Strong Acquisition Performance Drives Record Results Despite Inflationary Pressures
Operational Efficiencies Drive Enhanced Cash Flow Benefits
Third-Quarter and Nine Months Ended
(Financial highlights are for continuing operations)
| (in millions, except per share and per ton data) | Quarter Ended | Nine Months Ended | |||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||
| Revenues4 | $ | 2,369 | $ | 1,846 | 28% | $ | 5,678 | $ | 4,617 | 23% | |||||||||
| Net earnings from continuing operations attributable to Martin Marietta5 | $ | 256 | $ | 361 | (29)% | $ | 592 | $ | 757 | (22)% | |||||||||
| Adjusted EBITDA from continuing operations1 | $ | 808 | $ | 667 | 21% | $ | 1,809 | $ | 1,551 | 17% | |||||||||
| Earnings per diluted share from continuing operations5 | $ | 3.94 | $ | 5.97 | (34)% | $ | 9.55 | $ | 12.49 | (23)% | |||||||||
| Adjusted earnings per diluted share from continuing operations1 | $ | 5.47 | $ | 6.12 | (11)% | $ | 12.48 | $ | 12.64 | (1)% | |||||||||
| Aggregates product line | |||||||||||||||||||
| Shipments (tons) | 67.1 | 57.9 | 16% | 172.6 | 149.6 | 15% | |||||||||||||
| Average selling price per ton (ASP)3 | $ | 22.41 | $ | 23.24 | (4)% | $ | 22.85 | $ | 23.37 | (2)% | |||||||||
| Revenues4 | $ | 1,662 | $ | 1,458 | 14% | $ | 4,337 | $ | 3,780 | 15% | |||||||||
| Gross profit2 | $ | 512 | $ | 531 | (4)% | $ | 1,217 | $ | 1,257 | (3)% | |||||||||
| Gross profit per ton2 | $ | 7.62 | $ | 9.17 | (17)% | $ | 7.05 | $ | 8.40 | (16)% | |||||||||
| Cash gross profit1 | $ | 696 | $ | 655 | 6% | $ | 1,772 | $ | 1,619 | 9% | |||||||||
| Cash gross profit per ton1 | $ | 10.36 | $ | 11.31 | (8)% | $ | 10.27 | $ | 10.82 | (5)% | |||||||||
| Specialties product line | |||||||||||||||||||
| Revenues4 | $ | 362 | $ | 131 | 176% | $ | 656 | $ | 309 | 113% | |||||||||
| Gross profit2 | $ | 88 | $ | 34 | 155% | $ | 182 | $ | 108 | 68% | |||||||||
| Cash gross profit1 | $ | 163 | $ | 47 | 241% | $ | 279 | $ | 131 | 113% | |||||||||
| 1 | Non-GAAP financial measures; see pages 15 and 17 through 19 for reconciliations to the nearest GAAP financial measures. |
| 2 | Aggregates gross profit, aggregates gross profit per ton and Specialties gross profit for the quarter ended |
| 3 | Organic mix-adjusted ASP increased 2.7 percent. |
For additional notes, see page 14.
"The third quarter marked a defining milestone in Martin Marietta's portfolio transformation with the completion of our combination with
With the closing of LNA, we have updated the midpoints of our full-year 2026 Revenue and Adjusted EBITDA guidance to
Third-Quarter Financial and Operating Results
(All financial and operating results are for continuing operations and comparisons are versus the prior-year third quarter, unless otherwise noted)
Building Materials Business
Aggregates
Third-quarter aggregates shipments increased 15.9 percent to a record of 67.1 million tons driven by acquisition contributions that more than offset a modest decline in organic shipments. ASP decreased 3.6 percent to
Aggregates gross profit decreased 4 percent to
Other
Other
Specialties Business
Specialties delivered record revenues, gross profit and cash gross profit1 of
Portfolio Optimization
On
On
Cash Generation, Capital Allocation and Liquidity
Cash provided by operating activities for the nine months ended
Cash paid for property, plant and equipment additions for the nine months ended
In July, the Company entered into a
During the nine months ended
As of
Updated 2026 Guidance
Based on strong acquisition performance, partially offset by softer heritage demand and inflationary cost pressures, the Company is updating its full-year 2026 guidance.
