☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-12744 MARTIN MARIETTA MATERIALS, INC. (Exact Name of Registrant as Specified in its Charter) North Carolina 56-1848578 (State or ot ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12744 MARTIN MARIETTA MATERIALS, INC. (Exact name of registrant as specified in its charter) North Carolina 56-1848578 (State or other ...

Martin Marietta Materials, Inc. (NYSE:MLM) Q4 2022 Earnings Conference Call February 15, 2023 10:00 AM ET Company Participants Jennifer Park - VP, IR Ward Nye - Chairman and CEO Jim Nickolas - SVP and CFO Conference Call Participants Kathryn Thompson - Thompson Research Group Trey Grooms - Stephens Stanley Elliott - Stifel Anthony Pettinari - Citi Jerry Revich - Goldman Sachs Tyler Brown - Raymond James Keith Hughes - Truist Phil Ng - Jefferies Michael Dudas - Vertical Research Partners Michael Feniger - Ba ...

Martin Marietta Materials, Inc. (NYSE:MLM) Q3 2022 Earnings Conference Call November 2, 2022 11:00 AM ET Company Participants Jennifer Park - Vice President, Investor Relations Ward Nye - Chairman of the Board, President and Chief Executive Officer Jim Nickolas - Senior Vice President and Chief Financial Officer Conference Call Participants Stan Elliott - Stifel Kathryn Thompson - Thomson Research Group Trey Grooms - Stephens Jerry Revich - Goldman Sachs Phil Ng - Jefferies Timna Tanners - Wolfe Research Ke ...

MARTIN MARIETTA REPORTS THIRD-QUARTER 2022 RESULTS Achieved Record Quarterly Revenues and Gross Profit Driven by Double-Digit Pricing Growth Across All Building Materials' Product Lines Pricing Momentum Expected to Drive Margin Expansion in Fourth Quarter Updates Full-Year 2022 Guidance RALEIGH, N.C. (November 2, 2022) – Martin Marietta Materials, Inc. (NYSE: MLM) ("Martin Marietta" or the "Company"), a leading national supplier of aggregates and heavy building materials, today reported results for the thir ...

Martin Marietta Materials, Inc. (NYSE:MLM) Q2 2022 Results Conference Call July 28, 2022 11:00 AM ET Company Participants Jennifer Park - VP, IR Ward Nye - Chairman, CEO Jim Nickolas - SVP, CFO Conference Call Participants Brian Biros - Thompson Research Group David MacGregor - Longbow Research Jerry Revich - Goldman Sachs Keith Hughes - Truist Kevin Gainey - Thompson Davis Michael Dudas - Vertical Research Partners Phil Ng - Jefferies Elliott Stanley - Stifel Trey Grooms - Stephens Operator Good morning, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR Securities registered pursuant to Section 12(b) of the Act: | | Trading | | | --- | --- | --- | | Title of each class | Symbol(s) | Name of each exchange on which registered | | Common Stock (Par Value $0.01) | MLM | NYSE | Indicate by check mark whether the registrant (1) has filed ...

```markdown [PART I. FINANCIAL INFORMATION](index=3&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's unaudited consolidated financial statements and management's financial analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements and related disclosures for the quarter [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity Consolidated Balance Sheet Highlights (In Millions) | Metric | March 31, 2022 | December 31, 2021 | Change | % Change | | :-------------------------------- | :------------- | :---------------- | :----- | :------- | | Total Current Assets | $1,987.5 | $2,025.6 | $(38.1) | -1.88% | | Net Property, Plant and Equipment | $6,208.9 | $6,338.0 | $(129.1) | -2.04% | | Goodwill | $3,392.0 | $3,494.4 | $(102.4) | -2.93% | | Total Assets | $14,241.5 | $14,393.0 | $(151.5) | -1.05% | | Total Current Liabilities | $712.9 | $752.6 | $(39.7) | -5.27% | | Long-term Debt | $5,102.3 | $5,100.8 | $1.5 | 0.03% | | Total Liabilities | $7,810.4 | $7,855.4 | $(45.0) | -0.57% | | Total Shareholders' Equity | $6,428.9 | $6,535.3 | $(106.4) | -1.63% | | Total Equity | $6,431.1 | $6,537.6 | $(106.5) | -1.63% | [Consolidated Statements of Earnings and Comprehensive Earnings](index=4&type=section&id=Consolidated%20Statements%20of%20Earnings%20and%20Comprehensive%20Earnings) This section presents the company's financial performance, detailing revenues, costs, and net earnings Consolidated Statements of Earnings Highlights (Three Months Ended March 31, In Millions, Except Per Share Data) | Metric | 2022 | 2021 | Change | % Change | | :---------------------------------------------- | :-------- | :-------- | :-------- | :------- | | Products and services revenues | $1,147.8 | $921.9 | $225.9 | 24.50% | | Freight revenues | $83.0 | $60.5 | $22.5 | 37.19% | | Total Revenues | $1,230.8 | $982.4 | $248.4 | 25.28% | | Total Cost of Revenues | $1,074.7 | $807.7 | $267.0 | 33.06% | | Gross Profit | $156.1 | $174.7 | $(18.6) | -10.65% | | Selling, general & administrative expenses | $97.1 | $79.8 | $17.3 | 21.68% | | Earnings from Operations | $59.9 | $99.3 | $(39.4) | -39.68% | | Interest expense | $40.5 | $27.4 | $13.1 | 47.81% | | Earnings from continuing operations | $24.4 | $65.5 | $(41.1) | -62.75% | | Loss from discontinued operations, net of tax | $(3.1) | — | $(3.1) | N/A | | Consolidated net earnings | $21.3 | $65.5 | $(44.2) | -67.48% | | Net Earnings Attributable to Martin Marietta | $21.4 | $65.3 | $(43.9) | -67.23% | | Diluted EPS from continuing operations | $0.39 | $1.04 | $(0.65) | -62.50% | | Diluted EPS (total) | $0.34 | $1.04 | $(0.70) | -67.31% | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Consolidated Statements of Cash Flows Highlights (Three Months Ended March 31, In Millions) | Metric | 2022 | 2021 | Change | % Change | | :---------------------------------------- | :-------- | :-------- | :-------- | :------- | | Net Cash Provided by Operating Activities | $169.9 | $191.9 | $(22.0) | -11.46% | | Net Cash Used for Investing Activities | $(123.0) | $(88.3) | $(34.7) | 39.29% | | Net Cash Used for Financing Activities | $(116.2) | $(53.2) | $(63.0) | 118.42% | | Net (Decrease) Increase in Cash | $(69.3) | $50.4 | $(119.7) | -237.50% | | Cash, Cash Equivalents and Restricted Cash, end of period | $189.6 | $354.8 | $(165.2) | -46.56% | [Consolidated Statement of Total Equity](index=6&type=section&id=Consolidated%20Statement%20of%20Total%20Equity) This section details changes in the company's total equity, including shareholders' equity and noncontrolling interests Consolidated Statement of Total Equity Highlights (In Millions) | Metric | March 31, 2022 | December 31, 2021 | Change | % Change | | :----------------------------------- | :------------- | :---------------- | :------- | :------- | | Total Shareholders' Equity | $6,428.9 | $6,535.3 | $(106.4) | -1.63% | | Noncontrolling interests | $2.2 | $2.3 | $(0.1) | -4.35% | | Total Equity | $6,431.1 | $6,537.6 | $(106.5) | -1.63% | - Key movements in equity for the three months ended March 31, 2022, include **consolidated net earnings** of **$21.3 million**, an **other comprehensive loss** of **$31.6 million**, **dividends declared** of **$38.4 million**, and **common stock repurchases** of **$50.0 million**[14](index=14&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations for the consolidated financial statements [Note 1. Significant Accounting Policies](index=8&type=section&id=Note%201.