Company Overview - Martin Marietta is well positioned for continued growth, with an optimistic outlook shared during the 2025 Capital Markets Day [2]. Leadership and Experience - Jacklyn Rooker, the Director of Investor Relations, has over 11 years of experience with the company, covering various roles in finance and compliance [1]. Event Highlights - The event included both in-person and virtual participation, indicating a commitment to engaging with investors [1].

Martin Marietta Materials (MLM) 2025 Capital Markets Day Summary Company Overview - Martin Marietta is a leading aggregate supplier with a market cap of $37 billion and nearly 10,000 employees across the United States [15] - The company has a strong focus on safety, operational excellence, and strategic growth through its SOAR 2030 initiative [5][17] Key Strategic Initiatives - Introduction of SOAR 2030, aimed at accelerating organic growth and aligning market strategies with operational excellence [5] - The company has a proven track record of doubling its market cap every five years, driven by strategic mergers and acquisitions (M&A) [14] - Emphasis on unit profitability growth, which has outperformed competitors in the sector [12] Financial Performance - Projected revenue of $7 billion and adjusted EBITDA of $2.3 billion for the upcoming period [16] - Historical performance shows a 10% increase in revenues, 13% in adjusted EBITDA, and 16% in diluted EPS [66] - Cash gross profit per ton has seen a 96% increase over an eight-year period, demonstrating strong financial health [37] Market Position and Growth Opportunities - The company operates in a market where 66% of revenues come from aggregates, which also yield higher gross profits [16] - Martin Marietta has 400 aggregate locations and is strategically positioned in states with strong infrastructure budgets [35] - The company aims to capture a 12% market share of the total addressable market of 2.7 billion tons, focusing on targeted acquisitions [99] Safety and Community Engagement - Martin Marietta has a world-class safety record, with sites that have gone decades without incidents [50] - The company emphasizes community stewardship, ensuring that operations leave a positive impact on local communities [49] Demand Drivers - Infrastructure projects account for nearly 40% of the company's business, with significant growth expected in non-residential and residential sectors [107] - The Infrastructure Investment and Jobs Act (IIJA) is projected to drive substantial investment in infrastructure, with $1.2 trillion allocated, of which only a fraction has been utilized so far [108] Conclusion - Martin Marietta is well-positioned for continued growth through strategic initiatives, a strong financial foundation, and a commitment to safety and community engagement [5][66] - The company is focused on maintaining its leadership in the aggregates market while exploring new growth opportunities through targeted acquisitions and operational excellence [12][99]

CAPITAL MARKETS DAY September 3, 2025 B E N S O N Q U A R R Y ‖ B E N S O N , N O R T H C A R O L I N A 2025 Capital Markets Day 2 Statement Regarding Safe Harbor for Forward-Looking Statements Investors are cautioned that all statements herein that relate to the future involve risks and uncertainties and are based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual results. These statements, which are forward-looking statements under the P ...

RALEIGH, N.C., Aug. 27, 2025 (GLOBE NEWSWIRE) -- Martin Marietta Materials, Inc. (NYSE: MLM) (Martin Marietta or the Company), a leading national supplier of aggregates and heavy building materials, invites investors and analysts to the live broadcast of Martin Marietta’s Capital Markets Day on Wednesday, September 3, 2025, beginning at 9:00 a.m. Eastern Time. Ward Nye, Chair, President and Chief Executive Officer, joined by other members of the Company’s leadership team, will discuss Martin Marietta’s stra ...

Core Insights - The Zacks Building Products - Concrete & Aggregates industry is experiencing cautious optimism due to strong infrastructure demand, supported by funding from the Infrastructure Investment and Jobs Act (IIJA) and state-level initiatives [1][4] - Industrial demand is strengthening, particularly in data center expansion, semiconductor manufacturing, and new energy generation projects, despite challenges such as weather disruptions and labor costs [2] - The industry is focusing on acquisitions and operating efficiency to enhance earnings and cash flows while managing costs effectively [5] Industry Overview - The industry comprises manufacturers, distributors, and sellers of construction materials, including aggregates, concrete, and related items for various markets [3] - Key trends include a focus on reviving infrastructure through significant legislative investments aimed at enhancing American competitiveness and revitalizing infrastructure [4] Challenges - Industry players face challenges from rising input prices, labor shortages, and weather-related disruptions that can affect production and profitability [6] Market Position - The Zacks Building Products - Concrete & Aggregates industry ranks 98, placing it in the top 40% of over 250 Zacks industries, indicating solid near-term prospects [7][8] - The industry's earnings estimates for 2025 have increased from $2.09 to $2.18 per share, reflecting growing analyst confidence [9] Performance Metrics - Over the past year, the industry has underperformed the S&P 500, with a collective loss of 15.4% compared to the S&P 500's gain of 16.1% [11] - The industry is currently trading at a forward P/E ratio of 24.03X, higher than the S&P 500's 22.86X and the sector's 19.91X [14] Company Highlights - **Vulcan Materials Company**: Benefits from federal and state funding under the IIJA, with a focus on public infrastructure and industrial nonresidential demand. The company has seen an 18.7% stock gain over the past year and a projected 12% EPS growth for 2025 [18][19] - **Martin Marietta**: Driven by aggregates strength and favorable pricing dynamics, the company has gained 12.8% over the past year, although its 2025 EPS estimate shows a 42% decline [21][22]

