Martin Marietta Materials, Inc.
MLM · NYSE
Next quarter
Reports Nov 3, 2026.
Consensus is $6.60 EPS for Sep 2026 across 6 estimates, ranging $6.30 to $6.79.
MLM Jun 2026
- 8.23%
- -2.75%
- $4.62
- $5.00
- —
- $1.95B
Reported results
- $1.95B
- 25.42%
- $372.00M
- 19.11%
- $251.00M
- $4.17
Highlights
- Record revenue: Second-quarter revenue rose 21% year over year to $1.947 billion, up from $1.36 billion in the first quarter and a new quarterly record.
- Adjusted EPS beat: Adjusted diluted EPS was $5.00 versus consensus of $4.62, an 8.23% surprise; GAAP diluted EPS from continuing operations was $4.26, versus $4.84 a year ago.
- Adjusted EBITDA growth: Adjusted EBITDA increased 13% year over year to $638 million, despite a $52 million acquisition-accounting inventory markup charge in aggregates.
- Aggregates volume-led growth: Aggregates shipments rose 17% to a record 61.6 million tons, including 2.3% organic growth; organic mix-adjusted pricing increased 3.7%, while reported ASP fell 2% to $22.74 per ton.
- Specialties momentum: Specialties revenue reached a quarterly record of $152 million, up 69%, while gross profit rose 39% to $50 million, supported by the Premier Magnesia acquisition and organic pricing.
- Guidance raised: Martin Marietta raised 2026 revenue guidance to $7.2 billion-$7.4 billion and reaffirmed adjusted EBITDA guidance of $2.36 billion-$2.50 billion; the outlook excludes Lhoist North America.
- Lhoist transaction: The proposed Lhoist North America combination is valued at approximately $13.5 billion, comprising $7.0 billion of cash and $6.5 billion of Martin Marietta shares, with closing expected in the second half of 2026.
- Cash and efficiency focus: Management identified approximately $350 million of annualized cash-flow improvements and said it had unlocked more than $200 million of cash year to date through inventory and capital-spending reductions.
Analysis
Martin Marietta's second quarter was a strong operating print wrapped in a much larger portfolio and financing story. Revenue rose 21% year over year to a record $1.947 billion, from $1.609 billion a year ago and $1.36 billion in the prior quarter. Adjusted diluted EPS of $5.00 exceeded the $4.62 consensus by 8.23%, although GAAP diluted EPS from continuing operations fell 12% to $4.26 from $4.84 a year ago. The prior quarter's $25.06 total EPS and $1.51 billion net income were inflated by the $1.4 billion after-tax gain on the QUIKRETE-related divestiture, so sequential comparisons are distorted.
The underlying business benefited from infrastructure and heavy nonresidential demand, acquisitions and execution. Adjusted EBITDA rose 13% to $638 million, while aggregates shipments increased 17% to 61.6 million tons; organic mix-adjusted pricing grew 3.7%, but acquisition mix and a $52 million inventory markup charge pressured reported aggregates gross profit. Specialties was notably stronger, with revenue up 69% to $152 million and gross profit up 39% to $50 million. Martin Marietta raised full-year revenue guidance to $7.2 billion-$7.4 billion, reaffirmed adjusted EBITDA guidance of $2.36 billion-$2.50 billion, and announced a proposed $13.5 billion Lhoist North America acquisition alongside a $350 million annualized cash-improvement program.
Operating performance
The quarter combined strong demand and acquisition contributions with lower reported GAAP earnings. Revenue increased 21% to $1.947 billion, while operating income declined 10% to $372 million and net income from continuing operations attributable to Martin Marietta fell 12% to $256 million. The comparison reflects $45 million, or $0.74 per diluted share, of after-tax acquisition, divestiture, inventory-markup and rationalization charges. Excluding those items, adjusted EPS increased 3% to $5.00 and adjusted EBITDA rose 13% to $638 million. SG&A improved to 5.9% of revenue from 6.5% a year earlier.
Aggregates volumes and pricing
- Shipments: Aggregates volume rose 17% to a record 61.6 million tons, driven by the QUIKRETE assets, the partial-quarter contribution from New Frontier Materials and 2.3% organic growth.
- Pricing: Reported ASP declined 2% to $22.74 per ton because of acquisition-related geographic and product mix. Organic ASP increased 2.1%, while organic mix-adjusted ASP increased 3.7%.
- Profitability: Aggregates revenue increased 16% to $1.533 billion, but gross profit fell 3% to $418 million. The result included a $52 million noncash inventory-markup charge and higher depreciation; cost of goods sold per ton increased 3.6%, including 150 basis points from higher external freight costs.
- Downstream materials: Other Building Materials revenue rose 12% to $303 million, but gross profit fell 14% to $34 million because of higher ready-mix raw-material costs, lower organic paving revenue and weaker job margins.
Specialties expansion
Specialties was the clearest margin-growth contributor. Revenue reached a quarterly record of $152 million, up from $90 million a year earlier, and gross profit reached $50 million versus $36 million. The Premier Magnesia acquisition, completed in July 2025, added scale, while organic pricing gains supported all products. Within the lime business, ASP increased 4.0%, or 5.0% on a mix-adjusted basis, and shipments increased 0.9%, driving 7% gross-profit growth. The quarter reinforces management's stated objective of expanding the higher-value upstream Specialties platform.
Lhoist North America
The proposed combination with Lhoist North America is the strategic centerpiece of the quarter. Announced June 27, the transaction is valued at approximately $13.5 billion and is expected to close in the second half of 2026, subject to regulatory approval and other conditions. Consideration consists of approximately $7.0 billion in cash and 10.95 million newly issued Martin Marietta shares valued at $6.5 billion, which would give LNA approximately 15% of the combined company's outstanding shares. LNA brings 20 quarries and production facilities, 45 distribution terminals and more than two billion tons of high-quality limestone reserves. Martin Marietta has committed bridge funding and a $1.5 billion three-year term-loan facility, while the transaction's funding could ultimately require up to $7.0 billion of third-party debt. Current 2026 guidance includes no LNA contribution.
Cash generation and leverage
Management made cash conversion and portfolio efficiency a major theme. It expects approximately $350 million of annualized cash-flow improvements from optimizing the asset base, network footprint, inventory and sustaining capital, and reported more than $200 million of cash unlocked year to date versus the prior-year period. Six-month operating cash flow was $339 million versus $605 million a year earlier, mainly because of higher taxes associated with the QUIKRETE divestiture gain; continuing-operations operating cash flow was $406 million. Capital additions were $314 million, shareholders received $302 million through dividends and repurchases, and Martin Marietta ended June with $112 million of unrestricted cash and $742 million of unused borrowing capacity. Total debt was $5.951 billion, with $560 million drawn under the trade receivable facility and $95 million under the revolver.
