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Martin Marietta Materials
(NYSE:MLM)
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Rating:71Outperform
Price Target:
$615.00
▲(9.90% Upside)
Action:Upgraded
Date:08/06/26
MLM scores well on fundamentals and management outlook: strong operating profitability, improving leverage, and raised revenue guidance with sizable cash-improvement initiatives support the rating. The main offsets are weaker technical momentum (trading below major moving averages with a negative MACD) and some uncertainty from earnings/FCF variability and near-term cost and acquisition-mix headwinds.
Positive Factors
High operating profitability
Sustained, above-average operating and EBITDA margins reflect durable competitive advantages in aggregates and downstream products. Strong unit economics support through-cycle cash generation, fund reinvestment and dividend capacity, making operating performance resilient across construction cycles.
Negative Factors
Significant near-term leverage increase
A step-up to ~3.7x leverage materially raises interest and refinancing risk and limits financial flexibility for 2-3 years. Even with a deleveraging plan, elevated leverage reduces capacity for opportunistic investments and increases vulnerability to construction cyclicality and higher rates.
Read all positive and negative factors
Positive Factors
Negative Factors
High operating profitability
Sustained, above-average operating and EBITDA margins reflect durable competitive advantages in aggregates and downstream products. Strong unit economics support through-cycle cash generation, fund reinvestment and dividend capacity, making operating performance resilient across construction cycles.
Read all positive factors
Martin Marietta Materials Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Reveals profitability across different business segments, highlighting which areas drive earnings and where there may be room for improvement.
Reveals profitability across different business segments, highlighting which areas drive earnings and where there may be room for improvement.
Data provided by:
The Fly
The FlyMartin Marietta Materials (MLM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.54B
Dividend Yield0.63%
Average Volume (3M)589.12K
Price to Earnings (P/E)12.9
Beta (1Y)0.73
Revenue Growth0.06%
EPS Growth125.23%
CountryUS
Employees9,600
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)40.78
Shares Outstanding60,065,838
10 Day Avg. Volume468,194
30 Day Avg. Volume589,116
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)3.74
Price to Sales (P/S)5.74
P/FCF Ratio38.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$658.67Price Target Upside17.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)18.28
Revenue Forecast (FY)$7.22B
Martin Marietta Materials Business Overview & Revenue Model
Company Description
Martin Marietta Materials, Inc. functions as a company specializing in natural resource-derived building materials. This enterprise delivers a wide range of aggregates and other heavy construction components to the building industry, serving both ...
How the Company Makes Money
Martin Marietta primarily makes money by selling construction materials, led by aggregates. Revenue is generated from (1) aggregates sales, where the company extracts raw rock and other materials at quarries, processes them into marketable product...
Martin Marietta Materials Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized multiple substantive achievements—record revenues and adjusted EBITDA, organic volume and mix-adjusted pricing gains, strong Specialties performance, successful acquisitions (NFM) and a transformational planned combination with Lhoist—alongside disciplined capital allocation and identified $350 million of run-rate cash opportunities. Offsetting challenges include headline ASP dilution from recent acquisitions, noncash purchase accounting charges ($52M inventory step-up and higher DD&A), elevated energy and freight costs (noted 150 bps freight headwind and a multi-million dollar energy impact), and weather/residential softness that affected some regional volumes. Management raised revenue guidance, reaffirmed EBITDA, and presented a credible plan to integrate acquisitions and delever within 24 months, signifying confidence in long-term prospects despite near-term cost and mix headwinds.Positive Updates
Record Quarterly Results
Delivered record second-quarter revenues and adjusted EBITDA; core aggregates revenue reached $1.5 billion, up 16% year-over-year.
Negative Updates
Headline ASP Decline and Acquisition Mix Headwind
Headline average selling prices fell 2% during the quarter; approximately 400 basis points of the headline decline was attributable to acquisition mix (Quikrete and partial-quarter NFM), with the acquisition mix expected to be more pronounced in the second half as NFM contributes for the full period.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Results
Delivered record second-quarter revenues and adjusted EBITDA; core aggregates revenue reached $1.5 billion, up 16% year-over-year.
