Skip to content

MLM · Martin Marietta Materials

25 filings

10-K

MLM 10-K Annual Reports

Martin Marietta Materials - 25 annual reports

Filing record · 2016–202610-K1210-Q328-K141

2025
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2025
Martin Marietta Materials, Inc. (NYSE: MLM) reported 2025 revenues of $6.15 billion, up from $5.66 billion in 2024, and earnings from continuing operations attributable to Martin Marietta of $990 million, or $16.34 per diluted share, compared with $1.82 billion in 2024. The 2024 result was inflated by a $1.3 billion pretax gain on the divestiture of the South Texas cement business. Net earnings attributable to Martin Marietta were $1.14 billion in 2025. Adjusted EBITDA from continuing operations rose to $2.07 billion from $1.77 billion, and Consolidated Adjusted EBITDA was $2.30 billion. Aggregates generated 88% of 2025 total reportable segment gross profit, and aggregates shipments increased 3.8% to 198.5 million tons, with aggregates pricing up 6.9%. The company is pursuing portfolio optimization. In August 2025 it agreed to exchange its Midlothian cement plant, related cement terminals and Texas ready mixed concrete assets with QUIKRETE Holdings for aggregates facilities producing approximately 20 million tons annually in Virginia, Missouri, Kansas and Vancouver, British Columbia, plus cash. These cement and Texas ready mixed operations are classified as held for sale and reported as discontinued operations. The company also acquired Premier Magnesia in July 2025 and expanded its Specialties business. Cash flow from operations was $1.79 billion in 2025, and long-term debt was $5.3 billion at year end. The company repurchased $450 million of stock and paid $3.24 per share in dividends declared for 2025. At December 31, 2025, cash and cash equivalents were $67 million, and $1.2 billion of unused borrowing capacity was available under the Revolving Facility and Trade Receivable Facility. The filing reports that management concluded internal control over financial reporting was effective, with Premier Magnesia excluded from that assessment. The auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion and identified the projected benefit obligation for defined benefit pension plans as a critical audit matter.
Feb 19, 2026
2024
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2024
Martin Marietta Materials, Inc. reported 2024 revenues of $6,536 million, down from $6,777 million in 2023, while net earnings attributable to Martin Marietta rose to $1,995 million from $1,169 million. The increase was driven mainly by a $1.3 billion pretax gain on the divestiture of its South Texas cement business and certain ready mixed concrete operations to CRH Americas Materials, Inc. Excluding that gain, the filing shows Building Materials gross profit declining to $1,810 million from $1,923 million, with the decline attributed primarily to the Divestiture and a $20 million Inventory Markup charge, partially offset by pricing gains. Aggregates gross profit increased to $1,449 million from $1,378 million. During 2024 the company completed acquisitions including Albert Frei & Sons, the BWI Southeast acquisition of 20 aggregates operations for $2.05 billion in cash, and several bolt-on aggregates businesses. Consolidated Adjusted EBITDA was $2,066 million versus $2,128 million in 2023. Long-term debt, including current maturities, was $5.4 billion at year-end, after the issuance of $750 million of 5.150% Senior Notes due 2034 and $750 million of 5.500% Senior Notes due 2054. Management reported $670 million of cash and short-term investments and $1.2 billion of unused borrowing capacity under its Revolving Facility and Trade Receivable Facility. Aggregates shipments declined 3.8% to 191.1 million tons, while aggregates pricing rose 9.9% on a reported basis and 10.7% on an organic mix-adjusted basis. Cash provided by operations was $1.5 billion in both 2024 and 2023, and the Board approved dividends of $3.06 per share for 2024 versus $2.80 in 2023. The company repurchased 0.8 million shares for $450 million in 2024.
Feb 21, 2025
2023
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2023
Martin Marietta Materials, Inc. is a natural resource-based building materials company whose Building Materials business (aggregates, cement, ready mixed concrete, asphalt and paving) is reported through East Group and West Group segments, alongside a Magnesia Specialties segment. In 2023 the company reported total revenues of $6.78 billion, up from $6.16 billion, with gross profit of $2.02 billion versus $1.42 billion and net earnings from continuing operations attributable to Martin Marietta of $1.20 billion, or $19.32 per diluted share. Consolidated Adjusted EBITDA reached a record $2.13 billion, and operating cash flow was $1.53 billion. Aggregates shipments fell 4.3% as the company pursued a value-over-volume strategy, while aggregates pricing rose 18.9%, or 17.2% on