Martin Marietta reports Q1 cont-op EPS $16.87 with items, consensus $1.83

Q1 EPS from continuing operations includes $14.94 per diluted share for a nonrecurring gain on a divestiture partially offset by acquisition, divestiture and integration expenses and a noncash asset and portfolio rationalization charge. Reports Q1 revenue $1.25B, consensus $1.32B. CEO Ward Nye stated, “Q1 was highlighted by numerous significant events that, taken together, should be very beneficial to the Company this year and into the future. Namely, Martin Marietta completed over $4.5B of portfolio-enhancing transactions thus far in 2024, increased our aggregates gross profit per ton by over 14% for the quarter, and achieved record quarterly gross profit in our Magnesia Specialties business – all notwithstanding the year’s weather-challenged start in our most profitable markets. Collectively, these notable accomplishments give us confidence in our ability to increase our full-year 2024 Adjusted EBITDA guidance to $2.37B at the midpoint…Despite near-term interest rate uncertainty, single-family housing remains historically under built, particularly in key Martin Marietta markets with notable population growth. As such, we expect Martin Marietta will disproportionately benefit from new single-family home construction once interest rates moderate and affordability headwinds recede”. “Consistent with our SOAR 2025 priorities, we have continued to strengthen our portfolio by reducing cyclical downstream exposure, while expanding our aggregates footprint through the additions of the Albert Frei & Sons and Blue Water Industries operations. Combined, these pure-play aggregates transactions are expected to add approximately 17 million tons of annual shipments in key markets including Denver, Knoxville, Miami and Nashville, while enhancing our ability to generate consistently higher margins.”