%20Significant%20Accounting%20Policies) This note details the company's organizational structure, interim financial statement preparation, and earnings per share [Organization](index=8&type=section&id=Organization) This section outlines the company's business structure, reportable segments, and operational scope - **Martin Marietta Materials, Inc.** is a **natural resource-based building materials company** supplying **aggregates, cement, ready mixed concrete, asphalt, and paving services** across 28 states, Canada, and The Bahamas[16](index=16&type=chunk) - The company's **Building Materials business** includes two **reportable segments**: the **East Group** (**Aggregates** and Asphalt) and the **West Group** (**Aggregates, Cement, Ready Mixed Concrete, Asphalt and Paving**)[17](index=17&type=chunk)[18](index=18&type=chunk) - The **Magnesia Specialties business**, a separate **reportable segment**, produces magnesia-based chemicals and dolomitic lime[20](index=20&type=chunk) [Basis of Presentation](index=8&type=section&id=Basis%20of%20Presentation) This section describes the preparation of unaudited interim financial statements and management's estimates - The **unaudited consolidated financial statements** are prepared in accordance with **U.S. GAAP** for **interim financial information** and reflect all necessary adjustments, consisting of normal recurring accruals[21](index=21&type=chunk) - Management's estimates and assumptions about future events are used in preparing the financial statements, and actual results may differ significantly[23](index=23&type=chunk) [Consolidated Comprehensive (Loss) Earnings and Accumulated Other Comprehensive Loss](index=9&type=section&id=Consolidated%20Comprehensive%20(Loss)%20Earnings%20and%20Accumulated%20Other%20Comprehensive%20Loss) This section presents comprehensive earnings attributable to Martin Marietta and accumulated other comprehensive loss Comprehensive (Loss) Earnings Attributable to Martin Marietta (Three Months Ended March 31, In Millions) | Metric | 2022 | 2021 | | :---------------------------------------------- | :-------- | :-------- | | Net earnings attributable to Martin Marietta | $21.4 | $65.3 | | Other comprehensive (loss) earnings, net of tax | $(31.6) | $2.8 | | Comprehensive (loss) earnings attributable to Martin Marietta | $(10.2) | $68.1 | - The **$33.3 million** **other comprehensive loss** in **Pension and Postretirement Benefit Plans** for Q1 2022 was due to a **remeasurement** of the **qualified pension plan's funded status**, following an amendment for **enhanced benefits** for eligible hourly employees[25](index=25&type=chunk) [Earnings per Common Share](index=10&type=section&id=Earnings%20per%20Common%20Share) This section details the calculation of basic and diluted earnings per common share from continuing operations Basic and Diluted EPS from Continuing Operations (Three Months Ended March 31, In Millions, Except Per Share Data) | Metric | 2022 | 2021 | | :------------------------------------------------------------------ | :----- | :----- | | Net earnings from continuing operations attributable to Martin Marietta | $24.5 | $65.3 |\n| Basic weighted-average common shares outstanding | 62.4 | 62.3 |\n| Diluted weighted-average common shares outstanding | 62.6 | 62.5 |\n| Basic from continuing operations attributable to common shareholders | $0.39 | $1.05 |\n| Diluted from continuing operations attributable to common shareholders | $0.39 | $1.04 | [Restricted Cash](index=11&type=section&id=Restricted%20Cash) This section provides information on the company's restricted cash balances and their purpose - As of March 31, 2022, there was no **restricted cash**, **down from** **$0.5 million** at December 31, 2021, which was held for like-kind exchange replacement assets under Section 1031[30](index=30&type=chunk)[31](index=31&type=chunk) [Note 2. Revenue Recognition](index=11&type=section&id=Note%202.%20Revenue%20Recognition) This note outlines the company's policies for recognizing revenue from products, services, and freight [Performance Obligations](index=12&type=section&id=Performance%20Obligations) This section describes the company's performance obligations for product sales and paving service agreements - **Product sales** are single-performance obligations satisfied at a point in time (shipment), while **paving service agreements** are satisfied over time (one day to two years)[34](index=34&type=chunk) - **Future revenues from unsatisfied performance obligations** were **$213.9 million** at March 31, 2022, **up from** **$172.8 million** at March 31, 2021[35](index=35&type=chunk) [Revenue by Category](index=12&type=section&id=Revenue%20by%20Category) This section provides a breakdown of total revenues by category and segment Total Revenues by Category and Segment (Three Months Ended March 31, In Millions) | Segment / Category | 2022 Products and Services | 2022 Freight | 2022 Total | 2021 Products and Services | 2021 Freight | 2021 Total | | :----------------- | :------------------------- | :----------- | :--------- | :------------------------- | :----------- | :--------- | | East Group | $394.6 | $24.2 | $418.8 | $372.5 | $22.4 | $394.9 | | West Group | $682.4 | $52.6 | $735.0 | $484.1 | $32.5 | $516.6 | | Building Materials | $1,077.0 | $76.8 | $1,153.8 | $856.6 | $54.9 | $911.5 | | Magnesia Specialties | $70.8 | $6.2 | $77.0 | $65.3 | $5.6 | $70.9 | | Total | $1,147.8 | $83.0 | $1,230.8 | $921.9 | $60.5 | $982.4 | - **Service revenues**, primarily from paving in California and Colorado, **increased** to **$18.3 million** in Q1 2022 **from** **$8.8 million** in Q1 2021, reported in the **West Group**[36](index=36&type=chunk) [Contract Balances](index=13&type=section&id=Contract%20Balances) This section details the company's contract assets and liabilities, including costs and billings Contract Balances (In Millions) | Metric | March 31, 2022 | December 31, 2021 | | :------------------------- | :------------- | :---------------- | | Costs in excess of billings | $3.9 | $4.3 | | Billings in excess of costs | $6.4 | $7.8 | - **Revenues recognized from the beginning balance of contract liabilities** were **$3.5 million** in Q1 2022, **down from** **$4.9 million** in Q1 2021[38](index=38&type=chunk) - **Retainage**, primarily for paving services, **decreased** to **$5.5 million** at March 31, 2022, **from** **$10.5 million** at December 31, 2021[39](index=39&type=chunk) [Policy Elections](index=13&type=section&id=Policy%20Elections) This section outlines the company's accounting policies, particularly for third-party freight delivery - The company treats **third-party freight delivery** as a fulfillment activity rather than a separate performance obligation, presenting related revenues and costs gross[40](index=40&type=chunk) [Note 3. Business Combinations and Discontinued Operations](index=13&type=section&id=Note%203.