a mix-adjusted basis. Portfolio activity was significant. The company closed the sale of its South Texas cement business and 20 ready mixed concrete plants to CRH Americas Materials, Inc. for $2.1 billion in cash on February 9, 2024, and completed the acquisition of Albert Frei & Sons, Inc. in Colorado on January 12, 2024. It also agreed on February 11, 2024 to acquire 20 aggregates operations from affiliates of Blue Water Industries LLC (BWI Southeast) for $2.05 billion in cash, with closing expected during 2024 subject to regulatory approvals. Shareholder returns in 2023 included dividends of $2.80 per share ($174.0 million) and $150.0 million of share repurchases. The filing also flags risks including construction cyclicality, weather, interest-rate sensitivity of residential and nonresidential demand, energy cost exposure in cement, and climate-related regulation. Management reports that the Company's internal control over financial reporting was effective as of December 31, 2023, and PricewaterhouseCoopers LLP issued an unqualified audit opinion.
Feb 23, 2024
2022
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2022
Martin Marietta Materials, Inc. reported record 2022 total revenues of $6.16 billion, up 13.8% from $5.41 billion, and net earnings from continuing operations attributable to Martin Marietta of $856.3 million, or $13.70 per diluted share, compared with $702.0 million in 2021. Consolidated gross profit rose to $1.42 billion from $1.35 billion, and Adjusted EBITDA from continuing operations reached a record $1.60 billion, an increase of 4.7%. The company attributed these results to double-digit aggregates pricing across the Building Materials business and contributions from acquired operations, which more than offset historically high cost inflation and divestiture impacts. Aggregates pricing improved 10.6% compared with 2021, and aggregates shipments rose 3.3%. During 2022 the company executed portfolio optimization, divesting its Colorado and Central Texas ready mixed concrete operations (a $151.9 million pretax gain), the Redding, California cement plant and 14 California ready mix operations for $235.0 million, and a cement distribution terminal interest for $15.0 million. It also agreed to sell the Tehachapi, California cement plant for $350.0 million, subject to regulatory approval. Operating cash flow decreased 12.9% to $991.2 million, primarily due to increased cash taxes and working capital changes. Capital investments were $481.8 million, dividends paid totaled $159.1 million ($2.54 per share), and the company repurchased 0.4 million shares for $150.0 million. The balance sheet shows long-term debt of $5.04 billion including $700 million of 0.650% Senior Notes that were satisfied and discharged in September 2022 with restricted investments of $704.6 million held in trust. Total equity was $7.17 billion. Management reports its aggregates reserves average approximately 75 years at 2022 production levels, and it highlighted infrastructure funding from the IIJ Act as a demand driver for 2023 and beyond.
Feb 24, 2023
2021
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2021
Martin Marietta Materials, Inc. is a natural resource-based building materials company supplying aggregates (crushed stone, sand and gravel) through approximately 350 quarries, mines and distribution yards in 28 states, Canada and The Bahamas. In 2021 it also operated cement and downstream operations (ready mixed concrete, asphalt and paving) and a Magnesia Specialties business. Aggregates product gross profit represented 67% of consolidated product and services gross profit in 2021. Total revenues were $5.41 billion in 2021 versus $4.73 billion in 2020, and net earnings from continuing operations attributable to Martin Marietta were $702.0 million, or $11.22 per diluted share, compared with $721.0 million, or $11.54 per diluted share, in 2020. Consolidated Adjusted EBITDA from continuing operations rose to $1.53 billion from $1.39 billion. The defining event of 2021 was the $2.28 billion cash acquisition of the Lehigh Hanson West Region business on October 1, 2021, which added 17 active aggregates quarries and two cement plants in California and Arizona. The company invested $3.11 billion in acquisitions during the year, including Tiller Corporation and Southern Crushed Concrete. To fund these deals, it issued $2.50 billion of publicly traded long-term debt, bringing long-term debt to $5.10 billion at December 31, 2021. The company states it finances acquisitions with the goal of returning leverage (consolidated debt to EBITDA) to a range of 2.0 to 2.5 times within a reasonable period after a debt-financed transaction. The cement plants and California ready mixed concrete operations from Lehigh West Region are classified as held for sale and discontinued operations. Management highlighted record safety performance, a tenth consecutive year of growth in products and services revenues, adjusted gross profit and Adjusted EBITDA, and an increase in the quarterly dividend of 7% in August 2021, with total dividends paid of $147.8 million, or $2.36 per share. Key risks noted in the filing include the cyclicality of construction and public infrastructure funding, weather exposure, energy cost volatility, environmental and climate-related regulation, reliance on rail transportation, and integration risk from acquisitions.