Read all positive updates
Company Guidance
Management raised full‑year revenue guidance to $7.2–$7.4 billion and reaffirmed adjusted EBITDA from continuing operations at $2.36–$2.50 billion (guidance excludes any contribution from the pending Lhoist North America transaction, to be updated at closing). Q2 operating metrics supporting the outlook included record aggregates revenue of $1.5 billion, total shipments of 61.6 million tons (organic shipments +2.3%), headline ASP down 2% but up 3.7% on an organic, mix‑adjusted basis, organic COGS/ton +3.6% (including a 150‑bp external freight headwind), reported aggregates gross profit of $418 million (impacted by a $52 million noncash inventory step‑up — ~$45 million EBITDA adjustment — and ~$42 million higher DD&A) and adjusted cash gross profit of $636 million (up 15% YoY). Specialties posted record revenue of $152 million and gross profit of $50 million (Woodville ASP +4% / mix‑adjusted +5%, shipments +1%, gross profit +7%). Year‑to‑date adjusted EBITDA exceeded $1.0 billion (a first‑half record); management reiterated plans to delever back to target leverage within 24 months post‑LNA close, quantified ~$350 million of run‑rate pretax cash‑flow improvement opportunities (with >$200 million of cash benefits realized YTD from inventory and CapEx reductions), and cautioned that energy costs are expected to remain elevated through year‑end.Martin Marietta Materials Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.69B | 6.54B | 6.54B | 6.78B | 6.16B | 5.41B |
| Gross Profit | 1.89B | 1.96B | 1.88B | 2.02B | 1.42B | 1.35B |
| EBITDA | 1.88B | 2.15B | 3.34B | 2.17B | 1.77B | 1.45B |
| Net Income | 2.46B | 1.14B | 2.00B | 1.17B | 867.00M | 702.50M |
Balance Sheet | ||||||
| Total Assets | 21.30B | 18.71B | 18.17B | 15.13B | 14.99B | 14.39B |
| Cash, Cash Equivalents and Short-Term Investments | 112.00M | 67.00M | 670.00M | 1.27B | 358.00M | 258.40M |
| Total Debt | 5.95B | 5.32B | 5.80B | 4.73B | 5.43B | 5.53B |
| Total Liabilities | 9.76B | 8.68B | 8.71B | 7.09B | 7.82B | 7.86B |
| Stockholders Equity | 11.55B | 10.03B | 9.45B | 8.03B | 7.17B | 6.54B |
Cash Flow | ||||||
| Free Cash Flow | 810.00M | 978.00M | 604.00M | 878.00M | 509.00M | 714.60M |
| Operating Cash Flow | 1.52B | 1.78B | 1.46B | 1.53B | 991.00M | 1.14B |
| Investing Cash Flow | -1.70B | -1.59B | -2.44B | 459.00M | -484.00M | -3.47B |
| Financing Cash Flow | 69.00M | -800.00M | 373.00M | -1.06B | -407.00M | 2.29B |
Martin Marietta Materials Technical Analysis
Negative
559.60
Price Trends
574.55
Negative
582.94
Negative
608.22
Negative
Market Momentum
-9.03
Positive
45.75
Neutral
36.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLM, the sentiment is Negative. The current price of 559.6 is above the 20-day moving average (MA) of 556.94, below the 50-day MA of 574.55, and below the 200-day MA of 608.22, indicating a bearish trend. The MACD of -9.03 indicates Positive momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 36.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLM.
Martin Marietta Materials Risk Analysis
Martin Marietta Materials disclosed 31 risk factors in its most recent earnings report. Martin Marietta Materials reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Martin Marietta Materials Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $31.54B | 12.88 | 23.11% | 0.59% | 0.06% | 125.23% | |
70 Outperform | $34.80B | 31.60 | 13.11% | 0.72% | 6.86% | 18.35% | |
68 Neutral | $2.02B | 13.45 | 17.29% | 1.12% | 9.84% | -12.68% | |
65 Neutral | $17.92B | 35.44 | 3.67% | 0.82% | 9.40% | -67.61% | |
63 Neutral | $4.15B | 28.36 | 8.72% | ― | 9.57% | -18.90% | |
62 Neutral | $6.29B | 16.11 | 26.87% | 0.47% | 1.68% | -7.06% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
MLM
Martin Marietta Materials
548.57
-59.10
-9.73%
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Martin Marietta Materials Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Martin Marietta secures approvals for Lhoist North America deal
Positive
Aug 5, 2026
On June 27, 2026, Martin Marietta Materials, Inc. entered into a securities sale agreement to acquire all outstanding equity interests in Lhoist North America, Inc. for $13.5 billion in cash and stock. Lhoist North America produces, distributes, m...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Martin Marietta Materials Promotes Petro to CFO Role
Positive
Aug 4, 2026
On August 4, 2026, Martin Marietta Materials, Inc. promoted Michael J. Petro to Executive Vice President and Chief Financial Officer, formalizing the move through a new employment agreement and an amended employment protection agreement. The packa...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Martin Marietta Posts Record Q2 Revenue, Raises Guidance
Positive
Jul 30, 2026
On July 30, 2026, Martin Marietta reported second‑quarter 2026 results, posting record revenues of $1.95 billion, up 21% year on year, and a 13% rise in adjusted EBITDA, while net earnings and gross profit declined due to acquisition‑r...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and Financing
Martin Marietta to Acquire Lhoist North America
Positive
Jun 29, 2026
On June 27, 2026, Martin Marietta Materials agreed to acquire Lhoist North America from Belgium-based LNA Holding for $13.5 billion, in a mix of $7 billion cash and newly issued stock valued at $6.5 billion, adding a major North American producer ...
Business Operations and StrategyM&A Transactions
Martin Marietta to Acquire Lhoist North America Franchise
Positive
Jun 29, 2026
Martin Marietta Materials announced on June 29, 2026 that it has signed a definitive Securities Sale Agreement to acquire all outstanding equity interests in Lhoist North America, a major producer of hi-calcium and dolomitic lime and industrial mi...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Martin Marietta Shareholders Back Directors and Equity Plan
Positive
May 14, 2026
On May 14, 2026, Martin Marietta Materials, Inc. shareholders approved all items on the ballot at the company’s annual meeting, including the election of ten directors to one-year terms and the ratification of PricewaterhouseCoopers LLP as i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.