MLM - Earnings call transcript Q4 2024 | Martin Marietta Materials, Inc.

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Operator

Welcome to Martin Marietta's Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions].

As a reminder, today's call is being recorded and will be available for replay on the company's website.

I will now turn the conference over to your host, Ms. Director Relations. Marietta's, Martin Rooker, of Investor Jacklyn Jacklyn, begin. you may

Jacklyn Rooker

my to morning, XXXX to Martin Good Earnings you Year Marietta's pleasure Full welcome and and Fourth Call. Quarter

and Chair me Financial Chief Chief Joining Ward Executive Nye, are Executive President today Officer. Officer; Jim and Nickolas, Vice and

legally could laws results Marietta may discussion that or undertake differ revise or and our public Like businesses, Martin securities are available financial subject resulting otherwise. to statements with to future Securities whether and uncertainties publicly website. earnings disclaimers required developments by United as to as performance. filings, from actual which the refer Today's today's connection defined events, is to materially. other legal risks obligation, forward-looking no the update States any include results forward-looking in cause own and future and operating both Please other future on Exchange We contained or new Commission's except information, in statements, release

We during this summarizes on website, and of and have made section trends. supplemental that results financial our available the our information Investors webcast

As operations. a discussed operating and for are reminder, financial today all continuing results

measures reconciled most comparable to are also to measure website. defined addition, our directly our appendix are as the in the the the well information SEC and In GAAP supplemental as non-GAAP with and filings available on

participation question-and-answer earnings question. follow. today's financial and closing of limit allocation, discussion our session A a will which capital our operating with then I X Q&A trends. market Please will supporting outlook after call Jim performance, and will provide your year and XXXX begin Nickolas comments. to Ward results Ward review full will

to turn the call I Ward. will now over

C. Nye

joining you Jacklyn. morning, Good teleconference. Thank thank all you, for and today's

meet coast-to-coast store growth the disciplined the a demonstrating transformed has potential significantly Martin majority our or ability and services, areas through company those plan without and our the the strategic exhibiting to of macroeconomic of highest of By matter to showing value Over assets to customers' needs adhering review going no Marietta on volume products execution approach higher model, backdrop. assets, by of by with business and providing footprint, manage our to resiliency discounting analysis our proven the return own circumstances. our and uncontrollable operating the our years, by generating a value over our

near, As a long-term success. for result, positioned business medium our superbly is and

and performance managed including was to XXXX no themes enhancing and policy completed persistent delivered factors, as exception $X of transactions. nearly many weather, once financial related enabled exogenous modest and private record inclement record team's tighter-than-expected flow successfully construction of we namely record team our those again commercial fourth portfolio monetary billion aggregates excellence, successfully management quarter optimization Operationally, steadfast operations. what from commitment expansion managing control, could the cash delivery cost slowdown. profits, margin The to and they portfolio

Before full notable a fourth highlight outlook, XXXX's discussing our year quarter. few I'll takeaways results XXXX and from

million reflecting margin adjusted With fourth $XXX of better the and an evidenced of consolidated growth an margin cooperating record improvement resumed, in of increase gross by points. our $XXX and basis adjusted EBITDA consolidated million, profit quarter, earnings XX%, quarter of EBITDA fourth expansion XXX consolidated weather of X%

aggregates profit improvement of aggregates fourth the points. of of record Pricing of impact of gains per increase margin quarter an inventory gross XX% and XXX offset efforts an more basis management than gross $X.XX, from ton XX%,

source are we bolt-on completed Southwest In financial successfully all of X in identified acquisitions our which Southern results, attractive California, to West geographies. impressive Texas, in Florida, addition aggregates

increased records headwinds, we revenues specifically. $XXX and million. increased over billion, to gross billion $X.X ton X% both million XX% $X.X established Magnesia Aggregates results gross difficult and increased year gross respectively. $XXX Magnesia to Magnesia full and Despite were notable to Specialties profit the revenues a aggregates to year's Specialties given per economy. X% Aggregates macro profit profit extreme and Our weather and $X.XX. Specialties new X% these increased

Martin our incident consecutive incident I'm results. of Marietta's and achieved to time full rates excellence we best total Notably, acquired injury of year world-class report businesses. consecutive company's marks safety our have inclusive instant world-class rate. safety this financial our our culture pleased long a in enterprise history, year underpinned year and our newly eighth lost rate of a fourth

ever billion X a enhanced These strong more footprint. gross durable aggregates contribution actions proactive operations year aggregates-led our proceeds our profile, product concrete attractive aggregate noncore and created of balance surpassed XXXX from pure sheet the of and as cement acquisitions increased adding the of $X nearly and into and our portfolio tons divestitures. active our all aggregate line nonstrategic billion business, asset most core We reserves while billion and XXXX growth. over with pruned redeployed in $X markets cyclical continued ready-mix profit a M&A to acquisitive nearly selectively maintaining assets margin for

Looking growth and for quarter XXXX ahead, solid beyond. reshape with fourth profitable in provide foundation the we portfolio, together a will expect our results