Group 1: Market Overview - A new wave in the technology sector is emerging, focusing on the necessity of building new infrastructure to support increased electricity demand from data centers and AI capabilities [1][2] - The onshoring of artificial intelligence in the U.S. is driving the need for enhanced energy infrastructure to meet the demands of cloud computing and AI model training [2] Group 2: Company Insights - DuPont de Nemours Inc. is highlighted as a key player in the construction of data centers, with its products being essential for industrial applications in infrastructure projects [3][5] - DuPont's stock is currently trading at 78% of its 52-week high, presenting a significant opportunity for recovery as it approaches historically proven valuation levels [4] - Vanguard Group increased its holdings in DuPont by 1.6%, bringing their total position to $3.3 billion, indicating strong investor confidence [6] - Analysts have a consensus Moderate Buy rating for DuPont, with a price target of $88.3 per share, while some analysts project a higher valuation of $94 per share, suggesting a potential rally of about 35% [7][8] Group 3: Caterpillar Insights - Caterpillar Inc. is positioned as a critical player in new infrastructure buildouts, with a current stock price that reflects bullish sentiment [9][10] - The consensus rating for Caterpillar is also Moderate Buy, with a fair value estimate of $444 per share, while some analysts project a valuation exceeding $500 per share, indicating a potential upside of approximately 27% [11] - Short interest in Caterpillar has declined by 8.3% over the past month, signaling a shift in market sentiment regarding the demand for data center construction [12] Group 4: Martin Marietta Insights - Martin Marietta Materials is essential for commercial construction, trading at 95% of its 52-week high, reflecting its role in the early stages of infrastructure projects [14][16] - Analysts currently rate Martin Marietta as a Moderate Buy with a fair value of $620.8 per share, while some see it valued at $700 per share, suggesting a potential upside of 16.6% [16][17] - Geode Capital recently built a position worth $831.3 million in Martin Marietta, indicating strong institutional interest [17]

Core Points - Martin Marietta Materials, Inc. announced an increase in its quarterly cash dividend from $0.79 to $0.83 per share, resulting in an annualized cash dividend of $3.32 per share, payable on September 30, 2025 [1] - This marks the tenth consecutive annual dividend increase for the company, highlighting its disciplined capital allocation and commitment to shareholder value [2] - The company emphasizes its aggregates-led business model, operational excellence, and strong financial position, which contribute to its free cash flow generation [2] Company Overview - Martin Marietta is a leading supplier of building materials, including aggregates, cement, ready mixed concrete, and asphalt, operating across 28 states, Canada, and The Bahamas [2] - The company also has a Magnesia Specialties business that provides high-purity magnesia and dolomitic lime products for various applications worldwide [2]

FORM 10-Q General Information [Registrant Information](index=1&type=section&id=Registrant%20Information) This section identifies Martin Marietta Materials, Inc as the registrant, a North Carolina corporation filing a quarterly report for the period ended June 30, 2025 - Registrant: **MARTIN MARIETTA MATERIALS, INC**[2](index=2&type=chunk) - Filing Type: **Quarterly Report (Form 10-Q)** for the period ended June 30, 2025[2](index=2&type=chunk) - Jurisdiction of Incorporation: **North Carolina**[2](index=2&type=chunk) [Securities and Filing Status](index=1&type=section&id=Securities%20and%20Filing%20Status) The company's Common Stock (MLM) is registered on The New York Stock Exchange, and Martin Marietta is classified as a large accelerated filer Securities Registered | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock (Par Value $0.01) | MLM | The New York Stock Exchange | - Filing Compliance: **Filed all required reports** in the preceding 12 months and subject to filing requirements for the past 90 days (Yes)[3](index=3&type=chunk) - Interactive Data File Submission: **Submitted electronically** every Interactive Data File (Yes)[3](index=3&type=chunk) - Filer Status: **Large accelerated filer**[4](index=4&type=chunk) - Shell Company Status: **Not a shell company**[4](index=4&type=chunk) [Shares Outstanding](index=1&type=section&id=Shares%20Outstanding) As of August 4, 2025, the company had 60,306,003 shares of Common Stock, $0.01 par value, outstanding Shares Outstanding | Class | Outstanding as of August 4, 2025 | | :----------------------- | :------------------------------- | | Common Stock, $0.01 par value | 60,306,003 | Table of Contents [Part I. Financial Information](index=2&type=section&id=Part%20I.%20Financial%20Information) This section outlines the financial statements, related disclosures, and management's discussion and analysis of financial condition and operations [Part II. Other Information](index=2&type=section&id=Part%20II.