%20Business%20Combinations%20and%20Discontinued%20Operations) This note details recent acquisitions and provides information on operations classified as discontinued [Business Combinations](index=13&type=section&id=Business%20Combinations) This section details the company's recent acquisitions, including Lehigh West Region and other entities - In October 2021, the company acquired **Lehigh Hanson, Inc.'s West Region business** for **$2.26 billion**, primarily financed by debt, adding a new growth platform in California and Arizona[41](index=41&type=chunk) - Preliminary estimated fair values of assets acquired in the **Lehigh West Region acquisition** as of October 1, 2021, included **$992.8 million** in **goodwill** and **$551.0 million** in **other intangible assets**[44](index=44&type=chunk) - The company also acquired **Southern Crushed Concrete (SCC)** in July 2021 and **Tiller Corporation** in April 2021, both of which are subject to ongoing purchase accounting adjustments[44](index=44&type=chunk)[45](index=45&type=chunk) [Discontinued Operations](index=14&type=section&id=Discontinued%20Operations) This section provides financial details and plans for operations classified as discontinued - **Discontinued operations** include the **cement and California ready-mixed concrete businesses** acquired as part of the **Lehigh West Region acquisition**[46](index=46&type=chunk) Discontinued Operations Financials (Quarter Ended March 31, 2022, In Millions) | Metric | Amount | | :----------------- | :------- | | Total revenues | $94.7 | | Loss from operations | $(4.0) | | Pretax loss | $(4.1) | | Income tax benefit | $1.0 | | Net loss | $(3.1) | - The company announced a definitive agreement to sell the **Redding, California cement plant**, related distribution terminals, and **14 California ready mix operations** for **$250 million** cash, expected to close in H2 2022[48](index=48&type=chunk) - The **divestiture of Colorado and Central Texas ready mix concrete operations** was completed on April 1, 2022, **optimizing the aggregates-led portfolio**[49](index=49&type=chunk)[82](index=82&type=chunk) [Note 4. Goodwill](index=16&type=section&id=Note%204.%20Goodwill) This note presents changes in goodwill by reportable segment, reflecting purchase price adjustments and allocations Changes in Goodwill by Reportable Segment (In Millions) | Segment | Balance at Jan 1, 2022 | Adjustments to Purchase Price Allocations | Goodwill Allocated to Assets Held for Sale | Balance at Mar 31, 2022 | | :---------- | :--------------------- | :---------------------------------------- | :----------------------------------------- | :---------------------- | | East Group | $759.4 | $5.0 | — | $764.4 | | West Group | $2,735.0 | $3.8 | $(111.2) | $2,627.6 | | Total | $3,494.4 | $8.8 | $(111.2) | $3,392.0 | [Note 5. Inventories, Net](index=17&type=section&id=Note%205.%20Inventories,%20Net) This note provides a detailed breakdown of the company's inventory components and allowances Inventories, Net (In Millions) | Category | March 31, 2022 | December 31, 2021 | | :------------------------ | :------------- | :---------------- | | Finished products | $810.8 | $713.3 | | Products in process | $14.1 | $30.1 | | Raw materials | $83.9 | $69.6 | | Supplies and expendable parts | $133.5 | $153.9 | | Total (before allowances) | $1,042.3 | $966.9 | | Less: Allowances | $(259.9) | $(214.3) | | Total | $782.4 | $752.6 | [Note 6. Long-Term Debt](index=17&type=section&id=Note%206.%20Long-Term%20Debt) This note outlines the company's long-term debt structure, including senior notes and credit facilities [Long-Term Debt Schedule](index=17&type=section&id=Long-Term%20Debt%20Schedule) This section presents a detailed schedule of the company's long-term debt instruments and their maturities Long-Term Debt (In Millions) | Debt Instrument | March 31, 2022 | December 31, 2021 | | :-------------------------- | :------------- | :---------------- | | 0.650% Senior Notes, due 2023 | $697.8 | $697.4 | | 4.250% Senior Notes, due 2024 | $398.4 | $398.3 | | 7% Debentures, due 2025 | $124.6 | $124.6 | | 3.450% Senior Notes, due 2027 | $298.0 | $297.9 | | 3.500% Senior Notes, due 2027 | $496.5 | $496.4 | | 2.500% Senior Notes, due 2030 | $491.4 | $491.1 | | 2.400% Senior Notes, due 2031 | $892.1 | $891.8 | | 6.25% Senior Notes, due 2037 | $228.3 | $228.3 | | 4.250% Senior Notes, due 2047 | $592.1 | $592.1 | | 3.200% Senior Notes, due 2051 | $883.1 | $882.9 | | Other notes | $0.1 | $0.1 |\n| Total debt | $5,102.4 | $5,100.9 |\n| Less: Current maturities | $(0.1) | $(0.1) |\n| Long-term debt | $5,102.3 | $5,100.8 | [Trade Receivable Securitization Facility](index=18&type=section&id=Trade%20Receivable%20Securitization%20Facility) This section describes the company's trade receivable securitization facility and its utilization - The company has a **$400 million** **trade receivable securitization facility**, extended to September 21, 2022, with no outstanding borrowings at March 31, 2022, or December 31, 2021[55](index=55&type=chunk) [Revolving Facility](index=18&type=section&id=Revolving%20Facility) This section details the company's senior unsecured revolving credit facility and compliance with covenants - The company has an **$800 million** five-year senior unsecured **revolving facility** expiring December 21, 2026, with no outstanding borrowings at March 31, 2022, or December 31, 2021[56](index=56&type=chunk) - The **Revolving Facility** requires a **consolidated net debt-to-consolidated EBITDA ratio** not to exceed **3.50x** (or **4.00x** for certain acquisitions), and the company was in compliance at March 31, 2022[56](index=56&type=chunk) [Note 7. Financial Instruments](index=18&type=section&id=Note%207.%20Financial%20Instruments) This note describes the company's financial instruments and their fair value estimations - The company's **financial instruments** include **temporary cash investments**, **restricted cash**, **accounts receivable**, **notes receivable**, **accounts payable**, and **long-term debt**[58](index=58&type=chunk) - **Fair values** of **temporary cash investments**, **restricted cash**, **accounts receivable**, **notes receivable**, and **accounts payable** approximate their **carrying amounts** due to their short-term nature[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) Long-Term Debt Carrying vs. Fair Values (In Millions) | Metric | March 31, 2022 | December 31, 2021 | | :---------- | :------------- | :---------------- | | Carrying Value | $5.10 billion | $5.10 billion | | Fair Value | $4.93 billion | $5.45 billion | [Note 8. Income Taxes](index=19&type=section&id=Note%208.