Martin Marietta Materials (MLM) AI Stock Analysis

• Market Cap: $39.91B
• Dividend Yield: 0.51%
• Average Volume (3M): 471.19K
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.74
• Revenue Growth: 1.99%
• EPS Growth: -41.08%
• Country: US
• Employees: 9,400
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 3.85
• Shares Outstanding: 60,307,144
• 10 Day Avg. Volume: 633,068
• 30 Day Avg. Volume: 471,186
• PEG Ratio: -0.79
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 5.74
• P/FCF Ratio: 38.39
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 7.12
• Enterprise Value/Gross Profit: 23.76
• Enterprise Value/Ebitda: 21.30
• 1Y Price Target: $695.58
• Price Target Upside: 1.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 20.7
• Revenue Forecast (FY): $6.92B

• Rating: 69 Neutral
• Price Target: $723.00 ▲(5.40% Upside)
• Action: Downgraded Date: 02/14/26
• Date: Action: Downgraded 02/14/26

MLM scores well on underlying financial quality and cash generation, reinforced by a positive management outlook and guidance that targets continued EBITDA growth and stronger free cash flow. Technicals are supportive but not showing strong momentum. The main drag on the score is valuation (high P/E with a low dividend yield), which raises sensitivity to execution and end-market cyclicality.

Positive Factors

Strong cash generation

Consistent, high operating cash flow (~$1.8B) and near-$1B free cash flow provide durable internal funding for sustaining capex, opportunistic M&A, share repurchases and deleveraging. This cash generation reduces dependence on external financing and supports long-term capital allocation flexibility.

High-margin aggregates franchise

The aggregates business shows durable pricing power and unit profitability (gross profit per ton growth, margin expansion to ~34%). Core markets and execution under SOAR programs improve unit economics and create a stable margin base less sensitive to short-term volume swings.

Improving leverage and liquidity

A clear deleveraging trend and healthy liquidity (net leverage ~2.3x, debt/equity ~0.53, $1.2B liquidity) strengthen financial flexibility. This supports capital investment, weathering cyclicality, and enables targeted buybacks or M&A without materially increasing balance-sheet risk.

Negative Factors

Top-line cyclicality and recent decline

A weakening top line and recent revenue decline signal exposure to cyclical construction demand. Persistent revenue sensitivity limits visibility into sustainable growth, pressures returns and increases reliance on margin or cost improvements to sustain earnings through downturns.

Exposure to private residential/nonres construction weakness

Significant exposure to private residential and nonresidential construction constrains aggregate demand in key markets. Structural affordability and lower starts can keep volumes depressed for multiple quarters, reducing utilization and limiting the durability of revenue and margin recovery.

Acquisition/mix and Quickrete execution risk

Timing and execution risk around the Quickrete asset exchange and lower-ASP acquisitions can depress blended pricing and delay synergies. Reliance on complex real-estate processes and base-stone heavy project mix may mute near-term margin improvement and complicate achieving modeled EBITDA gains.

Martin Marietta Materials Business Overview & Revenue Model

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.

How the Company Makes Money

Martin Marietta generates revenue primarily through the sale of aggregates and heavy building materials. The Aggregates segment is the largest contributor to the company's earnings, driven by demand in the construction and infrastructure markets. Revenue is derived from the direct sale of raw materials to contractors, builders, and governmental entities, which are used in various construction projects such as roads, bridges, and commercial buildings. Additionally, the Specialty Products segment contributes to the revenue through the sale of cement, ready-mixed concrete, and asphalt products. Strategic partnerships with key construction firms and government contracts enhance the company's revenue stability. Factors such as infrastructure spending, economic growth, and housing demand are significant contributors to the company's earnings, as they directly influence the volume of materials required in the market.

Martin Marietta Materials Financial Statement Overview

Summary

Strong profitability and cash generation support the score: 2025 gross margin (~31%) and net margin (~18%) remain solid, operating cash flow (~$1.8B) is strong and ~2.0x net income, and leverage has improved (debt-to-equity down to ~0.53). Offsetting this, revenue declined in 2024 and fell further in 2025 (~7%), and profitability/ROE stepped down materially from 2024 to 2025, indicating more recent cyclicality/normalization.

Income Statement

Profitability is solid for the industry, with 2025 gross margin (~31%) and net margin (~18%) holding up well. However, results have become more volatile: revenue declined in 2024 and fell further in 2025 (down ~7%), and 2024 showed unusually high profitability versus the surrounding years, suggesting earnings normalization in 2025. Overall: strong underlying margins, but a softer top-line and less consistent profit profile recently.

