Martin Marietta Materials(MLM) - 2025 Q2 - Quarterly Results

Corporate Announcements and Financial Outlook Strategic Transactions 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] - 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] - 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] - 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][4] Second-Quarter Earnings Preview and Full-Year 2025 Guidance 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] - The revised guidance reflects strong first-half results and includes expected contributions from the Premier acquisition for the last five months of 2025[5] Conference Call Information 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] - 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 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][13] - 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] - Economic and external risks include volatility of fuel and energy costs, supply chain challenges, labor shortages, inflation, geopolitical conflicts, and cybersecurity threats[15] - Risks specific to the Quikrete transaction include the ability to obtain regulatory approvals, satisfy closing conditions, and potential integration challenges[17] Non-GAAP Financial Measures 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][20] 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 |