%20Income%20Taxes) This note discusses the effective income tax rate and policies for unrecognized tax benefits - The **effective income tax rate** for continuing operations was **19.3%** for Q1 2022, a slight **decrease from** **19.5%** for Q1 2021[64](index=64&type=chunk) - Interest on **unrecognized tax benefits** is recorded as income tax expense, while penalties are recorded as operating expenses[65](index=65&type=chunk) [Note 9. Pension and Postretirement Benefits](index=20&type=section&id=Note%209.%20Pension%20and%20Postretirement%20Benefits) This note details the impact of pension plan amendments and net periodic benefit costs - A **pension plan amendment** in Q1 2022 provided **enhanced benefits** for eligible hourly employees, requiring a **remeasurement** of the **qualified pension plan's funded status**[67](index=67&type=chunk) - The **remeasurement**, performed as of February 28, 2022, used a **discount rate** of **3.75%**, **up from** **3.23%**, leading to higher **projected pension expense** for the year[67](index=67&type=chunk) Net Periodic Benefit Cost (Credit) (Three Months Ended March 31, In Millions) | Component | Pension 2022 | Pension 2021 | Postretirement Benefits 2022 | Postretirement Benefits 2021 | | :------------------------ | :----------- | :----------- | :--------------------------- | :--------------------------- | | Service cost | $11.5 | $11.6 | — | — | | Interest cost | $10.2 | $9.0 | $0.1 | $0.1 | | Expected return on assets | $(19.4) | $(17.6) | — | — | | Amortization of: | | | | | | Prior service cost (credit) | $1.2 | $0.2 | $(0.2) | $(0.2) | | Actuarial loss (gain) | $0.9 | $3.3 | $(0.1) | $(0.1) | | Net periodic benefit cost (credit) | $4.4 | $6.5 | $(0.2) | $(0.2) | [Note 10. Commitments and Contingencies](index=20&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) This note addresses legal proceedings, borrowing arrangements with affiliates, and outstanding letters of credit [Legal and Administrative Proceedings](index=20&type=section&id=Legal%20and%20Administrative%20Proceedings) This section discusses the company's involvement in legal and administrative proceedings - The company believes the probability is remote that any currently pending **legal or administrative proceeding** will result in a **material loss**[69](index=69&type=chunk) [Borrowing Arrangements with Affiliate](index=20&type=section&id=Borrowing%20Arrangements%20with%20Affiliate) This section details the company's borrowing arrangements and loans with an unconsolidated affiliate - The company is a co-borrower for a **$12.5 million** **revolving line of credit** with an unconsolidated affiliate, with **$4.5 million** outstanding at March 31, 2022[70](index=70&type=chunk) - The company also has a **$6.0 million** **interest-only loan receivable** from this affiliate, due December 31, 2022[72](index=72&type=chunk) [Letters of Credit](index=21&type=section&id=Letters%20of%20Credit) This section reports the company's contingent liabilities related to outstanding letters of credit - At March 31, 2022, the company was **contingently liable** for **$17.2 million** in **letters of credit**, including **$2.6 million** issued under its **Revolving Facility**[73](index=73&type=chunk) [Note 11. Business Segments](index=21&type=section&id=Note%2011.%20Business%20Segments) This note describes the company's reportable segments and their performance evaluation criteria - The company's **reportable segments** are the **East Group** and **West Group** within the **Building Materials business**, and the **Magnesia Specialties segment**[74](index=74&type=chunk) - Performance evaluation and resource allocation are primarily based on **earnings from operations**, which exclude interest expense, other nonoperating income/expenses, and income taxes[74](index=74&type=chunk) Selected Financial Data for Reportable Segments (Three Months Ended March 31, In Millions) | Segment / Metric | 2022 Total Revenues | 2021 Total Revenues | 2022 Products and Services Revenues | 2021 Products and Services Revenues | 2022 Earnings (Loss) from Operations | 2021 Earnings (Loss) from Operations | | :------------------------ | :------------------ | :------------------ | :---------------------------------- | :---------------------------------- | :----------------------------------- | :----------------------------------- | | East Group | $418.8 | $394.9 | $394.6 | $372.5 | $28.0 | $61.7 | | West Group | $735.0 | $516.6 | $682.4 | $484.1 | $43.0 | $31.9 | | Total Building Materials | $1,153.8 | $911.5 | $1,077.0 | $856.6 | $71.0 | $93.6 | | Magnesia Specialties | $77.0 | $70.9 | $70.8 | $65.3 | $21.5 | $23.5 | | Corporate | N/A | N/A | N/A | N/A | $(32.6) | $(17.8) | | Total | $1,230.8 | $982.4 | $1,147.8 | $921.9 | $59.9 | $99.3 | [Note 12. Revenues and Gross Profit](index=23&type=section&id=Note%2012.%20Revenues%20and%20Gross%20Profit) This note provides a detailed breakdown of total revenues and gross profit by product line Total Revenues by Product Line (Three Months Ended March 31, In Millions) | Product Line | 2022 Products and Services | 2022 Freight | 2022 Total | 2021 Products and Services | 2021 Freight | 2021 Total | | :------------------------ | :------------------------- | :----------- | :--------- | :------------------------- | :----------- | :--------- | | Aggregates | $685.9 | N/A | N/A | $572.6 | N/A | N/A | | Cement | $134.3 | N/A | N/A | $109.6 | N/A | N/A | | Ready mixed concrete | $290.1 | N/A | N/A | $235.3 | N/A | N/A | | Asphalt and paving services | $54.8 | N/A | N/A | $12.2 | N/A | N/A | | Less: interproduct revenues | $(88.1) | N/A | N/A | $(73.1) | N/A | N/A | | Total Building Materials Products and Services | $1,077.0 | $76.8 | $1,153.8 | $856.6 | $54.9 | $911.5 | | Magnesia Specialties Products and Services | $70.8 | $6.2 | $77.0 | $65.3 | $5.6 | $70.9 | | Total | $1,147.8 | $83.0 | $1,230.8 | $921.9 | $60.5 | $982.4 | Gross Profit (Loss) by Product Line (Three Months Ended March 31, In Millions) | Product Line | 2022 Products and Services | 2022 Freight | 2022 Total | 2021 Products and Services | 2021 Freight | 2021 Total | | :------------------------ | :------------------------- | :----------- | :--------- | :------------------------- | :----------- | :--------- | | Aggregates | $101.9 | N/A | N/A | $121.8 | N/A | N/A | | Cement | $27.3 | N/A | N/A | $15.3 | N/A | N/A | | Ready mixed concrete | $21.1 | N/A | N/A | $19.4 | N/A | N/A | | Asphalt and paving services | $(13.3) | N/A | N/A | $(8.2) | N/A | N/A | | Total Building Materials Products and Services | $137.0 | $1.4 | $138.4 | $148.3 | $(0.3) | $148.0 | | Magnesia Specialties Products and Services | $26.8 | $(1.2) | $25.6 | $28.4 | $(0.9) | $27.5 |\n| Corporate | N/A | N/A | $(7.9) | N/A | N/A | $(0.8) |\n| Total | $156.1 | N/A | N/A | $174.7 | N/A | N/A | [Note 13. Supplemental Cash Flow Information](index=24&type=section&id=Note%2013.