01—Abstract
Summary
Summary of the 10-Q filed October 30, 2024. Cited figures are marked; the original filing is the authoritative source.
Martin Marietta Materials, Inc. reported third-quarter 2024 revenues of $1,889 milliona, down from $1,994 million a year earlier, and net earnings from continuing operations attributable to Martin Marietta of $363 million, or $5.91 per diluted share, compared with $430 million, or $6.94 per diluted share, in the prior-year quarter.
Results were affected by lower aggregates shipments, which the company attributed to weather and softer warehouse and residential demand, and by the divestiture of the South Texas cement business and related ready mixed concrete operations. Cement and ready mixed concrete revenues fell 30% to $296 millionb, primarily due to that divestiture, while aggregates average selling price per ton rose 7.7% to $21.52. For the nine months ended September 30, 2024, revenues were $4,905 million versus $5,169 million, and earnings from operations were $2.3 billion versus $1.2 billion, reflecting a $1.3 billion pretax gain on the South Texas divestiture, partly offset by a $50 million noncash asset and portfolio rationalization charge.
Net earnings from continuing operations attributable to Martin Marietta were $1.7 billionc, or $27.60 per diluted share. Operating cash flow was $773 million versus $973 million, with the decrease driven largely by higher income tax payments resulting from the divestiture. The company acquired 20 aggregates operations from Blue Water Industries LLC for $2.05 billion in April 2024 and repaid $400 million of 4.250% Senior Notes at maturity.
At September 30, 2024, the company held $52 milliond of cash and cash equivalents against $4,043 million of total debt, with no borrowings outstanding under its $800 million Revolving Facility. The company repurchased 785,758 shares for $450 million during the first nine months, and $1.10 billion of unused borrowing capacity was available under its Revolving Facility and Trade Receivable Facility. Subsequent to quarter-end, $300 million was outstanding under the Trade Receivable Facility and $400 million under the Revolving Facility as of October 30, 2024.
02—Key points
Key Highlights
- Q3 2024 revenues were $1,889 million versus $1,994 million in Q3 2023; diluted EPS from continuing operations was $5.91 versus $6.94.
- Nine-month earnings from operations rose to $2.3 billion from $1.2 billion, including a $1.3 billion pretax gain on the South Texas cement divestiture.
- Aggregates average selling price per ton was $21.52 in Q3 2024, up 7.7% (8.9% on an organic mix-adjusted basis), while Q3 aggregates shipments fell 3.9%.
- Cement and ready mixed concrete revenues decreased 30% to $296 million in Q3, primarily attributable to the divestiture.
- The Blue Water Industries LLC acquisition of 20 aggregates operations for $2.05 billion closed April 5, 2024, and a South Florida bolt-on closed October 25, 2024.
- Operating cash flow declined to $773 million from $973 million, driven largely by higher income tax payments tied to the divestiture; $123 million of income tax payments were deferred under IRS disaster relief.
- Total debt was $4,043 million at September 30, 2024, and the company was in compliance with its leverage ratio covenant.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Martin Marietta Materials kept $0.22.
- Revenue$1.64B100.0%
- Cost of revenue−$1.13B68.8%
- Gross profit$513.0M31.2%
- Operating costs−$107.0M6.5%
- Operating income$406.0M24.7%
- Interest, other & tax−$43.0M2.6%
- Net income$363.0M22.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed October 30, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.64B$1.99B | −17.7% |
| Cost of Revenue | $1.13B$1.32B | −14.3% |
| Gross Profit | $513.00M$676.00M | −24.1% |
| SG&A Expenses | $101.00M$108.00M | −6.5% |
| Operating Income | $406.00M$567.00M | −28.4% |
| Interest Expense | $38.00M$41.00M | −7.3% |
| Net Income | $363.00M$417.00M | −12.9% |
| EPS (Basic) | $5.93$6.74 | −12.0% |
| EPS (Diluted) | $5.91$6.72 | −12.1% |
| Shares Outstanding (Basic) | 61.10M61.80M | −1.1% |
| Shares Outstanding (Diluted) | 61.30M62.00M | −1.1% |
05—Questions
Frequently Asked Questions
What drove the decline in third-quarter 2024 revenues and earnings?
Revenues fell to $1,889 million from $1,994 million. The filing attributes aggregates shipment declines to historically wet weather in the East and Southwest divisions and softer warehouse and residential demand, and attributes cement and ready mixed concrete revenue declines primarily to the South Texas divestiture. Diluted EPS from continuing operations declined to $5.91 from $6.94.
How did the South Texas cement divestiture affect results?
The company sold its South Texas cement business and certain ready mixed concrete operations to CRH Americas Materials for $2.1 billion in cash in February 2024. The transaction produced a pretax gain of $1.3 billion, included in other operating income, net, for the nine months ended September 30, 2024, and it also increased income tax expense, raising the effective tax rate to 24.1% from 20.6%.
What is the company's liquidity position?
At September 30, 2024, the company had $52 million of cash and cash equivalents, $95 million outstanding under the Trade Receivable Facility, and no borrowings under its $800 million Revolving Facility. The company had $1.10 billion of unused borrowing capacity under those facilities, subject to its leverage covenant. The filing states that cash and financing resources are expected to be sufficient to meet operating needs, debt service, capital expenditures and dividends.
What shareholder returns did the company provide in the first nine months of 2024?
The company paid $141 million in dividends and repurchased 785,758 shares of common stock for $450 million at an average price of $572.70. At September 30, 2024, 11.9 million shares remained under the repurchase authorization.
What acquisitions did the company complete in 2024?
The company acquired Albert Frei & Sons, Inc. in Colorado on January 12, 2024, and 20 active aggregates operations from affiliates of Blue Water Industries LLC on April 5, 2024, for $2.05 billion in cash. The filing also notes an aggregates bolt-on acquisition in South Florida completed on October 25, 2024.
06—Continue