Martin Marietta Materials, Inc. · NYSE:MLM
Martin Marietta Materials — Q4 2023 Earnings Presentation
23 slides from Martin Marietta Materials's earnings presentation, Feb 14, 2024
Slide 1: Q4 and Full Year 2023 Supplemental Information
Q4 and Full Year 2023 SUPPLEMENTAL INFORMATION* February 14, 2024 * 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.
Slide 2: Statement Regarding Safe Harbor for Forward-Looking Statements
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
Slide 3: Financial Highlights
Dain FINANCIAL HIGHLIGHTS Marietta
Slide 4: Company Highlights
COMPANY HIGHLIGHTS FY 2023 FINANCIAL HIGHLIGHTS KEY INVESTMENT MERITS $6.8B $1.2B 85% Gross Profit from Upstream Materials #1 or #2 Position in +90% of Markets 75 Years of Aggregates Reserves2 Total Revenues Net Earnings from Continuing +10% y-o-y Operations Attributable to Martin Marietta Returned
Slide 5: Q4 2023 Results
Q4 2023 RESULTS FINANCIAL HIGHLIGHTS AGGREGATES CEMENT Shipments (MM Tons) ASP Shipments (MM Tons) ASP $1,608M +15% $20.22 0.9 -8% 0.9 +17% $179.14 Total Revenues -2% $17.58 $153.70 +9% 47.7 46.6 $288M Returned Net earnings from continuing operations attributable to Martin $46 Q4 2022 Q4 2023 Q4 202
Slide 6: Accelerating Unit Profitability Growth Despite Lower Shipments
ACCELERATING UNIT PROFITABILITY GROWTH DESPITE LOWER SHIPMENTS 4TH QUARTER – AGGREGATES GROSS PROFIT PER TON FULL YEAR - AGGREGATES GROSS PROFIT PER TON +40% $7.04 +46% $6.93 $5.04 $4.74 Q4 2022 Q4 2023 FY 2022 FY 2023 AGGREGATES RELATIVE PRICE INELASTICITY DRIVES SECULAR UNIT MARGIN GROWTH THROUGH
Slide 7: 2024 Guidance Summary
2024 GUIDANCE SUMMARY KEY DRIVERS CONSOLIDATED FY 2024 GUIDANCE ✓ Strength in infrastructure and heavy nonresidential construction markets offset by residential slowdown and expected moderation in light commercial activity $6.97B $2.24B Total Revenues Adjusted EBITDA1 ✓ Market support of January 1st
Slide 8: Strategic Plan Execution: Cement and Ready Mixed Concrete as Consideration for Pure Aggregates
STRATEGIC PLAN EXECUTION: CEMENT AND READY MIXED CONCRETE AS CONSIDERATION FOR PURE AGGREGATES ACTIVE PORTFOLIO MANAGEMENT… …ENHANCES DURABILITY THROUGH CYCLES Acquisitions Divestitures Closed 1/12/24 S. TX Cement and RMC Divestiture Closed 2/9/24 Expected Closing Later this Year1 1 S. TX Cement and
Slide 9: Active Portfolio Management
ACTIVE PORTFOLIO MANAGEMENT
Slide 10: Blue Water Industries Southeast Acquisition Overview
BLUE WATER INDUSTRIES SOUTHEAST ACQUISITION OVERVIEW BUSINESS OVERVIEW TRANSACTION OVERVIEW ~800MM 60+ • Acquisition of the Alabama, South Carolina, South Florida, Tons of Proven Aggregate Reserves Years of Proven Reserves Tennessee, and Virginia aggregates operations from affiliates of ~13MM 20 Blu
Slide 11: Establishes New Platforms in Attractive Regions With Clear Opportunities for Further Growth
ESTABLISHES NEW PLATFORMS IN ATTRACTIVE REGIONS WITH CLEAR OPPORTUNITIES FOR FURTHER GROWTH PLATFORM ESTABLISHMENT… …WITH PATH TO FURTHER GROWTH ✓ In December 2023, TDOT announced its first ever 10-year project plan that includes $15 billion in state infrastructure investment ✓ Additional $6 billion
Slide 12: Wholly Aligned With SOAR 2025 Geographic Expansion Plans