%20Other%20Information) This section covers other required disclosures such as legal proceedings, risk factors, and exhibits PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Martin Marietta Materials, Inc and its subsidiaries [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets and total equity slightly decreased from December 31, 2024, to June 30, 2025 **Consolidated Balance Sheet Highlights (Dollars in Millions):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Assets | $18,070 | $18,170 | | Total Liabilities | $8,704 | $8,714 | | Total Equity | $9,366 | $9,456 | | Cash and cash equivalents | $225 | $670 | | Accounts receivable, net | $904 | $678 | | Inventories, net | $1,155 | $1,115 | | Net property, plant and equipment | $10,127 | $10,109 | | Goodwill | $3,777 | $3,767 | | Total Current Assets | $2,393 | $2,542 | | Total Current Liabilities | $1,019 | $1,016 | | Long-term debt | $5,291 | $5,288 | [Consolidated Statements of Earnings and Comprehensive Earnings](index=4&type=section&id=Consolidated%20Statements%20of%20Earnings%20and%20Comprehensive%20Earnings) Quarterly net earnings increased year-over-year, while six-month net earnings decreased significantly due to a large prior-year divestiture gain **Consolidated Statements of Earnings Highlights (Dollars in Millions, Except Per Share Data):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $1,811 | $1,764 | $3,164 | $3,015 | | Gross Profit | $544 | $517 | $879 | $790 | | Earnings from Operations | $458 | $398 | $652 | $1,819 | | Net Earnings Attributable to Martin Marietta | $328 | $294 | $444 | $1,339 | | Diluted EPS | $5.43 | $4.76 | $7.31 | $21.66 | - The significant decrease in Net Earnings Attributable to Martin Marietta for the six months ended June 30, 2025, compared to 2024, is largely due to a **$1.3 billion gain on divestitures** and sales of assets in 2024[10](index=10&type=chunk)[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased significantly for the six months ended June 30, 2025, compared to the prior year **Consolidated Statements of Cash Flows Highlights (Dollars in Millions):** | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Consolidated net earnings | $444 | $1,340 | | Net Cash Provided by Operating Activities | $605 | $173 | | Net Cash Used for Investing Activities | $(452) | $(766) | | Net Cash Used for Financing Activities | $(587) | $(580) | | Net Decrease in Cash and Cash Equivalents | $(434) | $(1,173) | | Cash, Cash Equivalents and Restricted Cash, end of period | $236 | $109 | - Operating cash flow in 2024 was significantly impacted by a **$1,336 million gain on divestitures** and sales of assets, which was a non-cash adjustment to reconcile net earnings[12](index=12&type=chunk) - Investing activities in 2024 included **$2,538 million for acquisitions**, net of cash acquired, and **$2,121 million from proceeds from divestitures** and sales of assets[12](index=12&type=chunk) [Consolidated Statements of Total Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Total%20Equity) Total equity decreased slightly due to share repurchases and dividends paid, which offset net earnings for the period **Consolidated Statements of Total Equity Highlights (Dollars in Millions):** | Item | Balance at December 31, 2024 | Balance at June 30, 2025 | | :------------------------------------ | :--------------------------- | :----------------------- | | Total Equity | $9,456 | $9,366 | | Consolidated net earnings (6 months) | N/A | $444 | | Dividends declared (6 months) | N/A | $(96) | | Repurchases of common stock (6 months) | N/A | $(454) | | Additional paid-in capital | $3,550 | $3,562 | | Retained earnings | $5,915 | $5,809 | - The company repurchased **910,831 shares of common stock for $450 million** during the first six months of 2025[14](index=14&type=chunk)[129](index=129&type=chunk) [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of accounting policies, business segments, significant transactions, and specific financial line items [1. Significant Accounting Policies](index=7&type=section&id=1.%20Significant%20Accounting%20Policies) This section details the company's organizational structure, business activities, and key accounting treatments - Martin Marietta is a natural resource-based building materials company, supplying aggregates, cement, ready mixed concrete, asphalt, and paving services through its **Building Materials business** (East Group and West Group segments) and **Magnesia Specialties business**[15](index=15&type=chunk)[16](index=16&type=chunk)[19](index=19&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[92](index=92&type=chunk) - Restricted cash of **$11 million** at June 30, 2025, was invested for like-kind exchange replacement assets under Section 1031 of the Internal Revenue Code[23](index=23&type=chunk)[24](index=24&type=chunk) **Consolidated Comprehensive Earnings Attributable to Martin Marietta (Dollars in Millions):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net earnings attributable to Martin Marietta | $328 | $294 | $444 | $1,339 | | Other comprehensive earnings, net of tax | $3 | $1 | $4 | $1 | | Consolidated comprehensive earnings attributable to Martin Marietta | $331 | $295 | $448 | $1,340 | - New accounting pronouncements (ASU 2023-09 and ASU 2024-03) will impact income tax and expense disclosures in future annual reports but **will not affect results of operations, cash flows, or financial condition**[31](index=31&type=chunk)[32](index=32&type=chunk) [2. Business Combinations and Divestitures](index=11&type=section&id=2.