X% slowdown Specifically, patterns which assumes of than is strong midpoint acquisition normalized and full year and offset that construction, all at aggregate our contributions the XXXX rate. in infrastructure full interest data will XXXX center private a weather year shipment growth guidance of primarily demand, the more

of lower XXXX the guidance double-digit midpoint, industry X%. EBITDA long-term pricing to midpoint, the adjusted contributions inflation, from drivers, our year the our with year. prior of average $X.XX XXXX notably moderating cost than combined than of years underpin Magnesia cement Specialties full XXXX remains X.X% growth year of while billion contributions the downstream at revenue our guidance full a These businesses, compared growth X% improvement and acquisitions X% X at the last and higher with full of Our from year

strategic a with Three end aggregates start market, highway remain infrastructure now to Jobs the IIJA, XX% Infrastructure Investment priority. be Road into of bridge robust American funds national maintaining state indicating or invested, most Marietta to Association Builders $XXX.X government to and heavy show according markets infrastructure, contract transportation to recent countercyclical increase. in and Importantly, and the tailwinds and highway outlook reaching and and shows largest intensive X-year compared X% Texas, bipartisan end and Moving and both based Nearly to nation's multiyear in billion and awards, are ARTBA, our often markets. and $XXX.X ARTPA's We'll construction Carolina, XXXX, pavement XXXX years Carolina XXXX Martin building Transportation our an North on remains among Act or expected continue Notably, billion expected construction to growth. Florida, Key grow market South with states the street is public

United Company. Alvin, States. Marietta Moreover, acquisition to up U.S. The Artificial its significantly in the center supplying drive Stargate, with to Gravel as for billion new and workloads that demand construction. AI can underway through with RJs $XX and Microsoft nonresidential to in invest to data billion. permitting or Texas, announcements data XXXX spend over the that December intelligence, half of to the new handle administration of data $XXX digital aims centers evidenced now recent already announced a construction administration is from in center that of continues the [ AI, build-out in ] the fiscal which simplify boost the expects Washington. Microsoft Martin massive Moving in by is construction from recently and unprecedented infrastructure, energy on investment of

North the Martin starts in for warehouse November the Amazon ended were projects since for And large warehouse the December Fort Florida, construction dodge inflected footage first supply Moreover, months was recently positively networks Myers, for X Texas respectively. awarded XX time XXXX, XXXX. Marietta material and

key to is Martin impacting alone, in key remain Shifting single-family the and recently single-family construction market the underserved term to approximately U.S. X realtor.com That availability issues MSAs million pent-up issue markets opportunities higher to to in longer attractive said, housing capitalize residential Relative Marietta's with homes. environment. on estimated provide is for Affordability rebounds. rate underbuilt leading residential expected that demand, interest inevitably Sunbelt structurally by the given neither availability demand. when activity. the near resolve positions

the to single-family federal artificial recovery In healthy provide summary, provide for reshoring, infrastructure and come. shipment the housing should multiyear build-out, a pricing environment long-awaited investments, state years stability record intelligence and

I'll Jim Jim? call over now our and discuss results financial year to liquidity. full to turn the

James Nickolas

year-over-year and decrease. lines The X% Ward, acquisition year partially The is in decrease our XXXX which shipment everyone. are of Materials of XXXX both Texas comparing X% contributions. concrete Building billion, generated results declines product with in billion, $X.X businesses, morning, full $X.X due business you, a a the by related of divestiture to decline revenues February all good and offset Thank metrics, and Cement gross along profit South

offset XXXX. and lower Contributions achieved record revenues, Our profit, all-time things profitability more strong than aggregates operations line unit acquired and in from gross product shipments. margin gross

year this [ Importantly, margins a year points. X% XXX Aggregates record the ton. of ] gross X have the In years, a $X.XX of improved in basis expansion. last to X per second ton was And widening. full XXXX, the price/cost margin experiencing per expanded consecutive profit Over year those fourth

cement concrete to decreased driven XX% plant divestiture related million, Concrete Texas its operations. ] profit and again, of XX% to revenues and South decreased gross Cement million $X [ $XXX our primarily and the by

While incidents, Cement to held due compression QX outpacing input aggregates up growth. from ready-mix margins pricing costs, margin nicely, business including experienced year-end the higher through

than shipments. records costs. and lower profit market decreased pricing million higher benefits and $XXX profit X% more million, Asphalt lime aggregate million X% costs, offset gross revenues respectively, of to due offset from due asphalt demand. and to for $XXX established liquid Specialties partially $XXX paving chemical by million lower and as Magnesia $XXX revenues revenues all-time to decreased lower strong slower Gross input to and

increase liquidity. revenue Debbie quarter, from Turning prior $XXX operations relief due providing We and by to tax and internal businesses Hurricanes flows now of the Helene. for to improvements tax of the driven capital in the of cash fourth affected XX% and year working record compared deferred million, disaster line achieved by quarter income an payments allocation service with

and Our to on capital our returning focused value-enhancing shareholders. allocation in prioritizing remeasured capital business acquisitions, remain priorities

to through M&A activity, net share range our with we with we targeted year a X $XXX to ended returned XXXX, million Even well In ratio payments within and shareholders of debt-to-EBITDA dividend significant the X.Xx. X.Xx, repurchases. of

on and pursue value-enhancing investment Our flexibility ample M&A execute pipeline active to opportunities. strong balance our sheet offers

tariffs actually and tariffs. uncertain. of remains Finally, my prepared views levied highly depth, I will remarks breadth with close on duration some The

majority our our chain and There supply of from profitability the the during XXXX As it. The and vast chain result, may tariffs. shock served should supply might tariffs well guidance by that forward. which The the serve locations. are U.S. us sourced well lower going is was no others, COVID impact company era where assumes some a situations enhance of company's from

the With that, Ward. I'll turn call over to back

C. Nye

industry-leading through safety team's and aggregates-led conclude, Thanks Thank results increasingly have positioned To Martin and to priorities, vision resilient, we're to highly commitment you, quarter Jim. Marietta's grow our various productive performance. strategic unit environments. an our profitability strong demand of fourth to market coast-to-coast built end proud financial we business deliberately collective

