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Martin Marietta (MLM) Cheers Investors With 12% Dividend Hike
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Martin Marietta Materials, Inc. (MLM - Free Report) announced a 12% hike in quarterly dividend payout, reaffirming its ongoing commitment to enhancing shareholder rewards. This eighth consecutive year hikes underscore the company's emphasis on a well-rounded approach to capital allocation, achieved through a strong balance sheet and a commitment to operational excellence.
Shares of the company rose 1.6% during the trading session on Aug 10.
Martin Marietta raised the dividend payout to 74 cents per share (or $2.96 annually) from 66 cents (or $2.64 annually). The amount will be paid on Sep 29, 2023, to shareholders of record as of Sep 1.
Martin Marietta is a prominent American provider of construction aggregates essential for constructing highways, infrastructure ventures, as well as residential, commercial, and industrial buildings. The company's strategic focus revolves around leveraging the core demand drivers in public construction endeavors. Furthermore, Martin Marietta has been actively broadening its reach and offerings through consistent acquisitions, thereby enhancing its operational scope and portfolio diversity.
During the second-quarter conference call, Ward Nye, chairman and CEO of MLM, stated, “We continue to see solid near-term product demand reinforced by healthy customer backlogs across our coast-to-coast footprint, led by infrastructure and heavy non-residential projects of scale. We expect recent legislation and the resulting enhanced level of public investment in these kinds of aggregates-intensive end-use projects to support continued strong demand for several years to come. While single-family residential construction has slowed, builder sentiment has improved in Martin Marietta geographies as the single-family housing shortage continues to drive a base level of demand in our key Sun Belt markets. We also expect to see an uptick in residential activity as mortgage rates stabilize over the next several months.”
As of Jun 30, 2023, Martin Marietta had cash and cash equivalents and restricted cash of $421.5 million compared with $358 million at 2022-end. Also, it had $1.20 billion of unused borrowing capacity on its existing credit facilities at June-end. Long-term debt (excluding current maturities) was $4.343 billion, up slightly from $4.341 billion at 2022-end. Net cash provided by operations was $518.5 million for the first six months, up from $286.2 million in the year-ago period.
The company has been regularly enhancing shareholders’ returns through repurchases and dividends, given its stable balance sheet scenario and solid prospects. In the second quarter of 2023, MLM returned $116 million to shareholders through dividend payments and share repurchases. Since the company’s repurchase authorization announcement in February 2015, it has returned a total of $2.5 billion to shareholders through a combination of meaningful and sustainable dividends as well as share repurchases. As on Jun 30, 2023, the company had $1.20 billion of unused borrowing capacity under its Revolving Facility and Trade Receivable Facility.
Given solid second-quarter results and expectations for an even stronger next six months, the company also lifted its full-year adjusted EBITDA expectation.
Zacks Rank & Other Key Picks
Martin Marietta currently sports a Zacks Rank #1 (Strong Buy).
Shares of EMCOR have gained 81.4% in the past year. The Zacks Consensus Estimate for EME’s 2023 sales and earnings per share indicates growth of 10.9% and 36.8%, respectively, from the previous year’s reported levels.
TopBuild currently sports a Zacks Rank of 1. BLD delivered a trailing four-quarter earnings surprise of 14.1%, on average. Shares of the company have rallied 48.3% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and earnings per share indicates growth of 3.4% and 4.6%, respectively, from the previous year’s reported levels.
Meritage Homes currently sports a Zacks Rank of 1. MTH delivered a trailing four-quarter earnings surprise of 24.1%, on average. Shares of the company have gained 63.3% in the past year.
The Zacks Consensus Estimate for MTH’s 2023 sales and earnings per share indicates a decline of 7.9% and 35.1%, respectively, from the previous year’s reported levels.