%20Business%20Combinations%20and%20Divestitures) The company completed several acquisitions in 2024 and a significant divestiture, with subsequent M&A activity in July and August 2025 - Acquisition of BWI Southeast (April 5, 2024): Acquired 20 active aggregates operations for **$2.05 billion in cash**, expanding into Tennessee and South Florida, with results reported in East Group[35](index=35&type=chunk) **BWI Southeast Acquisition - Assets Acquired and Liabilities Assumed (April 5, 2024, Dollars in Millions):** | Item | Amount | | :-------------------------------- | :----- | | Inventories | $47 | | Property, plant and equipment (incl. mineral reserves $1.9B) | $2,052 | | Intangible assets, other than goodwill | $19 | | Other assets | $2 | | Total assets | $2,120 | | Deferred income taxes | $234 | | Asset retirement obligations | $3 | | Other liabilities | $95 | | Total liabilities | $332 | | Net identifiable assets acquired | $1,788 | | Goodwill | $262 | | Total consideration | $2,050 | - Divestiture of South Texas cement business (February 9, 2024): Sold for **$2.1 billion in cash**, resulting in a **$1.3 billion pretax gain**, with proceeds used for the BWI Southeast acquisition[43](index=43&type=chunk) - Subsequent Event (July 25, 2025): **Acquired Premier Magnesia, LLC**, expanding the Magnesia Specialties business[44](index=44&type=chunk) - Subsequent Event (August 3, 2025): Entered agreement with Quikrete Holdings, Inc for an **asset exchange** (aggregates operations + $450 million cash for Midlothian cement plant and North Texas ready mixed concrete assets), expected to close Q1 2026[45](index=45&type=chunk) [3. Goodwill](index=15&type=section&id=3.%20Goodwill) Goodwill increased slightly due to adjustments to purchase price allocations in the West Group **Goodwill by Reportable Segment (Dollars in Millions):** | Item | East Group | West Group | Total | | :-------------------------------- | :--------- | :--------- | :------ | | Balance at January 1, 2025 | $1,031 | $2,736 | $3,767 | | Adjustments to purchase price allocations | — | $10 | $10 | | Balance at June 30, 2025 | $1,031 | $2,746 | $3,777 | [4. Inventories, Net](index=15&type=section&id=4.%20Inventories%2C%20Net) Net inventories increased from December 31, 2024, to June 30, 2025, driven by an increase in finished products **Inventories, Net (Dollars in Millions):** | Item | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Finished products | $1,395 | $1,327 | | Products in process | $27 | $24 | | Raw materials | $88 | $65 | | Supplies and expendable parts | $165 | $162 | | Total inventories | $1,675 | $1,578 | | Less: allowances | $(520) | $(463) | | Inventories, net | $1,155 | $1,115 | [5. Debt](index=15&type=section&id=5.%20Debt) Total debt remained stable at approximately $5.4 billion, and the company was in compliance with all debt covenants **Debt Summary (Dollars in Millions):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total debt | $5,416 | $5,413 | | Less: current maturities | $(125) | $(125) | | Long-term debt | $5,291 | $5,288 | - The company has an **$800 million** five-year senior unsecured revolving facility and a **$400 million** trade receivable securitization facility, with **no outstanding borrowings** on either facility as of June 30, 2025[50](index=50&type=chunk)[52](index=52&type=chunk) - The company was **in compliance with its consolidated net debt-to-consolidated EBITDA ratio covenant** of not exceeding 3.50x (or 4.00x with certain acquisition-related debt exclusions) at June 30, 2025[51](index=51&type=chunk) [6. Financial Instruments](index=16&type=section&id=6.%20Financial%20Instruments) The fair value of the company's long-term debt was $4.9 billion compared to its carrying value of $5.4 billion at June 30, 2025 - Temporary cash investments and restricted cash are carried at cost, **approximating fair value** due to their short maturity/nature[54](index=54&type=chunk)[55](index=55&type=chunk) - Accounts receivable are concentrated in **Texas, North Carolina, Colorado, California, Georgia, Florida, Minnesota, Arizona, South Carolina, and Iowa**[56](index=56&type=chunk) **Debt Carrying Value vs. Fair Value (Dollars in Millions):** | Item | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Carrying value of debt | $5,400 | $5,400 | | Fair value of debt | $4,900 | $4,800 | [7. Income Taxes](index=17&type=section&id=7.%20Income%20Taxes) The effective income tax rate for the first six months of 2025 was 20.5%, down from 25.0% in 2024 due to a prior-year divestiture impact **Effective Income Tax Rates:** | Period | Effective Income Tax Rate | | :----------------------------- | :------------------------ | | Six Months Ended June 30, 2025 | 20.5% | | Six Months Ended June 30, 2024 | 25.0% | - The higher 2024 tax rate was driven by the divestiture of the South Texas cement business, which involved the **write-off of nondeductible goodwill**[59](index=59&type=chunk) - The company's annualized effective tax rate for the six months ended June 30, 2025, includes **$46 million from proportional amortization of renewable energy investment entities**, offset by **$42 million in tax credits** and **$8 million in other tax benefits**[60](index=60&type=chunk) - **Deferred $150 million in income tax payments** as of June 30, 2025, under disaster tax relief for North Carolina businesses affected by Hurricanes Debby and Helene, due September 25, 2025[62](index=62&type=chunk)[126](index=126&type=chunk) [8. Pension Benefits](index=18&type=section&id=8.%20Pension%20Benefits) Net periodic benefit cost for pension benefits decreased for both the three and six months ended June 30, 2025, compared to 2024 **Net Periodic Benefit Cost for Pension Benefits (Dollars in Millions):** | Component | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Service cost | $9 | $10 | $18 | $19 | | Interest cost | $14 | $15 | $29 | $28 | | Expected return on assets | $(20) | $(21) | $(41) | $(39) | | Amortization of prior service cost | $1 | $2 | $3 | $3 | | Amortization of actuarial loss | — | — | $1 | — | | Net periodic benefit cost | $4 | $6 | $10 | $11 | [9. Commitments and Contingencies](index=18&type=section&id=9.%20Commitments%20and%20Contingencies) The company believes the probability of a material loss from various legal and administrative proceedings is remote - The company believes the outcome of any currently pending legal or administrative proceeding **will not result in a material loss** to its financial condition, results of operations, or cash flows[66](index=66&type=chunk) - Contingently liable for **$32 million in standby letters of credit** at June 30, 2025, guaranteeing payment for insurance claims, contract performance, and permit requirements[67](index=67&type=chunk) [10. Segments](index=18&type=section&id=10.