65.58 |
Q3 2022 | Q3 2023 |
Shipments (MM Cubic Yds)
+4%
1.7 | 1.8 |
Q3 2022 | Q3 2023 |
ASP | |
+21% | |
$132.64 | $160.43 |
Q3 2022 | Q3 2023 |
*Non-GAAP financial measure. See Appendix for reconciliation to nearest GAAP measure
Q3 2023 Supplemental Information | 4 |
ACCELERATING UNIT PROFITABILITY GROWTH DESPITE LOWER SHIPMENTS
3RD QUARTER - AGGREGATES GROSS PROFIT PER TON
+42% | $7.89 |
$5.54
FULL YEAR - AGGREGATES GROSS PROFIT PER TON
+47% | $6.96 1 |
$4.74
Q3 2022 | Q3 2023 |
FY 2022 | FY 2023 Revised Guidance |
AGGREGATES RELATIVE PRICE INELASTICITY DRIVES SECULAR UNIT MARGIN GROWTH
THROUGH VARIOUS END MARKET DEMAND CYCLES
1- FY 2023 Revised Guidance reflects the aggregates gross profit per ton midpoint guidance as of November 2023.
Q3 2023 Supplemental Information | 5 |
2023 GUIDANCE REVISION SUMMARY
2022 Actual | Midpoint Guidance | Midpoint Guidance | ||
as of Jul 2023 | as of Nov 2023 | |||
Total Revenues ($ in MMs) | $6,161 | $6,793 | $6,795 | |
(+10%) | (+10%) | |||
Net Earnings from Continuing | $1,095 | $1,145 | ||
Operations Attributable to Martin | $856 | |||
(+28%) | (+34%) | |||
Marietta ($ in MMs) | ||||
Adjusted EBITDA* ($ in MMs) | $1,600 | $2,050 | $2,100 | |
(+28%) | (+31%) | |||
Aggregates Volume (Tons in MMs) | 208 | 202 | 198 | |
(-3%) | (-5%) | |||
Aggregates ASP | $16.68 | $19.68 | $19.85 | |
(+18%) | (+19%) | |||
Aggregates Gross Profit ($ in MMs) | $984 | $1,363 | $1,380 | |
(+39%) | (+40%) | |||
Cement and Downstream | $354 | $493 | $523 | |
Gross Profit ($ in MMs) | (+39%) | (+48%) | ||
Magnesia Specialties | $91 | $105 | $95 | |
Gross Profit ($ in MMs) | (+16%) | (+5%) | ||
Note: All percent changes are versus 2022 actual figures | ||||
*Non-GAAP financial measure. See Appendix for reconciliation to nearest GAAP measure | Q3 2023 Supplemental Information | 6 | ||
PORTFOLIO SHAPING AND STRONG BALANCE SHEET PROVIDE FOUNDATION FOR FUTURE GROWTH
HIGHLIGHTS
- Closed previously announced sale of Tehachapi, California cement plant on October 31st, largely concluding planned asset sales from the 2021 Lehigh Hanson West acquisition
- Continued long-standing track record of rapid deleveraging following acquisitions
- Strong balance sheet provides flexibility to capitalize on robust M&A pipeline and return cash to shareholders
- Increased quarterly cash dividend on August 10, 2023
Net Leverage Ratio1 as of
Sept. 30, 2023
1.8x
Robust and Active M&A
Pipeline
Debt Profile
3.5% 13 Years 100%
Weighted Weighted Fixed
Average Average Rate
Coupon Maturity
Quarterly Cash Dividend
Increase
12%
$2.96 per share on an
annualized basis
1 For trailing twelve-months consolidated EBITDA. See Appendix for reconciliation to nearest GAAP measure
Q3 2023 Supplemental Information | 7 |
END USE OUTLOOK
UNPRECEDENTED PUBLIC INVESTMENT IN HIGHWAYS AND DOMESTIC MANUFACTURING
FEDERAL | STATE AND LOCAL |
$72B
FY2023 Total Federal Highway Investment
$53B
CHIPS Act Funding for Semiconductor
Research, Development, and Manufacturing
$250B
Green Energy Tax Credits from the
Inflation Reduction Act (Wind, Solar, Nuclear)
$40B
Additional Funding Available to Martin Marietta's Top-10 States via Cornyn - Padilla Amendment
$23B
Transportation Funding Approved in 2022 by
State and Local Ballot Initiatives
$7B
Increase in Martin Marietta's Top-10
State DOT Budgets
Source: ARTBA, NSSGA, White House, State DOTs
Q3 2023 Supplemental Information | 9 |
SIGNIFICANT INCREASE IN HIGHWAY CONTRACT AWARDS…
Highway, bridge and tunnel contract awards increased to a record $114B for LTM September 2023, driven by the Infrastructure
Investment and Jobs Act and COVID relief funds; a positive leading indicator of future infrastructure construction activity
($ in Billions)
+18.2%
LTM September '19-22 CAGR: 8.4%
$114
$97
$86
$80
$76
LTM Sep '19 | LTM Sep '20 | LTM Sep '21 | LTM Sep '22 | LTM Sep '23 | |
Source: ARTBA | |||||
Q3 2023 Supplemental Information | 10 |
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Disclaimer
Martin Marietta Materials Inc. published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 11:11:10 UTC.
