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Martin Marietta Materials (MLM)
NYSE:MLM

Martin Marietta Materials (MLM) AI Stock Analysis

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Martin Marietta Materials

(NYSE:MLM)

Rating:75Outperform
Price Target:
Martin Marietta Materials presents a strong overall performance, driven by solid financials, positive technical momentum, and a fair valuation. The company's robust infrastructure demand and strategic market positioning support a positive outlook, despite challenges in certain segments.
Positive Factors
Financial Performance
MLM announced preliminary 1Q25 results: sales of $1.353bn (+8% YoY) and EBITDA of $351mn (+21% YoY), suggesting profitability tracked a bit better than expected.
Infrastructure
Federal funding for surface transportation is stable and the new administration plans to allocate more funds to hard infrastructure.
Pricing Strategy
Aggregates pricing is tracking at the top end of its guidance and costs are moderating, setting MLM up for a strong performance.
Negative Factors
Investor Sentiment
MLM shares off -23% from November highs, reflecting investor concerns about the future.
Pricing Timing
The Jan 1 vs. April 1 price increase timing issue is expected to remain an area of heightened focus for investors until industry discipline is proven to be restored.
Private Construction Trends
Private construction trends are weakening to start the year, raising concerns that volumes could take a leg down into 2026 and placing pressure on price increases.

Martin Marietta Materials (MLM) vs. SPDR S&P 500 ETF (SPY)

Martin Marietta Materials Business Overview & Revenue Model

Company DescriptionMartin 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 MoneyMartin Marietta Materials generates revenue primarily through the sale of construction aggregates, which include crushed stone, sand, and gravel. These materials are essential for building roads, bridges, and other infrastructure projects. The company also earns income from producing and selling cement, ready-mixed concrete, and asphalt, which are critical for both residential and commercial construction. Key revenue streams include contracts with government entities for public infrastructure projects, as well as sales to private construction firms. Strategic acquisitions and partnerships have enabled Martin Marietta to expand its market presence and access new geographic regions, further bolstering its revenue potential. Additionally, the company's vertically integrated business model, encompassing production, distribution, and sales, helps optimize operational efficiencies and cost management, contributing to its profitability.

Martin Marietta Materials Key Performance Indicators (KPIs)

Any
Any
Aggregates Tons Shipped to Customers
Aggregates Tons Shipped to Customers
Tracks the quantity of aggregates sold, reflecting construction activity levels and the company's market position.
Chart InsightsMartin Marietta Materials experienced fluctuating aggregate shipments, with a notable decline in early 2024. Despite this, the company achieved record financial performance in Q4 2024, driven by strategic acquisitions and improved margins. The earnings call highlighted strong infrastructure demand and a positive outlook for 2025, with anticipated growth in shipments and pricing. However, challenges such as inclement weather and a slowdown in private construction impacted shipments. The company's strategic focus on high-growth areas and infrastructure investments positions it well for future growth.
Data provided by:Main Street Data

