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Martin Marietta Materials
(NYSE:MLM)
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Rating:75Outperform
Price Target:
$654.00
▲(5.14% Upside)
Action:Reiterated
Date:06/30/26
The score is driven primarily by strong financial performance (healthy margins, strong operating cash flow/FCF, and improving leverage) and a positive earnings outlook with reaffirmed 2026 EBITDA guidance and strong Q1 operating momentum. Valuation is supportive via a moderate P/E, though the dividend yield is low. Corporate events add strategic upside but also raise near-term risk due to higher leverage and regulatory/closing uncertainty, while technical positioning cannot be confirmed from the provided data.
Positive Factors
Strong cash generation
Consistent, sizable OCF (~2.0x net income) and ~ $1.0B TTM free cash flow provide durable funding for capex, bolt-on M&A, buybacks and dividends. This cash-conversion advantage supports reinvestment and faster deleveraging after large acquisitions, improving long-term optionality.
Negative Factors
Material leverage increase from Lhoist deal
A near-term leverage spike to ~3.7x materially reduces financial flexibility and raises interest‑rate and refinancing exposure. Deleveraging depends on sustained strong free cash flow and execution of synergies; any demand softness or integration delays would prolong elevated leverage and constrain capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, sizable OCF (~2.0x net income) and ~ $1.0B TTM free cash flow provide durable funding for capex, bolt-on M&A, buybacks and dividends. This cash-conversion advantage supports reinvestment and faster deleveraging after large acquisitions, improving long-term optionality.
Read all positive factors
Martin Marietta Materials Key Performance Indicators (KPIs)
Any
Aggregates Tons Shipped to Customers
Measures the volume of aggregates delivered, reflecting demand in construction and infrastructure projects and the company’s market reach.
Measures the volume of aggregates delivered, reflecting demand in construction and infrastructure projects and the company’s market reach.
Data provided by:
The Fly
The FlyMartin Marietta Materials (MLM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.99B
Dividend Yield0.51%
Average Volume (3M)549.58K
Price to Earnings (P/E)14.3
Beta (1Y)0.74
Revenue Growth-1.28%
EPS Growth140.98%
CountryUS
Employees9,400
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)42.05
Shares Outstanding60,045,900
10 Day Avg. Volume591,951
30 Day Avg. Volume549,577
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 Cap1.14
Enterprise Value/Revenue6.24
Enterprise Value/Gross Profit21.12
Enterprise Value/Ebitda19.15
Forecast
1Y Price Target
$672.17Price Target Upside8.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)19.18
Revenue Forecast (FY)$7.11B
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents a largely positive picture: strong top-line growth (17% revenue increase), record aggregates shipments and revenues, robust Specialties performance, successful large-scale M&A (Quikrete) with encouraging early integration results, active bolt-on M&A (New Frontier) and a reaffirmed full-year EBITDA guide. Near-term challenges include geographic mix pressure on ASPs and gross profit, purchase-accounting noise from Quikrete inventory (~$44M), diesel/energy headwinds (~$36M in aggregates, $20–25M in Q2), and seasonal softness in certain downstream businesses (Other Building Materials) and interest-rate sensitive residential markets. Management highlighted safety milestones, cost optimization progress (organic COGS/ton up ~2.7% organically, consolidated up ~1.7%), and ample balance sheet/mid-year levers (midyear price actions, synergies, M&A) that provide upside to the guide, leading to an overall constructive outlook.Positive Updates
Record Quarterly Revenue
Total revenues increased 17% year-over-year to $1.4 billion in Q1 2026, a new first-quarter record.
