Martin Marietta Materials (0JZ0.L) Q3 2024 Earnings Report

Martin Marietta Materials Inc reported QQ3 2024 results with a revenue of $1.889 billion, a gross profit of $599 million and an operating income of $489 million. Despite a year-over-year revenue decline of 5.27%, the quarter benefited from a 7.09% sequential rebound and continued margin discipline, yielding a robust EBITDA of $648 million and a net income of $363 million (EPS $5.93). The company generated $600 million in operating cash flow and delivered free cash flow of $317 million after $283 million of capital expenditure, underscoring resilient cash generation amid a cyclical construction materials environment.

From a balance sheet perspective, MLM held liquidity with $52 million in cash and equivalents and a total asset base of $16.469 billion. Total debt stood at $4.434 billion with net debt of roughly $4.382 billion, and interest coverage of ~13x, indicating solid leverage management given the cyclicality of the business. The current ratio of 2.34 and debt-to-capitalization of 0.309 signal a healthy liquidity buffer and a conservative capital structure relative to peers.

On the demand side, the QQ3 results reflect ongoing cyclicality in construction activity but also the company’s pricing power and product mix advantages. While YoY revenue softened against a high-activity prior-year period, volumes and prices contributed to favorable sequential momentum. The outlook remains tied to broader US infrastructure and non-residential construction activity, with management likely prioritizing efficient capital deployment, working capital discipline, and the continuation of a prudent capital return policy given the strong cash flow profile.