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]

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 [8][15] - 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 [8][15] - The company increased its full-year 2025 adjusted EBITDA guidance to $2.3 billion at the midpoint, reflecting strong first-half results and contributions from the Premier acquisition [9][15] 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% [15] - 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 [15] - Magnesia Specialties achieved record revenues of $90 million, with gross profit and gross margin reaching $36 million and 40%, respectively, driven by strong pricing and efficiency gains [8][15] 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-month period ending June 30, 2025 [10] - Infrastructure remains a strong performer, supported by robust federal and state investment, while residential and non-residential construction trends are mixed [9][10] - Texas is experiencing substantial data center growth, with significant investments from companies like OpenAI and Texas Instruments, indicating a positive outlook for the region [11][12] Company Strategy and Development Direction - The company is focused on shaping a higher-margin enterprise increasingly led by aggregates, enhancing its product mix while preserving balance sheet flexibility [6][7] - The strategic exchange of cement and ready-mixed concrete operations for core aggregates aligns with the company's SOAR 2025 plan [6][7] - The company aims to capitalize on long-term infrastructure investment trends and the anticipated recovery in residential construction [13][14] 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 [22][24] - The company remains cautious about weather impacts on volume but sees potential upside if conditions improve in the latter half of the year [76] - Management expressed confidence in achieving full-year adjusted EBITDA guidance, supported by strong fundamentals and a solid financial foundation [18][19] Other Important Information - Martin Marietta has a well-balanced capital allocation strategy, focusing on value-enhancing acquisitions and maintaining a healthy balance sheet [16][17] - The company expects capital expenditures for the full year to be in the range of $820 million to $850 million, reflecting upward revisions due to attractive land purchases [16][17] Q&A Session Summary Question: Insights on July demand trends and future outlook - Management reported double-digit volume increases in July, indicating positive demand across the enterprise and a potential for continued growth [22][24] Question: Confidence in increasing annual guidance - The increase in guidance is supported by strong first-half results, positive shipment trends, and a resilient commercial environment [29][30] 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 [36][40] Question: Pricing dynamics and future expectations - Management noted that pricing remains solid, with no significant mix headwinds observed, and anticipates continued pricing strength into 2026 [46][48] Question: Focus on Magnesia business and future acquisitions - The Magnesia business is expected to remain an important part of the company's portfolio, with potential for bolt-on acquisitions in the future [110][111] Question: Land purchases and their strategic implications - The company is focusing on adjacent land purchases to expand existing operations rather than pursuing greenfield opportunities [115][117]

Core Insights - Martin Marietta reported revenue of $1.81 billion for the quarter ended June 2025, reflecting a 2.7% increase year-over-year, while EPS rose to $5.43 from $5.26 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.82 billion, resulting in a surprise of -0.33%, whereas the EPS exceeded expectations by 2.07% [1] Financial Performance Metrics - Average unit sales price for Aggregates was $23.21 per ton, slightly below the estimated $23.24 per ton [4] - Total shipments for Aggregates were 52,700 KTon, compared to the average estimate of 52,885.09 KTon [4] - Cement shipments totaled 500 KTon, below the estimated 513.84 KTon [4] - Asphalt shipments were 2,300 KTon, compared to the estimate of 2,533.60 KTon [4] - Ready mixed concrete shipments were 1,200 KCuYd, below the estimate of 1,266.20 KCuYd [4] Revenue Breakdown - Total revenues for Building Materials - Cement and ready mixed concrete were $245 million, below the average estimate of $278.59 million, representing a year-over-year decline of 6.1% [4] - Total revenues for Building Materials - Asphalt and paving were $228 million, compared to the estimated $254.59 million, reflecting a 6.9% year-over-year decline [4] - Total revenues for Magnesia Specialties were $90 million, exceeding the estimate of $83.52 million, with an 11.1% year-over-year increase [4] - Total revenues for Building Materials - Aggregates were $1.32 billion, slightly below the estimate of $1.33 billion, with a year-over-year increase of 6.3% [4] - Total revenues for Total Building Materials were $1.72 billion, below the average estimate of $1.81 billion, representing a year-over-year increase of 2.3% [4] - Interproduct sales for Building Materials were reported at -$72 million, compared to the estimate of -$70.32 million, showing a year-over-year change of +10.8% [4] Profitability Metrics - Gross profit for Building Materials - Aggregates was $430 million, slightly below the average estimate of $439.34 million [4]