We proven confidence in strategic are business, in about managing fundamental ability our Marietta's and economic to of safety continue drivers growth plan, strength opportunities operational delivering with history strong and underlying through prospects financial, strong cycles, differentiated significant performance. of provide enthusiastic for and Martin beyond. long sheet successfully great our XXXX and The balance us

will addressing your our now we'll to instructions, operator the provide required attention If the turn questions.

Operator

Instructions]. session. now question-and-answer begin the [Operator will We

line first Stephens. with Your from question Trey the Grooms of comes

Trey Grooms

Thank you.

guidance and guide aggregates we takes us puts 'XX and the outlook? the word, walk year, for you As could including overall your volume price the at any through around the look of

C. Nye

upside Trey. policy the Look, year. be monetary may come this we're for I Look, and conservative. guidance adjust at fluctuations during for at taking frankly, question. and approach pretty hope I'd of that is, outset, relative year. policy the back the the we say other to the I'm And Look, the Thanks to it course there's the measured roofs happy can uncertainty later. whatever guide to, a

year obviously, way, in to contributions. the Relative and of that the a Trey, instance, volume by full looking at digits, we're acquisition first includes, low single

closed I about April. going last if to think look BWI So you [ what like ] that's

in transactions first we're through that Florida, those did we the will So in quarters California be Southern X that we'll quarter. clearly Texas, X. see the additive in and looking West at fully to If

you're So about thinking cadence on if the again, just that.

growth But should digits think now, we right mid- overall, high about expect end I single mean, if users I to infrastructure. we in think

practical nonres probably now we're come do IIJA should and stay 'XX there's as the think yet strong. the at matter, out single are And sector. we in and of are what a to And still I dollars least think has think digits 'XX. at that right if mean infrastructure to looking in roll XX% from builders our both that to I those, low about relative look, under I res.

be that should pretty So constructive.

seeing concern. growing centers. down the thing other AI a The and week there data is know that There come most relative nice, frankly, consistent others double I We've blip was DeepSeek. relative to to and, we're activity then. steady, other actually since was some back and seen

that in Frankly, the accustomed for we this very simply some residential for to homebuyers So we're think we that higher that given healthy notable longer affect be year. seeing should XXXX, we're we are affordability. monthly in planning instances, not just rate mortgage think that higher getting will to this That said, continue environment. recovery seeing because rates interest are

that out. see to how going plays we're So

[ it facility seeing mentioned facility The But prepared in is we're in that jobs. something ] seen majority that's green you that are mean, and that shoots type remarks, for have my I And think I warehousing. Fort the clearly, year. large here both Claver we not last Texas we of in have, would is I notable, Myers the that activity of the have

we've think has. we it bottom, So warehousing to find for waiting been

start important The marketplace East, QX year. company's washout in we challenge us as which in really to mean well. think is about is, was to is of mind which Southwest QX in our it, lapping marketplace. I was including you go throughout if particularly Dallas-Fort we're year, last that us a the other as real think notable thing Worth, for And and quarters the I pretty is a weather-impacted portions division, keep Carolinas, the the for a going largest

profit going be what driven will unit profitable and way pricing and shows So gross moderating rolls think think be guidance you if it's about to it the and I up, growth gross double-digit margin the nice mean we by inflation. expansion,

because price to April a cement of lot think for about which are saw the simply most to matter a going market, ready-mix roll we bit the as price of to particularly relative price, back is different that. a their looking players this be cadence Now you as increases little year producers cement X, practical who in meant

fact, had our is are price January of most world hot portions April effective become it So you in the what increases. in we've to. seen increases community, others accustomed that X X seeing most Their mix and of as ready-mix price

to been. different. still likely cadence very price increases So is Pricing, to be be attractive what will I'm has the for will bit little convinced be But relative solid, history outsized here. your is this a year

degree cetera. pop So start don't several last years, you'll see same in it we've expect X to X, that building in that the in and et seeing QX of seen

that it. So gives sense I hope of you a

the carryover One pricing, XX thing effect I'd year's if last coming the think last is estimated from we it's say about about into Trey. bps year,

a how relative sense I think of end you give margins. volume, going a of play So to I a pricing to I tried of give to to that's sense you markets. sense tried you try give to and

that So I helped. hope

Trey Grooms

way for extremely some just remember, in pricing That's few if of unusual it? movement years. I'm in back It to little timing with maybe that more me of kind and years, a historically, was for industry. not bit If just Yes. of of think But correct right for the that had January that's exception clarity, there kind a to seems going the the the helpful. Is I April normal like more last aggregates. wrong, that about that shifted kind recent

