Martin Marietta Ends a Strong 2022 With Robust Pricing Gains but Sees Moderating Demand in Q4

Narrow-moat-rated Martin Marietta reported solid fourth-quarter results on strong aggregate and cement pricing gains. Construction end markets in much of the U.S. held up during the fourth quarter, but volumes were down across the company’s products against tough comps and softening demand. Net sales decreased 1% year over year as higher selling prices and the benefit of acquisitions were more than offset by lower volumes. Gross margins improved roughly 80 basis points year over year to 24% but declined 290 basis points sequentially. Pricing remains strong across Martin Marietta’s portfolio, with all product lines seeing double-digit price growth in 2022.