%20Segments) The company operates through East Group, West Group, and Magnesia Specialties segments, with performance evaluated on earnings from operations - Reportable segments: **East Group, West Group** (Building Materials business), and **Magnesia Specialties**[68](index=68&type=chunk) - Segment performance is evaluated based on **segment earnings from operations**, which excludes interest, income taxes, and certain non-operating items[69](index=69&type=chunk) - West Group's earnings from operations for the six months ended June 30, 2024, included a **$1.3 billion gain** and **$16 million in transaction expenses** from the South Texas cement business divestiture, and a **$50 million noncash asset and portfolio rationalization charge**[73](index=73&type=chunk) **Segment Earnings (Loss) from Operations (Dollars in Millions):** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | East Group | $266 | $249 | $418 | $378 | | West Group | $165 | $171 | $214 | $1,470 | | Magnesia Specialties | $31 | $25 | $64 | $48 | | Total Reportable Segments | $462 | $445 | $696 | $1,896 | | Corporate | $(4) | $(47) | $(44) | $(77) | | Total | $458 | $398 | $652 | $1,819 | **Assets Employed by Segment (Dollars in Millions):** | Segment | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | East Group | $8,711 | $8,452 | | West Group | $7,965 | $7,941 | | Magnesia Specialties | $291 | $269 | | Total reportable segments | $16,967 | $16,662 | | Corporate | $1,103 | $1,508 | | Total | $18,070 | $18,170 | [11. Revenues and Gross Profit](index=22&type=section&id=11.%20Revenues%20and%20Gross%20Profit) Total revenues and gross profit increased for both the three and six-month periods, led by the Aggregates and Magnesia Specialties businesses **Revenues by Line of Business (Dollars in Millions):** | Line of Business | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Aggregates | $1,320 | $1,242 | $2,322 | $2,127 | | Cement and ready mixed concrete | $245 | $261 | $477 | $526 | | Asphalt and paving services | $228 | $245 | $308 | $303 | | Total Building Materials business | $1,721 | $1,683 | $2,986 | $2,854 | | Magnesia Specialties | $90 | $81 | $178 | $161 | | Total | $1,811 | $1,764 | $3,164 | $3,015 | **Gross Profit (Loss) by Line of Business (Dollars in Millions):** | Line of Business | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Aggregates | $430 | $392 | $726 | $632 | | Cement and ready mixed concrete | $54 | $72 | $78 | $103 | | Asphalt and paving services | $33 | $37 | $11 | $15 | | Total Building Materials business | $517 | $501 | $815 | $750 | | Magnesia Specialties | $36 | $27 | $74 | $56 | | Corporate | $(9) | $(11) | $(10) | $(16) | | Total | $544 | $517 | $879 | $790 | - Future revenues from unsatisfied performance obligations were **$252 million** at June 30, 2025, down from $377 million in 2024[82](index=82&type=chunk) [12. Supplemental Cash Flow Information](index=23&type=section&id=12.%20Supplemental%20Cash%20Flow%20Information) Cash paid for interest increased while cash paid for income taxes decreased significantly for the six months ended June 30, 2025 **Supplemental Cash Flow Information (Dollars in Millions):** | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Accrued liabilities for purchases of property, plant and equipment | $61 | $49 | | Right-of-use assets obtained in exchange for new operating lease liabilities | $42 | $43 | | Right-of-use assets obtained in exchange for new finance lease liabilities | $16 | $9 | | Cash paid for interest, net of capitalized amount | $115 | $76 | | Cash paid for income taxes, net of refunds | $32 | $374 | [13. Other Operating (Expense) Income, Net](index=24&type=section&id=13.%20Other%20Operating%20(Expense)%20Income%2C%20Net) Other operating income in 2024 included a $1.3 billion pretax gain from a divestiture and a $50 million rationalization charge - For the six months ended June 30, 2024, other operating income, net, included a **$1.3 billion pretax gain** on the divestiture of the South Texas cement business and a **$50 million pretax, noncash asset and portfolio rationalization charge**[85](index=85&type=chunk) - The rationalization charge in 2024 was due to discontinuing certain long-haul distribution facilities for aggregates into Colorado, following the Albert Frei & Sons, Inc acquisition[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial performance, liquidity, capital resources, market trends, and associated risks [OVERVIEW](index=25&type=section&id=OVERVIEW) Martin Marietta is a leading building materials company with operations divided into Building Materials and Magnesia Specialties businesses - The company supplies aggregates, cement, ready mixed concrete, asphalt, and paving services, primarily for **infrastructure, nonresidential, and residential construction**[88](index=88&type=chunk) - Building Materials business segments: **East Group** (aggregates and asphalt) and **West Group** (aggregates, cement, ready mixed concrete, asphalt, and paving services)[89](index=89&type=chunk)[91](index=91&type=chunk) - Magnesia Specialties business produces magnesia-based products and dolomitic lime for **industrial, agricultural, environmental, and steel production applications**[92](index=92&type=chunk) - Operations are significantly affected by **weather patterns, seasonal changes**, and other climate-related conditions, impacting production, shipments, and profitability[91](index=91&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=26&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) There were no changes to the company's critical accounting policies during the six months ended June 30, 2025 - **No changes** to critical accounting policies during the six months ended June 30, 2025[93](index=93&type=chunk) [RESULTS OF