C. Nye

typically I I worked. time, industry to that this way been Trey. of and the you've That And is way have X. the a for has that's mean, right think long it, in

don't again, giving I angst. and see But of that to me if make looking sure yes, you that's colleagues ability and modeling, as anything you're your I causing with model was know it to wanted any are, at just So you the degrees precision. I that I

Operator

Research Kathryn Your Group. with next Thompson line comes of the Thompson from question

Kathryn Thompson

what two, I tarrifs X-part pull the on certainly in that just from to appreciated I commentary, do but today bit perspective to wanted way. a prepared be string administration? color follow tariff But your are on little announced on the where the could impact metals impacted One the your versus, up also, from wake your in Trump you in Martin supply say, you XXXX? And how better did chain tariffs what had yesterday. its of the Marietta diversify a prepared first --

C. Nye

period of things we of his really COVID supply Thanks largely chains remarks, go carefully for have prepared back And your years we in issues, chain I through we look years outliers to overseas. the were this. make last in that question. primarily can because, I during If actually And say having the pretty to before. mean, chain the And I'll period noted running into part Jim when had record first is time supply supply were we to not There we think a us production. where were came in sure from that mess, of well. some very we coming we our were and to that intervening time. take the served domestic most domestic. that point, moved as well

up we from if better that's think be now. perspective, served I a right we'll even tariff something see ramped

something steel part the the are question, supplying Magnesium to business. our second helpful Look, material pretty a domestic to steel specifics? could producers. watch. going what that be very some frankly, of Specialties of that to lot To we're is Steel your of And we're obviously, tariffs,

look, business, they a So in chemical that's steel And to low ramp spots. had Magnesium And United about we if on year. volume. they going year pretty help in with they just a the lot a and if markets record us Specialties record States, production steel up the see think had

that for on be very So helpful. us think I tariffs again, could selfishly

equally, a tariffs That extraordinarily that perform be position. well. think cement, Look, potentially we would helpful We're a But that By we're I water. again, business producer. long North to way cement if continues on think about Texas our from away the domestic way, to

more business we're to think I our particularly So think Number to adds with that Imports would effect. twofold rail. even upside. it one, relative I long-haul to a tariffs what network, it give actually value just or has relative doing stone

a about So We in it, To States. that United more coastal more States. That's perfectly rail, we're else in United Canada the than principally the by tons think operation shipping mind, areas, rail boat. be an keep about United have It's in States in stone into could going million the XX anybody into by transparent be year. we coming do that's helpful.

be headwinds could just But potentially it's company. would of going to we to But that full in be one So a issue that from the the disclosure, that's not think in to that. fair see again, I say. the again, material

indirect from shared for reshoring could mean, it it higher that we supply and at more your to more I impact If I that and question in relative or back tariffs, chain. observation degrees, think manufacturing lead could I impact think impacts goes and could longer, look more to we some on a that real certainly I maybe to residential back about And the could think see to as And Trey. have goes that it. with inflation negative estate drive domestic it And we demand.

measured think today. I guidance very approach a given have we

we And this, and we exactly hope adjust I the we ourselves would position it adjust can if put in Kathryn. back As that to I that's up. sure what do, come like

Operator

Sachs. Jerry the with next comes from line question Goldman of Your Revich

Jerry Revich

growth timing around cadence just normally moving obviously you spoke ton bit quarter you the if per consistent. color... cost Ward, per Do could expect Jim, I'm you board, talk cost first profit give gross you wondering of price expect on you pretty of increases about is price a the that Can similar as in credit the is just makes full about year. ton us

C. Nye

I were with give come it, what and back a if that you of I talk nicely and a come I you what's frankly, to respect to I good you think going because look notion mean at Jerry, If was some that they happening color and I like, I is things. was host COGS, had relative clearly, go forward. energy better tonne because can we ask should you down thought up we're very in at looking, cadence. it, want energy first flat about Jim down this per cost quarter when despite -- Yes, was really organic raised, and But being I'll and look expect is back diesel to management. example the the to of And and revenue cost good what back let's at was you organization.

was or what they're buckets, the But I moved by repairs the the otherwise, through go in services for was or it supplies whether is all whether quarter. I was different contract green whether cost it or it

shaping to So and I that's cost relative up relative bought to the fact is like we the make these increasingly profile. way efficient that to continue that ASP, businesses but we can the also

question your cadence. of part other the was relative Now to

And for turn let to it over that, Jim. me so

James Nickolas

Ward. going half, X the the really is that our inventory into in P&L up Thanks, cadence in the there's Jerry, that One Yes. show -- first already but is the more effects, second guide, much. dynamics. it's of through is reduction, will as half be built first not P&L will continue half, effects to temporary the

Aside be throughout from to are underlying consistent the that inflation pretty COGS going dynamic, quarter. the

the we're evenly dramatically QX, So question? not -- underlying But QX, that we'll the inflation anything inventory anticipating effects down, balanced. first abate see pretty temporary P&L from will the in the the QX, again, that, half QX thereafter. then Does that piece. on work should that and answer be changing

Jerry Revich

does. It

the sure Jim. make with page you, we're to just same So on

gross the range back thinking expectations? that And the first the up the then in on of half, sounds Is single per ton mid-teens digits, it you're low maybe the like in half? profit comps So destock maybe inventory of given point.

