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MARTIN MARIETTA MATERIALS INC

MLM
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Business Summary

Martin Marietta Materials, Inc. is a leading natural resource-based building materials company that supplies aggregates (crushed stone, sand and gravel) through a network of approximately 400 quarries, mines and distribution yards in 28 states, Canada and The Bahamas. The Company also provides cement, ready mixed concrete, asphalt and paving services in targeted markets where it has a notable aggregates position. The heavy-side building materials are used in infrastructure, nonresidential and residential construction projects, and aggregates are also used in agricultural, utility and environmental applications and as railroad ballast. The Company operates a Specialties business that produces high-purity natural and synthetic magnesia-based products, including magnesium sulfate, magnesium oxide and magnesium hydroxide, used in environmental, industrial, agricultural, construction, consumer and specialty applications, and also produces dolomitic lime sold primarily to external customers for use in steel production and soil stabilization.

The Company operates in a highly fragmented industry, including large public companies and a significant number of small privately-held companies. In 2025, other publicly traded companies among the ten-largest U.S. aggregates producers included Amrize Ltd., Arcosa, Inc., CEMEX S.A.B. de C.V., CRH plc, Heidelberg Materials AG, Holcim Ltd., Knife River Corporation and Vulcan Materials Company. Due to the localized nature of the industry resulting from the high cost of transportation relative to the price of the product, the Building Materials business primarily operates in smaller, distinct geographic areas with varying market characteristics. The Company believes that its ability to transport materials by rail and waterborne vessels has enhanced its competitive position in the building materials industry. Aggregates gross profit represented 88% of the Company's total reportable segment gross profit in 2025.

The Company generates revenue primarily through the sale of aggregates and other building materials to the construction industry, with 37% of its 2025 aggregates shipments sold to customers for use in highway and other public infrastructure projects and the balance sold primarily to customers for nonresidential and residential construction projects. The Company generally sells its aggregates upon receipt of customer orders or requests and maintains inventories in sufficient quantities to meet customer requirements. The ten-largest revenue-generating states (Texas, North Carolina, Colorado, California, Georgia, Florida, South Carolina, Arizona, Iowa and Minnesota) accounted for 76% of the Building Materials business' revenues from continuing operations in 2025. No material part of the business as a whole is dependent upon a single customer or upon a few customers.

The Building Materials business is conducted through two reportable segments organized by geography: the East Group and the West Group. The East Group provides aggregates and asphalt products, while the West Group provides aggregates, ready mixed concrete, asphalt and paving services. In 2025, the East Group reported total revenues of $3,194 million and the West Group reported total revenues of $2,515 million . Aggregates generated $1,677 million in gross profit in 2025, representing 34% of aggregates revenues, compared to $1,449 million and 32% in 2024. Other Building Materials generated $98 million in gross profit in 2025, representing 10% of revenues, compared to $119 million and 11% in 2024. The Specialties business reported revenues of $441 million and gross profit of $137 million in 2025, representing 31% of revenues, compared to $320 million and $107 million in 2024. In 2025, 67% of Specialties' revenues were attributable to magnesia-based products, 32% to lime, and 1% to stone sold as construction aggregates.

On January 12, 2024, the Company acquired Albert Frei & Sons, Inc., a leading aggregates producer in Colorado, adding more than 60 years (at current production levels) of high-quality, hard rock reserves. On February 9, 2024, the Company completed the sale of its South Texas cement business and certain related ready mixed concrete operations to CRH Americas Materials, Inc. for $2.1 billion in cash, resulting in a pretax gain of $1.3 billion . On April 5, 2024, the Company completed the acquisition of 20 active aggregates operations in Alabama, South Carolina, South Florida, Tennessee and Virginia from affiliates of Blue Water Industries LLC for $2.05 billion in cash. On July 25, 2025, the Company acquired Premier Magnesia, LLC, a privately-owned producer and distributor of magnesia-based products. On August 3, 2025, the Company entered into a definitive agreement with Quikrete Holdings, Inc. for the exchange of certain assets, under which Martin Marietta would receive aggregates facilities producing approximately 20 million tons annually across Virginia, Missouri, Kansas and Vancouver, British Columbia, and cash proceeds, in exchange for the Company's Midlothian cement plant, related cement distribution terminals, Texas ready mixed concrete assets and certain nonoperating land. During 2025, the Company repurchased 0.9 million shares of its common stock for a total cost of $450 million , and during 2024, the Company repurchased 0.8 million shares for a total cost of $450 million . In December 2025, the Company repaid the $125 million of 7% Debentures that matured.