Feb 22, 2022
2020
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2020
Martin Marietta Materials, Inc. is a natural resource-based building materials company that supplies aggregates through approximately 300 quarries, mines and distribution yards in 27 states, Canada and The Bahamas. Aggregates generated 68% of 2020 consolidated total product gross profit. The Building Materials Business also includes cement (two Texas plants, 4.5 million tons of clinker capacity) and ready mixed concrete and asphalt/paving operations in Texas, Colorado and Wyoming. The Magnesia Specialties segment produces magnesia-based chemicals and dolomitic lime. For 2020, consolidated total revenues were $4.73 billion versus $4.74 billion in 2019. Gross profit reached a record $1.25 billion, up from $1.18 billion, and net earnings attributable to Martin Marietta were $721.0 million ($11.54 per diluted share) versus $611.9 million ($9.74). Consolidated Adjusted EBITDA was a record $1.39 billion and operating cash flow was a record $1.05 billion. Results were helped by $69.9 million of nonrecurring gains on asset sales in Austin, Texas; Riverside, California; and Augusta, Kansas, while aggregates volume declined 2.4% and aggregates pricing improved 3.1%. Magnesia Specialties revenue fell as COVID-19 hurt steel-industry demand. Capital allocation in 2020 included a 4% dividend increase to $2.24 per share ($140.3 million), $50.0 million of share repurchases (paused in March 2020), $359.7 million of property, plant and equipment additions, and a $500.0 million issuance of 2.500% Senior Notes due 2030. Long-term debt was $2.63 billion at year-end, and the consolidated net debt-to-EBITDA ratio under the credit agreement was 1.75 times. The filing states that the company does not currently expect COVID-19 to have a material adverse effect on liquidity, and highlights public infrastructure funding (including $10 billion in federal stimulus for state DOTs and $14 billion in approved ballot initiatives) and the FAST Act's September 30, 2021 expiration as key risk factors.
Feb 19, 2021
2019
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2019
Martin Marietta Materials, Inc. reported record 2019 results in its Form 10-K filed February 21, 2020. Total revenues rose to $4.74 billion from $4.24 billion, gross profit increased to $1.18 billion from $966.6 million, and net earnings attributable to Martin Marietta were $611.9 million, or $9.74 per diluted share, compared with $470.0 million, or $7.43 per diluted share, in 2018. Consolidated Adjusted EBITDA reached $1.25 billion. The Building Materials business, comprising aggregates, cement, ready mixed concrete, and asphalt and paving, generated the majority of revenues. Aggregates product line pricing increased 4.2% and shipments grew 11.7%, and the company cited strong underlying demand in all three end-use markets. The company's cash flow and capital allocation were central to the year. Operating cash flow was $966.1 million, and the company returned capital through $129.8 million of dividends, a 15% dividend increase in August 2019, and $98.2 million of share repurchases. Net debt repayments totaled $350.1 million, and the year-end ratio of consolidated debt to consolidated EBITDA, as defined under the Credit Agreement, was 2.16 times. Long-term debt including current maturities was $2.77 billion. The company also completed no acquisitions in 2019, following the $1.64 billion cash acquisition of Bluegrass Materials Company in 2018. Key risks flagged in the filing include the cyclical construction end-market, reliance on public infrastructure funding (the FAST Act expires September 2020), weather, rail and transportation availability, energy costs, and the goodwill carrying value of the Cement and Southwest Ready Mix Division reporting unit, whose fair value exceeded its carrying value by 35%, or $701.5 million. The filing also reports a $15.7 million out-of-period correction to equity earnings from a nonconsolidated affiliate, which reduced 2019 net earnings by $12.0 million.
Feb 21, 2020
2018-A
Martin Marietta Materials Annual Report (Amendment), Year Ended Dec 31, 2018
