Martin Marietta Materials Inc (NYSE:MLM) shares are trading lower after the company reported a fourth-quarter revenue increase of 1% year over year (Y/Y) to $1.632 billion, missing the consensus of $1.65 billion.

• Gross profit was $489 million (+1% Y/Y), and the margin remained flat Y/Y at 30%.
• Building Materials business revenue was $1.6 billion, with a gross profit of $472 million in the quarter.
• Aggregate shipments increased by 2.7% Y/Y to 47.9 million tons, while the average selling price rose by 8.6% Y/Y (or 7.6% Y/Y on an organic mix-adjusted basis) to $21.95 per ton.
• Adjusted EBITDA upped 8% Y/Y to $545 million in the quarter. EPS rose 3% Y/Y to $4.79, beating the consensus of $4.59.
• Operating cash flow for the year stood at $1.5 billion.
• $670 million of cash and cash equivalents on hand
• $1.2 billion of unused borrowing capacity on its existing credit facilities as of Dec. 31, 2024.
• $639 million returned to shareholders through dividend payments and share repurchases during the year.
• As of Dec. 31, there were 11.9 million shares remaining under the current repurchase authorization.

“In 2024, we faced several challenging dynamics beyond our control, including inclement weather, softening construction demand in both nonresidential and residential sectors, and tighter-than-expected monetary policy,” Martin Marietta CEO Ward Nye said.

Despite these headwinds, Martin Marietta concluded the year with a return to earnings growth and margin expansion, resulting in record fourth-quarter profits, Nye added.

Strong infrastructure and data center demand “should more than offset ongoing softness in residential construction demand,” Nye said.

2025 Guidance: Martin Marietta Materials sees revenues of $6.830 billion-$7.230 billion vs. (consensus of $7.23 billion). It expects adjusted EBITDA of $2.150 billion-$2.350 billion.

The company now expects average selling price growth of 5.5% – 7.5% for Aggregates. 

Investors can gain exposure to the stock via two exchange-traded funds:

• TCW Transform Supply Chain ETF (NYSE:SUPP)
• Invesco Building & Construction ETF (NYSE:PKB)

Price Action: MLM shares are down 2.08% at $518.00 premarket at the last check Wednesday.

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