| 2026 Guidance | |||||||||
| (dollars in millions) | Low | Midpoint | High | ||||||
| Revenues | $ | 7,750 | $ | 7,800 | $ | 7,850 | |||
| Interest expense, net of interest income | $ | 398 | $ | 403 | $ | 408 | |||
| Estimated tax rate (excluding discrete events) | 20.5 | % | 21.0 | % | 21.5 | % | |||
| Net earnings from continuing operations attributable to Martin Marietta | $ | 727 | $ | 800 | $ | 873 | |||
| Adjusted EBITDA from continuing operations1 | $ | 2,450 | $ | 2,475 | $ | 2,500 | |||
| Capital expenditures | $ | 590 | $ | 620 | $ | 650 | |||
| Building Materials Business | |||||||||
| Aggregates | |||||||||
| Volume % growth2 | 12.5 | % | 13.0 | % | 13.5 | % | |||
| ASP % growth3 | (3.0 | )% | (2.5 | )% | (2.0 | )% | |||
| Gross profit | $ | 1,540 | $ | 1,590 | $ | 1,640 | |||
| Other | |||||||||
| Gross profit | $ | 96 | $ | 106 | $ | 116 | |||
| Specialties | |||||||||
| Gross profit | $ | 345 | $ | 375 | $ | 405 | |||
| 1 | Non-GAAP financial measure; see page 16 for reconciliation to net earnings from continuing operations attributable to Martin Marietta. |
| 2 | Volume change is based on total aggregates shipments and is in comparison to 2025 shipments of 198.5 million tons. |
| 3 | ASP change is based on aggregates average selling price and is in comparison to 2025 ASP of |
Non-GAAP Financial Information
This earnings release includes financial measures not prepared in accordance with
Conference Call Information
Martin Marietta will discuss its third-quarter 2026 earnings results today,
About Martin Marietta
Martin Marietta, a member of the S&P 500 Index, is an American-based company and a leading supplier of aggregates, lime and limestone products, magnesia-based products and other building materials. Supported by industry-leading reserves and a network of operations across the United States, Canada and the Caribbean, Martin Marietta supplies the essential materials that help build, connect and sustain communities across North America. For more information, visit www.martinmarietta.com or www.magnesiaspecialties.com.
Investor Contact:
Jacklyn Rooker
Vice President, Investor Relations
+1 (919) 510-4736
Jacklyn.Rooker@martinmarietta.com
MLM-E.
This earnings release contains forward-looking statements under the federal securities laws, including the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties and are based on assumptions that the Company believes are reasonable, but which may differ materially from actual results. These statements reflect the Company’s current expectations or forecasts of future events. You can identify these statements because they do not relate only to historical or current facts and may use words such as “guidance,” “anticipate,” “may,” “expect,” "could," “should,” “believe,” "estimate," "forecast," "intend," "outlook," "plan," "project," "schedule," “will,” and other words of similar meaning in connection with future events or future performance. Any or all of the Company’s forward-looking statements herein and in other publications may prove to be incorrect.