Negative Updates
Reported Aggregates Gross Profit Decline
Reported aggregates gross profit declined 3% to $288 million due to geographic mix, purchase accounting impacts and a noncash $22 million fair-value step-up charge on Quikrete inventory; higher depreciation, depletion and amortization also weighed on product-line reporting.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total revenues increased 17% year-over-year to $1.4 billion in Q1 2026, a new first-quarter record.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 adjusted EBITDA from continuing operations of $2.43 billion at the midpoint, citing a strong Q1 that drove record revenues of $1.4 billion (+17%), record core aggregates shipments of 43.9 million tons (+12%) and core aggregates revenues of $1.1 billion (+14%), organic aggregate shipments growth of 7.2%, a 14% YoY improvement in adjusted EBITDA and adjusted EPS for the quarter, and Specialties revenues of $143 million (+63%) with $45 million gross profit (+17%). The company closed the Quikrete asset exchange, producing $450 million cash (with a ~$22 million noncash FMV inventory step‑up and roughly $44 million remaining to absorb), has seen $17 million of EBITDA in the first month post‑close (~42% margin), expects ~$50 million of synergies, repurchased $200 million of shares in Q1, and is pursuing bolt‑on M&A (New Frontier ~8–8.5M tons aggregates and ~1.5M tons asphalt is excluded from guidance). Management also expects diesel consumption of ~55 million gallons with a diesel headwind of about $36 million to aggregates (~$50 million companywide, ~$20–25 million in Q2), says organic COGS/ton is tracking below the implied ~3% guidance, and sees April demand, mid‑year price realization and shipments likely trending to the high end of the annual guide.Martin Marietta Materials Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.55B | 6.54B | 6.54B | 6.78B | 6.16B | 5.41B |
| Gross Profit | 1.94B | 1.96B | 1.88B | 2.02B | 1.42B | 1.35B |
| EBITDA | 2.14B | 2.15B | 3.34B | 2.17B | 1.77B | 1.45B |
| Net Income | 2.53B | 1.14B | 2.00B | 1.17B | 867.00M | 702.50M |
Balance Sheet | ||||||
| Total Assets | 20.50B | 18.71B | 18.17B | 15.13B | 14.99B | 14.39B |
| Cash, Cash Equivalents and Short-Term Investments | 273.00M | 67.00M | 670.00M | 1.27B | 358.00M | 258.40M |
| Total Debt | 5.69B | 5.32B | 5.80B | 4.73B | 5.43B | 5.53B |
| Total Liabilities | 9.20B | 8.68B | 8.71B | 7.09B | 7.82B | 7.86B |
| Stockholders Equity | 11.30B | 10.03B | 9.45B | 8.03B | 7.17B | 6.54B |
Cash Flow | ||||||
| Free Cash Flow | 1.03B | 978.00M | 604.00M | 878.00M | 509.00M | 714.60M |
| Operating Cash Flow | 1.79B | 1.78B | 1.46B | 1.53B | 991.00M | 1.14B |
| Investing Cash Flow | -1.03B | -1.59B | -2.44B | 459.00M | -484.00M | -3.47B |
| Financing Cash Flow | -589.00M | -800.00M | 373.00M | -1.06B | -407.00M | 2.29B |
Martin Marietta Materials Technical Analysis
Positive
622.02
Price Trends
585.95
Positive
605.04
Negative
615.80
Negative
Market Momentum
4.25
Positive
53.19
Neutral
25.36
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 622.02 is above the 20-day moving average (MA) of 589.18, above the 50-day MA of 585.95, and above the 200-day MA of 615.80, indicating a neutral trend. The MACD of 4.25 indicates Positive momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 25.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $35.99B | 14.26 | 25.07% | 0.51% | -1.28% | 140.98% | |
72 Outperform | $2.12B | 14.12 | 20.25% | 1.12% | 9.84% | -12.68% | |
70 Outperform | $18.55B | 37.74 | 3.40% | 0.74% | 5.01% | -67.33% | |
68 Neutral | $39.34B | 35.88 | 13.10% | 0.67% | 7.41% | 19.13% | |
65 Neutral | $6.80B | 16.68 | 28.27% | 0.47% | 2.13% | -4.85% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $4.82B | 32.90 | 9.35% | ― | 9.57% | -18.90% |
* Basic Materials Sector Average
MLM
Martin Marietta Materials
599.42
44.50
8.02%
CX
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12.29
5.12
71.50%
EXP
Eagle Materials
220.15
6.97
3.27%
VMC
Vulcan Materials
303.19
38.87
14.71%
TGLS
Tecnoglass
45.62
-31.50
-40.85%
KNF
Knife River Corporation
84.88
4.28
5.31%
Martin Marietta Materials Corporate Events
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...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Martin Marietta Posts Mixed Q1 2026 Results, Reaffirms Outlook
Positive
Apr 30, 2026
Martin Marietta reported first-quarter 2026 results on April 30, 2026, with revenues from continuing operations up 17% year-on-year to $1.36 billion, driven by record aggregates shipments and strong infrastructure and heavy nonresidential demand, ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Martin Marietta Names Chris Samborski Chief Operating Officer
Positive
Apr 27, 2026
On April 27, 2026, Martin Marietta announced the appointment of Christopher W. (Chris) Samborski as Executive Vice President and Chief Operating Officer, effective May 1, 2026, elevating a long-time internal leader with both operating and finance ...
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.