James Nickolas

maybe quarter-over-quarter. minus would of But say pretty consistently, Probably a points. say, growth, couple lower, what you bit hundred lower consistently a just than low little I'd teens low-teens described. basis kind I variation

C. Nye

me you think And mean about Jerry, efforts we that with or expansion overall my million let That one if in management mentioned cost going is $XX and that think impact. I pretty quarter that margin the And about was reduction footnote been point quarter, inventory the a because more million you to add P&L for through. that my Jim that we've about was the you think that quarter, had headwind and control. control that's to a pricing the if point. inventory, about given interesting $XX relative cost on

Operator

Your the next line Anthony Pettinari question of from comes with Citi.

Anthony Pettinari

acquisitions, you You you I'm tons it's volume referenced that wondering the possible on point 'XX the Or it. able recent benefit terms either finer or in put benefit? frame if to and however volume to a percentage be in expect of

C. Nye

Happy to, Anthony.

a organic, would what [ it's at driven. practical the if ] been looking balance acquisition and have then up at if matter, you're you're it, just looking probably it's percent As largely of

to way that's a about bad it. think I basis, percentage a not So probably think on

Operator

from question Ng of the Phil Our comes Jefferies. next line with

Philip Ng

certainly into lot centered some around front stepped these of guess, public IRA seems but on noise side, more charging be has I to since projects. EV of Trump funding it office, a the the stations and on

any of have and any projects side So to we 'XX. at choppiness my us when bidding and you kind noise through public think activity pause on Just new the for projects? seen any in of kind you, in help question slowdown Ward, look

C. Nye

square that. and that's if what is below say be continue slowdown between to we and think XX% we X%. at look XXXX's constructive, relative and going somewhere any XXXX think to in that's a of in just we we're going I to want I fact, contextualize from still I footage several still pretty But We've X% to not starts. peak predicting to nonres happen XXXX for question. reasons. And seen that, mean, probably One, recovery appreciate to level. the down

well we're how Texas mentioned North right Carolina. we're And now, relative projects Amazon And City, for simply investments projects those Amazon in underway about Google activity obviously, much important investment now. in slowdown in already in in in seeing market now If have opening has sectors both is Claver is I we're right Kansas Carolina. that which in Fort seeing as they But footprint we a got they've not to what look us my South if I've at that I our an looking ahead right comments, making, more specifically, we think the in them. both talked in and of Myers. as mentioned already the Microsoft, Stargate

is we the But million of construction be the that's think one by think said that going as broad going we to sector to the non-res think underbuilt at we healthy. to behind estate single-family be around realtor.com. commercial we think is part sector to moved come real to is today, and that X I'm according be homes least education we care what pretty health by going going about sector healthy. is industrial is pretty And

not to have driven of nice of the in that. our we to and going pickup in a is seeing be what's the end going actually by this to a We're leading positions front built And are be the much slowdown of which again, business we So we're much we that. that seeing happen steady in states in believe, development. going locations in so

Philip Ng

has that was RA of public guy piece, any great much seen or The haven't been the word, of around good a then the you I terms lot of But what don't paused a in and How you could... as guess any being have side, appreciation. stuff. that of funding of choppiness it just it commentary And more private. on

C. Nye

I is really year, going Yes. billion expected last the seeing really Texas they're is, for on it's to driven that's time. choppy in We're as is that going to are public They attractive. lettings I $XX.X in not actually today. $X.X $X.X if and about a period budget to of by now TxDOT has X% constructive to same be -- stay again billion. going to looking Carolina's fact we're anything side. Again, the think into the And is nearly North that taxes be sales actually to year, going of fact expected this seeing you to year. be that were be that this part We about NCDOT public think increase we're think robust. billion. way mean and range We recall, of Colorado budget of going

we is mean, levels. at [ up I their record if to VARTA is Equally, Georgia, budget ] go X%.

had. If you out they've onetime take supplements that

we're our top basis, if year-over-year of a on up. XX in our state XX So looking the X states at are same-on-same

side nonres when we're looking and big there. anticipate why that's choppiness the heavy at So don't we on infrastructure,

diets good, of pretty We healthy, work. expect steady

Operator

the Garik Your Shmois Capital. next of Loop question comes line from with

Garik Shmois

Just a follow-up for question new me. a one and

that I Just drawdown. on in much just you half then just still third could the first on outlook, the if you since a quantify how the have growth. looking volume I you remaining the provided of any broadly, was preliminary Has year. after for or perhaps the the worst, quarter? either for low the wondering components of follow-up And changed single-digit reckon you're the better outlook inventory back the for

C. Nye

So a things. couple of

to would say relative inventory the So drawdown. I

that by book about you And think bookends, $XX ending to think of that not you it, $XX part get QX. me, with the about know for repeat it's year. your probably million in headwind time bad again if about what, to think And think way half a in a to that's Garik. question, it. Garik, other we're you the going million a headwind about If QX, be we We done do

Garik Shmois

quarter. not was to all but you're speaking changed outlook has wondering growth, single-digit the at low volume Recognizing any still if I component, last since Yes. worse. better or any has

there. Yes, maybe for maybe better. color come out infrastructure the year any So so -- other