Third-quarter results and trends described in this release may not necessarily be indicative of the Company’s future performance. The Company’s outlook is subject to risks and uncertainties and is based on assumptions that the Company believes are reasonable, but which may be materially different from actual results. Factors that the Company currently believes could cause actual results to differ materially from the forward-looking statements, including the outlook and 2026 Guidance, include, but are not limited to: the Company’s ability to address challenges, including shipment declines caused by economic and weather events beyond its control; a widespread decline in aggregates pricing, including reduced shipment volume negatively affecting price; the termination, capping, reduction or suspension of federal and/or state fuel tax(es) or other revenue related to public construction; the level and timing of federal, state or local transportation or infrastructure or public projects funding, including any issues arising from such budgets, particularly in Texas, North Carolina, Colorado, California, Georgia, Florida, South Carolina, Arizona, Iowa and Minnesota; the United States Congress’ inability to reach agreement internally or with the Executive Branch on policy affecting the federal budget; a prolonged federal government shutdown; the ability of states or other entities to finance approved projects through tax revenues or alternative financing; construction spending levels in the Company’s markets; reductions in defense spending and impacts on construction activity on or near military bases; declines in energy-related construction due to changes in oil production or capital spending, particularly in Texas; sustained high mortgage interest rates and factors leading to a slowdown in private construction in some areas; the Company’s ability to identify, acquire, permit and develop quality aggregates reserves within an economic haul radius; unfavorable weather, including storms, hurricanes, wildfires, timing of seasons, drought, rainfall, or extreme temperatures affecting production schedules, shipment volumes, product/geographic mix and profitability; volatility in fuel and energy costs, including diesel, electricity, natural gas and consumables like steel, explosives, tires and conveyor belts, as well as natural gas, coal and petroleum coke for the Company’s Specialties business; increased raw materials costs, such as bitumen; rising costs of repair and supply parts; construction labor shortages and supply chain challenges; labor relations risks, such as unionization efforts, work stoppages or strikes, including at the Company’s suppliers, railroads and logistics providers; workforce demographics-related challenges in recruiting and retaining skilled employees, particularly for physically demanding roles in rural or less-populated areas; unexpected equipment failures, unscheduled maintenance, scheduled or unscheduled kiln outages, industrial accidents, catastrophic events or prolonged production disruption; resiliency and potential declines of the Company's construction end-use markets; changes in demand from the steel, mining, construction and infrastructure, water treatment and other industries served by the Company’s Specialties business, and structural declines in demand from coal-fired utility and paper industry customers; delays, cost overruns or underperformance of kiln modernization, facility expansion and other capital projects; potential impacts of disease outbreaks, epidemics, pandemics, or similar health threats, or fear of such events, and related economic/societal responses, affecting suppliers, customers, partners or employees; the performance of the overall United States economy; governmental regulation, including environmental laws and climate change regulations at state and federal levels; compliance with regulations relating to the Company's lime operations; implementation of emissions taxes, carbon-pricing schemes, or stricter climate-related rules that could increase operating costs or restrict Specialties production; delays or difficulties in securing, renewing or maintaining timely land use approvals, environmental permits, or mineral or water rights amid changing regulatory expectations; increasing legal actions or public pressure related to environmental impact, emissions, or land use could result in reputational harm or financial liability; the outcome of pending or future litigation and other legal proceedings; failure to meet evolving environmental, social, and governance (ESG) standards or investor benchmarks may affect access to capital or shareholder confidence; changes in external ESG ratings or methodologies could affect investor sentiment or index inclusion; increasing competition for water access or stricter water usage regulations could impact production, especially in drought-prone regions; outcomes of environmental or land-use proceedings, or increased costs associated with regulatory