OPERATIONS](index=26&type=section&id=RESULTS%20OF%20OPERATIONS) Consolidated Adjusted EBITDA increased for the three and six-month periods, driven by aggregates pricing and Magnesia Specialties growth **Adjusted EBITDA Reconciliation (Dollars in Millions):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net earnings attributable to Martin Marietta | $328 | $294 | $444 | $1,339 | | Adjusted EBITDA | $630 | $584 | $982 | $875 | - **Adjusted EBITDA** is a non-GAAP measure used to evaluate operating performance, excluding interest, income taxes, DDA, nonconsolidated equity affiliates, acquisition/divestiture/integration expenses, inventory markup, nonrecurring gain on divestiture, and noncash asset rationalization charge[94](index=94&type=chunk)[95](index=95&type=chunk) [Quarter Ended June 30, 2025](index=27&type=section&id=Quarter%20Ended%20June%2030%2C%202025) Second quarter consolidated revenues and gross profit increased, led by strong aggregates pricing and Magnesia Specialties performance **Revenues by Segment and Product Line (Three Months Ended June 30, Dollars in Millions):** | Segment/Product Line | 2025 Amount | 2024 Amount | | :-------------------------------- | :---------- | :---------- | | East Group Aggregates | $836 | $785 | | East Group Asphalt | $40 | $46 | | West Group Aggregates | $484 | $457 | | West Group Cement and ready mixed concrete | $245 | $261 | | West Group Asphalt and paving services | $188 | $199 | | Total Building Materials business | $1,721 | $1,683 | | Total Magnesia Specialties | $90 | $81 | | Total | $1,811 | $1,764 | **Gross Profit by Segment and Product Line (Three Months Ended June 30, Dollars in Millions):** | Segment/Product Line | 2025 Amount | 2025 % of Revenues | 2024 Amount | 2024 % of Revenues | | :-------------------------------- | :---------- | :----------------- | :---------- | :----------------- | | Aggregates | $430 | 33% | $392 | 32% | | Cement and ready mixed concrete | $54 | 22% | $72 | 28% | | Asphalt and paving services | $33 | 15% | $37 | 15% | | Total Building Materials business | $517 | 30% | $501 | 30% | | Magnesia Specialties | $36 | 40% | $27 | 34% | | Corporate | $(9) | N/A | $(11) | N/A | | Total | $544 | 30% | $517 | 29% | - Aggregates shipments decreased 0.6% to 52.7 million tons, but **average selling price increased 7.4%** to $23.21 per ton, leading to a **9% increase in gross profit**[99](index=99&type=chunk)[100](index=100&type=chunk) - Magnesia Specialties **revenues increased 12%** and **gross profit increased 32%** due to higher prices, improved lime shipments, and efficiency gains[106](index=106&type=chunk) - Diluted EPS for Q2 2025 was **$5.43**, up from $4.76 in Q2 2024, which included after-tax charges for inventory markup ($15M) and acquisition/integration expenses ($16M)[108](index=108&type=chunk) [Six Months Ended June 30, 2025](index=29&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025) Six-month revenues and gross profit rose, though net earnings fell significantly due to a large prior-year divestiture gain **Revenues by Segment and Product Line (Six Months Ended June 30, Dollars in Millions):** | Segment/Product Line | 2025 Amount | 2024 Amount | | :-------------------------------- | :---------- | :---------- | | East Group Aggregates | $1,434 | $1,312 | | East Group Asphalt | $40 | $45 | | West Group Aggregates | $888 | $815 | | West Group Cement and ready mixed concrete | $477 | $526 | | West Group Asphalt and paving services | $268 | $258 | | Total Building Materials business | $2,986 | $2,854 | | Total Magnesia Specialties | $178 | $161 | | Total | $3,164 | $3,015 | **Gross Profit by Segment and Product Line (Six Months Ended June 30, Dollars in Millions):** | Segment/Product Line | 2025 Amount | 2025 % of Revenues | 2024 Amount | 2024 % of Revenues | | :-------------------------------- | :---------- | :----------------- | :---------- | :----------------- | | Aggregates | $726 | 31% | $632 | 30% | | Cement and ready mixed concrete | $78 | 16% | $103 | 20% | | Asphalt and paving services | $11 | 4% | $15 | 5% | | Total Building Materials business | $815 | 27% | $750 | 26% | | Magnesia Specialties | $74 | 42% | $56 | 35% | | Corporate | $(10) | N/A | $(16) | N/A | | Total | $879 | 28% | $790 | 26% | - Year-to-date aggregates shipments increased 2.3% to 91.7 million tons, with **average selling price up 7.2%** to $23.45 per ton, driving a **15% improvement in gross profit**[112](index=112&type=chunk) - Magnesia Specialties year-to-date **revenues increased 10%** to $178 million and **gross profit increased 32%** to $74 million, driven by improved lime shipments, strong pricing, and cost discipline[119](index=119&type=chunk) - Net earnings attributable to Martin Marietta for the six months ended June 30, 2025, were **$444 million ($7.31 diluted EPS)**, significantly lower than $1.3 billion ($21.66 diluted EPS) in 2024, primarily due to the **$976 million after-tax gain on divestiture in 2024**[123](index=123&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=31&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Net cash from operating activities increased substantially, and the company maintains strong liquidity with $1.2 billion in unused borrowing capacity - Net cash provided by operating activities for the six months ended June 30, 2025, was **$605 million**, compared to $173 million in 2024[124](index=124&type=chunk) - The company repurchased **910,831 shares of common stock for $450 million** during the first six months of 2025, with 11.0 million shares remaining under authorization[129](index=129&type=chunk) - As of June 30, 2025, the company had **$1.2 billion of unused borrowing capacity** under its $800 million Revolving Facility and $400 million Trade Receivable Facility, with no outstanding borrowings[132](index=132&type=chunk) - Management expects cash on hand, internal cash flows, and financing resources to be **sufficient for anticipated operating needs**, debt service, capital expenditures, dividends, and share repurchases[132](index=132&type=chunk) [TRENDS AND RISKS](index=33&type=section&id=TRENDS%20AND%20RISKS) The business is vulnerable to economic downturns, rising interest rates, and escalating costs in the construction and steelmaking industries - Operations are highly dependent on **interest rate-sensitive construction and steelmaking industries**, susceptible to lower economic activity from rising interest rates or escalating costs[146](index=146&type=chunk) - Demand for aggregates is affected by **federal, state, and local budget issues**, and delays in nonresidential and residential projects can occur due to financing difficulties or eroded consumer confidence[147](index=147&type=chunk) - Key risk factors include **shipment declines** from economic/weather events, widespread **aggregates pricing declines**, volatility in cement/ready mixed concrete, changes in public construction funding, high mortgage rates, unfavorable weather, and volatility of fuel/energy costs[137](index=137&type=chunk)[140](index=140&type=chunk) - Other risks include **construction labor shortages**, supply chain challenges, labor relations risks, equipment failures, governmental regulation, transportation availability/costs, weakening steel industry markets, geopolitical conflicts, cybersecurity, and inflation[140](index=140&type=chunk)[143](index=143&type=chunk) [OTHER MATTERS](index=33&type=section&id=OTHER%20MATTERS) This section advises investors to review SEC filings and includes a cautionary statement regarding forward-looking statements - Investors are advised to read the company's annual report and Forms 10-K, 10-Q, and 8-K reports filed with the SEC, accessible via www.martinmarietta.com and www.sec.gov[135](index=135&type=chunk)[144](index=144&type=chunk) - All **forward-looking statements** in the Form 10-Q involve risks and uncertainties and are based on assumptions that may differ materially from actual results[136](index=136&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are tied to interest rates, pension assumptions, tax laws, and energy cost volatility - The company's operations are highly dependent on **interest rate-sensitive construction and steelmaking industries**[146](index=146&type=chunk) - Demand in nonresidential and residential construction (**60% of aggregates shipments** for six months ended June 30, 2025) is affected by interest rates[148](index=148&type=chunk) - Risks include **variable-rate borrowing facilities**, pension expense assumptions (discount rate, expected return on assets), changes in enacted tax laws, and energy costs[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) - A hypothetical **10% change in energy prices** in 2025 compared to 2024 would change 2025 energy expense by **$32 million**[152](index=152&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes in internal control - Disclosure controls and procedures were **effective** as of June 30, 2025[153](index=153&type=chunk) - **No material changes** in internal control over financial reporting during the most recently completed fiscal quarter[153](index=153&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings is cross-referenced to Note 9, where no material loss is expected from pending cases - Refer to **Note 9 Commitments and Contingencies** for details on legal and administrative proceedings[155](index=155&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Risk factors are referenced to the company's Annual Report on Form 10-K, with no new material risks identified - Refer to **Part I. Item 1A. Risk Factors and Forward-Looking Statements** of the Annual Report on Form 10-K for the year ended December 31, 2024[156](index=156&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares during the quarter, with 11.0 million shares remaining under its repurchase authorization **Issuer Purchases of Equity Securities (Three Months Ended June 30, 2025):** | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs | | :-------------------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------- | :----------------------------------------------------------------------------- | | April 1, 2025 - April 30, 2025 | — | $— | — | 11,024,507 | | May 1, 2025 - May 31, 2025 | — | $— | — | 11,024,507 | | June 1, 2025 - June 30, 2025 | — | $— | — | 11,024,507 | | Total | — | N/A | — | N/A | - The company's Board of Directors authorized a maximum of **20 million shares for repurchase** under a program with no expiration date[157](index=157&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are included in Exhibit 95 of this Quarterly Report on Form 10-Q - Mine safety disclosures are included in **Exhibit 95** to this Quarterly Report on Form 10-Q[158](index=158&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - **No director or officer** adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[159](index=159&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications, statements, and Inline XBRL documents - Includes certifications (31.01, 31.02) from CEO and CFO, written statements (32.01, 32.02) required by 18 U.S.C. 1350, Mine Safety Disclosures (95), and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.LAB, 101.PRE, 101.DEF, 104)[162](index=162&type=chunk) SIGNATURES The report is signed by the Senior Vice President and Chief Financial Officer on behalf of the company on August 7, 2025 - Report signed by **Michael J. Petro, Senior Vice President and Chief Financial Officer**, on August 7, 2025[164](index=164&type=chunk)

