MARTIN MARIETTA MATERIALS INC Q1 FY2026 earnings call

• Announced leadership appointment: Chris Samborski appointed Chief Operating Officer effective May 1st, with specific reporting structure. • First quarter 2026 off to strong start with revenues up 17% to $1.4 billion, new first quarter record. Organic aggregate shipments growth of 7.2%. • Strongest first quarter safety performance in company history. • February 23rd closing of Quikrete Asset Exchange, largest aggregates acquisition to date, accelerating aggregates-led strategy. • April 19th entered into definitive agreement to acquire New Frontier Materials, expected to close in second half of year. • Core aggregates business record first quarter shipments and revenues. • Specialties business achieved all-time quarterly records. • Reaffirmed full-year 2026 adjusted EBITDA from continuing operations guidance of $2.43 billion at midpoint. • Positive end-market trends in infrastructure, heavy non-residential construction, LNG work, warehouse and distribution construction.

Core aggregates product line delivered record first quarter shipments of 43.9 million tons, a 12% increase, and record revenues of $1.1 billion, representing a 14% increase. Specialties business achieved new all-time quarterly records, with revenues of $143 million, up 63% year-over-year, and gross profit of $45 million, an increase of 17%. Reported aggregate gross profit declined 3% to $288 million as stronger volumes and underlying organic pricing improvements were more than offset by geographic mix and purchase accounting impacts. Other building materials revenues declined 5% to $116 million, and posted a $16 million gross loss driven by customary asphalt plant winter shutdowns in both Colorado and Minnesota.

• Reaffirmed full-year 2026 adjusted EBITDA from continuing operations guidance of $2.43 billion at midpoint. • Guidance does not include contributions from New Frontier as transaction has not closed. • Expect to revisit guidance at mid-year. • Anticipate greater realization of mid-year price increases this year than last year. • Diesel impact on aggregates business expected to be about $36 million, on entire company about $50 million.

Q: Given challenging near-term cost environment, walk through key assumptions supporting reiteration of full year EBITDA guidance, including pricing cadence.

A: Reaffirming guidance, shipments trending to higher end of guide, pricing outlook positive with mid-year price increases likely greater than last year, diesel impact manageable.

Q: Commentary on IIJA reauthorization, including funding and surface transportation focus.

A: No bill going backwards, core surface transportation bill likely, House targeting May to mark up legislative text, Senate likely to have numbers ahead, CR likely short if needed with federal highway funds continuing to flow.

Q: Early thoughts on M&A, unique synergy opportunities with New Frontier, M&A pipeline.

A: Quikrete integration exceeding expectations, New Frontier acquisition attractive, pipeline focused on pure aggregate transactions.

Q: Contract awards data and flow through to revenue recognition.

A: ARPA data not surprising, top DOT states spending authority up, volume in highways and streets up 23% in Q1, not unusual choppiness in Q1.

Q: Color on ASP and gross profit on like-to-like basis.

A: Organic guide intact, Quikrete EBITDA and margin exceeding expectations, cost-price spread fully intact.

Q: Disruption in pricing due to pending transaction and mid-years in acquired territories.

A: Expect mid-years in acquired territories, aim to get ASPs closer to normal.

Q: Mid-years in asphalt vs Ready Mix, energy impact, private side trends.

A: Asphalt in good position with liquid storage, ready mix in Arizona seeing price increases, private side strong in warehousing, data centers, LNG.

Q: Mid-year price increases process and residential business expectation.

A: Mid-year price increases likely broad-based, residential business moving as expected with interest rate impact.

Q: Network optimization update.

A: Network optimization going well, organic costs and consolidated costs trending favorably, will revisit at half year.

Q: Bidding environment and mid-year pricing impact.

A: No re-bidding seen, mid-year pricing likely to have greater realization than historic.

Q: Balance sheet and acquisition capacity.

A: Balance sheet position good, transactions likely bolt-on relative to existing business.

Q: State DOT response to project cost inflation and mid-year pricing impact.

A: State DOTs trending toward larger projects, mid-year pricing likely to have compounding benefit.