Martin Marietta Earnings: Demand Headwinds Begin to Mount, but Pricing Gains Stifle the Blow

Narrow-moat-rated Martin Marietta reported mixed first-quarter results. Net sales fell 7.5% year over year as much of the company’s portfolio experienced declines. Volumes continued to contract across much of the business, primarily driven by higher interest rates that have weighed on construction activity. Despite these headwinds, Martin Marietta continues to drive price growth in every area of its business, demonstrating its durable pricing power in a challenging operating environment. While we expect near-term headwinds to weigh on volumes through the year, we forecast selling price growth for all four segments in 2024.