%20Supplemental%20Cash%20Flow%20Information) This note provides supplemental cash flow disclosures, including noncash activities and cash paid for taxes Noncash Investing and Financing Activities (Three Months Ended March 31, In Millions) | Activity | 2022 | 2021 | | :------------------------------------------------ | :----- | :------ | | Right-of-use assets obtained for new finance lease liabilities | $3.6 | $115.1 | | Right-of-use assets obtained for new operating lease liabilities | $6.1 | $6.0 | | Accrued liabilities for purchases of property, plant and equipment | $24.5 | $28.7 | | Remeasurement of operating lease right-of-use assets | $0.3 | $(6.2) | | Remeasurement of finance lease right-of-use assets | $0.4 | — | Supplemental Cash Flow Information (Three Months Ended March 31, In Millions) | Metric | 2022 | 2021 | | :------------------------------------ | :---- | :--- | | Cash paid for interest, net of capitalized amount | $44.8 | $14.8 | | Cash paid for income taxes, net of refunds | $0.8 | — | [Note 14. Subsequent Event](index=24&type=section&id=Note%2014.%20Subsequent%20Event) This note reports a significant event that occurred after the quarter-end: the divestiture of concrete operations - On April 1, 2022, the company **divested its Colorado and Central Texas ready-mixed concrete operations**, which is expected to result in a **gain**[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition [Overview](index=25&type=section&id=OVERVIEW) This section provides an overview of the company's business, segments, and operational context - **Martin Marietta** is a **natural resource-based building materials company**, supplying **aggregates, cement, ready mixed concrete, asphalt, and paving services**[84](index=84&type=chunk) - The **Building Materials business** operates in two segments: **East Group** and **West Group**, while the **Magnesia Specialties business** is a separate segment[85](index=85&type=chunk)[88](index=88&type=chunk) - The **Building Materials business** is significantly affected by **weather patterns and seasonal changes**, with most construction activity occurring in spring, summer, and fall[87](index=87&type=chunk) [Critical Accounting Policies](index=26&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) This section discusses the company's critical accounting policies and any recent changes - There were no changes to the company's **critical accounting policies** during the three months ended March 31, 2022[89](index=89&type=chunk) [Results of Operations](index=26&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance, including revenue, profit, and segment results [Adjusted EBITDA Reconciliation](index=26&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section provides a reconciliation of net earnings to Adjusted EBITDA, a non-GAAP measure Adjusted EBITDA (Three Months Ended March 31, In Millions) | Metric | 2022 | 2021 | Change | % Change | | :---------------------------------------------- | :----- | :----- | :------- | :------- | | Net Earnings from continuing operations attributable to Martin Marietta | $24.5 | $65.3 | $(40.8) | -62.48% | | Adjusted EBITDA | $197.2 | $205.6 | $(8.4) | -4.09% | [Mix-adjusted Average Selling Price (ASP)](index=27&type=section&id=Mix-adjusted%20Average%20Selling%20Price%20(ASP)) This section explains the mix-adjusted average selling price as a measure of pricing effectiveness - **Mix-adjusted average selling price (ASP)** is a **non-GAAP measure** used to evaluate **pricing effectiveness** by excluding product, geographic, and other mix impacts[92](index=92&type=chunk) West Group - Aggregates Pricing (Three Months Ended March 31) | Metric | 2022 | 2021 | | :-------------------------- | :------ | :------ | | Reported average selling price | $15.05 | $13.81 | | Mix-adjusted ASP | $14.47 | N/A | | Reported average selling price variance | 9.0% | N/A | | Mix-adjusted ASP variance | 4.8% | N/A | [Quarter Ended March 31, 2022 Financial Highlights](index=27&type=section&id=Quarter%20Ended%20March%2031,%202022%20Financial%20Highlights) This section summarizes key financial performance metrics for the quarter ended March 31, 2022 Q1 2022 Financial Highlights (In Millions, Except Per Share Data) | Metric | 2022 | 2021 | Change | % Change | | :---------------------------------------------- | :-------- | :-------- | :-------- | :------- | | Consolidated total revenues | $1,230.8 | $982.4 | $248.4 | 25.28% | | Building Materials products and services revenues | $1,080.0 | $856.6 | $223.4 | 26.08% | | Magnesia Specialties products revenues | $70.8 | $65.3 | $5.5 | 8.42% | | Consolidated gross profit | $156.1 | $174.7 | $(18.6) | -10.65% | | Consolidated earnings from operations | $59.9 | $99.3 | $(39.4) | -39.68% | | Net earnings from continuing operations attributable to Martin Marietta | $24.5 | $65.3 | $(40.8) | -62.48% | | Adjusted EBITDA | $197.2 | $205.6 | $(8.4) | -4.09% | | Earnings per diluted share from continuing operations | $0.39 | $1.04 | $(0.65) | -62.50% | [Segment and Product Line Performance](index=28&type=section&id=Segment%20and%20Product%20Line%20Performance) This section provides a detailed breakdown of financial performance by segment and product line [Total Revenues by Segment and Product Line](index=28&type=section&id=Total%20Revenues%20by%20Segment%20and%20Product%20Line) This section presents a detailed breakdown of total revenues by segment and product line Total Revenues by Segment and Product Line (Three Months Ended March 31, In Millions) | Segment / Product Line | 2022 Amount | 2021 Amount | | :--------------------- | :---------- | :---------- | | East Group Aggregates | $395.1 | $372.5 | | West Group Aggregates | $290.8 | $200.1 | | West Group Cement | $134.3 | $109.6 | | West Group Ready mixed concrete | $290.1 | $235.3 | | West Group Asphalt and paving | $54.8 | $12.2 | | Total Building Materials Products and services | $1,077.0 | $856.6 | | Total Building Materials Freight | $76.8 | $54.9 | | Total Building Materials business | $1,153.8 | $911.5 | | Magnesia Specialties Products | $70.8 | $65.3 | | Magnesia Specialties Freight | $6.2 | $5.6 | | Total Magnesia Specialties | $77.0 | $70.9 | | Grand Total | $1,230.8 | $982.4 | [Gross Profit (Loss) by Segment and Product Line](index=29&type=section&id=Gross%20Profit%20(Loss)%20by%20Segment%20and%20Product%20Line) This section details gross profit and loss by segment and product line, including percentage of revenues Gross Profit (Loss) by Segment and Product Line (Three Months Ended March 31, In Millions) | Product Line | 2022 Amount | 2022 % of Revenues | 