obligations, including site reclamation; elevated premiums or reduced coverage availability for property, casualty, or environmental liability could increase risk exposure; transportation availability and investment in rail infrastructure impacting the movement of materials especially to the Company’s Texas, Southeast and Gulf Coast markets, the movement of essential dolomitic lime to the Company’s Specialties plant in Manistee, Michigan and its customers, and the movement of magnesite from the Company's Specialties' Gabbs, Nevada facility to processing plants in North Carolina, Indiana and Pennsylvania and the Company's customers; increased transportation costs, including increases from energy price fluctuations, fuel surcharges, and compliance with tightening regulations, including water shipments; availability of trucks and licensed drivers for material transport; availability and cost of construction equipment in the United States; weakness in the steel industry markets served by the Company’s dolomitic lime products; geopolitical risks and tensions that could affect energy markets, costs, supply chains and global economic conditions; trade disputes and tariffs impacting the U.S. economy; currency, regulatory and cross-border risks associated with the Company’s operations in Canada, Jamaica and The Bahamas; unplanned cost changes or customer realignments affecting earnings; dependence on information technology and automated systems; risks related to third-party vendors, including exposure to cybersecurity vulnerabilities or service outages; inflation pressures on production and interest costs; customer concentration in construction markets increasing the risk of potential losses on customer receivables and payment delays; demand levels, production volumes, and cost management affecting operating leverage and profitability; global economic conditions; adverse industry conditions; the Company’s ability to obtain financing on favorable terms or at all and the resulting increase in the Company’s indebtedness and potential effects on the Company’s credit ratings; the Company’s substantial indebtedness following the combination with LNA, and its ability to service, repay or refinance such indebtedness and to reduce leverage to its long-term target ratio within the anticipated timeframe; sustained high or rising interest rates increasing the Company’s borrowing and refinancing costs; the issuance of newly-issued shares of Martin Marietta common stock as consideration for acquisitions and the resulting dilution to the Company’s existing shareholders; potential business uncertainty, including changes to existing business relationships during the integration of acquisitions that could affect financial performance, integration challenges, market conditions, and the impact of M&A transactions on the Company's stakeholders; the possibility that acquisition synergies may not be realized as expected or within anticipated timeframes, potentially impacting profitability and debt covenant compliance; the possibility that diligence may not identify previously unknown liabilities of acquired businesses, or that acquisitions or divestitures may not be completed on expected terms or timelines or may be delayed, conditioned or not approved by regulators; risks related to executive succession, retention and leadership development critical to strategy execution, including impacts from unexpected leadership changes; changes in tax laws or interpretations, including those related to acquisitions or divestitures, which could increase tax rates; violation of the Company’s debt covenants in the event of price and/or volume instability; new or revised accounting rules or changes in the critical accounting estimates and assumptions used by management could impact financial reporting, asset valuations, or covenant compliance; challenges in implementing new technologies or automation systems could lead to inefficiencies, cost overruns, or operational disruptions; cybersecurity risks; downward pressure on the Company’s common stock price affecting goodwill and other intangible asset impairment evaluations; potential credit rating downgrades to non-investment grade; and other risk factors listed from time to time in the Company’s SEC filings.
You should also review the risk factors discussed in Martin Marietta’s Annual Report on Form 10-K for the year ended December 31, 2025, the Form 10-Q for the quarters ended March 31, 2026, June 30, 2026 and the forthcoming Form 10-Q for the quarter ended September 30, 2026, and other periodic SEC filings. All forward-looking statements should be evaluated with these considerations in mind. Other risks and uncertainties not presently known or currently deemed immaterial may also affect the Company’s performance or the accuracy of forward-looking statements. The Company undertakes no obligation to update any such forward-looking statements.
