MLM

Materials

Martin Marietta Materials

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2008–2025(18yr)

Revenue

Net Income

Free CF

Metric	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$2.1B	$1.7B	$1.8B	$1.7B	$2.0B	$2.2B	$3.0B	$3.5B	$3.8B	$4.0B	$4.2B	$4.7B	$4.7B	$5.4B	$6.2B	$6.8B	$6.5B	$6.2B	-5.9%
Gross Profit	$470.5M	$337.7M	$322.0M	$302.0M	$325.9M	$364.0M	$522.4M	$721.8M	$909.0M	$971.9M	$966.6M	$1.2B	$1.3B	$1.3B	$1.4B	$2.0B	$1.9B	$1.9B	+0.6%
Gross Margin	22.2%	19.8%	18.1%	17.6%	16.0%	16.9%	17.7%	20.4%	23.8%	24.5%	22.8%	24.9%	26.5%	24.9%	23.1%	29.8%	28.7%	30.7%	+2.0pp
Operating Income	$323.4M	$187.6M	$196.4M	$161.0M	$155.0M	$218.0M	$314.9M	$479.4M	$667.3M	$700.4M	$690.7M	$884.9M	$1.0B	$973.8M	$1.2B	$1.6B	$2.7B	$1.4B	-46.9%
Operating Margin	15.3%	11.0%	11.0%	9.4%	7.6%	10.1%	10.6%	13.5%	17.5%	17.7%	16.3%	18.7%	21.3%	18.0%	19.6%	23.5%	41.4%	23.4%	-18.1pp
Net Income	$176.3M	$85.5M	$97.0M	$82.4M	$84.5M	$121.3M	$155.6M	$288.8M	$425.4M	$713.3M	$470.0M	$611.9M	$721.0M	$702.5M	$866.8M	$1.2B	$2.0B	$1.1B	-43.0%
Net Margin	8.3%	5.0%	5.4%	4.8%	4.1%	5.6%	5.3%	8.2%	11.1%	18.0%	11.1%	12.9%	15.2%	13.0%	14.1%	17.2%	30.5%	18.5%	-12.0pp
Free Cash Flow	$87.4M	$179.1M	$133.9M	$103.7M	$71.7M	$153.7M	$149.5M	$254.9M	$291.4M	$247.6M	$329.2M	$572.6M	$690.4M	$714.6M	$509.4M	$878.1M	$604.0M	$978.0M	+61.9%
FCF Margin	4.1%	10.5%	7.5%	6.1%	3.5%	7.1%	5.1%	7.2%	7.6%	6.2%	7.8%	12.1%	14.6%	13.2%	8.3%	13.0%	9.2%	15.9%	+6.7pp
EPS (Diluted)	$4.18	$1.91	$2.10	$1.78	$1.83	$2.61	$2.71	$4.29	$6.63	$11.25	$7.43	$9.74	$11.54	$11.22	$13.87	$18.82	$32.41	$18.77	-42.1%

Total Debt$5.3B

Cash & Equiv.$67.0M

Net Debt$5.3B

4 min read

1. THE BIG PICTURE

Martin Marietta is a bet on the "heavy-side" of American infrastructure, utilizing a dominant position in aggregates to maintain high profitability during a cyclical downturn. While private-sector construction has cooled, Martin Marietta Materials is successfully pivoting toward public-sector demand and data center projects, allowing it to extract nearly 18 cents of operating profit from every dollar of revenue—outperforming almost all its peers in efficiency.

2. WHERE THE RISKS HIT HARDEST

Martin Marietta Materials’s geographic diversity is intended to provide resilience, yet its financial health remains heavily concentrated in just ten states, including Texas and Florida (10-K Item 1A). This strength is threatened by cyclical construction demand because a localized slowdown in any of these key markets directly impacts 58% of aggregates shipments, leaving Martin Marietta Materials with high fixed costs and excess capacity.

Furthermore, Martin Marietta’s distribution network—a stated competitive advantage involving rail and waterborne transport—is threatened by transportation dependency. Any disruption in railcar availability or locomotive supply can spike delivered costs and prevent materials from reaching markets where geological constraints limit local supply (10-K Item 1).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a company in a state of transition: while trailing twelve-month revenue has contracted by 5.9%, the most recent quarter showed a revenue increase to $1.534 billion (8-K). This divergence is explained by aggressive pricing; even as shipments grew only 2.0% in the fourth quarter, average selling prices jumped 5.3% to $23.11 per ton (8-K).

(XBRL) Martin Marietta maintains a top-tier margin profile, with a net margin of 17.4% and an FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin of 14.9%, ranking second only to Vulcan Materials among its peers. However, this efficiency comes with a heavy debt load of $5.7 billion. With short interest at 3.1% of the float, there is a measurable level of market skepticism regarding whether these price-driven margins can be sustained if volumes continue to lag (Yahoo Finance).

4. IS IT WORTH IT AT THIS PRICE?

At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 25.8x, Martin Marietta is the most expensive stock in its peer group, trading at a premium to the 24.5x peer median (XBRL). At this multiple, the market is pricing in approximately 7.0% long-term growth (CAPM analysis).