C. Nye

higher people is what for longer. say would like think I have felt So interest I is generally

there's still thought we more at would of a be one, has having really the months a idea. going overall, I of to like than sense I think to And hanging reauthorization going bit at little administration to that around same be be have going is we But end think several are Number and muted dollars XX% looking I probably public like So feel is ago for this pretty think doesn't of mean, you 'XX -- degrees a sorry, hoop it now to to I be assume healthy. good feel a the the like at those Garik. have private. public sound several we time, I'm reasons,

So in going see sense we're that's and aggressive on be 'XX pretty play that a public 'XX. going is probably to our to

I that something think honestly, a probably little feels like private robust. that And for something I So feels of bit more a probably think feels modestly portions wash. slower

Operator

Your Castillo from question Angel Stanley. of line with next the Morgan comes

Angel Castillo Malpica

but to to organic dead here, on the growth just a sorry side. be I'm horse clarify I wanted

low on maybe walk the You maybe X% in then digit by talked front. M&A the growth when side, it highlighted -- rest resi, your you Infra volume and But driven single high was single-digit markets, was through the about and for you end non-resi.

closer X% seems are end themselves all it markets maybe of if that So to growing kind to the above imply that that put together. you

growth So only is just maybe curious, is kind is should anything we there organic that of conservatism? to there X%? that Or that consider as why just

James Nickolas

a of acquisitions. kind be to the meant was inclusive That organic. of not year-over-year view, was that Yes,

Angel Castillo Malpica

X% the on Sorry, volume?

James Nickolas

of show slides No, mid-single et digit other for inclusive single low no. for categories. acquisitions. digits cetera, Those were the The infra, that

C. Nye

point, as really this I to to your I right look, in said in be we're And guide my now. think trying comments, measured

to you, or guiding we'd come like we back if not to down. So up sideways be

Angel Castillo Malpica

back of the pockets, away the turning an in helpful. little to midyears of industry do Should to first you some kind perhaps I aggregates? from your see to we X a Or it. and expect in mean bit Got moving to still you're That's take were pricing industry And just smooth cadence and then a through April that comments midyears half. Understood. as that wanted midyears? go maybe more to around

C. Nye

that to have concrete. next watch this And year X that more is will ready-mixed challenging, into of for given year, we'll did midyears. couple we've in that we to just saw believe new a does not roll likely but mostly specifically degrees year. to where what were does in see, again play is the it came they this because And see part made that guide we cement things. just of midyears the you assume year out that them were One, say again, next there keep will really would be year. think relative year we how January acquisitions, I last as as what mind, last of we

mix. So X going hot broadly the January for products again, price in increases into are

issue basically guide you more it anything do to that. to does in about and really But it's the will not mid-years. a cement of a we ready-mix talk some issue So be a midyears more be else. include than think back there We'll

Operator

with Tyler next Your of Brown the James. Raymond from question comes line

Patrick Brown

you environment if the the change were guys the to not Does what's the balance pipeline? allocation in debt there? health? appetite to priorities, paydown As sheet a bit it a capital the talk anything impact about that given can on M&A little just materialize, buyback, regulatory relates And versus

C. Nye

transactions billion think ended So debt-to-EBITDA at ratio. if last it, you X.Xx we number year, about of year $X the Tyler, worth one,

done the Number industry career. it rest their continue in lot of is we're rest place M&A. a a to to bet still for our for So And very number that going see my to their will in of successor, two, good my for work career, well. of see attractive one. growing as to my this relative my see a the it be career part And I'm will success successor of business,

be break, billion tons a things it identified have could I of before, be not. do $X always it a which to If an annum going few to XXX being. suppose I Look, firmly basis probably is regulatorily. opportunistic. per this businesses on could cleared in think No, get then that it because year? tends can we in be? point, geographies believe we we've As your over would interest And are indicated million to we in we that a

that year number. But it along. may you transactions. we're we we well if has and et being purposefully something well circumstance to we that that tend to think back and we my is year look in steady just regulatorily, might we're the thoughtfully. buy can year can. of because And a been see that's administrations, But think instances $X we sense opportunistically doing you And have be where above Tyler, are out good around is, a a comes to in, billion we going consistent relative looking different it to that in as understand points always on that we in cetera. believe One very can't a the very ones we Marietta at that we markets move that businesses thing position very doing that Martin there

me of let over relative Now that. he can about uses to so Jim, other turn bit to you cash, talk a little it to

James Nickolas

that's kind on buybacks bond reduction We small, to cash or relatively outstrip balance refinance, a have this Tyler. reduction, debt I but the any if question, at good of repaid see share It's sheet year. small. December all. any there's Yes, due in And anticipate we'll quite forward, whether is coming going do what it would

the a we again that year of year, pay last in We'll in debt are been year But market before on bought we've be the come bit shares. back So market every stock. would buying fair down. as this

Patrick Brown

Yes.

shape very in super mix? second Okay. a et And some EBITDA quick, cadence, remodel. second second it first like Just you helpful there's half half? -- skew then first just and FIFO M&A, pricing Will slightly cetera. sounds versus few it any dynamics half half half Can

James Nickolas

Yes.

perhaps traditionally it think year, so skew will though. as year last does second this I it than less half

Operator

Vertical comes of Your next Dudas with Michael from line question the Research.

Michael Dudas

Northeast, here in but great. little suffering chilly we're Yes, A through it.

just you Looking a Is this frustrating, thought the at like that affordability issues. things of flow heading through? be rates economy and think, you're I more bit multi And there's up in bit normalize, anticipating Or as pent-up benefit got we've in? in most of you say regions market, seen are will the if numbers, demand there that picks shift a it's but the certainly, that residential little could fall the that the you a little -- been I is just any that? on kind longer-term industry versus know or single that in on sensitivity might for the there the rate the what

C. Nye

it's would say question. Yes. I a great several Michael, things.

buying As focused we talk and talk customers and right we land. now, to on builders they're entitling to

I one, aggregate Xx it's to And single-family sign. think relative to more X really be number two, that's skew that's we So a to toward residential. Number that intensive good that because good to than selfishly, like really tends multifamily. a sign

been The is, builder a long getting other thing like better. clearly that and in places Colorado, while Carolina Georgia slog, is Texas, strikes North me confidence it's

very think we So a sign. good that's

it in are degrees, to thing up to I worth think and and I broadly the the think to that other believe permits adjusting the expected response buyers starts marketplace think earlier I across rates. are as said And higher they pick do noting, is today. well, I

underbuilt go have which to demand. and that not think the could that's But in to number And X see I we them in be. It's immediacy. place a timing be MSAs turn to so back significant notion homes of pretty I pretty with going disproportionate to we position, attractive in in a surge it's on of to your which of a a think going point, matter million are or when all states leading because actually a

that I So helps. hope

Operator

line of David the question with comes next from Your McGregor Longbow Research.

David S. MacGregor

I in apologize, I'm here. airport an

say orders some of hear not interruption wanted on elephant I in seeing I guess now, the you is So Ward, any infrastructure, would that risk you right projects. in guess, you when to how I room how for you're but the with funding federal the just projects. funds DOT government federal for you sales I of infrastructure -- deobligating us state And construction share characterize

C. Nye

perfectly you I reasons roads you to is the I and that David, threat. good one see $X.X overall I the things and it's IIJA, About look as don't big a bridges, right? highways, And here's at hard if think a $XXX about streets, question, that debate billion of refer and mean, would and enough was it trillion, as process did going when IIJA President Trump infrastructure. not core think construction. And we he to think its was going through in in former of in to favor Senate toward not real Then because he if the of House. the back what IIJA why. was

infrastructure to in this heavy streets, roads, think going airports orders bridges, at we both I big means with I Duffy Secretary and we have marching is what's highways, think, context, his and look if that So to United about believe [ on the and build that been ], big and big States. what in

And I think they think think not those nicely do I aggregates it's I areas anything nuanced, as think about going they being oftentimes will, to if be be not countercyclical. that I it's that, I'm will you with it and So nuanced. if and that intensive in sure

lens, obviously, a think we through if of think smaller much so have program So I to that's range, obligated, anyway. think that the we of those funds be. If I already our many -- place probably been right IIJA think about

low way view administration the as relatively bad So a here sitting I'm a be reauthorization. about and may happening things just measuring thinking there about the risk likelihood. I as thinking having

hope helps. David, that I So

Operator

from line comes Thompson Adam of next question with Davis. Your Thalhimer the

Adam Thalhimer

Congrats QX beat. on the

C. Nye

to your Good you, Adam. voice. Thank hear

Adam Thalhimer

QX confused have on you said X a have QX. things. aggregates some little clients pricing. I I sequentially bit in pop up think with pricing bigger And I a in

C. Nye

Yes.

Adam Thalhimer

what then was a somebody vis-a-vis it's weather, pretty tough said the my other been And else about winter. question

Just curious if QX? conservative we a should bake in

C. Nye

QX. go your baking over wouldn't conservative I skis in on a

to just fine. be going is QX think I

I anything more model in price on think skis to don't break at I go no, I QX. nailed if I'm improvised a you indicated your think -- time. look, on too. at way, I mean, So hard all basis. worried all pricing a wouldn't need certain the through better not month-by-month it I got And And increases too pricing lean an question, there. together you Trey in as I his in this as their about Draconian think hold resided perspective, in, a pricing build around a long into my measure was do robust over trying to to point, from industry wanting I'm has increase commentary only on for get yours your of But if And to people the portions you've some post-QX, modeling a will for fashion. same down, components layering to where marketplaces

Operator

the of Our Yaroslav Avi line next question comes from UBS. with

Unknown Analyst

planning that's decision-making. strategic your Given policymaking days, affecting capital volatility and all and with own the curious fluctuations how just these

C. Nye

pricing been can about thing we company dividend. call even power. of the and through lost, industry always nice when The XX% volume, is, company has crisis always it, XX%, this cut a had This went you, our I this And profitable. never financial let's has we tell

things look to are at some history dictate look ahead, we we when the look, of there will history going So and let future that at be around. move the going how policy some

we're I this what I see will relative think doing. that from issues administration constructive public be to the to infrastructure will believe policy and

or we're policy may constructive not whether cement, we may to to it doing. what think otherwise, will from be the this tariffs, or be steel administration I decisions see relative probably

to I seen we're When very like I capable I that I more with that's about administration recent can actually going than potential about at be think -- in a think this think company to of likely upon doing. availability where think housing that past. at I think rates do be administration what forward that frankly has what favorably When would and the more be look interest a to transactions transactions time -- to and see going single-family proven we've ought to be will we're to to constructive itself

