Martin Marietta Materials, Inc. (MLM) | Investment Case

1. Company Snapshot

1.a. Company Description

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally.It offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries.The company also produces magnesia-based chemicals products that are used in industrial, agricultural, and environmental applications; and dolomitic lime primarily to customers for steel production and soil stabilization.

Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications.The company was founded in 1939 and is headquartered in Raleigh, North Carolina.

Show Full description

1.b. Last Insights on MLM

Martin Marietta Materials' recent performance was positively driven by anticipated residential recovery, margin expansion, and strong pricing. The company's aggregates revenue increased 8% year-over-year to $1.2 billion in Q4, with aggregates gross profit rising 11% to $420 million. Several institutional investors, including Aviso Financial Inc. and Ascent Group LLC, have increased their stakes in the company. According to Marketbeat Ratings, the company has a consensus recommendation of "Moderate Buy" from 17 research firms.

1.c. Company Highlights

Last Price	672.91
Change Percentage	1.69%
Open	654.33
Previous Close	661.73
Market Cap ( Millions)	40581
Volume	186554
Year High	710.97
Year Low	441.95
M A 50	645.33
M A 200	603.16

FCF Yield	2.41%
Dividend Yield	0.48%
ROE	11.90%
Debt / Equity	53.05%
Net Debt / EBIDTA	240.11%
Price To Book	4.04
Price Earnings Ratio	35.69
Price To FCF	41.49
Price To sales	6.2
EV / EBITDA	20.94

2. Martin Marietta's Q4 and Full-Year 2025 Earnings Analysis

Martin Marietta reported record financial performance in 2025, driven by its aggregates business, which delivered record profitability and margin expansion. The company's aggregates revenues increased 8% to $1.2 billion in Q4, with gross profit rising 11% to $420 million, and gross margin expanding 93 basis points to 34%. For the full year, the Building Materials business posted revenues of $5.7 billion, a 7% increase, and generated gross profit of $1.8 billion, an increase of 13% year over year. Gross margin expanded 173 basis points to 31%. The company's EPS came in at $3.85, below estimates of $4.78.

Publication Date: Feb -12

                                    📋 Highlights
                                    Aggregates Business Outperformance:
                                                Q4 revenues rose 8% to $1.2B, gross profit surged 11% to $420M, and gross margin expanded 93 bps to 34%.
Specialties Segment Momentum:
                                                Record Q4 results driven by Premier Magnesia integration, with $420M revenues and $160M gross profit in 2025.
Full-Year 2025 Financials:
                                                Building Materials revenue hit $5.7B (+7%), gross profit reached $1.8B (+13%), and gross margin expanded 173 bps to 31%.
Capital Allocation Strategy:
                                                2026 capex cut to $575M (-29% YoY) to boost free cash flow for M&A and buybacks post-Quickrete asset exchange (net $60M EBITDA gain).
2026 Guidance & Market Trends:
                                                Aggregates gross profit growth of 10-12% expected, supported by 1-2% shipment growth, 3-4% pricing, and top-10 state DOT budgets up 7% YoY.

                                

Revenue Growth and Margin Expansion

The company's revenue growth was driven by its aggregates business, which delivered record results in Q4. The specialties business also delivered record Q4 results, driven by solid organic momentum and contributions from Premier Magnesia. The company's guidance for 2026 suggests continued growth, with aggregates shipment growth expected to be around 2% at the midpoint.

Valuation Metrics

Using the current valuation metrics, we can assess what's priced in for Martin Marietta. The company's P/E Ratio is 36.57, P/B Ratio is 3.98, and EV/EBITDA is 22.54. The Dividend Yield is 0.49%, and Free Cash Flow Yield is 2.52%. These metrics suggest that the market is pricing in a certain level of growth and profitability for the company.

Outlook and Guidance

Martin Marietta's guidance for 2026 suggests continued growth, driven by its aggregates business. The company expects low double-digit gross profit growth in aggregates, supported by low single-digit shipment growth, mid-single-digit pricing improvement, and cost per ton generally in line with inflation. The company's planned capital spending of $575 million represents a 29% year-over-year reduction, significantly increasing free cash flow available for M&A and share repurchases.

Operational Highlights

The company is comprehensively reviewing its quarry and terminal networks to better align production with prevailing demand. The network optimization initiative has shown positive results in the pilot region, with COGS per ton declining year over year. The company is also expecting to close the asset exchange with Quickrete in Q1, pending the resolution of real estate issues.