Balance Sheet

Leverage looks manageable and improving: debt-to-equity has trended down from ~0.85 (2021) to ~0.53 (2025), and equity has grown steadily alongside assets. Returns on equity are healthy but have moderated meaningfully from 2024 (~21%) to 2025 (~11%), consistent with the step-down in earnings. Overall balance sheet is supportive, with moderate leverage but some profitability cyclicality to watch.

Cash Flow

Cash generation is a strength: operating cash flow rose to ~$1.8B in 2025 and comfortably covered net income (about ~2.0x), indicating good earnings quality. Free cash flow is solid at ~$978M in 2025, though it dipped slightly year over year and free cash flow remains only about ~55% of net income, implying ongoing reinvestment or working-capital/capex demands. Overall: strong operating cash flow with mildly uneven free-cash-flow momentum.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.54B	6.54B	6.78B	6.16B	5.41B
Gross Profit	1.96B	1.88B	2.02B	1.42B	1.35B
EBITDA	2.19B	3.34B	2.17B	1.77B	1.45B
Net Income	1.14B	2.00B	1.17B	867.00M	702.50M
Balance Sheet
Total Assets	18.71B	18.17B	15.13B	14.99B	14.39B
Cash, Cash Equivalents and Short-Term Investments	67.00M	670.00M	1.27B	358.00M	258.40M
Total Debt	5.32B	5.80B	4.73B	5.43B	5.53B
Total Liabilities	8.68B	8.71B	7.09B	7.82B	7.86B
Stockholders Equity	10.03B	9.45B	8.03B	7.17B	6.54B
Cash Flow
Free Cash Flow	978.00M	604.00M	878.00M	509.00M	714.60M
Operating Cash Flow	1.78B	1.46B	1.53B	991.00M	1.14B
Investing Cash Flow	-1.59B	-2.44B	459.00M	-484.00M	-3.47B
Financing Cash Flow	-800.00M	373.00M	-1.06B	-407.00M	2.29B

Martin Marietta Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 685.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLM, the sentiment is Positive. The current price of 685.94 is above the 20-day moving average (MA) of 667.48, above the 50-day MA of 649.50, and above the 200-day MA of 605.04, indicating a bullish trend. The MACD of 8.33 indicates Positive momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 42.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MLM.

Martin Marietta Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMC	75 Outperform	$39.55B	36.91	12.99%	0.67%	6.54%	32.48%
TGLS	74 Outperform	$2.45B	13.69	26.21%	1.12%	15.70%	19.92%
CX	71 Outperform	$18.94B	18.91	3.14%	0.74%	-6.34%	210.97%
EXP	70 Outperform	$7.28B	17.53	28.77%	0.47%	1.50%	-4.44%
MLM	69 Neutral	$39.91B	35.25	10.65%	0.51%	1.99%	-41.08%
KNF	65 Neutral	$5.14B	32.07	9.71%	―	5.52%	-25.56%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Martin Marietta Materials Corporate Events

Martin Marietta Posts Record 2025 Results, Issues 2026 Outlook

Martin Marietta reported on February 11, 2026, that for the fourth quarter and full year ended December 31, 2025, it achieved record aggregates revenues, gross profit and margins, alongside record revenues and gross profit in its Specialties business. Full-year revenues rose 9% to $6.15 billion and adjusted EBITDA from continuing operations increased 17% to $2.07 billion, driven by higher aggregates pricing and improved unit profitability despite macro headwinds in housing and nonresidential construction.

The company’s aggregates shipments grew 4% for 2025 and average selling prices rose 7%, lifting aggregates gross profit 16% and gross profit per ton 12%, though total earnings per diluted share declined 42% year-on-year due partly to comparisons with prior-year discontinued operations. Management highlighted successful execution of its SOAR 2025 plan, the launch of SOAR 2030 and ongoing portfolio optimization, while issuing 2026 guidance that assumes low single-digit shipment growth supported by robust infrastructure spending and rising demand from data centers and energy projects.

The most recent analyst rating on (MLM) stock is a Buy with a $703.00 price target. To see the full list of analyst forecasts on Martin Marietta Materials stock, see the MLM Stock Forecast page.

Martin Marietta extends and modifies key credit facility

On December 19, 2025, Martin Marietta Materials, Inc. entered into Loan Modification No. 4 and Extension Agreement with its lenders and JPMorgan Chase Bank (JPMCB), amending a material definitive credit agreement. The move reflects an adjustment and extension of the company’s existing financing arrangements, which may support its capital structure and liquidity position as it continues to operate in the construction materials sector.

The most recent analyst rating on (MLM) stock is a Buy with a $730.00 price target. To see the full list of analyst forecasts on Martin Marietta Materials stock, see the MLM Stock Forecast page.