Martin Marietta Materials, Inc. · NYSE:MLM
Martin Marietta Materials — Q1 2023 Earnings Presentation
19 slides from Martin Marietta Materials's earnings presentation, May 4, 2023
Slide 1: Q1 2023 Supplemental Information
Q1 2023 SUPPLEMENTAL INFORMATION* May 4, 2023 * 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 in this presentation 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 d
Slide 3: Financial Highlights
Battin FINANCIAL HIGHLIGHTS Marietta
Slide 4: Q1 2023 Results
Q1 2023 RESULTS FINANCIAL HIGHLIGHTS AGGREGATES CEMENT Shipments (MM Tons) ASP Shipments (MM Tons) ASP $1,354M $324M 42.1 -1% +23% $19.83 -7% +32% $170.65 Total Revenues Adj. EBITDA* 41.7 +10.0% y-o-y +64.2% y-o-y 1.0 1.0 $16.17 $129.11 $117M 23.9% Returned to shareholders Adj. EBITDA Margin* throug
Slide 5: Commercial Excellence Supports Aggregates Gross Profit per Ton Momentum
COMMERCIAL EXCELLENCE SUPPORTS AGGREGATES GROSS PROFIT PER TON MOMENTUM AGGREGATES GROSS PROFIT PER TON AGGREGATES GROSS PROFIT PER TON GROWTH RATES +3X ~ $6.10 * DOUBLE-DIGIT GROWTH… $5.40 $4.55 3 Year 5 Year 10 Year $3.55 CAGR CAGR CAGR $2.02 10.3% 11.4% 11.7% …ACROSS SHORT, MEDIUM AND LONG-TERM F
Slide 6: Active Portfolio Management and Strong Balance Sheet Provides Foundation for Future Growth
ACTIVE PORTFOLIO MANAGEMENT AND STRONG BALANCE SHEET PROVIDES FOUNDATION FOR FUTURE GROWTH HIGHLIGHTS Net Leverage1 Debt at Par Value ✓ Completed multiple non-core asset divestitures in 2022 and Continues to Decline Reduced by ~$760MM 3.2x $5.1B year-to-date 2023 2 $4.3B ✓ Continued long-standing tr
Slide 7: Building Materials Business Revenues by Destination
BUILDING MATERIALS BUSINESS REVENUES BY DESTINATION PERCENT OF BUILDING MATERIALS REVENUES BY STATE Source: Company data for the last twelve months as of March 31, 2023 Q1 2023 Supplemental Information 7
Slide 8: End Use Outlook
Battin END USE OUTLOOK Marietta
Slide 9: Unprecedented Public Investment in Highways and Domestic Manufacturing
UNPRECEDENTED PUBLIC INVESTMENT IN HIGHWAYS AND DOMESTIC MANUFACTURING FEDERAL STATE AND LOCAL $72B $40B Additional funding available to Martin Marietta’s FY2023 Total Federal Highway Spending Top-10 States via Cornyn – Padilla Amendment $53B $23B CHIPS Act Funding for Semiconductor Transportation F
Slide 10: Accelerating Highway Contract Awards
ACCELERATING HIGHWAY CONTRACT AWARDS Highway, bridge and tunnel contract awards increased to a record $104B for LTM March 2023 driven by IIJA and COVID relief funds; a positive leading indicator of future infrastructure construction activity ($ in Billions) +16.2% $104 LTM March ‘19-22 CAGR: 5.2% $8
Slide 11: Nonresidential Activity Varies by Sector
NONRESIDENTIAL ACTIVITY VARIES BY SECTOR CATEGORIES OUTLOOK COMMENTARY Domestic • Recent acceleration of U.S.-based manufacturing of critical Manufacturing products (e.g., semiconductors, batteries and electric vehicles) • Accelerating to meet increased consumer demand; significant Energy industrial
Slide 12: Nonresidential Demand Expected to Remain Resilient Led by Heavy Industrial Projects of Scale
NONRESIDENTIAL DEMAND EXPECTED TO REMAIN RESILIENT LED BY HEAVY INDUSTRIAL PROJECTS OF SCALE COMMERCIAL STARTS (MM SQFT) INSTITUTIONAL STARTS (MM SQFT) MANUFACTURING STARTS (MM SQFT) 778 342 145 294 63 746 2020 2025 2020 2025 2020 2025 SELECT ANNOUNCED AND IN PROCESS PROJECT EXAMPLES ACROSS OUR FOOT
Slide 13: Residential Trends
RESIDENTIAL TRENDS SINGLE-FAMILY STARTS (SEASONALLY ADJUSTED) STATE UNEMPLOYMENT Starts in 000s (Mar 2023) 1,308 MLM Key States TX: 4.0% CO: 2.8% NC: 3.5% GA: 3.1% FL: 2.6% 863 861 MN: 2.8% CA: 4.4% NAHB HOUSING MARKET INDEX (SEASONALLY ADJUSTED) (HMI can range from 0 to 100) 688 90 86 83 85 83 84 8
Slide 14: Appendix
PRNere. APPENDIX
Slide 15: Adjusted EBITDA
ADJUSTED EBITDA $ IN MILLIONS Three Months Three Months Ended Mar 31, 2023 Ended Mar 31, 2022 Earnings from continuing operations before interest; income taxes; depreciation, depletion and Net earnings from continuing operations attributable to Martin $ 134.3 $ 24.5 Marietta amortization expense; th
Slide 16: 2023 Adjusted EBITDA Guidance at High End
2023 ADJUSTED EBITDA GUIDANCE AT HIGH END $ IN MILLIONS Year Ended Earnings from continuing operations before Dec 31, 2023 interest; income taxes; depreciation, depletion and Net earnings from continuing operations attributable to Martin amortization expense; and the earnings/loss from $ 990 Mariett
Slide 17: Net Leverage at March 31, 2023
NET LEVERAGE AT MARCH 31, 2023 $ IN MILLIONS 12-Month Period Apr 1, 2022 to Mar 31, 2023 Net earnings from continuing operations attributable to Martin Marietta $ 966.1 Consolidated net debt to consolidated Adjusted Add back (Deduct): EBITDA at March 31, 2023, for the trailing-12 months, Interest ex
Slide 18: Net Leverage at December 31, 2021
NET LEVERAGE AT DECEMBER 31, 2021 $ IN MILLIONS 12-Month Period Jan 1, 2021 to Dec 31, 2021 Net earnings from continuing operations attributable to Martin Marietta $ 702.0 Add back (Deduct): Interest expense, net of interest income 142.4 Consolidated net debt to consolidated Adjusted Income tax expe
Slide 19: For More Information, Please Visit www.martinmarietta.com
FOR MORE INFORMATION, PLEASE VISIT WWW.MARTINMARIETTA.COM
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