Q2 2025 Financial Performance - Revenues reached $1.81 billion, a 3% year-over-year increase[8] - Net earnings attributable to Martin Marietta were $328 million, up 12% year-over-year[8] - Adjusted EBITDA was $630 million, an 8% year-over-year increase, with an Adjusted EBITDA Margin of 35%, a 170 bps increase[8] - Aggregates revenues hit an all-time quarterly record of $1.3 billion, a 6% increase[18] - Aggregates gross profit reached a record for the second quarter, with a gross margin of 33%[18] Aggregates Business - Aggregates shipments totaled 53 million tons in Q2 2025, consistent with Q2 2024[11] - Aggregates average selling price (ASP) increased by 7.4% to $23.21 per ton[15] - Aggregates gross profit per ton increased by 10% to $8.16[17] - Aggregates gross profit increased by 9% to $430 million[13] 2025 Guidance - Full-year 2025 Adjusted EBITDA guidance is $2.30 billion, an 11% increase[19] - Full-year 2025 net earnings attributable to Martin Marietta is guided at $1.14 billion, a 43% decrease[19] - Aggregates shipment tons are expected to reach 196 million tons, a 2.5% increase[21] - Aggregates ASP is expected to be $23.38, a 7.3% increase[21] - Aggregates gross profit per ton is expected to be $8.63, a 14% increase[21] - Aggregates gross profit is expected to be $1.69 billion, a 17% increase[21]

Financial Performance - Martin Marietta reported quarterly earnings of $5.43 per share, exceeding the Zacks Consensus Estimate of $5.32 per share, and showing an increase from $5.26 per share a year ago, representing an earnings surprise of +2.07% [1] - The company posted revenues of $1.81 billion for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.33%, but an increase from $1.76 billion year-over-year [2] - Over the last four quarters, Martin Marietta has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Martin Marietta shares have increased approximately 15.8% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $6.69 on revenues of $2.05 billion, and for the current fiscal year, it is $18.76 on revenues of $7.04 billion [7] - The outlook for the industry, specifically the Building Products - Concrete and Aggregates sector, is currently in the top 41% of Zacks industries, suggesting a favorable environment for stock performance [8]

[Corporate Announcements and Financial Outlook](index=1&type=section&id=Corporate%20Announcements%20and%20Financial%20Outlook) [Strategic Transactions](index=1&type=section&id=Strategic%20Transactions) The company announced a strategic asset exchange and an acquisition to optimize its portfolio - Martin Marietta will exchange its Midlothian cement plant and North Texas ready-mixed concrete assets with Quikrete[1](index=1&type=chunk) - In return for its cement and concrete assets, Martin Marietta will receive aggregates operations producing approximately **20 million tons** annually and **$450 million in cash**, with the transaction expected to close in **Q1 2026**[1](index=1&type=chunk) - On July 25, 2025, the company completed the acquisition of **Premier Magnesia, LLC**, a producer of magnesia-based products, enhancing its leadership position in this market[2](index=2&type=chunk) - These transactions are part of the company's **SOAR 2025 strategic plan** to improve its portfolio and focus on long-term earnings growth through an aggregates-led business model[3](index=3&type=chunk)[4](index=4&type=chunk) [Second-Quarter Earnings Preview and Full-Year 2025 Guidance](index=1&type=section&id=Second-Quarter%20Earnings%20Preview%20and%20Full-Year%202025%20Guidance) The company previewed strong Q2 2025 results and raised its full-year Adjusted EBITDA guidance Preliminary Second-Quarter 2025 Results | Metric | Expected Value (in millions) | | :--- | :--- | | Revenues | $1,810 | | Net Earnings Attributable to Martin Marietta | $328 | | Adjusted EBITDA | $630 | - The company raised its full-year 2025 Adjusted EBITDA guidance to a midpoint of **$2.30 billion**[5](index=5&type=chunk) - The revised guidance reflects strong first-half results and includes expected contributions from the **Premier acquisition** for the last five months of 2025[5](index=5&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) The company will host its Q2 2025 earnings conference call and webcast on August 7, 2025 - The Q2 2025 earnings conference call is scheduled for **Thursday, August 7, 2025, at 10:00 a.m. Eastern Time**[7](index=7&type=chunk) - A live webcast and supplemental information will be accessible on the Investors section of the company's website, **www.martinmarietta.com**[8](index=8&type=chunk) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report outlines forward-looking statements and associated risks impacting company performance - The company warns that forward-looking statements regarding future revenues, performance, and economic trends involve **risks and uncertainties** and may not be accurate[12](index=12&type=chunk)[13](index=13&type=chunk) - Key operational and market risks include **shipment declines** from economic or weather events, fluctuations in **materials pricing**, changes in **public infrastructure spending**, and **unfavorable weather** conditions[14](index=14&type=chunk) - Economic and external risks include volatility of **fuel and energy costs**, **supply chain challenges**, **labor shortages**, **inflation**, **geopolitical conflicts**, and **cybersecurity threats**[15](index=15&type=chunk) - Risks specific to the Quikrete transaction include the ability to obtain **regulatory approvals**, satisfy **closing conditions**, and potential **integration challenges**[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The report defines Adjusted EBITDA and reconciles it to comparable GAAP net earnings measures - **Adjusted EBITDA** is a non-GAAP financial measure used by management and investors to evaluate the company's operating performance from period to period[9](index=9&type=chunk)[20](index=20&type=chunk) Reconciliation of Net Earnings to Adjusted EBITDA (Q2) | Metric (Dollars in Millions) | 2025 | 2024 | | :--- | :---: | :---: | | **Net earnings attributable to Martin Marietta** | **$328** | **$294** | | Interest expense, net of interest income | 56 | 33 | | Income tax expense for controlling interests | 83 | 78 | | DD&A and earnings/loss from nonconsolidated equity affiliates | 163 | 140 | | Acquisition, divestiture and integration expenses | — | 19 | | Impact of selling acquired inventory after markup | — | 20 | | **Adjusted EBITDA** | **$630** | **$584** | Reconciliation for 2025 Adjusted EBITDA Guidance | Metric (Dollars in Millions) | Mid-Point of Range | | :--- | :--- | | **Net earnings attributable to Martin Marietta** | **$1,140** | | Interest expense, net of interest income | 225 | | Income tax expense for controlling interests | 290 | | DD&A and earnings/loss from nonconsolidated equity affiliates | 645 | | **Adjusted EBITDA** | **$2,300** |