we to here. plus we pluses Yes. policy start to it, We we to we potential remain as going But really going minuses and to Yes. see here. like. are of lot United Representatives And look to Are are And look relative that So control carefully? is thinking Senate, about at of see that that we think what passes way I what like. M&A think that's potential see we're relative going of to be is We that in well what don't House the midterms. frankly, for to about will be are works. a agile? see get I going this terribly to monetary a want think this to done while look year, And what the think it administration, before the White are I reauthorization usually and a prologue, reauthorization a it work in likely midterms House. Because way likely they the party States the have watching

they're is positive current have consistent going House been the and as decisions from on big, to Secretary watching the and like the administration if to anticipate, White looking Martin we that with the the telling having Marietta. build think, I a that pretty Senate whole, again, House decisions Representatives Duffy at policy feel we're and of is announced So and we be policy

Operator

the Your Michael line Feniger next from question of comes of Bank with America.

Michael Feniger

long-term down curious, higher of just or we historically spread and that still price that is X% remains versus under that I'm to wider widened in just Just, to private than recent that page what if a in environment just average of mentioned you years? spread pricing are that Ward, inevitable comes last X outside cost the rate think turn qualitatively, you is Jim, to pressure longer we X% cost XXXX has maybe for as course, versus somewhat do seen the years. price you it side back

C. Nye

price cost think So coming going sentence. favor. to One, question I for Jim spread reasons, is I your in think I'm and down. the what I broadly first. continues to our actually inflation work inflation, couple on a inflation think can answer last we're the X hold think I to moderating And of Look, is on talk seeing

change. it in going was, least my see bigger that's remain in than the think for think changing. view, But or that the to years the at pricing place to until a all up last help. I call a X fundamental going I driver let's X. going forward is So fundamentally I is And that's don't better pricing

you're a to we that seeing can for continue what we're that's you going past, I are for product. can position forward. but I the around And the say you've ton going a statements face that line things ton am, value Look, appropriate your me few to look ASPs very in financial except get Michael, at that say I'm our in buy if had want you that a in nice as going again aggregates, believe product you for there $XX heard a our to run be $XX of

continue. we're Jim to give to a that think you what little seeing we'll with bit I of I'll see relative inflation. respect ask spread color to

James Nickolas

Yes.

growth year, So trailing fair the bit per of indicated last inflation mid-single same as late ASP we're of then we a still the expecting. ton COGS digits by we're and view

XXX reduction. I to that by In XXXX, expect say on spread gross that's even of effects after guidance, points. So overcoming we our inventory basis XXXX, temporary widen the another would based would over the P&L margins

So bodes XXXX, well XXXX well and for I for that think both beyond.

It's straight line, don't see cost widened over we've end. price and over but the time, the history, consistent arc not it's of a I that would pretty So spread. why

Michael Feniger

to the Great, think Jim. said the what earlier of just you to QX, one I mix. And relative maybe ready Ward, healthier margin saw -- was your in you comments, cement in

Just in bit how is mean are I that evolving think higher. gas I XXXX? nat a prices

of about Just XXXX. think in that versus we kind how kind curious of ready mix should cement

C. Nye

I about in think, ready than XXXX. I better would tell considerably mix you,

both Even from weather and as despite good was constructive. significant pretty gross the I cement. in November saw mean, nice pricing We looking profit. quarter, is The at gross saw business fact the we're good really well revenues December. in headwinds cement saw for good a performed perspective EBITDA. We margins, We

running at we that of was it XX% operation fourth that the opened up. opened we X than FM Importantly, ] availability that greater in [ quarter. there After

is going we're us to really place. be that cement every and We're a to loading to And strategic. fantastic mid Worth is cement cement So really again, strategic not be it's Dallas-Fort in going plant. where

It's relative taking and Now about if keep to ready-mix The that price ready pricing for volumes increases, you relatively that. happening price to mixing delimit has -- hard cement there. of ready-mix is think it's what's increases. ready-mix, aggregate ahead significant flat

is so you're for if what a to like, But to ready-mix, combination of again, going think we ready-mix. margin see in we absorber it's about the if some company. our look much going compression about So think shock

in Dallas-Fort in it Arizona. very have markets. places us in It's We like Worth important select to

and Your basis, was good at gave robust performing make is to question you as snapshot if cement I a a very be wanted really the granular cement, because could it of are way around comfortable sure with it we. really see I geared you'd you

Operator

that comments. to I Nye over turn And closing our question-and-answer concludes will the Ward back now And for session. call

C. Nye

you, call. Christine. all you today's for Thank earnings conference joining Thank

to chapter first sharing to of successes. strategic teams public business the close continue proven unparalleled years, is in Marietta months. years come. world-class poised look expect priorities, should our our a underpinned its year Martin a value markets, and quarter company Marietta as of you on solid As our and shareholder deliver next Martin and to for sustainable With foundation results growth our We look the past and well forward to building XX XXth to by XXXX resilient aggregates-led forward few we

for available may we're always, As any you questions have. follow-up

Martin Marietta. Thank you continued and of again your time for support

Operator

and this your Ladies conference participation, call. gentlemen, may Thank today's and now you does for you conclude disconnect.

Martin Marietta Materials (MLM) 12 Feb 252024 Q4 Earnings call transcript