01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
Martin Marietta Materials, Inc. reported 2024 revenues of $6,536 milliona, down from $6,777 million in 2023, while net earnings attributable to Martin Marietta rose to $1,995 million from $1,169 million.
The increase was driven mainly by a $1.3 billionb pretax gain on the divestiture of its South Texas cement business and certain ready mixed concrete operations to CRH Americas Materials, Inc. Excluding that gain, the filing shows Building Materials gross profit declining to $1,810 million from $1,923 million, with the decline attributed primarily to the Divestiture and a $20 million Inventory Markup charge, partially offset by pricing gains. Aggregates gross profit increased to $1,449 million from $1,378 million. During 2024 the company completed acquisitions including Albert Frei & Sons, the BWI Southeast acquisition of 20 aggregates operations for $2.05 billion in cash, and several bolt-on aggregates businesses.
Consolidated Adjusted EBITDA was $2,066 millionc versus $2,128 million in 2023. Long-term debt, including current maturities, was $5.4 billion at year-end, after the issuance of $750 million of 5.150% Senior Notes due 2034 and $750 million of 5.500% Senior Notes due 2054. Management reported $670 million of cash and short-term investments and $1.2 billion of unused borrowing capacity under its Revolving Facility and Trade Receivable Facility.
Aggregates shipments declined 3.8% to 191.1 million tons, while aggregates pricing rose 9.9% on a reported basis and 10.7% on an organic mix-adjusted basis. Cash provided by operations was $1.5 billiond in both 2024 and 2023, and the Board approved dividends of $3.06 per share for 2024 versus $2.80 in 2023. The company repurchased 0.8 million shares for $450 million in 2024.
02—Key points
Key Highlights
- Revenues declined to $6,536 million in 2024 from $6,777 million in 2023, while net earnings attributable to Martin Marietta increased to $1,995 million from $1,169 million, largely due to the $1.3 billion pretax divestiture gain.
- Diluted earnings per share from continuing operations were $32.41 in 2024 versus $19.32 in 2023; the filing states the Divestiture contributed $15.85 per diluted share after tax.
- Consolidated Adjusted EBITDA was $2,066 million in 2024 compared with $2,128 million in 2023.
- The company completed the $2.1 billion sale of its South Texas cement business in February 2024 and acquired 20 aggregates operations from Blue Water Industries affiliates for $2.05 billion in April 2024.
- Aggregates shipments fell 3.8% to 191.1 million tons, while reported aggregates pricing rose 9.9% (10.7% organic mix-adjusted), reflecting a value-over-volume pricing strategy.
- Long-term debt was $5.4 billion at year-end 2024, following $1.5 billion of new senior notes issued in November 2024; the company reported $670 million of cash and short-term investments.
- Dividends approved for 2024 totaled $3.06 per share versus $2.80 in 2023, and the company repurchased $450 million of stock in 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Martin Marietta Materials kept $0.35.
- Revenue$5.66B100.0%
- Cost of revenue−$4.03B71.1%
- Gross profit$1.64B28.9%
- Operating costs$843.0M14.9%
- Operating income$2.48B43.8%
- Interest, other & tax−$483.2M8.5%
- Net income$2.00B35.2%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $5.66B$5.85B | −3.2% |
| Cost of Revenue | $4.03B$4.11B | −1.9% |
| Gross Profit | $1.64B$1.75B | −6.2% |
| SG&A Expenses | $429.00M$425.00M | +0.9% |
| Operating Income | $2.48B$1.33B | +86.0% |
| Interest Expense | $169.00M$165.00M | +2.4% |
| Net Income | $2.00B$1.17B | +70.7% |
| EPS (Basic) | $32.50$18.88 | +72.1% |
| EPS (Diluted) | $32.41$18.82 | +72.2% |
| Shares Outstanding (Basic) | 61.40M61.90M | −0.8% |
| Shares Outstanding (Diluted) | 61.60M62.10M | −0.8% |
05—Questions
Frequently Asked Questions
What drove the large increase in 2024 net earnings?
Net earnings attributable to Martin Marietta rose to $1,995 million from $1,169 million, primarily because of a $1.3 billion pretax gain on the divestiture of the South Texas cement business and certain ready mixed concrete operations. The filing states the after-tax gain was $976 million, or $15.85 per diluted share.
How did the core Building Materials business perform in 2024?
Building Materials gross profit decreased to $1,810 million from $1,923 million, which the filing attributes primarily to the Divestiture and a $20 million Inventory Markup charge, partly offset by pricing gains. Aggregates gross profit rose to $1,449 million from $1,378 million, helped by acquired operations and pricing growth despite lower shipments.
What acquisitions did Martin Marietta complete in 2024?
The company acquired Albert Frei & Sons in Colorado in January, Blue Water Industries' BWI Southeast operations for $2.05 billion in cash in April, Youngquist Brothers Rock in South Florida in October, and R.E. Janes Gravel Co. in Texas in December. The filing states total 2024 acquisition consideration excluding BWI Southeast was $1.6 billion.
How is the company's debt and liquidity position?
Long-term debt including current maturities was $5.4 billion at December 31, 2024, with the company in compliance with its leverage ratio covenant. It had $670 million of unrestricted cash and short-term investments and $1.2 billion of unused borrowing capacity under its Revolving Facility and Trade Receivable Facility.
What are the main risks highlighted for investors?
The filing highlights sensitivity to construction cycles, public infrastructure funding, interest rates, and weather, particularly for the first and fourth quarters. It also cites rail and transportation dependence, energy and fuel cost volatility, climate-related regulation, and cement import competition as material risks.
06—Continue