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Martin Marietta (MLM) Cheers Investors With 12% Dividend Hike
Martin Marietta Materials, Inc. (MLM - Free Report) announced a 12% hike in quarterly dividend payout, reaffirming its ongoing commitment to enhancing shareholder rewards. This eighth consecutive year hikes underscore the company's emphasis on a well-rounded approach to capital allocation, achieved through a strong balance sheet and a commitment to operational excellence.
Shares of the company rose 1.6% during the trading session on Aug 10.
Martin Marietta raised the dividend payout to 74 cents per share (or $2.96 annually) from 66 cents (or $2.64 annually). The amount will be paid on Sep 29, 2023, to shareholders of record as of Sep 1.
Martin Marietta Materials, Inc. Price
Martin Marietta Materials, Inc. price | Martin Marietta Materials, Inc. Quote
Factors Supporting Dividend Hikes
Martin Marietta is a prominent American provider of construction aggregates essential for constructing highways, infrastructure ventures, as well as residential, commercial, and industrial buildings. The company's strategic focus revolves around leveraging the core demand drivers in public construction endeavors. Furthermore, Martin Marietta has been actively broadening its reach and offerings through consistent acquisitions, thereby enhancing its operational scope and portfolio diversity.
During the second-quarter conference call, Ward Nye, chairman and CEO of MLM, stated, “We continue to see solid near-term product demand reinforced by healthy customer backlogs across our coast-to-coast footprint, led by infrastructure and heavy non-residential projects of scale. We expect recent legislation and the resulting enhanced level of public investment in these kinds of aggregates-intensive end-use projects to support continued strong demand for several years to come. While single-family residential construction has slowed, builder sentiment has improved in Martin Marietta geographies as the single-family housing shortage continues to drive a base level of demand in our key Sun Belt markets. We also expect to see an uptick in residential activity as mortgage rates stabilize over the next several months.”
As of Jun 30, 2023, Martin Marietta had cash and cash equivalents and restricted cash of $421.5 million compared with $358 million at 2022-end. Also, it had $1.20 billion of unused borrowing capacity on its existing credit facilities at June-end. Long-term debt (excluding current maturities) was $4.343 billion, up slightly from $4.341 billion at 2022-end. Net cash provided by operations was $518.5 million for the first six months, up from $286.2 million in the year-ago period.
The company has been regularly enhancing shareholders’ returns through repurchases and dividends, given its stable balance sheet scenario and solid prospects. In the second quarter of 2023, MLM returned $116 million to shareholders through dividend payments and share repurchases. Since the company’s repurchase authorization announcement in February 2015, it has returned a total of $2.5 billion to shareholders through a combination of meaningful and sustainable dividends as well as share repurchases. As on Jun 30, 2023, the company had $1.20 billion of unused borrowing capacity under its Revolving Facility and Trade Receivable Facility.
Given solid second-quarter results and expectations for an even stronger next six months, the company also lifted its full-year adjusted EBITDA expectation.
Zacks Rank & Other Key Picks
Martin Marietta currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the Construction sector are EMCOR Group, Inc. (EME - Free Report) , TopBuild Corp. (BLD - Free Report) and Meritage Homes Corporation (MTH - Free Report) .
EMCOR currently sports a Zacks Rank of 1. EME delivered a trailing four-quarter earnings surprise of 17.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of EMCOR have gained 81.4% in the past year. The Zacks Consensus Estimate for EME’s 2023 sales and earnings per share indicates growth of 10.9% and 36.8%, respectively, from the previous year’s reported levels.
TopBuild currently sports a Zacks Rank of 1. BLD delivered a trailing four-quarter earnings surprise of 14.1%, on average. Shares of the company have rallied 48.3% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and earnings per share indicates growth of 3.4% and 4.6%, respectively, from the previous year’s reported levels.
Meritage Homes currently sports a Zacks Rank of 1. MTH delivered a trailing four-quarter earnings surprise of 24.1%, on average. Shares of the company have gained 63.3% in the past year.
The Zacks Consensus Estimate for MTH’s 2023 sales and earnings per share indicates a decline of 7.9% and 35.1%, respectively, from the previous year’s reported levels.