Martin Marietta Materials Financial Statement Overview

Summary
Martin Marietta Materials demonstrates solid financial performance with consistent revenue growth and strong operational efficiency. However, profitability metrics have experienced some decline, and there is room for improvement in return on equity.
Income Statement
75
Positive
Martin Marietta Materials exhibits solid financial performance with a consistent revenue growth trajectory. The TTM gross profit margin stands at 29.24%, indicating efficient cost management. However, the net profit margin has declined from the previous year to 16.07% in the TTM, mainly due to reduced net income. The revenue growth rate from 2024 to TTM is modest at 1.55%, reflecting stable but slow growth in sales. The company maintains a strong EBITDA margin of 29.94%, highlighting operational efficiency.
Balance Sheet
70
Positive
The company has a moderate debt-to-equity ratio of 0.58, indicating a balanced approach to leverage. The equity ratio is solid at 51.26%, suggesting a strong capital structure. However, the return on equity has decreased to 11.75% in the TTM, reflecting a need for better capital utilization. Overall, the balance sheet portrays a stable financial position with a focus on equity.
Cash Flow
68
Positive
Martin Marietta Materials demonstrates a healthy operating cash flow to net income ratio of 1.41, indicating robust cash generation relative to profit. Free cash flow has grown by 2.15% from 2024 to TTM, showcasing effective cash management. However, the free cash flow to net income ratio is lower at 0.58, indicating that a significant portion of earnings is reinvested or impacted by capital expenditures.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.64B6.54B6.78B6.16B5.41B4.73B
Gross Profit
1.94B1.88B2.02B1.42B1.35B1.25B
EBIT
1.48B2.71B1.60B1.21B973.80M1.01B
EBITDA
1.99B3.33B2.17B1.59B1.46B1.42B
Net Income Common Stockholders
1.07B2.00B1.17B866.80M702.50M721.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
101.00M670.00M1.27B358.00M258.40M207.30M
Total Assets
17.72B18.17B15.12B14.99B14.39B10.58B
Total Debt
5.81B5.80B4.92B5.04B5.10B2.63B
Net Debt
5.71B5.13B3.65B4.68B4.84B2.42B
Total Liabilities
8.64B8.71B7.09B7.82B7.86B4.69B
Stockholders Equity
9.08B9.45B8.03B7.17B6.54B5.89B
Cash FlowFree Cash Flow
617.00M604.00M878.10M509.40M714.60M690.40M
Operating Cash Flow
1.50B1.46B1.53B991.20M1.14B1.05B
Investing Cash Flow
-4.13B-2.44B458.70M-483.80M-3.47B-409.70M
Financing Cash Flow
76.00M373.00M-1.06B-407.50M2.29B-357.00M

Martin Marietta Materials Technical Analysis

Technical Analysis Sentiment
Positive
Last Price561.72
Price Trends
50DMA
508.71
Positive
100DMA
511.00
Positive
200DMA
531.71
Positive
Market Momentum
MACD
16.58
Negative
RSI
65.35
Neutral
STOCH
78.34
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 561.72 is above the 20-day moving average (MA) of 542.93, above the 50-day MA of 508.71, and above the 200-day MA of 531.71, indicating a bullish trend. The MACD of 16.58 indicates Negative momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 78.34 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 36 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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
VMVMC
78
Outperform
$35.43B38.0212.10%0.70%-2.24%3.00%
KNKNF
77
Outperform
$5.44B30.3013.76%2.48%2.22%
EXEXP
76
Outperform
$7.01B15.5633.52%0.47%0.64%-1.15%
MLMLM
75
Outperform
$33.86B32.3011.88%0.55%-0.54%-48.61%
CXCX
73
Outperform
$10.88B7.396.58%1.16%-8.41%570.14%
JHJHX
68
Neutral
$10.18B24.0021.05%1.26%-17.38%
50
Neutral
$2.00B-1.13-21.16%3.71%2.15%-30.95%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MLM
Martin Marietta Materials
561.72
-5.34
-0.94%
CX
Cemex SAB
7.13
-0.35
-4.68%
EXP
Eagle Materials
214.37
-16.91
-7.31%
JHX
James Hardie
23.45
-8.03
-25.51%
VMC
Vulcan Materials
268.19
16.14
6.40%
KNF
Knife River Corporation
96.11
24.40
34.03%

