Martin Marietta Materials, Inc. · NYSE:MLM
Martin Marietta Materials — Q3 2023 Earnings Presentation
19 slides from Martin Marietta Materials's earnings presentation, Nov 1, 2023
Slide 1: Q3 2023 Supplemental Information
Q3 2023 SUPPLEMENTAL INFORMATION* November 1, 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 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: Q3 2023 Results
Q3 2023 RESULTS FINANCIAL HIGHLIGHTS AGGREGATES CEMENT Shipments (MM Tons) ASP Shipments (MM Tons) ASP $1,994M $430M 60.2 -7% +20% $19.98 +0% +19% $177.48 Total Revenues Net Earnings from Continuing 55.9 1.1 1.1 +10% y-o-y Operations Attributable to $16.65 $149.24 Martin Marietta +48% y-o-y $705M 42
Slide 5: Accelerating Unit Profitability Growth Despite Lower Shipments
ACCELERATING UNIT PROFITABILITY GROWTH DESPITE LOWER SHIPMENTS 3RD QUARTER – AGGREGATES GROSS PROFIT PER TON FULL YEAR - AGGREGATES GROSS PROFIT PER TON +42% $7.89 +47% $6.96 1 $5.54 $4.74 Q3 2022 Q3 2023 FY 2022 FY 2023 Revised Guidance AGGREGATES RELATIVE PRICE INELASTICITY DRIVES SECULAR UNIT MAR
Slide 6: 2023 Guidance Revision Summary
2023 GUIDANCE REVISION SUMMARY 2022 Actual Midpoint Guidance Midpoint Guidance as of Jul 2023 as of Nov 2023 $6,793 $6,795 Total Revenues ($ in MMs) $6,161 (+10%) (+10%) Net Earnings from Continuing $1,095 $1,145 Operations Attributable to Martin $856 (+28%) (+34%) Marietta ($ in MMs) $2,050 $2,100
Slide 7: Portfolio Shaping and Strong Balance Sheet Provide Foundation for Future Growth
PORTFOLIO SHAPING AND STRONG BALANCE SHEET PROVIDE FOUNDATION FOR FUTURE GROWTH HIGHLIGHTS ✓ Closed previously announced sale of Tehachapi, Net Leverage Ratio1 as of Debt Profile California cement plant on October 31st, largely Sept. 30, 2023 concluding planned asset sales from the 2021 Lehigh 3.5%
Slide 8: End Use Outlook
Dain 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 Investment Top-10 States via Cornyn – Padilla Amendment $53B $23B CHIPS Act Funding for Semiconductor Transportation
Slide 10: Significant Increase in Highway Contract Awards
SIGNIFICANT INCREASE IN HIGHWAY CONTRACT AWARDS… Highway, bridge and tunnel contract awards increased to a record $114B for LTM September 2023, driven by the Infrastructure Investment and Jobs Act and COVID relief funds; a positive leading indicator of future infrastructure construction activity ($
Slide 11: ...and Manufacturing Construction Activity
…AND MANUFACTURING CONSTRUCTION ACTIVITY MANUFACTURING CONSTRUCTION INVESTMENT SELECT PROJECT EXAMPLES ACROSS OUR FOOTPRINT (Seasonally adjusted annual rate, $ in Billions) $198B Battery EV Plant and Gigafactory Manufacturing Battery Facility Kokomo, IN Greensboro, NC Savannah, GA Austin Semiconduct
Slide 12: 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) • Accelerating to meet increased consumer demand; significant industrial construction strength alo
Slide 13: Residential Trends
RESIDENTIAL TRENDS SEASONALLY ADJUSTED SINGLE-FAMILY STARTS (000s) 1,500 Key 100 Single-family Starts (000s) Accelerating mortgage rates 1,311 NAHB Housing Market Index / HMI expected to drive residential 1,227 1,2311,217 (ranges 0 to 100) 1,1801,173 1,173 1,211 1,179 1,176 demand headwinds 1,200 1,
Slide 14: Appendix
PRMer, APPENDIX
Slide 15: Adjusted EBITDA
ADJUSTED EBITDA $ IN MILLIONS Three Months Three Months Ended Sept 30, 2023 Ended Sept 30, 2022 Earnings from continuing operations before interest; income taxes; depreciation, depletion and Net earnings from continuing operations attributable to Martin $ 430.3 $ 291.2 amortization expense; the earn
Slide 16: July 2023 Adjusted EBITDA Guidance
JULY 2023 ADJUSTED EBITDA GUIDANCE $ IN MILLIONS Year Ended Year Ended Dec 31, 2023 Year Ended Year Ended Dec 31, 2023 (Midpoint Dec 31, 2023 Dec 31, 2022 (Low Guidance) Guidance) (High Guidance) (Actual) Earnings from continuing operations before Net earnings from continuing operations $1,040.0 $1,
Slide 17: November 2023 Adjusted EBITDA Guidance
NOVEMBER 2023 ADJUSTED EBITDA GUIDANCE $ IN MILLIONS Year Ended Year Ended Dec 31, 2023 Year Ended Year Ended Dec 31, 2023 (Midpoint Dec 31, 2023 Dec 31, 2022 (Low Guidance) Guidance) (High Guidance) (Actual) Earnings from continuing operations before Net earnings from continuing operations $1,095.0
Slide 18: Net Leverage at September 30, 2023
NET LEVERAGE AT SEPTEMBER 30, 2023 $ IN MILLIONS 12-Month Period Oct 1, 2022 to Sept 30, 2023 Net earnings from continuing operations attributable to Martin Marietta $ 1,099.6 Add back: Consolidated net debt to consolidated Adjusted EBITDA Interest expense, net of interest income 126.9 at September
Slide 19: For More Information, Please Visit www.martinmarietta.com
FOR MORE INFORMATION, PLEASE VISIT WWW.MARTINMARIETTA.COM
Martin Marietta Materials — Q3 2023 Earnings Presentation on 6ix