Martin Marietta notches first-quarter records in revenue, EBITDA

Nye

Martin Marietta reached new first-quarter heights in revenue and earnings before interest, tax, depreciation and amortization, setting records in both during the first three months of 2019.

Improved shipments, pricing and cost management drove Martin Marietta’s first-quarter performance, according to Ward Nye, the company’s chairman, president and CEO.

“We are off to a promising start to what we expect to be another record year for Martin Marietta,” Nye says. “Notably, the building materials business benefited from robust pent-up demand, as well as modestly improved weather across portions of our geographic footprint, which allowed for an early beginning to the construction season. These encouraging trends, combined with favorable pricing momentum and growing contractor backlogs, reaffirm our confidence in our full-year outlook.”

According to Nye, construction activity in Martin Marietta’s key regions, supported by strengthening public- and private-sector spending, is outpacing the nation as a whole. Infrastructure construction has begun in earnest on several transportation projects in North Carolina, Georgia and Florida following the recent acceleration in public lettings and contract awards in these key states, according to Nye.

“Additionally, notable employment gains and population growth continue to support private-sector strength in our leading markets,” Nye says. “These favorable dynamics bode well for a busy construction season throughout the remainder of the year.”

Martin Marietta’s aggregate business

Martin Marietta’s first-quarter heritage aggregate volume and pricing improved 12.5 percent and 4.0 percent, respectively.

Shipments for the Mid-America Group heritage operations increased 18.4 percent, primarily driven by infrastructure, commercial and residential projects in the Carolinas. Heritage pricing improved 3.1 percent despite unfavorable product mix from increased shipments of lower-priced base stone in 2019, the company says.

Additionally, shipments for the Southeast Group heritage operations increased 16.7 percent, reflecting the overall strength of the north Georgia and Florida markets. Heritage pricing improved 6.2 percent.

In the West Group, shipments increased 6.3 percent as strong nonresidential construction activity in Texas more than offset weather-impacted Colorado shipments. Product and geographic mix limited West Group pricing growth to 2.7 percent.