| Unaudited Statements of Earnings | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in millions, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenues | $ | 2,369 | $ | 1,846 | $ | 5,678 | $ | 4,617 | |||||||
| Cost of revenues | 1,718 | 1,235 | 4,222 | 3,195 | |||||||||||
| Gross Profit | 651 | 611 | 1,456 | 1,422 | |||||||||||
| Selling, general and administrative expenses | 133 | 110 | 382 | 340 | |||||||||||
| Acquisition, divestiture and integration expenses | 84 | 5 | 107 | 9 | |||||||||||
| Other operating income, net | (4 | ) | (9 | ) | (5 | ) | (23 | ) | |||||||
| Earnings from Operations | 438 | 505 | 972 | 1,096 | |||||||||||
| Interest expense | 138 | 59 | 254 | 172 | |||||||||||
| Other nonoperating income, net | (13 | ) | (4 | ) | (33 | ) | (23 | ) | |||||||
| Earnings from continuing operations before income tax expense | 313 | 450 | 751 | 947 | |||||||||||
| Income tax expense | 57 | 89 | 159 | 190 | |||||||||||
| Earnings from continuing operations5 | 256 | 361 | 592 | 757 | |||||||||||
| Earnings from discontinued operations, net of income tax expense | — | 53 | 1,428 | 101 | |||||||||||
| Consolidated net earnings | 256 | 414 | 2,020 | 858 | |||||||||||
| Less: Net earnings attributable to noncontrolling interests | — | — | — | — | |||||||||||
| Net Earnings Attributable to Martin Marietta | $ | 256 | $ | 414 | $ | 2,020 | $ | 858 | |||||||
| Net Earnings Attributable to Martin Marietta | |||||||||||||||
| Basic earnings per share from continuing operations | $ | 3.94 | $ | 5.98 | $ | 9.57 | $ | 12.51 | |||||||
| Basic earnings per share from discontinued operations | — | 0.88 | 23.12 | 1.67 | |||||||||||
| Total basic earnings per share attributable to common shareholders | $ | 3.94 | $ | 6.86 | $ | 32.69 | $ | 14.18 | |||||||
| Diluted earnings per share from continuing operations5 | $ | 3.94 | $ | 5.97 | $ | 9.55 | $ | 12.49 | |||||||
| Diluted earnings per share from discontinued operations | — | 0.88 | 23.09 | 1.66 | |||||||||||
| Total diluted earnings per share attributable to common shareholders | $ | 3.94 | $ | 6.85 | $ | 32.64 | $ | 14.15 | |||||||
| Weighted-Average Common Shares Outstanding | |||||||||||||||
| Basic | 65.0 | 60.3 | 61.8 | 60.5 | |||||||||||
| Diluted | 65.1 | 60.4 | 61.9 | 60.6 | |||||||||||
| Unaudited Reportable Segment* Financial Highlights | |||||||||||||||
| (Continuing Operations Only) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenues | |||||||||||||||
| East Group | $ | 1,020 | $ | 943 | $ | 2,827 | $ | 2,578 | |||||||
| 987 | 772 | 2,195 | 1,730 | ||||||||||||
| Total | 2,007 | 1,715 | 5,022 | 4,308 | |||||||||||
| Specialties | 362 | 131 | 656 | 309 | |||||||||||
| Total | $ | 2,369 | $ | 1,846 | $ | 5,678 | $ | 4,617 | |||||||
| Earnings (Loss) from operations | |||||||||||||||
| East Group | $ | 312 | $ | 335 | $ | 837 | $ | 874 | |||||||
| 180 | 176 | 218 | 226 | ||||||||||||
| Total | 492 | 511 | 1,055 | 1,100 | |||||||||||
| Specialties | 68 | 26 | 144 | 90 | |||||||||||
| Total reportable segments | 560 | 537 | 1,199 | 1,190 | |||||||||||
| Corporate | (122 | ) | (32 | ) | (227 | ) | (94 | ) | |||||||
| Earnings from operations | 438 | 505 | 972 | 1,096 | |||||||||||
| Interest expense | 138 | 59 | 254 | 172 | |||||||||||
| Other nonoperating income, net | (13 | ) | (4 | ) | (33 | ) | (23 | ) | |||||||
| Earnings from continuing operations before income tax expense | $ | 313 | $ | 450 | $ | 751 | $ | 947 | |||||||
* In connection with the closing of the QUIKRETE asset exchange during the quarter ended
| Unaudited Product Line Financial Highlights | |||||||||||||||
| (Continuing Operations Only) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenues | |||||||||||||||
| Building Materials | |||||||||||||||
| Aggregates | $ | 1,662 | $ | 1,458 | $ | 4,337 | $ | 3,780 | |||||||
| Other | 399 | 351 | 819 | 744 | |||||||||||
| Less: Interproduct sales | (54 | ) | (94 | ) | (134 | ) | (216 | ) | |||||||
| Total | 2,007 | 1,715 | 5,022 | 4,308 | |||||||||||
| Specialties | 362 | 131 | 656 | 309 | |||||||||||
| Total | $ | 2,369 | $ | 1,846 | $ | 5,678 | $ | 4,617 | |||||||
| Gross profit (loss) | |||||||||||||||
| Building Materials | |||||||||||||||
| Aggregates | $ | 512 | $ | 531 | $ | 1,217 | $ | 1,257 | |||||||
| Other | 63 | 54 | 82 | 75 | |||||||||||
| Total | 575 | 585 | 1,299 | 1,332 | |||||||||||
| Specialties | 88 | 34 | 182 | 108 | |||||||||||
| Corporate | (12 | ) | (8 | ) | (25 | ) | (18 | ) | |||||||
| Total | $ | 651 | $ | 611 | $ | 1,456 | $ | 1,422 | |||||||
| Depreciation, Depletion and Amortization* | |||||||||||||||
| Building Materials | |||||||||||||||
| Aggregates | $ | 179 | $ | 124 | $ | 477 | $ | 361 | |||||||
| Other | 14 | 10 | 38 | 30 | |||||||||||
| Total | 193 | 134 | 515 | 391 | |||||||||||
| Specialties | 37 | 8 | 59 | 18 | |||||||||||
| Corporate | 1 | 1 | 3 | 3 | |||||||||||
| Total | $ | 231 | $ | 143 | $ | 577 | $ | 412 | |||||||
* Depreciation, depletion and amortization reflects the expense included in Cost of revenues and does not represent
total depreciation, depletion and amortization.