2021 Amount | 2021 % of Revenues | | :------------------------ | :---------- | :----------------- | :---------- | :----------------- | | Aggregates | $101.9 | 14.9% | $121.8 | 21.3% | | Cement | $27.3 | 20.3% | $15.3 | 14.0% | | Ready mixed concrete | $21.1 | 7.3% | $19.4 | 8.3% | | Asphalt and paving | $(13.3) | (24.3)% | $(8.2) | (67.4)% | | Total Building Materials Products and services | $137.0 | 12.7% | $148.3 | 17.3% | | Total Building Materials Freight | $1.4 | N/A | $(0.3) | N/A | | Total Building Materials business | $138.4 | 12.0% | $148.0 | 16.2% | | Magnesia Specialties Products | $26.8 | 37.8% | $28.4 | 43.5% | | Magnesia Specialties Freight | $(1.2) | N/A | $(0.9) | N/A | | Total Magnesia Specialties | $25.6 | 33.3% | $27.5 | 38.8% | | Corporate | $(7.9) | N/A | $(0.8) | N/A | | Grand Total | $156.1 | 12.7% | $174.7 | 17.8% | [Selling, General & Administrative Expenses](index=30&type=section&id=Selling,%20General%20%26%20Administrative%20Expenses) This section analyzes selling, general, and administrative expenses by segment Selling, General & Administrative Expenses (Three Months Ended March 31, In Millions) | Segment | 2022 Amount | 2021 Amount | | :------------------------ | :---------- | :---------- | | East Group | $28.8 | $24.2 | | West Group | $41.3 | $33.3 | | Total Building Materials business | $70.1 | $57.5 | | Magnesia Specialties | $4.0 | $3.7 | | Corporate | $23.0 | $18.6 | | Total | $97.1 | $79.8 | - **Consolidated SG&A as a percentage of total revenues** **improved by** **20 basis points** to **7.9%** in Q1 2022 **from** **8.1%** in Q1 2021[109](index=109&type=chunk) [Earnings (Loss) from Operations by Segment](index=30&type=section&id=Earnings%20(Loss)%20from%20Operations%20by%20Segment) This section presents earnings and losses from operations broken down by reportable segment Earnings (Loss) from Operations by Segment (Three Months Ended March 31, In Millions) | Segment | 2022 Amount | 2022 % of Revenues | 2021 Amount | 2021 % of Revenues | | :------------------------ | :---------- | :----------------- | :---------- | :----------------- | | East Group | $28.0 | N/A | $61.7 | N/A | | West Group | $43.0 | N/A | $31.9 | N/A | | Total Building Materials business | $71.0 | N/A | $93.6 | N/A | | Magnesia Specialties | $21.5 | N/A | $23.5 | N/A | | Corporate | $(32.6) | N/A | $(17.8) | N/A | | Total | $59.9 | 4.9% | $99.3 | 10.1% | - **Consolidated earnings from operations** **decreased** to **$59.9 million** in Q1 2022 **from** **$99.3 million** in Q1 2021, driven by higher costs for energy, supplies, freight, and personnel[109](index=109&type=chunk) [Aggregates Volume and Pricing](index=30&type=section&id=Aggregates%20Volume%20and%20Pricing) This section details aggregates volume and pricing variances by segment, including organic growth Aggregates Volume/Pricing Variance (Three Months Ended March 31, % Change YoY) | Segment / Metric | Volume | Pricing | | :---------------- | :----- | :------ | | East Group | 1.1% | 5.1% | | West Group | 32.7% | 9.0% | | Total aggregates operations | 13.4% | 5.6% | | Organic aggregates operations | 2.5% | 6.5% | Aggregates Shipments (Three Months Ended March 31, In Millions of Tons) | Segment / Metric | 2022 | 2021 | | :---------------- | :--- | :--- | | East Group | 23.0 | 22.7 | | West Group | 19.1 | 14.4 | | Total aggregates operations | 42.1 | 37.1 | [Shipments and Average Selling Price by Product Line](index=31&type=section&id=Shipments%20and%20Average%20Selling%20Price%20by%20Product%20Line) This section provides shipment volumes and average selling prices for key building materials product lines Building Materials Shipments (Three Months Ended March 31, In Millions) | Product Line | 2022 | 2021 | % Change | | :------------------------ | :-------- | :-------- | :------- | | Aggregates (tons) | 42.1 | 37.1 | 13.4% | | Cement (tons) | 1.0 | 0.9 | 10.0% | | Ready Mixed Concrete (cubic yards) | 2.4 | 2.1 | 14.8% | | Asphalt (tons) | 0.7 | 0.1 | 509.1% | Building Materials Average Selling Price (Three Months Ended March 31) | Product Line | 2022 | 2021 | % Change | | :------------------------ | :-------- | :-------- | :------- | | Aggregates (per ton) | $16.17 | $15.31 | 5.6% | | Cement (per ton) | $129.11 | $115.49 | 11.8% | | Ready Mixed Concrete (per cubic yard) | $120.71 | $112.12 | 7.7% | | Asphalt (per ton) | $62.39 | $49.04 | 27.2% | [Aggregates End-Use Markets](index=32&type=section&id=Aggregates%20End-Use%20Markets) This section analyzes aggregates shipments by end-use market, including infrastructure and residential - **Organic aggregates shipments** to the **infrastructure market** **increased** **6.2%** (**32%** of Q1 shipments), driven by **highway widening projects**[101](index=101&type=chunk) - **Organic aggregates shipments** to the **nonresidential market** were **flat** (**36%** of Q1 shipments), with **strong warehousing demand** offset by **decreases** in major projects[102](index=102&type=chunk) - **Organic aggregates shipments** to the **residential market** **decreased** **2%** (**26%** of Q1 shipments) due to **supply chain issues**, **increased costs**, and **labor shortages**[103](index=103&type=chunk) - The **ChemRock/Rail market** saw a **20%** **increase** in volumes (**6%** of Q1 shipments), driven by **aglime and railroad ballast demand**[104](index=104&type=chunk) [Building Materials Business Performance Summary](index=32&type=section&id=Building%20Materials%20Business%20Performance%20Summary) This section summarizes the financial performance of the Building Materials business, highlighting key drivers - **Organic aggregates shipments** **increased** **2.5%** with pricing **up** **6.5%**; **total aggregates shipments** **grew** **13.4%** with pricing **up** **5.6%** (inclusive of acquisitions)[105](index=105&type=chunk) - **Aggregates product gross margin** **decreased** **640 basis points** to **14.9%**, primarily due to higher **diesel fuel costs** (**$12M**), **increased supplies, repair costs, contract service costs** (**$20M**), and higher **internal freight costs** (**$9M**)[105](index=105&type=chunk) - **Texas cement shipments** **increased** **10.0%** with pricing **up** **11.8%**, leading to a **630 basis point** **expansion** in **product gross margin** to **20.3%**[106](index=106&type=chunk) - **Ready mixed concrete shipments and pricing** **increased** **14.8%** and **7.7%** respectively (inclusive of acquired Arizona operations), but **product gross margin** **declined** **100 basis points** to **7.3%** due to higher **raw material and diesel costs**[107](index=107&type=chunk) - **Total asphalt shipments and pricing** **increased** **509.1%** and **27.2%** respectively (inclusive of acquired West Coast operations), but the business posted an **overall loss** consistent with historical first-quarter trends due to **seasonal