In 2025, the Company reported total revenues of $6,150 million and net earnings from continuing operations attributable to Martin Marietta of $990 million , compared to revenues of $5,662 million and net earnings from continuing operations of $1,815 million in 2024. Consolidated net earnings attributable to Martin Marietta were $1,137 million in 2025, compared to $1,995 million in 2024. Earnings from operations were $1,437 million in 2025, compared to $2,479 million in 2024, which included a $1.3 billion pretax gain on the Divestiture. Gross profit was $1,889 million in 2025, representing 31% of revenues, compared to $1,636 million and 29% in 2024. Cash provided by operating activities from continuing operations was $1,598 million in 2025, compared to $1,227 million in 2024.

Business Outlook

The Company's strategic planning process, SOAR, provides the framework for execution of its long-term strategic plan, which includes ongoing evaluation of aggregates-led opportunities of scale in new domestic markets through platform acquisitions and expansion through bolt-on acquisitions that complement existing operations. The Company focuses its geographic footprint along significant transportation and commerce corridors, particularly in key Sunbelt metropolitan statistical areas across the Southeast and Southwest, and considers a state's financial health rating, as issued by S&P Global Ratings, in determining opportunities. The Company has a meaningful presence in ten megaregions, and its leading positions in the Texas Triangle, Colorado's Front Range, northern and southern California and Arizona's Sun Corridor megaregions and its growth platforms in the southern portion of the Northeast megaregion, Piedmont Atlantic and Florida megaregions are the results of acquisitions since 2011. The pending QUIKRETE transaction, under which Martin Marietta would receive aggregates facilities producing approximately 20 million tons annually across Virginia, Missouri, Kansas and Vancouver, British Columbia, will establish new growth platforms in key target markets, including Virginia and the Pacific Northwest.

The Company expects future organic profit growth in the Specialties business to result from increased pricing, commercialization of new products, entry into new or adjacent markets and optimization of overall product mix. Management has shifted the strategic focus of the magnesia-based business to grow and diversify the specialty product portfolio to reliably produce at volume levels that support efficient operations, as these products are less dependent on the steel industry than the dolomitic lime product line.

The Company's cost structure for the Building Materials business includes significant components such as labor and benefits, depreciation, depletion and amortization, internal freight, repairs and maintenance, external freight, supplies, energy, and contract services, which in 2025 represented 86% of the aggregates product line's total cost of revenues. The Company anticipates that any increased operating costs or taxes relating to GHG emission limitations at the Woodville lime plant or Midlothian cement plant would be passed on to customers. The Company has fixed-price agreements for 34% of its anticipated 2026 energy needs for coal, petroleum coke and natural gas for the Specialties business.

The Company's organic capital program is designed to leverage construction market growth by investing in both permanent and portable facilities across its operations, and over the course of an economic cycle, the Company typically invests organic capital at an annual level that approximates depreciation expense. Total cash paid for property, plant and equipment additions was $807 million in 2025, which included $89 million for discontinued operations. Capitalized costs related to environmental control facilities were $19 million in 2025 and are expected to be approximately $20 million in both 2026 and 2027. The Company expects to make pension plan and SERP contributions of $25 million in 2026, none of which is voluntary.

Pursuant to authority granted by its Board of Directors, the Company may repurchase up to 20 million shares of common stock, and as of December 31, 2025, the Company had 11.0 million shares remaining under the repurchase authorization. The Board of Directors approved total cash dividends on the Company's common stock of $3.24 per share in 2025, $3.06 per share in 2024 and $2.80 per share in 2023. The Company does not plan to make any voluntary contributions to the qualified pension plans during 2026.

The Company faces headwinds from sustained high or rising interest rates, which can reduce construction demand, increase financing costs, and adversely affect results. The residential construction market accounted for 22% of the Company's 2025 aggregates shipments, and higher mortgage rates and reduced affordability can dampen new residential construction. The Company also faces risks from erratic weather patterns, including excessive rainfall, hurricanes, tropical storms, wildfires, and water use restrictions during periods of severe drought, which can significantly affect production schedules, shipments, costs, efficiencies and profitability. The Company's operations in coastal markets near the Atlantic Ocean and Gulf Coast and in The Bahamas are exposed to hurricanes and tropical storms, while its California operations face risks from Pacific storms, wildfires, mudslides and water use restrictions during periods of severe drought.