WHOLLY ALIGNED WITH SOAR 2025 GEOGRAPHIC EXPANSION PLANS ✓ ✓ ✓ ✓ ✓ Current Footprint SOAR 2025 Target Market ✓ Q4 and Full Year 2023 Supplemental Information 12
Slide 13: End Use Outlook
Dain END USE OUTLOOK Marietta
Slide 14: Unprecedented Public Investment in Highways and Domestic Manufacturing
UNPRECEDENTED PUBLIC INVESTMENT IN HIGHWAYS AND DOMESTIC MANUFACTURING FEDERAL STATE AND LOCAL $72B $7B FY2023 Total Federal Highway Investment Transportation Funding Approved in 2023 by State and Local Ballot Initiatives $53B +10% $82 B CHIPS Act Funding for Semiconductor $74 B Research, Developmen
Slide 15: Significant Increase in Highway Contract Awards
SIGNIFICANT INCREASE IN HIGHWAY CONTRACT AWARDS… Highway, bridge and tunnel contract awards increased to $113B for LTM December 2023, driven by the Infrastructure Investment and Jobs Act and COVID relief funds; a positive leading indicator of future infrastructure construction activity ($ in Billion
Slide 16: And Manufacturing Construction Activity
…AND MANUFACTURING CONSTRUCTION ACTIVITY MANUFACTURING CONSTRUCTION INVESTMENT SELECT PROJECT EXAMPLES ACROSS OUR FOOTPRINT (Seasonally adjusted annual rate, $ in Billions) $214B Battery EV Plant Gigafactory Manufacturing Savannah, GA Kokomo, IN Greensboro, NC Austin NG Liquefaction and Semiconducto
Slide 17: Nonresidential Activity Varies by Sector
NONRESIDENTIAL ACTIVITY VARIES BY SECTOR CATEGORIES OUTLOOK COMMENTARY • Reshoring of U.S.-based manufacturing of critical products (e.g., Manufacturing semiconductors, batteries and electric vehicles) • Industrial construction strength along the Gulf Coast continuing to drive robust demand Energy •
Slide 18: Residential Trends
RESIDENTIAL TRENDS SEASONALLY ADJUSTED SINGLE-FAMILY STARTS (000s) 1,500 Key 100 Single-family Starts (000s) Recent trends in single-family housing 1,311 starts have been encouraging, despite NAHB Housing Market Index / HMI (ranges 0 to 100) 1,227 1,173 1,2311,217 1,211 ongoing affordability headwin
Slide 19: Appendix
PRMer, APPENDIX
Slide 20: Adjusted EBITDA
ADJUSTED EBITDA $ IN MILLIONS Three Months Three Months Year Ended Year Ended Ended Ended Dec 31, 2023 Dec 31, 2022 Earnings from continuing operations before Dec 31, 2023 Dec 31, 2022 interest; income taxes; depreciation, depletion and Net earnings from continuing operations attributable to Martin
Slide 21: 2024 Adjusted EBITDA Guidance at the Midpoint
2024 ADJUSTED EBITDA GUIDANCE AT THE MIDPOINT $ IN MILLIONS Year Ended Dec 31, 2024 (Midpoint Guidance) Net earnings from continuing operations attributable to Martin Marietta $1,295.0 Earnings from continuing operations before interest; income taxes; depreciation, depletion and Add back: amortizati
Slide 22: Net Leverage at December 31, 2023
NET LEVERAGE AT DECEMBER 31, 2023 $ IN MILLIONS 12-Month Period Jan 1, 2023 to Dec 31, 2023 Net earnings from continuing operations attributable to Martin Marietta $1,199.8 Add back: Interest expense, net of interest income 118.6 Consolidated net debt to consolidated Adjusted EBITDA Income tax expen
Slide 23: For More Information, Please Visit www.martinmarietta.com
FOR MORE INFORMATION, PLEASE VISIT WWW.MARTINMARIETTA.COM
Martin Marietta Materials — Q4 2023 Earnings Presentation on 6ix