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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.

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1.b. Last Insights on MLM

Martin Marietta's recent performance was positively driven by strong Q2 earnings, with EPS rising 14% and beating estimates. The company's aggregates unit profitability reached a record high, underscoring pricing strength and cost discipline. A $450M cash injection from the Quikrete deal is expected to fuel future growth. Additionally, the company announced a dividend hike, raising its quarterly cash dividend from $0.79 to $0.83 per share. Regulatory approvals for the Quikrete asset exchange were also obtained, positioning the company for long-term success.

1.c. Company Highlights

2. Martin Marietta's Q3 Earnings: A Strong Performance

Martin Marietta delivered an exceptional third quarter, with record performance across both its aggregates and specialties businesses. Revenues from continuing operations were $1.8 billion, a 12% increase, while adjusted EBITDA from continuing operations was up 22% to $667 million. The company's earnings per diluted share from continuing operations were $5.97, an increase of 23%, which came in below the estimated $6.72. The aggregates business achieved records across most financial metrics, with revenues increasing 17% to $1.5 billion, driven by a balanced mix of 8% price and 8% volume growth. Aggregates gross profit increased 21% to $531 million, while gross margins expanded 142 basis points to 36%.

Publication Date: Nov -05

📋 Highlights
  • Aggregates Record Growth:: Revenues rose 17% to $1.5B (+8% price, +8% volume), gross profit up 21% to $531M, margins expanding 142 bps to 36%.
  • Specialties Business Surge:: Revenues hit record $131M (+60%), gross profit climbed 20% to $34M, driven by pricing, shipments, and Premier Magnesia acquisition.
  • EBITDA Guidance Raised:: 2025 midpoint raised to $2.32B, driven by aggregates performance; 2026 outlook includes low single-digit volume growth and 250 bps+ price/cost spread.
  • Infrastructure Momentum:: State/Local highway awards up 10% YoY to $128B; data centers expand in Texas, with energy, warehousing, and manufacturing showing demand.
  • Liquidity & Capital Discipline:: $1.1B liquidity for M&A, 30% 2026 CapEx reduction vs. 2025, and 5% dividend hike to $0.55/share, reflecting $597M returned YTD.

Segment Performance

The Building Materials business, which is now comprised of aggregates, asphalt, and paving and the company's Arizona ready-mix product lines, posted revenues of $1.7 billion, a 10% increase. Gross profit increased 16% to $585 million, with gross margins improving 191 basis points to 34% as strong outperformance in aggregates more than offset weakness in downstream products. The Specialties business delivered an all-time quarterly record revenues of $131 million and a gross profit increase of 20% to $34 million, driven by higher pricing, increased shipments, and effective cost management.

Outlook and Guidance

The company raised its full-year 2025 consolidated adjusted EBITDA guidance to $2.32 billion at the midpoint, driven by strong performance in its core aggregates product line and October daily shipment trends. For 2026, the company expects low single-digit aggregates volume growth and mid-single-digit pricing gains, with a price/cost spread in excess of 250 basis points. As Michael Petro mentioned, "We expect to deliver a price/cost spread in excess of 250 basis points, which we believe will be the case next year."

Valuation and Dividend

With a P/E Ratio of 35.99, the stock appears to be priced for high growth expectations. The company's dividend yield is 0.51%, which may not be attractive to income investors. However, the company's commitment to returning capital to shareholders is evident in its 5% increase to the quarterly cash dividend. The company's strong financial foundation and enduring commitment to long-term value creation reinforce its confidence in delivering superior results for its shareholders.

Growth Prospects

The company's aggregates business is expected to continue to benefit from sustained infrastructure investment, solid heavy nonresidential demand, and an eventual recovery in residential construction. Analysts estimate revenue growth at 7.7% for the next year, which is slightly higher than the company's expected low single-digit aggregates volume growth. The company's focus on executing its strategic plan, including upholding world-class safety standards and delivering attractive price/cost spread economics, is expected to drive sustainable earnings growth.

3. NewsRoom

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Martin Marietta Materials, Inc. $MLM Holdings Lifted by Atika Capital Management LLC

Nov -27

Source: defenseworld.net

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Aviso Financial Inc. Grows Stock Holdings in Martin Marietta Materials, Inc. $MLM

Nov -25

Source: defenseworld.net

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Connor Clark & Lunn Investment Management Ltd. Raises Position in Martin Marietta Materials, Inc. $MLM

Nov -21

Source: defenseworld.net

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17 Capital Partners LLC Trims Stock Position in Martin Marietta Materials, Inc. $MLM

Nov -20

Source: defenseworld.net

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Banco Bilbao Vizcaya Argentaria S.A. Decreases Holdings in Martin Marietta Materials, Inc. $MLM

Nov -19

Source: defenseworld.net

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Martin Marietta Declares Quarterly Cash Dividend

Nov -13

Source: globenewswire.com

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Martin Marietta (MLM) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -06

Source: zacks.com

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Martin Marietta Materials Inc (MLM) Q3 2025 Earnings Call Highlights: Record Growth in Aggregates and Specialties

Nov -04

Source: gurufocus.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Vulcan Materials

A-Score: 5.4/10

Value: 1.6

Growth: 6.7

Quality: 5.7

Yield: 1.0

Momentum: 8.0

Volatility: 9.3

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US Lime & Minerals

A-Score: 5.3/10

Value: 1.6

Growth: 8.2

Quality: 8.5

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

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Nucor

A-Score: 5.1/10

Value: 6.5

Growth: 5.9

Quality: 4.7

Yield: 4.0

Momentum: 3.5

Volatility: 6.0

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Boise Cascade

A-Score: 5.1/10

Value: 6.8

Growth: 5.8

Quality: 5.6

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

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Martin Marietta Materials

A-Score: 5.1/10

Value: 1.9

Growth: 7.0

Quality: 5.8

Yield: 0.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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LyondellBasell

A-Score: 4.2/10

Value: 4.0

Growth: 2.7

Quality: 2.6

Yield: 10.0

Momentum: 0.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

624.37$

Current Price

624.37$

Potential

-0.00%

Expected Cash-Flows