| Balance Sheet Data | ||||||
| (in millions) | Unaudited | Audited | ||||
| Assets | ||||||
| Cash and cash equivalents | $ | 140 | $ | 67 | ||
| Restricted cash | 12 | — | ||||
| Accounts receivable, net | 1,302 | 723 | ||||
| Inventories, net | 1,243 | 1,078 | ||||
| Other current assets | 116 | 95 | ||||
| Current assets held for sale | 3 | 1,230 | ||||
| Property, plant and equipment, net | 18,072 | 10,290 | ||||
| Intangible assets, net | 14,912 | 4,073 | ||||
| Operating lease right-of-use assets, net | 412 | 367 | ||||
| Other noncurrent assets | 873 | 788 | ||||
| Total Assets | $ | 37,085 | $ | 18,711 | ||
| Liabilities and Equity | ||||||
| Current maturities of long-term debt | $ | 720 | $ | 30 | ||
| Other current liabilities | 1,010 | 865 | ||||
| Long-term debt (excluding current maturities) | 12,103 | 5,293 | ||||
| Other noncurrent liabilities | 5,591 | 2,489 | ||||
| Total equity | 17,661 | 10,034 | ||||
| Total Liabilities and Equity | $ | 37,085 | $ | 18,711 | ||
| Unaudited Statements of Cash Flows | |||||||
| Nine Months Ended | |||||||
| (in millions) | 2026 | 2025 | |||||
| Cash Flows from Operating Activities | |||||||
| Consolidated net earnings | $ | 2,020 | $ | 858 | |||
| Adjustments to reconcile consolidated net earnings to net cash provided by operating activities: | |||||||
| Depreciation, depletion and amortization | 617 | 480 | |||||
| Stock-based compensation expense | 49 | 42 | |||||
| Gain on divestitures and sales of assets | (1,987 | ) | (24 | ) | |||
| Deferred income taxes, net | 260 | 75 | |||||
| Bridge financing commitment fees | 27 | — | |||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||||||
| Accounts receivable, net | (326 | ) | (309 | ) | |||
| Inventories, net | 145 | 10 | |||||
| Accounts payable | 92 | 64 | |||||
| Other assets and liabilities, net | 10 | (33 | ) | ||||
| Other items, net | (11 | ) | (7 | ) | |||
| Net Cash Provided by Operating Activities | 896 | 1,156 | |||||
| Cash Flows from Investing Activities | |||||||
| Additions to property, plant and equipment | (445 | ) | (602 | ) | |||
| Acquisitions, net of cash acquired | (7,872 | ) | (577 | ) | |||
| Proceeds from divestitures and sales of assets | 484 | 29 | |||||
| Investments in limited liability company | (53 | ) | (54 | ) | |||
| Other investing activities, net | 12 | (9 | ) | ||||
| (7,874 | ) | (1,213 | ) | ||||
| Cash Flows from Financing Activities | |||||||
| Proceeds from borrowings | 8,552 | 510 | |||||
| Repayments of debt | (1,040 | ) | (405 | ) | |||
| Bridge financing commitment fees | (27 | ) | — | ||||
| Debt issuance costs | (18 | ) | — | ||||
| Payments on finance lease obligations | (14 | ) | (17 | ) | |||
| Dividends paid | (161 | ) | (147 | ) | |||
| Repurchases of common stock | (200 | ) | (450 | ) | |||
| Shares withheld for employees’ income tax obligations | (29 | ) | (29 | ) | |||
| Other financing activities, net | — | (5 | ) | ||||
| Net Cash Provided by (Used for) Financing Activities | 7,063 | (543 | ) | ||||
| Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 85 | (600 | ) | ||||
| Cash, Cash Equivalents and Restricted Cash, beginning of period | 67 | 670 | |||||
| Cash, Cash Equivalents and Restricted Cash, end of period | $ | 152 | $ | 70 | |||
Additional Notes
| 4. | Revenues for the three- and nine-month periods ended |
| 5. | Net earnings from continuing operations attributable to Martin Marietta and earnings per diluted share from continuing operations included charges of |
| 6. | Organic mix-adjusted ASP represents Organic ASP adjusted to reflect consistent geographic mix between periods and is calculated by comparing Organic ASP for current-period shipments to Organic ASP for shipments in the comparable prior period. Please refer to the Investors section of the Company's website for definitions of ASP and Organic ASP. |