Core Insights - Martin Marietta Materials, Inc. reported record second-quarter revenues and profitability, driven by strong pricing and effective cost management [2][7][12] - The company raised its full-year 2025 Adjusted EBITDA guidance to $2.30 billion at the midpoint, reflecting strong first-half performance and acquisition contributions [8][9] Financial Performance - Revenues for the second quarter of 2025 were $1.811 billion, a 3% increase from $1.764 billion in 2024 [3] - Gross profit rose to $544 million, up 5% from $517 million year-over-year [3] - Earnings from operations increased by 15% to $458 million compared to $398 million in the previous year [3] - Net earnings attributable to Martin Marietta were $328 million, a 12% increase from $294 million in 2024 [3] - Adjusted EBITDA for the quarter was $630 million, an 8% increase from $584 million in the same quarter last year [3] Aggregates Segment - Aggregates shipments decreased by 0.6% to 52.7 million tons, impacted by softening demand in Colorado and wet weather [12] - The average selling price per ton for aggregates increased by 7.4% to $23.21, contributing to a 9% rise in gross profit to $430 million [12] Magnesia Specialties Segment - The Magnesia Specialties business achieved record quarterly revenues of $90 million, with gross profit increasing by 32% to $36 million [14] - Gross margin for this segment improved by 605 basis points to 40% [14] Portfolio Optimization - The company completed the acquisition of Premier Magnesia, LLC, enhancing its position in the magnesia-based products market [10][16] - A definitive agreement was made with Quikrete Holdings for the exchange of certain aggregates operations, expected to close in Q1 2026 [17][18] Cash Generation and Capital Allocation - Cash provided by operating activities for the first half of 2025 was $605 million, significantly up from $173 million in the prior year [19] - The company returned $547 million to shareholders through dividends and share repurchases during the same period [20] 2025 Guidance - The company expects consolidated revenues for 2025 to range between $6.82 billion and $7.12 billion [22] - Adjusted EBITDA guidance for 2025 is set between $2.25 billion and $2.35 billion [22][25]

Core Insights - Martin Marietta Materials, Inc. has entered into a definitive agreement with Quikrete Holdings, Inc. for an asset exchange, which includes receiving aggregates operations producing approximately 20 million tons annually and $450 million in cash, while exchanging its Midlothian cement plant and related assets [1] - The acquisition of Premier Magnesia, LLC enhances Martin Marietta's position as a leading producer of magnesia-based products in the U.S. [2] - These transactions are aimed at optimizing the company's portfolio, leading to a higher margin enterprise that is more resilient through economic cycles [3] Transaction Details - The asset exchange with Quikrete is expected to close in the first quarter of 2026, pending regulatory approvals [1] - The Premier acquisition was completed on July 25, 2025, and includes operations in Nevada, North Carolina, Indiana, and Pennsylvania [2] Strategic Goals - The company aims to improve its portfolio attractiveness through asset purchases, exchanges, and divestitures, aligning with its Strategic Operating Analysis and Review (SOAR) 2025 plan [4] - The focus is on core aggregates assets and pursuing accretive acquisitions for the Magnesia Specialties business to position the company for long-term earnings growth [4] Financial Performance - For the second quarter of 2025, the company expects revenues of $1.81 billion, net earnings of $328 million, and adjusted EBITDA of $630 million [5] - The full-year 2025 adjusted EBITDA guidance has been raised to $2.30 billion at the midpoint, reflecting strong first-half results and contributions from the Premier acquisition [5]