Martin Marietta's Q4 Earnings Beat, Revenues Miss, Stock Down

Core Viewpoint - Martin Marietta Materials, Inc. reported mixed results for Q4 2024, with earnings exceeding estimates while revenues fell short, although both metrics showed year-over-year growth [1][5]. Financial Performance - Adjusted EPS for Q4 was $4.79, beating the Zacks Consensus Estimate of$4.60 by 4.1% and increasing 3% from $4.63 in the previous year [5]. - Total revenues reached$1.63 billion, missing the consensus mark of $1.65 billion by 1.3$1.61 billion year-over-year [5]. - Adjusted EBITDA was $545 million, reflecting an 8.3$1.56 billion, a 1.5% year-over-year growth, with a gross margin remaining flat at 30% [7]. - Aggregates revenues grew 11.3% to $1.14 billion, with shipments increasing 2.7$21.95 [8]. - Cement and ready-mixed concrete revenues fell 23.9% to $261 million, attributed to the divestiture of the South Texas cement plant [9]. - Magnesia Specialties achieved record revenues of$77 million, slightly up from $76 million year-over-year, despite a decline in gross margin [10]. Strategic Initiatives - The company achieved record profits and safety performance in Q4, driven by$6 billion in strategic acquisitions and divestitures, focusing on aggregates and improving margins [3]. - The company maintains a strong balance sheet, with $670 million in cash and$1.2 billion of unused borrowing capacity as of December 31, 2024 [13]. Future Outlook - Martin Marietta anticipates total revenues for 2025 to be between $6.830 billion and$7.230 billion, with adjusted EBITDA projected between $2.150 billion and$2.350 billion [15]. - Aggregate shipments are expected to decline by 2.5-5.5%, while total aggregate pricing per ton is anticipated to rise by 5.5-7.5% [15].