MARTIN MARIETTA MATERIALS INC (MLM)

Martin Marietta Materials, Inc. is a leading natural resource-based building materials company. It supplies aggregates (crushed stone, sand and gravel) through a network of approximately 400 quarries, mines and distribution yards in 28 states, Canada and The Bahamas. Aggregates generated 88% of total reportable segment gross profit in 2025. The company was formed in 1993 as a North Carolina corporation to succeed the materials group of what is now Lockheed Martin Corporation, and it completed its IPO in 1994. It has since completed over 100 acquisitions, along with a number of strategic dispositions, to build an aggregates-led presence.

The Building Materials business covers aggregates, cement, ready mixed concrete, asphalt and paving services, with the latter products offered in targeted markets where the company has a notable aggregates position. It has two geographic reportable segments. The East Group provides aggregates and asphalt products. The West Group provides aggregates, ready mixed concrete, asphalt and paving services. A separate Specialties segment (formerly Magnesia Specialties) makes high-purity natural and synthetic magnesia-based products, including magnesium sulfate, magnesium oxide and magnesium hydroxide, plus dolomitic lime. Its plants are in Michigan, Ohio, Nevada, North Carolina, Indiana and Pennsylvania. Recent portfolio moves include the 2024 acquisitions of Albert Frei & Sons in Colorado and BWI Southeast's 20 aggregates operations, the 2024 sale of the South Texas cement business to CRH for $2.1 billion, and the July 2025 purchase of Premier Magnesia. In August 2025 the company agreed to exchange its Midlothian cement plant, related terminals and Texas ready mixed concrete assets with QUIKRETE for aggregates facilities producing about 20 million tons annually, plus cash. Those cement and Texas concrete operations are now classified as held for sale and discontinued operations.

Building Materials sells mainly to the construction industry. In 2025, 37% of aggregates shipments went to highway and other public infrastructure projects, and the rest went mostly to nonresidential and residential construction. Aggregates are also used in agricultural, utility and environmental applications and as railroad ballast. The ten largest revenue-generating states (Texas, North Carolina, Colorado, California, Georgia, Florida, South Carolina, Arizona, Iowa and Minnesota) produced 76% of Building Materials revenues from continuing operations in 2025. Results are sensitive to economic conditions, public infrastructure funding, interest rates and weather. Specialties products serve environmental, industrial, agricultural, construction, consumer and specialty uses, and they ship domestically and worldwide. Dolomitic lime is sold mainly for steel production and soil stabilization, and it is also used internally to make synthetic magnesia.

Operations are mostly open pit quarries, and the company is the largest operator of underground aggregates mines in the U.S., with 13 active underground mines in the East Group. Because trucking costs are high relative to product price, proximity to customers is a key competitive factor. Distribution is mainly by truck, supplemented by rail and by oceangoing ships from The Bahamas and Nova Scotia, and the company has 89 aggregates distribution yards and shipping agreements for vessels. Reserves average approximately 85 years at 2025 production levels. The company relies on railroads and shipping companies for long-haul distribution. The industry has been consolidating, and the company pursues acquisitions, divestitures and internal expansion under its SOAR strategic planning process.