Martin Marietta 2025-26: 208bp Price-Cost Spread, Aggregates GP/Ton +9%
FY25 revenue $6.54B (~flat); Op income $1.52B (-44%); NI $1.14B (-43%); EPS $18.80 (-42%). Q4 aggregates revenue $1.2B (+8%); GP $420M (+11%); GP/ton $8.59 (+9%); margin 34% (+93bp). Specialties record Q4. SOAR 2025 goals achieved: 208bp price-cost spread (vs 200bp target), 13% CAGR. FY26 guide: aggregates low-DD GP growth, specialties high-teens GP growth.
Key takeaways
- SOAR 2025 strategic goals achieved. 208bp price-cost spread vs 200bp target. 13% compound annual growth rate exceeded plan. Mgmt formally completing the SOAR 2025 plan with above-target outcomes.
- Aggregates Q4 strong. Revenue $1.2B (+8%), GP $420M (+11%), GP/ton $8.59 (+9%), margin 34% (+93bp). Pricing power compounding even in cyclical mix.
- GAAP EPS -42% reflects FY24 base distortion. FY24 EPS $32.41 included divestiture gains (likely Texas magnesia + others). FY25 $18.80 is the cleaner organic baseline.
- FY26 guide: aggregates low-double-digit GP growth, specialties high-teens GP growth. Strong forward visibility from pricing + acquisition contributions.
- Specialties record Q4. Magnesia + lime + other specialty lines outperforming.
Business
Martin Marietta Materials is the second-largest US aggregates producer (after Vulcan), with leading positions in magnesia chemicals + cement + ready-mix concrete + asphalt in select markets. Two reporting segments:
- Aggregates (~75% of revenue, dominant profit driver): Crushed stone + sand + gravel. Q4 GP/ton $8.59. Geographic footprint heavy in Sun Belt + Texas + Carolinas + Georgia.
- Specialties + Building Materials (~25% of revenue): Magnesia chemicals (specialty industrial uses), lime (steel + construction), cement, ready-mix concrete, asphalt. Specialties Q4 record.
Strategic positioning: top-2 US aggregates company. Magnesia + lime specialty position is distinct + high-margin niche. Geographic concentration in fastest-growing regions (Sun Belt + Texas).
FY25 financial performance
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($B) | 6.78 | 6.54 | 6.54 |
| Gross profit ($B) | 2.02 | 1.88 | 1.96 |
| Op income ($B) | 1.60 | 2.71 | 1.52 |
| Op margin | 23.6% | 41.4% | 23.3% |
| EBITDA ($B) | 2.17 | 3.34 | 2.15 |
| Net income ($B) | 1.17 | 2.00 | 1.14 |
| Diluted EPS ($) | 18.82 | 32.41 | 18.80 |
| FCF ($M) | 878 | 604 | 978 |
| Capex ($M) | -650 | -855 | -807 |
| Total debt ($B) | 4.73 | 5.80 | 5.32 |
| Dividends ($M) | -174 | -189 | -197 |
| Buyback ($M) | -150 | -450 | -450 |
The earnings print: Revenue ~flat, op margin compressed to 23.3% (FY24 had divestiture gain inflating reported), EPS $18.80 vs FY24 $32.41 (also one-time inflated). FY25 is the cleaner organic year.
FCF $978M (+62%) — strong cash conversion.
Capital allocation
- Capex: $-807M FY25 (12.3% of revenue). Heavy reinvestment.
- Dividends: $-197M FY25 (+4% YoY).
- Buybacks: $-450M FY25 (similar to FY24).
- M&A: Continued bolt-ons in aggregates + specialties.
- Debt: $5.32B (-$0.48B YoY).
FY26 outlook (per Q4 2025 call, 2026-02-11)
| FY26 guide | Direction |
|---|---|
| Aggregates GP growth | Low double-digit |
| Aggregates shipments | Low single-digit |
| Aggregates pricing | Mid-single-digit |
| Aggregates cost per ton | In line with inflation |
| Specialties GP growth | High-teens (incl acquisition) |
| Other building materials | Stable |
The +low-double-digit aggregates GP guide implies continued price + volume + margin expansion. Specialties high-teens supports earnings recovery from FY25 base.
Key risks
- Construction cycle: Recession would compress aggregates volume despite pricing.
- Pricing discipline: Mid-single-digit annual depends on industry capacity discipline.
- Energy + diesel costs: Aggregates production + transport cost.
- Permitting + ESG: New aggregate site permitting increasingly difficult.
- Texas + Sun Belt cycle: Geographic concentration in fastest-growing regions; downside is concentration if regional cycle dips.
- Specialties cycle: Magnesia + lime tied to industrial + steel cycles.
Bottom line
MLM FY25 is the cleanest organic baseline year + SOAR 2025 plan completion with above-target results. Aggregates GP/ton $8.59 (+9%), price-cost spread 208bp (vs 200bp target). FY26 aggregates GP +low-DD / specialties high-teens. Risks are construction cycle + pricing + permitting + energy.
Citations
- Martin Marietta Materials Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- MLM Q4 2025 earnings call, 2026-02-11 — record financial/operational/safety; Q4 aggregates revenue $1.2B (+8%), GP $420M (+11%), GP/ton $8.59 (+9%), margin 34% (+93bp); SOAR 2025 208bp price-cost spread (vs 200bp target), 13% CAGR; FY full year aggregates revenue +11% to $5B (pricing +6.9%, volume +3.8%); FY26 guide (aggregates low-DD GP, specialties high-teens GP).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).