This valuation is difficult to reconcile with the current -5.9% revenue growth rate. For this price to be justified, Martin Marietta Materials must successfully transition from price-led growth to volume-led growth as data centers and energy projects offset residential softness. If growth were to slow to a 5% pace, the justified multiple would fall to 17.2x, suggesting significant downside if the infrastructure rebound fails to materialize (CAPM analysis). The primary risk that could force investors to pay less is a prolonged period of high interest rates, which would continue to suppress the private nonresidential starts that are currently 20% below their peaks (8-K).

5. WHAT WOULD CHANGE THIS VIEW?

Constructive if there is a measurable acceleration in "momentum in data centers and energy" projects as forecasted in the 2026 guidance (8-K).
Cautious if net debt leverage, currently at 5.8x annual FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders, continues to rise while aggregates pricing gains begin to plateau or fall below 5% annually.
Cautious if the "Other Building Materials" segment continues to shrink following the California divestiture without a corresponding acquisition to replace the lost revenue (8-K).

6. BOTTOM LINE

Structural Advantage: A massive, permitted reserve base of aggregates coupled with a specialized rail and water distribution network that creates high barriers to entry.

Bottom Line: Martin Marietta is a high-quality operator trading at a high-growth price, making it a risky bet unless public infrastructure spending accelerates sharply.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Cyclical Construction Demand: Demand for aggregates and cement is sensitive to macroeconomic conditions, interest rates, and public infrastructure budgets. A decline in construction activity, particularly in the top ten revenue-generating states (Texas, North Carolina, Colorado, California, Georgia, Florida, South Carolina, Arizona, Iowa, and Minnesota), directly impacts shipment volumes and profitability.
Aggregates Pricing Volatility: Pricing is determined locally and is vulnerable to excess capacity, new market entrants, and shifts in project mix. Prolonged price declines, especially when paired with lower volumes, threaten to reduce margins, cash flows, and returns on invested capital.
Seasonal and Weather Disruptions: The heavy-side construction business is conducted outdoors, making production and distribution highly sensitive to weather. Severe events like hurricanes, wildfires, and extreme precipitation can disrupt operations, increase delivered costs, and reduce production output.
Reserve Replacement: Martin Marietta Materials must identify and permit quality aggregates reserves near growing markets to sustain operations. Failure to secure land-use approvals or environmental permits in a timely manner can restrict the ability to serve customers and adversely affect results.
Acquisition and Integration Risks: Future growth relies on disciplined acquisitions, which carry risks related to identifying suitable targets, securing regulatory approvals, and integrating operations. Failure to achieve forecasted synergies or the discovery of unknown liabilities can result in increased costs and diverted management attention.

2. Company-Specific Risks

Specialties Business Exposure: The Specialties business, which sells products to the steel industry, is dependent on the cyclicality of that sector and requires significant amounts of natural gas, coal, and petroleum coke.
Paving Contract Penalties: Fixed-price contracts in paving operations include penalties for late completion, which can cause total project costs to exceed original estimates and result in lower profit or losses.
Pension Funding Obligations: Fluctuations in equity market returns and changes in long-term interest rates can require Martin Marietta Materials to make significant additional cash contributions to defined benefit pension plans.
Logistics and Transportation Constraints: Martin Marietta Materials relies on third-party rail, truck, and barge transportation. In Texas, Martin Marietta Materials competes for trucking services with the oil and gas industry, which can constrain availability and increase delivered costs.

3. Regulatory/Legal Risks

Climate Change Regulation: The cement plant and Specialties plants in Woodville, Ohio and Manistee, Michigan are subject to Title V Permits and U.S. Clean Air Act Prevention of Significant Deterioration (PSD) requirements. Future GHG emissions limits or carbon taxes could increase operating costs or require substantial capital investment.
Environmental Liabilities: Operations involve the use of substances classified as toxic or hazardous. Martin Marietta Materials is subject to ongoing investigations and remediation of environmental contamination related to current or prior operations, which can result in material costs, fines, or damages.
Worker Health and Safety: Operations are subject to Mine Safety and Health Administration (MSHA) and Occupational Safety and Health Administration (OSHA) requirements. Failure to comply can lead to significant civil or criminal penalties and operational restrictions.
Anticorruption and Antitrust: Due to the nature of its operations, Martin Marietta Materials is subject to a wide variety of laws, including those related to anticorruption, antibribery, and antitrust. Improper conduct by employees or agents could result in profit disgorgement, fines, and loss of investor confidence.

4. Financial Impact Map

Cyclical Construction Demand → Revenue → 58% of aggregates shipments are tied to nonresidential and residential construction markets. Aggregates Pricing Volatility → Operating Margins → Pricing declines can negatively impact fixed-cost absorption and price-cost spreads. Seasonal and Weather Disruptions → Operating Income → Second and third quarters are the most profitable; heavy precipitation in these periods reduces profitability. Reserve Replacement → Capital Expenditures → Securing and developing new reserves requires significant investment in land and permitting. Acquisition and Integration Risks → Goodwill and Intangible Assets → Failure to realize synergies or integration difficulties can lead to impairment charges on goodwill and acquired assets.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
10-Q	Nov 2025	Sep 2025
14A	Apr 2025	—