Supply Chain Disruptions Constrain Martin Marietta's Growth in Q3, but Demand Remains Strong

Martin Marietta reported solid third-quarter results that were largely in line with our expectations. Net sales increased 16% year over year due to higher selling prices and the addition of acquisitions. Volumes remained relatively flat across the business when compared with a year ago as logistical challenges constrained shipments. Gross margins declined 150 basis points to 26.9%, but improved 100 basis points sequentially. Higher energy and freight costs were mostly offset by previously announced pricing actions across the business.