closures**[107](index=107&type=chunk) [Magnesia Specialties Business Performance Summary](index=33&type=section&id=Magnesia%20Specialties%20Business%20Performance%20Summary) This section summarizes the financial performance of the Magnesia Specialties business - **Magnesia Specialties product revenues** **increased** **8.5%** to **$70.8 million**, driven by **robust global demand** and **improving domestic steel production**[108](index=108&type=chunk) - **Product gross margin** **decreased** **570 basis points** to **37.8%** due to higher costs for energy, supplies, and raw materials[108](index=108&type=chunk) - **First-quarter earnings from operations** for **Magnesia Specialties** were **$21.5 million** in 2022, **down from** **$23.5 million** in 2021[108](index=108&type=chunk) [Consolidated Operating Results Summary](index=33&type=section&id=Consolidated%20Operating%20Results%20Summary) This section provides a consolidated overview of the company's operating results - **Consolidated SG&A as a percentage of total revenues** **improved by** **20 basis points** to **7.9%** in Q1 2022[109](index=109&type=chunk) - **Consolidated earnings from operations** **decreased** to **$59.9 million** in Q1 2022 **from** **$99.3 million** in Q1 2021, primarily due to higher costs for energy, supplies, freight, and personnel[109](index=109&type=chunk) [Income Tax Expense](index=33&type=section&id=Income%20Tax%20Expense) This section discusses the company's income tax expense and effective tax rate - The **effective income tax rate** for continuing operations was **19.3%** for Q1 2022, compared to **19.5%** for Q1 2021[110](index=110&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's cash flow, capital investments, and financing resources Cash Flow from Operating Activities (Three Months Ended March 31, In Millions) | Metric | 2022 | 2021 | Change | % Change | | :---------------------------------------- | :----- | :----- | :------- | :------- | | Cash provided by operating activities | $169.9 | $191.9 | $(22.0) | -11.46% | | Depreciation, depletion and amortization | $128.2 | $98.6 | $29.6 | 30.02% | - **Capital investments** for the three months ended March 31, 2022, were **$139.8 million**, **up from** **$110.3 million** in the prior year[112](index=112&type=chunk) - The company **repurchased** **130,551 shares** of **common stock** for **$50.0 million** in Q1 2022, with **13,390,401 shares** remaining under authorization[113](index=113&type=chunk)[144](index=144&type=chunk) - At March 31, 2022, the company had **$1,197.4 million** of **unused borrowing capacity** under its **Revolving Facility** and **Trade Receivable Facility**, and no **publicly-traded debt** maturing before 2023[117](index=117&type=chunk) - The company **deferred** **$27.6 million** in **employer Social Security taxes** under the **CARES Act**, with the remaining half due by December 31, 2022[118](index=118&type=chunk) [Trends and Risks](index=34&type=section&id=TRENDS%20AND%20RISKS) This section refers to the Annual Report on Form 10-K for a comprehensive discussion of business risks - The company refers to its **Annual Report on Form 10-K** for the year ended December 31, 2021, for a comprehensive discussion of **business risks**[119](index=119&type=chunk) [Other Matters](index=34&type=section&id=OTHER%20MATTERS) This section provides cautionary statements regarding forward-looking information and risk factors - Investors are cautioned that **forward-looking statements** in this Form 10-Q involve **risks and uncertainties**, and **actual results may differ materially** from expectations[121](index=121&type=chunk) - Factors that could cause **actual results to differ** include the **COVID-19 pandemic**, **economic performance**, **construction market fluctuations**, **funding levels for public projects**, **weather conditions**, **volatility of fuel and other material costs**, **labor shortages**, and **regulatory changes**[122](index=122&type=chunk)[123](index=123&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, including interest rate and commodity price fluctuations - The company's operations are highly dependent on **interest rate-sensitive construction and steelmaking industries**, with **residential and nonresidential construction** accounting for **62%** of Q1 2022 **aggregates shipments**[129](index=129&type=chunk) - Demand for **aggregates** in the **infrastructure market** is affected by **federal, state, and local budget issues**[130](index=130&type=chunk) - The company has **variable-rate borrowing facilities** (**$800M** **Revolving Facility**, **$400M** **Trade Receivable Facility**) with no outstanding borrowings at March 31, 2022, but future borrowings are exposed to **interest rate risk**[131](index=131&type=chunk) - **Pension expense** is affected by **discount rates** and **expected return on assets**; a **remeasurement** in Q1 2022 due to a plan amendment **increased** the **discount rate by** approximately **50 basis points**[132](index=132&type=chunk) - **Organic energy expense** **increased** approximately **52%** in Q1 2022 compared to the prior-year period, driven by **higher prices for natural gas, diesel, electricity, and gasoline**, exacerbated by the **Russia-Ukraine conflict**[134](index=134&type=chunk) - **Cement is a commodity** with **prices highly sensitive to supply and demand changes**; a **hypothetical 10% change in sales price** would **impact** **full-year cement product revenues by** **$49.5 million**[136](index=136&type=chunk) - **Increases** in **cement costs**, a **key raw material for ready mixed concrete**, may not be fully passed on to customers; a **hypothetical 10% change in cement costs** would **impact** **ready mixed concrete cost of revenues by** **$32.3 million**[137](index=137&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and internal control over financial reporting - The company's **disclosure controls and procedures** were **effective** as of March 31, 2022[140](index=140&type=chunk) - There were no **material changes** in the company's **internal control over financial reporting** during the most recently completed fiscal quarter that materially affected, or are reasonably likely to materially affect, **internal control over financial reporting**[140](index=140&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, mine safety disclosures, and other exhibits [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the notes to financial statements for information on legal and administrative proceedings - Information concerning **Legal and administrative proceedings** is provided in Note 10 Commitments and Contingencies[142](index=142&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the Annual Report on Form 10-K for a comprehensive discussion of risk factors - Reference is made to Part I. Item 1A. **Risk Factors** and