Martin Marietta's Q3 Earnings Fall Short of Expectations Due to Weather Conditions

RALEIGH, N.C. - Martin Marietta Materials, Inc. (NYSE:MLM) announced that its third-quarter earnings fell short of analyst expectations due to severe weather events negatively impacting shipments and operations. The construction materials supplier reported an adjusted earnings per share of $5.91, below the consensus estimate of $6.45. Revenue came in at $1.89 billion, missing analysts' projections of $1.96 billion and marking a 5% decrease compared to the same period last year.

Martin Marietta noted that heavy rainfall in July, along with tropical storms and hurricanes in the Southeast region, adversely affected third-quarter product shipments, geographic mix, and financial results.

Despite the weather-related challenges, the company achieved a record three-month aggregate gross profit of $8.16 per ton, an increase of 3% from the same period last year. Aggregate shipments declined by 3.9% to 53.7 million tons, while the average selling price rose by 7.7% to $21.52 per ton.

Ward Nye, Chairman and CEO of Martin Marietta, stated, "While these events are short-term and temporary, they negatively impacted our third-quarter product shipments, our geographic mix, and our financial results."

The company revised its full-year 2024 adjusted EBITDA guidance to a midpoint of $2.1 billion, which is below previous expectations. Martin Marietta is now projecting full-year revenue between $6.45 billion and $6.71 billion, which is a lower estimate compared to the $6.64 billion consensus.

Looking ahead, Nye commented that the company expects to benefit from "record levels of federal and state investments in highways, roads, and bridges," as well as growth in aggregate-intensive end markets related to re-localization and artificial intelligence infrastructure construction.