Martin Marietta Materials, Inc. (NYSE:MLM) Q4 2022 Earnings Call Transcript

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We think those projects are going to stay very attractive and they tend to be very aggregates intensive work. So do we think having non-res is going to be better? Yes, we do. Do we think like non-res may see some headwinds? Yes, we do. But our view is the heavy piece of it overcomes the light piece of it, leading us to something that we feel like is broadly flat. Look, as we looked at residential, our view is probably not that different than what you seen nationally. The differences are footprint. So do we think single-family res is going to be down? The answer is yes. We think it’s going to be down in our footprint, probably 10% to 15%. Again, this is the smallest of our three large end uses. Again, as we’re looking in a number of our markets, the biggest issue that we’re faced with is not so much affordability, but rather availability, which tells us that housing is going to come under some pressure, probably not as great in our markets as many.

The other thing that we think helps mitigate that is we think multifamily is likely to be quite good, and we’re seeing good multifamily activity. And then lastly, in our ChemRock and Rail segment. And again, that’s going to be railroad balanced, it’s going to be, agricultural, lime and others, and we have a bigger end use there than most of our competitors. We feel like that’s probably going to be up mid-single digits. So again, as we take infrastructure up, non-res sideways, single family down, ChemRock and Rail up. That leads us broadly to something that we feel like it’s going to be flat. But importantly, Trey, part of what we’ve done is we’ve gone on a state-by-state basis and we’ve looked at infrastructure, non-res, res and ChemRock and Rail.

And we’ve tried to look at the jobs that are either in our customers’ backlog, we believe that they are well-positioned to get and as we go through that bottoms-up analysis, it brings us from an end-use perspective that we feel like this guide that we put out there is actually a very responsible guide as we look into 2023.

Operator: Thank you. Our next question comes from the line of Stanley Elliott with Stifel. Your line is now open.

Stanley Elliott: Hi, good morning, everyone, and thank you all for taking the question. Ward, in the press release, you guys talked about some the visibility that you’re seeing in the customer backlog. Let’s get a lot more context like what you’re seeing and then by the same token, you mentioned a number of large-scale projects, a number of large scale kind of government funding initiatives. I’d have to think the visibility is extending out pretty far right now, but love to hear kind of how you’re thinking about all that?

Ward Nye: Stanley. Thank you so much for the question. As we look at customer backlogs and we do try to get a good sense of where that sits year-over-year. This is pretty heartening to see, aggregates backlogs is up about 7% over where it was last year and perhaps even more importantly, even as we look at it sequentially from Q3, it continues to move in an attractive way. And as we look at the geography in this. The geography is not surprising to me, but I will tell you too, it’s actually comforting to me because the East, which is such an important market to us, Stanley, as you know. The East division backlogs are up around 3%. As we look in the Southwest, again, where we have a very significant position, they’re up around 7% versus the prior year quarter.

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