The Company faces constraints from the limited availability of indigenous stone in certain markets, which must be served via a long-haul distribution network. The Company's long-haul distribution network relies on rail and waterborne transportation, and the Company has agreements providing dedicated shipping capacity from its Bahamas and Nova Scotia operations to its coastal ports that expire in 2026 and 2027, respectively. The Company also faces risks from potential labor disputes, as labor unions represented 13% of the hourly employees of the Building Materials business and 59% of the hourly employees of the Specialties business as of December 31, 2025, with collective bargaining agreements for the Specialties business at Woodville, Manistee and Gabbs expiring in June 2026, August 2027 and June 2028, respectively.

Risk Factors

The Company's business depends on construction activity, which is cyclical and sensitive to macroeconomic, funding and operating conditions, and a widespread decline in aggregates pricing could adversely affect business, financial condition, and results of operations. The Company faces risks from changes in laws, regulations, and enforcement practices, including zoning, land use, the environment, health and safety, and litigation relating to these matters, and the direct costs of ongoing environmental compliance were approximately $46 million in 2025 and $58 million in 2024. The Company's operations involve inherent environmental, manufacturing, operating and handling risks, and the Company is subject to Mine Safety and Health Administration and Occupational Safety and Health Administration requirements for worker health and safety. The Company faces risks from volatility or shortages in fuel, energy and raw materials, and a hypothetical 10% change in the Company's energy prices in 2026 as compared with 2025, assuming constant volumes, would change 2026 energy expense for continuing operations by $29 million . The Company's Specialties business depends in part on the steel industry and the supply of reasonably priced fuels, and the Company has fixed-price agreements for 34% of its anticipated 2026 coal, petroleum coke and natural gas needs for the Specialties business.