3. NewsRoom

Aberdeen Group plc Sells 3,673 Shares of Martin Marietta Materials, Inc. $MLM

09:21

Source: defenseworld.net

Atria Investments Inc Sells 877 Shares of Martin Marietta Materials, Inc. $MLM

Feb -15

Source: defenseworld.net

Caprock Group LLC Buys Shares of 2,604 Martin Marietta Materials, Inc. $MLM

Feb -14

Source: defenseworld.net

Martin Marietta Materials (NYSE:MLM) Shares Gap Down After Earnings Miss

Feb -12

Source: defenseworld.net

Martin Marietta Materials, Inc. (MLM) Q4 2025 Earnings Call Transcript

Feb -12

Source: seekingalpha.com

Martin Marietta Appoints George F. Schoen as Executive Vice President, General Counsel and Corporate Secretary

Feb -11

Source: globenewswire.com

Martin Marietta Materials Inc (MLM) Q4 2025 Earnings Call Highlights: Record Financial Performance and Strategic Growth

Feb -11

Source: gurufocus.com

Martin Marietta Q4 Earnings & Revenues Miss Estimates, Stock Down

Feb -11

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.83%)

6. Segments

Building Materials Business - West Group (Including Cement)

Expected Growth: 6.5%

The Building Materials Business - West Group, including Cement, from Martin Marietta Materials, Inc. is driven by growth in infrastructure projects, residential construction, and strong demand for cement. A 6.5% growth rate is supported by increased government spending on roads and highways, as well as a recovering housing market. Pricing power and operational efficiency also contribute to the segment's growth.

Building Materials Business - East Group

Expected Growth: 7.2%

East Group's 7.2% growth is driven by strong demand for building materials, particularly in the residential and commercial construction sectors. Increased infrastructure spending and favorable weather conditions also contributed to the growth. Additionally, Martin Marietta's strategic acquisitions and operational efficiencies have helped to expand its market share and improve profitability in the region.

Magnesia Specialties

Expected Growth: 6.8%

Magnesia Specialties' 6.8% growth is driven by increasing demand in water treatment, pharmaceuticals, and construction. Strong pricing power and operational efficiency improvements also contribute to the segment's growth. Martin Marietta's strategic focus on high-margin products and expanding production capacity further supports the segment's performance.

7. Detailed Products

Aggregates

Crushed stone, sand and gravel used in construction, asphalt, and concrete

Cement

Portland cement used in concrete, mortar, and other construction materials

Ready Mixed Concrete

Pre-mixed concrete used in construction, paving, and other applications

Asphalt

Hot mix asphalt used in paving and road construction

Paving Services

Asphalt paving and construction services for roads, highways, and other paved surfaces

Rail Distribution

Rail transportation services for aggregates and other construction materials

8. Martin Marietta Materials, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Martin Marietta Materials, Inc. is medium due to the availability of alternative materials and products that can replace the company's offerings.

Bargaining Power Of Customers

The bargaining power of customers for Martin Marietta Materials, Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Martin Marietta Materials, Inc. is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for Martin Marietta Materials, Inc. is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Martin Marietta Materials, Inc. is high due to the competitive nature of the industry, with several established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	35.49%
Debt Cost	4.31%
Equity Weight	64.51%
Equity Cost	8.69%
WACC	7.13%
Leverage	55.00%

11. Quality Control: Martin Marietta Materials, Inc. passed 8 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Nucor

A-Score: 5.5/10

Value: 6.6

Growth: 5.8

Quality: 4.7

Yield: 4.0

Momentum: 5.5

Volatility: 6.7

1-Year Total Return ->

Vulcan Materials

A-Score: 5.2/10

Value: 1.9

Growth: 6.7

Quality: 6.1

Yield: 1.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

Boise Cascade

A-Score: 5.1/10

Value: 6.9

Growth: 5.8

Quality: 5.4

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

Martin Marietta Materials

A-Score: 5.1/10

Value: 1.9

Growth: 7.0

Quality: 5.8

Yield: 0.0

Momentum: 6.5

Volatility: 9.3

1-Year Total Return ->

LyondellBasell

A-Score: 4.6/10

Value: 6.8

Growth: 2.6

Quality: 1.9

Yield: 10.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

US Lime & Minerals

A-Score: 4.6/10

Value: 1.8

Growth: 8.2

Quality: 8.4

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

12.10%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.13%

Martin Marietta Materials, Inc. - US5732841060

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MLM

1.c. Company Highlights

Less Volatile

Expensive

Better Quality

Earnings Beats

Revenues Miss

Earnings Miss

Higher Growth

2. Martin Marietta's Q4 and Full-Year 2025 Earnings Analysis

Revenue Growth and Margin Expansion

Valuation Metrics

Outlook and Guidance

Operational Highlights

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.83%)

6. Segments

Building Materials Business - West Group (Including Cement)

Expected Growth: 6.5%

Building Materials Business - East Group

Expected Growth: 7.2%

Magnesia Specialties

Expected Growth: 6.8%

7. Detailed Products

Aggregates

Cement

Ready Mixed Concrete

Asphalt

Paving Services

Rail Distribution

8. Martin Marietta Materials, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Martin Marietta Materials, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

672.91$

Current Price

672.91$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA