Martin Marietta Materials, Inc.

What they do

Martin Marietta supplies aggregates (crushed stone, sand and gravel) from approximately 500 quarries, mines and distribution yards across 29 states, Canada and The Bahamas. It also provides asphalt and paving services and ready mixed concrete in vertically-integrated markets. The Specialties business manufactures high-purity magnesia-based products (magnesium sulfate, oxide and hydroxide) and dolomitic lime. As of March 31, 2026, the Building Materials business is reported in two segments: East Group and West Group.

Revenue drivers

• Aggregates product line — Largest revenue source; second-quarter 2026 aggregates revenues were $1.53 billion (16% year-over-year growth) on shipments of 61.6 million tons at an average selling price of $22.74 per ton.
• East Group segment — Comprised of East and Southwest divisions; generates revenue from aggregates in Alabama, Arkansas, Florida, Georgia, Louisiana, Maryland, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Nova Scotia and The Bahamas.
• West Group segment — Comprised of Central and West divisions; includes aggregates, asphalt and paving services, and ready mixed concrete across Arizona, California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Ohio, Nebraska, Tennessee, Utah, Washington, West Virginia, Wyoming and British Columbia.
• Specialties business — Separate reportable segment with manufacturing facilities in Michigan, Ohio, Nevada, North Carolina, Indiana and Pennsylvania; produces magnesia-based products and dolomitic lime sold to environmental, industrial, agricultural and construction markets.

Recent performance

Second-quarter 2026 revenues rose 21% to a record $1.95 billion from $1.61 billion in the prior-year quarter, driven by organic growth and acquisitions; however, earnings from operations fell 10% to $372 million and net earnings from continuing operations fell 12% to $256 million (EPS of $4.26, down from $4.84). Adjusted EBITDA from continuing operations increased 13% to $638 million. Gross profit was flat at $495 million, including a $52 million charge for acquired inventory markup. Full-year 2025 revenue was $6.15 billion with net income of $1.14 billion, and operating cash flow was $1.78 billion.

Strategy

Management is executing a strategy to expand its aggregates platform and build a differentiated upstream Specialties business, as outlined in its SOAR 2030 objectives. On May 15, 2026, it completed the acquisition of New Frontier Materials (NFM) along the I-70 corridor. On June 27, 2026, it announced a definitive agreement to combine with Lhoist North America (LNA), a leading producer of lime and industrial minerals, which would make Martin Marietta the nation's leading producer of limestone products. The company also completed an asset exchange with QUIKRETE on February 23, 2026, acquiring aggregates operations and a Vancouver asphalt business while divesting its Midlothian cement plant and Texas ready mixed concrete assets. Management expects operational efficiency opportunities to drive $350 million of cash flow benefits.

Risks

• Weather and climate exposure — Operations are sensitive to weather patterns—winter weather reduces profitability in Q1 and Q4, and coastal and California operations face hurricanes, storms, wildfires and drought.
• Reserve replacement and permitting — Growth depends on acquiring and permitting quality aggregates reserves near growing markets; inability to obtain approvals or transport economically could hurt results.
• Regulatory GHG costs — Cement and Specialties plants face GHG regulations; potential carbon capture or PSD requirements could add significant costs, likely passed to customers but uncertain in amount.
• Debt and liquidity — Long-term debt was $5.09 billion at June 30, 2026; covenant requires net debt-to-EBITDA below 3.50x, and trade receivable facility matures in September 2026.

Outlook

Management raised full-year 2026 revenue guidance to $7.2 billion to $7.4 billion (from prior range) and reaffirmed Adjusted EBITDA from continuing operations guidance of $2.36 billion to $2.5 billion. The guidance does not include any contribution from the pending LNA combination. The company expects continued strong demand from infrastructure and heavy nonresidential construction. It plans to continue share repurchases—11.0 million shares remained under authorization at year-end 2025—and pay dividends.