Martin Marietta has announced its fourth quarter results which have led to earnings growth and margin expansion for the US-based construction materials producer.
Martin Marietta’s building materials business achieved two fourth-quarter records with revenues of $1.6 billion and gross profit of $472 million.
Its fourth-quarter aggregate shipments increased 2.7 per cent to 47.9 million tonnes mainly driven by acquisition contributions but also impacted by softer residential, warehouse and manufacturing demand. Its aggregates business’ gross profits increased by 16 per cent to $379 million due to contributions from acquired operations, organic pricing growth and lower diesel costs.
The Martin Marietta acquisitions included ones in Southwest Florida, Southern California and West Texas.
“In 2024, we faced several challenging dynamics beyond our control, including inclement weather, softening construction demand in both nonresidential and residential sectors, and tighter-than-expected monetary policy,” Martin Marietta chief executive officer and chairman Ward Nye said.
“Despite these headwinds, we remained steadfast in executing our strategic priorities and concluded the year with a return to earnings growth and margin expansion, resulting in record fourth quarter profits.”
Martin Marietta’s cement and downstream businesses in cement and ready-mix concrete revenues decreased by 36 per cent to $68 million. The company said this was due to the February 2024 divestiture of the South Texas cement plant and its related ready mixed concrete operations.
Asphalt and paving revenues decreased two per cent to $223 million, driven by slower market demand. Gross profit decreased seven per cent to $25 million due to lower revenues and higher aggregates costs partially offset by lower liquid asphalt costs.
”The company delivered our safest year on record, achieved nearly double-digit growth in unit margins, expanded Adjusted EBITDA margins and reshaped our portfolio. This was accomplished through approximately $6 billion in aggregates-led acquisitions and non-core asset divestitures,” Nye said.
“These portfolio-optimising transactions created a more durable business, increased the gross profit contribution from our core aggregates product line, and enhanced our margin profile, all while maintaining a strong balance sheet for continued acquisitive growth.
“Looking ahead, the strategic actions we completed in 2024, combined with strong infrastructure and data center demand, should more than offset ongoing softness in residential construction demand. Consequently, we are confident in achieving the midpoint of our 2025 full-year Adjusted EBITDA guidance of $2.25 billion, a nine per cent improvement compared to the prior year.”
Nye said the fourth quarter results provided the company with a strong foundation.
“Our long history of successfully identifying, executing and integrating operations into our business, while managing controllable factors and navigating economic cycles, gives us great confidence in our ability to continue delivering industry-leading safety, operational and financial performance,” he said.
“Martin Marietta’s dedicated employees remain committed stewards of our shareholders’ investment, working together to build and maintain the safest, best-performing, aggregates-led public company. We are positioned to generate sustainable earnings growth and superior shareholder value for years to come.”
