Martin Marietta made several gains in the fourth quarter, elevating its revenues and gross profit from the prior-year period.
The company reports that its revenues and gross profits were both down across the entirety of 2024, though, with chair and CEO Ward Nye citing a few factors as impacting the business.
“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,” says Nye, whose company released its fourth-quarter and full-year 2024 results Wednesday. “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.”
Fourth-quarter aggregate shipments at Martin Marietta increased 2.7 percent to 47.9 million tons, reflecting acquisition contributions that were partially offset by softer residential, warehouse and manufacturing demand. Additionally, Martin Marietta says its average selling price increased 8.6 percent in the quarter to $21.95 per ton, or 7.6 percent on an organic mix-adjusted basis.
“The company delivered our safest year on record, achieved nearly double-digit growth in unit margins, expanded adjusted EBITDA (earnings before interest, tax, depreciation and amortization) margins and reshaped our portfolio,” Nye says. “This was accomplished through approximately $6 billion in aggregates-led acquisitions and non-core asset divestitures. These portfolio-optimizing 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.”
In the fourth quarter, Martin Marietta acquired aggregates-led, bolt-on assets in southwest Florida, Southern California and West Texas.
“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,” Nye says. “Consequently, we are confident in achieving the midpoint of our 2025 full-year adjusted EBITDA guidance of $2.25 billion, a 9 percent improvement compared to the prior year.”