Core Insights - Martin Marietta Materials, Inc. (MLM) reported mixed results for Q2 2025, with earnings exceeding estimates while revenues fell short, although both metrics showed year-over-year growth [2][5][10] Financial Performance - Earnings per share (EPS) from continuing operations reached $5.43, surpassing the Zacks Consensus Estimate of $5.32 by 2.1% and increasing 14% from $4.76 in the previous year [5][10] - Revenues totaled $1.81 billion, slightly missing the consensus mark of $1.82 billion by 0.3%, but reflecting a 3% increase from $1.76 billion year-over-year [5][10] - Gross margin expanded by 70 basis points to 30%, while adjusted EBITDA grew 8% year-over-year to $630 million, with an adjusted EBITDA margin of 34.8% [6][10] Segment Performance - The Building Materials segment reported revenues of $1.7 billion, a 2% year-over-year increase, with a gross margin of 30% [7] - Aggregates revenues grew 6.3% to $1.32 billion, despite a 0.6% decline in shipments to 52.7 million tons, attributed to soft demand in Colorado and adverse weather [8] - Magnesia Specialties achieved record revenues of $90 million, up 11.1% from $81 million a year ago, with a gross margin increase to 40% [11] Guidance and Outlook - Martin Marietta revised its 2025 revenue guidance to a range of $6.82 billion to $7.12 billion, up from previous estimates, and adjusted EBITDA is now projected between $2.25 billion and $2.35 billion [14][15] - The company anticipates aggregate shipments to increase by 1-4% and total aggregate pricing per ton to rise between 6.8% and 7.8% [15][16] Financial Position - As of June 30, 2025, cash and cash equivalents stood at $225 million, down from $670 million at the end of 2024, with $1.2 billion of unused borrowing capacity [12] - The company returned $547 million to shareholders through dividends and share repurchases in the first half of 2025 [13]

Financial Data and Key Metrics Changes - Martin Marietta reported consolidated adjusted EBITDA of $630 million, an 8% increase year-over-year, with an adjusted EBITDA margin of 35%, up 170 basis points [9] - Aggregates revenues reached $1.32 billion, a 6% increase, while aggregates gross profit increased by 9% to $430 million, with a gross margin of 33%, up 94 basis points [9] - The company increased its full-year 2025 adjusted EBITDA guidance to $2.3 billion at the midpoint, reflecting strong first-half results and positive shipping trends in the third quarter [10] Business Line Data and Key Metrics Changes - The Building Materials business posted revenues of $1.7 billion, a 2% increase, with gross profit rising 3% to $517 million and a gross margin of 30% [16] - Magnesia Specialties achieved record revenues of $90 million, with gross profit and gross margin also reaching new highs at $36 million and 40%, respectively [9][18] - Cement and Concrete revenues decreased by 6% to $245 million, with gross profit down 25% to $54 million due to lower operating leverage and higher raw material costs [17] Market Data and Key Metrics Changes - The value of state and local government highway, bridge, and tunnel contract awards increased by 10% year-over-year to $126 billion for the twelve months ending June 30, 2025 [11] - Infrastructure remains a strong performer, supported by robust federal and state investment, while residential and non-residential construction trends are mixed [10][11] - Texas is experiencing significant data center growth, driven by low-cost energy and favorable regulatory conditions, with major investments announced by companies like OpenAI and Texas Instruments [12][14] Company Strategy and Development Direction - The company is focused on transforming into a higher-margin enterprise that is increasingly aggregates-led, enhancing its product mix while maintaining balance sheet flexibility [8] - The strategic exchange of cement and ready-mixed concrete operations for core aggregates aligns with the company's SOAR 2025 plan [9] - Martin Marietta aims to capitalize on long-term infrastructure investment trends and demographic tailwinds in high-growth markets [15] Management's Comments on Operating Environment and Future Outlook - Management noted that July showed double-digit volume increases across the enterprise, indicating positive demand trends [24][25] - The company remains cautious about weather impacts on volume but is optimistic about pricing trends and overall market resilience [79][80] - Management expressed confidence in achieving full-year adjusted EBITDA guidance, supported by strong fundamentals and a favorable growth outlook [21] Other Important Information - The company entered into an agreement with Quikrete Holdings for an asset exchange, which includes acquiring operations producing approximately 20 million tons annually and $450 million in cash [8] - Capital expenditures for the full year are expected to be in the range of $820 million to $850 million, reflecting upward revisions due to attractive land purchases [19] Q&A Session Summary Question: Insights on July demand trends and future outlook - Management reported double-digit volume increases in July, indicating strong demand across the enterprise and a positive outlook for the remainder of the year [24][25] Question: Confidence in increased annual guidance - The increase in guidance is based on strong first-half results, positive shipment trends, and a resilient commercial environment [33][34] Question: Strategic fit of Quickrete assets - The acquired assets are seen as high-quality, particularly in crushed stone, and align with the company's strategic focus on targeted geographies [42][43] Question: Pricing dynamics and market conditions - Management noted that pricing remains solid without significant mix headwinds, and they expect continued pricing strength into 2026 [51][52] Question: Magnesia business focus and growth potential - The Magnesia business is expected to remain an important part of the company's portfolio, contributing positively to margins and cash flow [118][119] Question: Land purchases and expansion strategy - The company is focusing on adjacent land purchases to enhance existing operations rather than pursuing greenfield opportunities [123][124]