Non-GAAP Financial Measures
Earnings from continuing operations before interest; income taxes; depreciation, depletion and amortization; earnings/loss from nonconsolidated equity affiliates; acquisition, divestiture and integration expenses; the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting (the Inventory Markup); and an asset and portfolio rationalization charge, or Adjusted EBITDA from continuing operations, is an indicator used by the Company and investors to evaluate the Company's operating performance from period to period. The Company has elected to add back, for purposes of its Adjusted EBITDA from continuing operations calculation, acquisition, divestiture and integration expenses and the Inventory Markup only for transactions with consideration of at least
Adjusted EBITDA from continuing operations is not defined by accounting principles generally accepted in
Reconciliation of Net Earnings from Continuing Operations Attributable to Martin Marietta to Adjusted EBITDA from Continuing Operations
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net earnings from continuing operations attributable to Martin Marietta | $ | 256 | $ | 361 | $ | 592 | $ | 757 | |||||||
| Add back: | |||||||||||||||
| Interest expense, net of interest income | 132 | 56 | 244 | 163 | |||||||||||
| Income tax expense for controlling interests | 57 | 89 | 159 | 190 | |||||||||||
| Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates | 242 | 149 | 609 | 429 | |||||||||||
| Acquisition, divestiture and integration expenses | 82 | 7 | 96 | 7 | |||||||||||
| Impact of selling acquired inventory after markup to fair value as part of acquisition accounting | 38 | 5 | 105 | 5 | |||||||||||
| Asset and portfolio rationalization charge | 1 | — | 4 | — | |||||||||||
| Adjusted EBITDA from continuing operations | $ | 808 | $ | 667 | $ | 1,809 | $ | 1,551 | |||||||
Non-GAAP Financial Measures
Reconciliation of 2026 Net Earnings from Continuing Operations Attributable to Martin Marietta Guidance to 2026 Adjusted EBITDA from Continuing Operations Guidance
| (in millions) | |||
| Net earnings from continuing operations attributable to Martin Marietta | $ | 800 | |
| Add back: | |||
| Interest expense, net of interest income | 403 | ||
| Income tax expense for controlling interests | 203 | ||
| Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates | 864 | ||
| Acquisition, divestiture and integration expenses | 96 | ||
| Impact of selling acquired inventory after markup to fair value as part of acquisition accounting | 105 | ||
| Asset and portfolio rationalization charge | 4 | ||
| Adjusted EBITDA from continuing operations guidance | $ | 2,475 | |
Non-GAAP Financial Measures
Adjusted earnings per diluted share from continuing operations is a non-GAAP financial measure used by the Company and by investors to evaluate operating performance and enhance comparability across reporting periods. The Company calculates Adjusted earnings per diluted share from continuing operations by excluding the impact of certain items that management believes are not indicative of the Company's underlying performance from period to period, including impacts directly related to acquisition and divestiture activity as well as asset and portfolio rationalization charges. The Company has elected to add back, for purposes of its Adjusted earnings per diluted share from continuing operations calculation, acquisition, divestiture and integration expenses, the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting and the revaluation of deferred tax liabilities, only for transactions with consideration of at least
