Nye: 2023 was ‘best year’ in Martin Marietta history

By Kevin Yanik| February 14, 2024

Ward Nye, chairman and CEO of Martin Marietta, characterized 2023 “as the best year in our company’s history” as he reflected on the company’s fourth-quarter and full-year performance last year.

Nye described Martin Marietta’s fourth quarter as “strong,” with total revenues (up 8.9 percent) and gross profit (up 36.5 percent) both up over the prior year’s fourth quarter.

For the full year, Martin Marietta achieved records in in revenues and profitability. The company’s total revenues were up 10 percent last year to $6.16 billion while gross profit was up 42.1 percent to $2.02 billion.

“2023 was extraordinary in nearly every respect for Martin Marietta,” Nye says. “We achieved the safest and most profitable year ever while enhancing the durability of our business through enterprise excellence together with undertaking non-core asset divestitures.

“The team’s disciplined execution of our proven value-over-volume commercial strategy drove an organic improvement of 33 percent and 46.4 percent in full-year adjusted EBITDA and aggregates unit profitability, respectively,” Nye adds. “These accomplishments, notwithstanding a macroeconomic backdrop that was highlighted by restrictive monetary policy, a housing slowdown and rising geopolitical tensions, demonstrate the resiliency of our aggregates-led business model and position us well for continued success in 2024 and beyond.”

Additional details

Nye

Fourth-quarter aggregate shipments did decrease 2.1 percent at Martin Marietta, which attributes the drop to moderating demand from the residential slowdown and a softening in warehouse and data center construction. Aggregate pricing, at least, increased 15 percent in the fourth quarter.

Additionally, Martin Marietta’s fourth-quarter aggregate gross profit increased 36.8 percent to $328.6 million. Gross margin increased 650 basis points to 32.2 percent. Both were fourth-quarter records, according to the company.

“Looking at the year ahead, we expect aggregates demand for infrastructure, large-scale energy and domestic manufacturing projects will be strong, largely offsetting weaker residential demand and anticipated softening in light nonresidential activity,” Nye says. “That said, as mortgage rates stabilize and affordability headwinds recede, we fully expect single-family residential construction to recover, as demand still far exceeds supply, particularly in our key markets.”

Martin Marietta also continues to be active on the merger and acquisition front. The company most recently came to terms on a $2.05 billion transaction with Blue Water Industries that involves 20 aggregate operations across five states. In January, Martin Marietta acquired Albert Frei & Sons, whose quarries have supplied Colorado markets with construction materials for about 60 years.

Martin Marietta expects both businesses to add about 1 billion tons of reserves in metro areas such as Denver, Miami, Nashville and Knoxville, Tennessee.

“The advantaged nationwide presence of our business, built over decades, and further complemented with our recently announced acquisitions, uniquely positions us to capitalize on favorable population migration trends in the near-, medium- and long-term,” Nye says. “Together with this foundation and our unyielding commitment to execute our proven strategic plan, we fully expect to continue driving sustainable growth and shareholder returns through dynamic macroeconomic cycles.”