Martin Marietta Materials Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 11.26%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong start to fiscal 2025 with record-setting performance in several key metrics and a positive outlook for infrastructure and nonresidential sectors. However, challenges remain in the cement and concrete segments, as well as the asphalt and paving segment, due to specific market conditions and costs.
Q1-2025 Updates
Positive Updates
Record First Quarter Performance
The company reported record first quarter aggregate revenues, gross profit, gross margin, and gross profit per ton. These results were driven by 7% pricing growth, disciplined cost control, and margin-accretive acquisitions.
Magnesia Specialties Record Performance
Magnesia Specialties established new quarterly record revenues, gross profit, and gross margin, with gross margin increasing 806 basis points compared to the prior year quarter.
Strong Consolidated Financial Metrics
Consolidated gross profit was $335 million, a 23% increase; consolidated gross margin was 25%, an increase of 300 basis points; consolidated adjusted EBITDA was $351 million, a 21% increase; and consolidated adjusted EBITDA margin was 26%, an increase of 274 basis points.
Encouraging Market Trends
Double-digit growth in organic March aggregate shipments and April daily shipment trends provided confidence in the company's full year 2025 adjusted EBITDA guidance of $2.25 billion at the midpoint.
Infrastructure and Nonresidential Sector Outlook
The company anticipates robust demand for infrastructure in public end markets and data centers in the nonresidential sector, driven by federal and state investments and projects like Stargate in Texas and Google in South Carolina.
Negative Updates
Cement and Concrete Revenue Decline
Cement and concrete revenues decreased 12% to $233 million due to the February 2024 divestiture of the South Texas cement plant, winter weather, and slower residential demand.
Challenges in Ready-Mix Concrete Segment
Gross profit in ready-mix concrete declined due to higher raw material costs, despite improvements in the cement segment.
Asphalt and Paving Gross Loss
The asphalt and paving segment posted a $23 million gross loss due to customary winter shutdowns and higher raw material costs.
Company Guidance
During the Martin Marietta First Quarter 2025 Earnings Conference Call, the company highlighted its impressive financial performance, achieving record first-quarter aggregate revenues, gross profit, gross margin, and gross profit per ton despite challenging winter weather. The company reported a 7% increase in pricing growth, a 23% rise in consolidated gross profit to $335 million, and a 21% increase in consolidated adjusted EBITDA to $351 million. Magnesia Specialties also set quarterly records with an 806 basis point improvement in gross margin. The company reaffirmed its full-year 2025 adjusted EBITDA guidance of $2.25 billion at the midpoint. Martin Marietta emphasized robust infrastructure investments from the Infrastructure and Investments and Jobs Act, with expectations for increased construction activity and funding peaking in 2026. The nonresidential sector is benefiting from strong demand for data centers driven by artificial intelligence, while residential activity faces affordability challenges. The company remains focused on realizing fair value for its materials and managing costs effectively amid macroeconomic uncertainties.

Martin Marietta Materials Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Martin Marietta Holds Annual Shareholder Meeting 2025
Neutral
May 15, 2025

Martin Marietta Materials, Inc. held its Annual Meeting of Shareholders on May 15, 2025, with a 92% quorum of shares represented. During the meeting, ten directors were elected to the Board, PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025, executive compensation was approved, and the 2025 Employee Stock Purchase Plan was sanctioned. These decisions reflect the company’s strategic direction and governance, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (MLM) stock is a Buy with a $696.00 price target. To see the full list of analyst forecasts on Martin Marietta Materials stock, see the MLM Stock Forecast page.

Stock BuybackDividendsFinancial Disclosures
Martin Marietta Reports Strong Q1 2025 Financial Results
Positive
Apr 30, 2025

On April 30, 2025, Martin Marietta Materials announced its financial results for the first quarter ending March 31, 2025, highlighting significant growth in key areas. The company reported an 8% increase in revenues to $1.3 billion and a 23% rise in gross profit to $335 million, driven by pricing momentum, cost discipline, and acquisition contributions. The aggregates segment saw a record gross profit per ton growth of 16%, while the Magnesia Specialties business achieved quarterly records in revenues and profitability. Despite challenges such as winter weather and reduced residential demand, the company maintained strong performance, supported by infrastructure demand and strategic positioning in growth markets. Cash generation improved, with $218 million provided by operating activities, and the company returned $499 million to shareholders through dividends and share repurchases.

Executive/Board Changes
Martin Marietta Materials CFO Resignation Announced
Neutral
Apr 10, 2025

On April 9, 2025, Martin Marietta Materials announced the resignation of James A.J. Nickolas as Executive Vice President and Chief Financial Officer, effective April 11, 2025. His departure is due to personal reasons, allowing him to relocate to Chicago and join another company. The company has appointed Robert J. Cardin as the Interim Chief Financial Officer, who will continue his role as Senior Vice President, Controller, and Chief Accounting Officer. Martin Marietta has begun a search for a new CFO with the help of an executive search firm.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.