Forward-Looking Statements of the **Martin Marietta Annual Report on Form 10-K** for the year ended December 31, 2021, for a detailed discussion of risks[143](index=143&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchase activities and remaining authorization Issuer Purchases of Equity Securities (Three Months Ended March 31, 2022) | 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 | | :----------------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------- | :----------------------------------------------------------------------------- | | January 1, 2022 - January 31, 2022 | — | $— | — | 13,520,952 | | February 1, 2022 - February 28, 2022 | 130,551 | $382.99 | 130,551 | 13,390,401 | | March 1, 2022 - March 31, 2022 | — | $— | — | 13,390,401 | | Total | 130,551 | N/A | 130,551 | N/A | - The company's **Board of Directors authorized** a maximum of **20 million shares** for repurchase under a program with no expiration date, announced on February 10, 2015[144](index=144&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are provided in Exhibit 95 of the report - **Mine safety disclosures**, as required by Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K, are included in **Exhibit 95** to this Quarterly Report on Form 10-Q[145](index=145&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including certifications from the CEO and CFO, written statements, mine safety disclosures, and various Inline XBRL documents - The **exhibits** include **certifications** (31.01, 31.02) and **written statements** (32.01, 32.02) from the **Chief Executive Officer** and **Chief Financial Officer**, **mine safety disclosures** (95), and various **Inline XBRL documents** (101.INS, 101.SCH, 101.CAL, 101.LAB, 101.PRE, 101.DEF, 104)[148](index=148&type=chunk) [Signatures](index=42&type=section&id=SIGNATURES) This section provides the official certification and signing details for the quarterly report - The report was **signed on** May 3, 2022, by **James A. J. Nickolas**, **Sr. Vice President and Chief Financial Officer**, on behalf of **Martin Marietta Materials, Inc.**[150](index=150&type=chunk) ```

Financial Data and Key Metrics Changes - The company achieved a record consolidated total revenue of $1.1 billion, a 26% increase from the prior year's quarter [24] - Product gross profit was reported at $137 million, with aggregate product gross margin declining by 640 basis points to 14.9% due to increased costs [24] - Cement product gross margin expanded by 630 basis points to 20.3%, benefiting from favorable comparisons to the previous year [25] Business Line Data and Key Metrics Changes - Organic aggregate shipments increased by 2.5%, with infrastructure shipments rising by 6%, marking the largest percentage increase in several years [15] - Cement shipments exceeded 1 million tons, increasing by 10%, with cement pricing growing by 12% due to multiple price actions taken in 2021 [17] - Organic ready-mix concrete shipments remained flat, while organic concrete pricing grew by 8% [18] Market Data and Key Metrics Changes - Aggregates to the infrastructure market accounted for 32% of first-quarter organic shipments, with expectations for increased infrastructure investments to drive shipments closer to the historical average of 40% [19] - Non-residential construction, which drove 36% of first-quarter aggregate shipments, continues to benefit from increased investment in aggregates-intensive warehouses and manufacturing facilities [20] - The residential construction outlook remains strong despite rising interest rates, with expectations for annual single-family housing starts to remain in line with early 2000 levels [22] Company Strategy and Development Direction - The company is focused on disciplined execution of its SOAR 2025 priorities, optimizing its aggregate SLED portfolio, and enhancing its margin profile through divestitures [12][13] - The company plans to deploy proceeds from divestitures to advance capital allocation priorities, facilitating higher-return investments and enhancing shareholder value [29] - The company is committed to a value-over-volume pricing strategy, anticipating an increasingly favorable pricing cycle [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth prospects, citing concurrent expansion in public and private construction activity [7] - The company anticipates that inflation will support a constructive pricing environment for upstream materials, with mid-year pricing actions expected to be widely accepted [10] - Management believes that the first quarter's lower profits do not indicate a trend of margin compression, forecasting full-year margins for 2022 to exceed those of 2021 [14] Other Important Information - The company reported returning $89 million to shareholders through dividends and share buybacks during the quarter [30] - The company expects full-year capital spending of $525 million to $550 million, prioritizing high-return capital projects [29] Q&A Session All Questions and Answers Question: Can you elaborate on the predictable start to the year and the confidence to raise guidance? - Management indicated that they are ahead of plan and have seen significant price increases in April, which supports the decision to raise guidance [36][40] Question: What does the customer backlog look like across main end markets? - Management reported that customer backlog for aggregates is up about 11% year-over-year, with cement essentially sold out and a record backlog for Magnesia Specialties [49] Question: Can you discuss the commercial environment and how larger players are performing? - Management noted that being in attractive states with strong population trends helps the company outperform smaller regional players, and they are well-positioned to meet customer demands [61] Question: How should we think about Q2 gross margins and the recovery slope in the second half of the year? - Management stated that Q2 margins should be in line with historical performance, with more pronounced recovery expected in Q3 and Q4 due to compounding price increases and moderating cost inflation [69] Question: Will mid-year price increases represent a structural shift in the industry? - Management believes that the current demand environment and inflation will lead to a more profound and sustained pricing cycle compared to previous years [74] Question: What is the outlook for infrastructure funding and LNG projects? - Management expects significant infrastructure funding to ramp up in 2023 and sees continued activity in LNG projects, which will require substantial aggregates [81][85]

| --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | Q1 2022 | | | | | | SUPPLEMENTAL INFORMATION* | | | | | | May 3, 2022 | | | | | | * All information provided in these slides is qualified in its entirety by reference to the Company's fi ...