Management Priorities

Management's message emphasizes the Company's strategic focus on being an aggregates-led business that focuses on markets with strong, underlying growth fundamentals where it can sustain or achieve a leading market position. The Company's strategic planning process, SOAR, provides the framework for execution of its long-term strategic plan, and management's overall focus includes upholding the Company's commitment to its Mission, Vision and Values, building and maintaining the world's safest, best-performing and most-durable aggregates-led public company, navigating effectively through construction cycles, tracking shifts in population dynamics, integrating acquired businesses efficiently, and allocating capital in a prudent manner consistent with long-standing priorities while maintaining financial flexibility. The Company's strategy includes ongoing evaluation of aggregates-led opportunities of scale in new domestic markets and expansion through bolt-on acquisitions, financing such opportunities with the goal of preserving financial flexibility by having a leverage ratio within a range of 2.0 times to 2.5 times within a reasonable period of time (typically within 18 months) following the completion of a debt-financed transaction. Management expects future organic profit growth in the Specialties business to result from increased pricing, commercialization of new products, entry into new or adjacent markets and optimization of overall product mix.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Business Segment Information
  2. [2] Item 1, Business — Building Materials Business
  3. [3] Item 1, Business — Building Materials Business
  4. [4] Item 7, MD&A — Revenues
  5. [5] Item 7, MD&A — Revenues
  6. [6] Item 7, MD&A — Gross Profit
  7. [7] Item 7, MD&A — Gross Profit
  8. [8] Item 7, MD&A — Gross Profit
  9. [9] Item 7, MD&A — Gross Profit
  10. [10] Item 7, MD&A — Gross Profit
  11. [11] Item 7, MD&A — Gross Profit
  12. [12] Item 7, MD&A — Gross Profit
  13. [13] Item 7, MD&A — Gross Profit
  14. [14] Item 7, MD&A — Revenues
  15. [15] Item 7, MD&A — Gross Profit
  16. [16] Item 7, MD&A — Gross Profit
  17. [17] Item 7, MD&A — Revenues
  18. [18] Item 7, MD&A — Gross Profit
  19. [19] Item 1, Business — Specialties Business
  20. [20] Item 1, Business — Specialties Business
  21. [21] Item 1, Business — Specialties Business
  22. [22] Item 1, Business — General
  23. [23] Item 1, Business — General
  24. [24] Item 1, Business — General
  25. [25] Item 7, MD&A — Financing Activities
  26. [26] Item 7, MD&A — Financing Activities
  27. [27] Item 7, MD&A — Financing Activities
  28. [28] Item 7, MD&A — Financing Activities
  29. [29] Item 7, MD&A — Financing Activities
  30. [30] Item 7, MD&A — Results of Operations
  31. [31] Item 7, MD&A — Results of Operations
  32. [32] Item 7, MD&A — Results of Operations
  33. [33] Item 7, MD&A — Results of Operations
  34. [34] Item 7, MD&A — Results of Operations
  35. [35] Item 7, MD&A — Results of Operations
  36. [36] Item 7, MD&A — Results of Operations
  37. [37] Item 7, MD&A — Results of Operations
  38. [38] Item 7, MD&A — Other Operating Income, Net
  39. [39] Item 7, MD&A — Gross Profit
  40. [40] Item 7, MD&A — Gross Profit
  41. [41] Item 7, MD&A — Gross Profit
  42. [42] Item 7, MD&A — Gross Profit
  43. [43] Item 7, MD&A — Liquidity and Cash Flows
  44. [44] Item 7, MD&A — Liquidity and Cash Flows
  45. [45] Item 7, MD&A — Cost Structure
  46. [46] Item 7, MD&A — Specialties Business
  47. [47] Item 7, MD&A — Investing Activities
  48. [48] Item 7, MD&A — Investing Activities
  49. [49] Item 1, Business — Environmental Compliance and Costs
  50. [50] Item 1, Business — Environmental Compliance and Costs
  51. [51] Item 7, MD&A — Pension Benefit Obligation and Pension Expense
  52. [52] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  53. [53] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  54. [54] Item 7, MD&A — Financing Activities
  55. [55] Item 7, MD&A — Financing Activities
  56. [56] Item 7, MD&A — Financing Activities
  57. [57] Item 7, MD&A — Residential
  58. [58] Item 1, Business — Human Capital Resources
  59. [59] Item 1, Business — Human Capital Resources
  60. [60] Item 1, Business — Environmental Compliance and Costs
  61. [61] Item 1, Business — Environmental Compliance and Costs
  62. [62] Item 7A, Quantitative and Qualitative Disclosures About Market Risk — Energy Costs
  63. [63] Item 7, MD&A — Specialties Business
  64. [64] Item 8, Financial Statements — Consolidated Statements of Earnings
  65. [65] Item 8, Financial Statements — Consolidated Statements of Earnings
  66. [66] Item 8, Financial Statements — Consolidated Statements of Earnings
  67. [67] Item 8, Financial Statements — Consolidated Statements of Earnings
  68. [68] Item 8, Financial Statements — Consolidated Statements of Earnings
  69. [69] Item 8, Financial Statements — Consolidated Statements of Earnings
  70. [70] Item 8, Financial Statements — Consolidated Statements of Earnings
  71. [71] Item 8, Financial Statements — Consolidated Statements of Earnings
  72. [72] Item 8, Financial Statements — Consolidated Statements of Earnings
  73. [73] Item 8, Financial Statements — Consolidated Statements of Earnings
  74. [74] Item 8, Financial Statements — Consolidated Statements of Earnings
  75. [75] Item 8, Financial Statements — Consolidated Statements of Earnings
  76. [76] Item 8, Financial Statements — Consolidated Statements of Earnings
  77. [77] Item 8, Financial Statements — Consolidated Statements of Earnings
  78. [78] Item 8, Financial Statements — Consolidated Statements of Earnings
  79. [79] Item 8, Financial Statements — Consolidated Statements of Earnings
  80. [80] Item 8, Financial Statements — Consolidated Statements of Cash Flows
  81. [81] Item 8, Financial Statements — Consolidated Statements of Cash Flows
  82. [82] Item 7, MD&A — Capital Structure and Resources
  83. [83] Item 7, MD&A — Capital Structure and Resources
  84. [84] Item 7, MD&A — Other Operating Income, Net
  85. [85] Item 7, MD&A — Other Operating Income, Net
  86. [86] Item 7, MD&A — Income Tax Expense
  87. [87] Item 7, MD&A — Income Tax Expense
  88. [88] Item 7, MD&A — Income Tax Expense
  89. [89] Item 7, MD&A — Adjusted EBITDA from Continuing Operations
  90. [90] Item 7, MD&A — Adjusted EBITDA from Continuing Operations
  91. [91] Item 7, MD&A — Adjusted EBITDA from Continuing Operations
  92. [92] Item 7, MD&A — Consolidated Adjusted EBITDA
  93. [93] Item 7, MD&A — Consolidated Adjusted EBITDA
  94. [94] Item 7, MD&A — Consolidated Adjusted EBITDA
  95. [95] Item 7, MD&A — Building Materials
  96. [96] Item 7, MD&A — Building Materials

Analysis on 6/8/2026