Workflow
Martin Marietta Materials(MLM) - 2025 Q1 - Quarterly Report

Financial Performance - Revenues for Q1 2025 increased to 1,353million,up8.21,353 million, up 8.2% from 1,251 million in Q1 2024[11] - Gross profit rose to 335million,representinga23.2335 million, representing a 23.2% increase compared to 272 million in the same period last year[11] - Consolidated net earnings decreased to 116million,down88.9116 million, down 88.9% from 1,046 million in Q1 2024[11] - Basic earnings per share attributable to common shareholders decreased to 1.91,downfrom1.91, down from 16.92 in Q1 2024[11] - Consolidated comprehensive earnings for the same period were 117million,downfrom117 million, down from 1,045 million in 2024, reflecting a significant decline[24] - Earnings from operations for Q1 2025 were 194million,asignificantdecreasefrom194 million, a significant decrease from 1.4 billion in Q1 2024, which included a 1.3billionpretaxgainfromthedivestitureoftheSouthTexascementbusiness[98]NetearningsattributabletoMartinMariettawere1.3 billion pretax gain from the divestiture of the South Texas cement business[98] - Net earnings attributable to Martin Marietta were 116 million, or 1.90perdilutedshare,inQ12025,comparedto1.90 per diluted share, in Q1 2025, compared to 1.0 billion, or 16.87perdilutedshare,inQ12024[100]AssetsandLiabilitiesTotalcurrentassetsdecreasedto16.87 per diluted share, in Q1 2024[100] Assets and Liabilities - Total current assets decreased to 2,103 million, down 17.3% from 2,542millionattheendof2024[9]Cashandcashequivalentssignificantlydroppedto2,542 million at the end of 2024[9] - Cash and cash equivalents significantly dropped to 101 million, down 85% from 670millionattheendof2024[9]Totalliabilitiesdecreasedto670 million at the end of 2024[9] - Total liabilities decreased to 8,640 million, down 0.8% from 8,714millionattheendof2024[9]Totalassetsdecreasedto8,714 million at the end of 2024[9] - Total assets decreased to 17,724 million, down 2.5% from 18,170millionattheendof2024[9]ThecompanystotaldebtasofMarch31,2025,is18,170 million at the end of 2024[9] - The company's total debt as of March 31, 2025, is 5,414 million, with long-term debt at 5,289million[44]GoodwillbalanceasofMarch31,2025,is5,289 million[44] - Goodwill balance as of March 31, 2025, is 3,773 million, with adjustments to purchase price allocations resulting in a slight decrease[42] Cash Flow and Operating Activities - Net cash provided by operating activities increased to 218million,up26.7218 million, up 26.7% from 172 million in Q1 2024[13] - Cash provided by operating activities for Q1 2025 was 218million,upfrom218 million, up from 172 million in Q1 2024[101] - The company has an 800millionrevolvingcreditfacilitywithnoborrowingsoutstandingasofMarch31,2025[45]Thecompanyhasa800 million revolving credit facility with no borrowings outstanding as of March 31, 2025[45] - The company has a 400 million trade receivable securitization facility with no borrowings outstanding as of March 31, 2025[47] Acquisitions and Divestitures - The Company completed the acquisition of 20 active aggregates operations from Blue Water Industries LLC for 2.05billionincashonApril5,2024,enhancingitspresenceinthesoutheastregion[33]ThecompanycompletedthedivestitureofitsSouthTexascementbusinessfor2.05 billion in cash on April 5, 2024, enhancing its presence in the southeast region[33] - The company completed the divestiture of its South Texas cement business for 2.1 billion, resulting in a pretax gain of 1.3 billion, which is included in other operating income[40] - The preliminary estimated fair values of assets acquired from Albert Frei & Sons, Inc. total 2,120 million, with net identifiable assets acquired amounting to 1,788millionandgoodwillof1,788 million and goodwill of 262 million[35] - The company recorded preliminary fair values for the acquisition of Youngquist Brothers Rock, LLC, with ongoing purchase accounting adjustments expected[38] Market Performance and Segments - Segment revenues for the East Group were 599millionandfortheWestGroupwere599 million and for the West Group were 667 million, with the Magnesia Specialties segment contributing 87million[65]TheBuildingMaterialsbusinessgenerated87 million[65] - The Building Materials business generated 1.266 billion in revenues, with aggregates contributing 1.002billion,cementandreadymixedconcrete1.002 billion, cement and ready mixed concrete 233 million, and asphalt and paving services 80million[69]Theinfrastructuremarketaccountedfor3380 million[69] - The infrastructure market accounted for 33% of first-quarter aggregates shipments, with a 3% increase quarter-over-quarter[91] - The nonresidential market represented 36% of aggregates shipments, with a 6% increase despite weather-related project delays[92] - The residential market accounted for 24% of aggregates shipments, increasing by 10% due to contributions from acquired operations[93] Cost and Expenses - Consolidated SG&A for Q1 2025 was 9.6% of revenues, slightly up from 9.5% in the prior-year quarter[96] - A hypothetical 10% change in energy prices in 2025 compared to 2024 would change energy expenses by 32 million[124] - Energy costs represent significant production costs, and the company may struggle to pass on increases to customers[124] Tax and Compliance - The effective income tax rate for the three months ended March 31, 2025, is 21.3%, down from 26.0% in the same period of 2024, primarily due to the impact of the February 2024 divestiture[53] - The company deferred income tax payments of 102millionunderdisastertaxreliefprovisionsasofMarch31,2025[54]TheeffectiveincometaxratesforQ12025andQ12024were21.3102 million under disaster tax relief provisions as of March 31, 2025[54] - The effective income tax rates for Q1 2025 and Q1 2024 were 21.3% and 26.0%, respectively, with the higher rate in 2024 driven by the divestiture[99] Operational Insights - The Company’s aggregates, cement, and ready-mixed concrete product lines are reported collectively as the Building Materials business, which is crucial for infrastructure and construction projects[22] - The company has approximately 390 quarries, mines, and distribution yards, indicating a robust operational network[21] - The company was contingently liable for 37 million in letters of credit as of March 31, 2025[58] - Property additions for the total reportable segments were 136millionforthethreemonthsendedMarch31,2025,downfrom136 million for the three months ended March 31, 2025, down from 578 million in the same period of 2024[67] Shareholder Activities - The company repurchased common stock worth 450millionduringthequarter,comparedto450 million during the quarter, compared to 150 million in Q1 2024[13] - The company has a share repurchase program authorized for a maximum of 20 million shares, with 11,024,507 shares remaining to be purchased as of March 31, 2025[129]