Martin Marietta Materials (MLM)
NYSE:MLM
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Martin Marietta Materials
(NYSE:MLM)
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Rating:72Outperform
Price Target:
$664.00
▲(10.95% Upside)
Action:UpgradedDate:02/25/26
MLM’s score is driven primarily by strong cash generation, solid margins, and manageable/improving leverage, reinforced by a positive earnings outlook and capex pullback that should support free cash flow. The main offsets are a premium valuation (high P/E with a low dividend yield) and recent top-line softness/earnings normalization.
Positive Factors
Strong operating cash flow & FCF
Consistent, above‑net‑income operating cash flow (~$1.8B) and near‑$1.0B free cash flow provide durable internal funding for maintenance capex, M&A and buybacks. This cash conversion resilience supports reinvestment and balance sheet flexibility through business cycles.
Negative Factors
Recent top-line decline & earnings normalization
Top-line softness and a step‑down from elevated prior‑year profitability indicate cyclical realignment. Persistent revenue decline limits operating leverage and raises the bar for sustaining margins, making earnings more sensitive to volumes, mix and cost inflation trends.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash flow & FCF
Consistent, above‑net‑income operating cash flow (~$1.8B) and near‑$1.0B free cash flow provide durable internal funding for maintenance capex, M&A and buybacks. This cash conversion resilience supports reinvestment and balance sheet flexibility through business cycles.
Read all positive factors
Martin Marietta Materials (MLM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.10B
Dividend Yield0.51%
Average Volume (3M)586.02K
Price to Earnings (P/E)33.0
Beta (1Y)0.80
Revenue Growth1.99%
EPS Growth-41.08%
CountryUS
Employees9,400
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)3.85
Shares Outstanding60,312,046
10 Day Avg. Volume495,503
30 Day Avg. Volume586,017
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/Revenue6.28
Enterprise Value/Gross Profit20.95
Enterprise Value/Ebitda19.08
Forecast
1Y Price Target
$701.62Price Target Upside17.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)20.38
Revenue Forecast (FY)$7.04B
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 g...
How the Company Makes Money
Martin Marietta makes money primarily by extracting, processing, and selling construction aggregates, which are typically sold by volume/weight to customers for use in roads, bridges, commercial building, residential construction, and other civil ...
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 Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook: management reported record 2025 results across aggregates, specialties, cash flow and safety, met SOAR 2025 targets, and provided constructive 2026 guidance (shipments +2%, consolidated adj. EBITDA ~$2.49B) while reducing capex to boost free cash. Material lowlights include downstream weakness (other building materials -8% revenues, -18% gross profit), continued softness in private residential/nonresidential construction, Q4 one‑time costs and freight pressures, and near-term optical ASP/mix headwinds from acquisitions (Quickrete, Minnesota) and base stone intensity on large projects. Management positioned guidance conservatively (network optimization benefits not fully baked in) and highlighted strong balance sheet (net debt/EBITDA 2.3x, $1.2B liquidity). Overall, the positive operational and financial momentum and strong cash generation meaningfully outweigh the identifiable headwinds.Positive Updates
Record Financial, Operational and Safety Performance
2025 delivered record results across financial, operational and safety metrics; company highlighted record safety performance (lowest total reportable incidents) alongside strong operational execution under SOAR 2025.
Negative Updates
Downstream / Other Building Materials Softness
Other building materials revenues decreased 8% to $992M and gross profit fell 18% to $98M in 2025, driven by weakness in the Minnesota asphalt business and the April 2025 California paving divestiture.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial, Operational and Safety Performance
2025 delivered record results across financial, operational and safety metrics; company highlighted record safety performance (lowest total reportable incidents) alongside strong operational execution under SOAR 2025.
Read all positive updates
Company Guidance
Martin Marietta’s 2026 guidance calls for shipments to grow about 2% at the midpoint and consolidated adjusted EBITDA of roughly $2.49 billion (inclusive of discontinued operations), with aggregates expected to deliver low‑double‑digit gross profit growth at the midpoint driven by low‑single‑digit shipment growth, mid‑single‑digit pricing, and COGS per ton roughly in line with inflation (company‑implied COGS‑per‑ton inflation ≈ 3% vs. underlying inflation ~3.5%; Q4 ex‑external freight COGS/ton growth ~2.7%); Michael indicated aggregates gross profit dollars at the midpoint are ~11% growth and that each 1% reduction in COGS/ton = ~ $35 million of ag gross profit upside. Specialties are guided to high‑teens gross profit growth (organic gross profit run‑rate ~ $160 million pro forma with Premier Magnesia contribution), other building materials roughly flat, consolidated revenues and adjusted EBITDA from continuing operations are expected to grow high single digits at the midpoint, planned 2026 capital spending is $575 million (a 29% YoY reduction) to boost free cash flow for M&A and buybacks, and the company will update guidance upon closing the Quickrete asset exchange (noting ~$250 million of adjusted EBITDA from discontinued ops previously); FY25 ended with net debt/adjusted EBITDA of 2.3x and total liquidity of $1.2 billion.Martin Marietta Materials Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| 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 | 2.15B | 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
Neutral
598.48
Price Trends
633.34
Negative
629.46
Negative
613.80
Negative
Market Momentum
-11.89
Negative
48.19
Neutral
75.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLM, the sentiment is Neutral. The current price of 598.48 is above the 20-day moving average (MA) of 585.19, below the 50-day MA of 633.34, and below the 200-day MA of 613.80, indicating a neutral trend. The MACD of -11.89 indicates Negative momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 75.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MLM.
Martin Marietta Materials Risk Analysis
Martin Marietta Materials disclosed 32 risk factors in its most recent earnings report. Martin Marietta Materials reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Sustained high or rising interest may reduce construction demand, increase our financing costs, and adversely affect our results of operations and financial condition. Q4, 2025
2.
Credit-market stress and tighter financing conditions could reduce construction demand, slow customer payments, constrain our liquidity, and increase our cost of capital. Q4, 2025
3.
Our business requires significant and sustained capital investment; delays, cost increases, or underperformance on capital projects, or constraints on funding, could adversely affect our operations, competitiveness, and financial results. Q4, 2025
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 | $36.78B | 34.81 | 12.79% | 0.67% | 6.54% | 32.48% | |
73 Outperform | $17.22B | 1.73 | 10.45% | 0.74% | -6.34% | 210.97% | |
72 Outperform | $36.10B | 33.02 | 11.90% | 0.51% | 1.99% | -41.08% | |
70 Outperform | $5.84B | 16.19 | 28.78% | 0.47% | 1.50% | -4.44% | |
69 Neutral | $1.96B | 14.72 | 22.02% | 1.12% | 15.70% | 19.92% | |
65 Neutral | $4.24B | 25.39 | 9.71% | ― | 5.52% | -25.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
MLM
Martin Marietta Materials
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32.97%
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Martin Marietta Materials Corporate Events
Business Operations and StrategyM&A Transactions
Martin Marietta Completes Strategic Aggregates-Focused Asset Exchange
Positive
Feb 23, 2026
On February 23, 2026, Martin Marietta Materials completed an asset exchange with Quikrete Holdings that reshapes its business mix toward aggregates. The company traded its Midlothian, Texas cement plant, related cement terminals, Texas ready-mix c...
Business Operations and StrategyFinancial Disclosures
Martin Marietta Posts Record 2025 Results, Issues 2026 Outlook
Positive
Feb 11, 2026
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 busin...
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.