Martin Marietta Earnings: Robust Pricing Boosts Results Despite a Pullback in Shipments

Narrow-moat-rated Martin Marietta reported strong first-quarter results as the building materials giant continued to flex its pricing power. Net sales increased 10% year over year, led by double-digit price growth across its four primary segments. That said, shipments were down across the board, with ready-mix concrete and asphalt posting double-digit declines. Nevertheless, gross margins reached nearly 22.5% in the quarter, up substantially from 12.7% a year ago but down roughly 150 basis points sequentially due to higher operating and material costs. We've increased our fair value estimate to $304 from $296 per share, mainly due to time value of money.