Adjusted earnings per diluted share from continuing operations is not defined by accounting principles generally accepted in
Reconciliation of Earnings per Diluted Share from Continuing Operations to Adjusted Earnings per Diluted Share from Continuing Operations
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (per diluted share) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Earnings per diluted share from continuing operations | $ | 3.94 | $ | 5.97 | $ | 9.55 | $ | 12.49 | |||||||
| Add back: | |||||||||||||||
| Acquisition, divestiture and integration expenses | 1.09 | 0.08 | 1.34 | 0.08 | |||||||||||
| Impact of selling acquired inventory after markup to fair value as part of acquisition accounting | 0.43 | 0.07 | 1.29 | 0.07 | |||||||||||
| Asset and portfolio rationalization charge | 0.01 | — | 0.05 | — | |||||||||||
| Revaluation of deferred tax liabilities | — | — | 0.25 | — | |||||||||||
| Adjusted earnings per diluted share from continuing operations | $ | 5.47 | $ | 6.12 | $ | 12.48 | $ | 12.64 | |||||||
Non-GAAP Financial Measures
Aggregates cash gross profit and Specialties cash gross profit are non-GAAP financial measures used by the Company and by investors to evaluate operating performance and enhance comparability across reporting periods. For each respective product line, the Company calculates cash gross profit by adding back to gross profit the noncash charges for depreciation, depletion and amortization and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting for that product line.
Aggregates cash gross profit and Specialties cash gross profit are not defined by accounting principles generally accepted in
Reconciliation of Aggregates Gross Profit to Aggregates Cash Gross Profit
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in millions, except per ton) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Aggregates gross profit | $ | 512 | $ | 531 | $ | 1,217 | $ | 1,257 | |||||||
| Add back: | |||||||||||||||
| Aggregates depreciation, depletion and amortization expense | 179 | 124 | 477 | 361 | |||||||||||
| Aggregates impact of selling acquired inventory after markup to fair value as part of acquisition accounting | 5 | — | 78 | 1 | |||||||||||
| Aggregates cash gross profit | $ | 696 | $ | 655 | $ | 1,772 | $ | 1,619 | |||||||
| Shipments | 67.1 | 57.9 | 172.6 | 149.6 | |||||||||||
| Aggregates cash gross profit per ton | $ | 10.36 | $ | 11.31 | $ | 10.27 | $ | 10.82 | |||||||
Reconciliation of Specialties Gross Profit to Specialties Cash Gross Profit
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Specialties gross profit | $ | 88 | $ | 34 | $ | 182 | $ | 108 | |||||||
| Add back: | |||||||||||||||
| Specialties depreciation, depletion and amortization expense | 37 | 8 | 59 | 18 | |||||||||||
| Specialties impact of selling acquired inventory after markup to fair value as part of acquisition accounting | 38 | 5 | 38 | 5 | |||||||||||
| Specialties cash gross profit | $ | 163 | $ | 47 | $ | 279 | $ | 131 | |||||||
Non-GAAP Financial Measures
LNA cash gross profit for the period
LNA cash gross profit is not defined by accounting principles generally accepted in
Reconciliation of LNA Gross Profit to LNA Cash Gross Profit
| Period from | ||
| to | ||
| (in millions) | 2026 | |
| LNA gross profit | $ | 51 |
| Add back: | ||
| LNA depreciation, depletion and amortization expense | 26 | |
| LNA impact of selling acquired inventory after markup to fair value as part of acquisition accounting | 38 | |
| LNA cash gross profit | $ | 115 |