Martin Marietta Materials, Inc. filed this Amendment No. 1 on March 18, 2019 to its Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which was originally filed with the SEC on February 25, 2019. The amendment's sole purpose is to replace Exhibit 23.01, the Consent of PricewaterhouseCoopers LLP, because an administrative error caused the consent to identify the wrong date of the firm's reports included in the Original Form 10-K. The company states that the amendment does not modify the financial position, results of operations, cash flows, or other disclosures in the Original Form 10-K, and it should be read together with that filing. The cover page reports that the company is a large accelerated filer and not a shell company. The aggregate market value of common stock held by non-affiliates was $11.0 billion (stated as $11,000,435,608.61) as of June 29, 2018, based on the NYSE closing price. As of February 15, 2019, 62,430,548 shares of common stock, $.01 par value, were outstanding. The filing incorporates by reference excerpts from the Annual Report to Shareholders for fiscal 2018 for Parts I, II, and IV, and the Proxy Statement for the May 9, 2019 Annual Meeting of Shareholders for Part III. This amendment also includes new Section 302 certifications from the Chief Executive Officer and Chief Financial Officer, dated March 18, 2019. Under Rule 12b-15, paragraphs 3 through 5 of the certifications are omitted because no financial statements are included and the amendment does not address Items 307 or 308 of Regulation S-K.
Mar 18, 2019
2018
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2018
Martin Marietta Materials, Inc. reported record total revenues of $4.24 billion for 2018, up from $3.97 billion in 2017, and record consolidated EBITDA of $1.05 billion. Net earnings attributable to Martin Marietta were $470.0 million, or $7.43 per diluted share, compared with $713.3 million, or $11.25 per diluted share, in 2017; the 2017 figure included a $258.1 million one-time tax benefit from the 2017 Tax Act. Management attributed weak volumes to excessive rainfall, hurricanes, government funding uncertainty, labor constraints and logistical challenges. Heritage aggregates pricing rose 3.0% while heritage volume was relatively flat. The defining event of the year was the April 27, 2018 acquisition of Bluegrass Materials Company for $1,617,357,000 in cash, the largest privately held pure-play aggregates business in the United States. The company said it has surpassed its $15 million run-rate synergy target, and it divested the Forsyth quarry and Beaver Creek quarry under a Department of Justice agreement. Cash used for acquisitions was $1.64 billion, and long-term debt rose to $3.12 billion at year-end. The company reported a 2.76 times consolidated net debt-to-EBITDA ratio under its credit agreement, against a 3.50x covenant. For 2019, the filing's guidance projects consolidated total revenues of $4.48 billion to $4.68 billion, net earnings attributable to Martin Marietta of $520 million to $620 million, and EBITDA of $1.17 billion to $1.28 billion. Management also expects aggregates shipments to rise in the high-single digits for infrastructure and the mid- to high-single digits for nonresidential construction, with aggregates pricing growth in the mid-single digits.
Feb 25, 2019
2017
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2017
Martin Marietta Materials, Inc. reported record 2017 results despite significant weather headwinds, with total revenues of $3.97 billion, earnings from operations of $700.4 million, and record net earnings attributable to Martin Marietta of $713.3 million, or $11.25 per diluted share. The net earnings figure includes a one-time, non-cash, provisional income tax benefit of $258.1 million from the 2017 Tax Act, which equated to $4.07 per diluted share. Consolidated EBITDA was $1.00 billion, and operating cash flow was $657.9 million. The Building Materials business, which includes aggregates, cement, ready mixed concrete and asphalt and paving, generated $3.7 billion of total revenues and $707 million of earnings from operations in 2017. Aggregates product line pricing rose 4.5%, while aggregates volume declined 0.6%, reflecting heavy precipitation, government uncertainty over infrastructure funding, and labor constraints. Magnesia Specialties posted record total revenues of $270.0 million and earnings from operations of $79.4 million. The company's most significant pending event is the $1.625 billion cash acquisition of Bluegrass Materials Company, which it expects to complete in the first half of 2018, subject to Department of Justice review. To fund it, Martin Marietta issued $1.4 billion of senior notes in 2017 (including $1.1 billion in December), and long-term debt rose to $3.03 billion at year-end, against cash of $1.45 billion. Its consolidated net debt-to-EBITDA ratio, as defined by its credit agreement, was 1.58 times, within the 3.50 times covenant maximum.
Feb 23, 2018
2016
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2016
Martin Marietta Materials, Inc. reported record 2016 results, with net earnings attributable to Martin Marietta of $425.4 million, or $6.63 per diluted share, up from $288.8 million, or $4.29 per diluted share, in 2015. Total revenues were $3.82 billion and net sales were $3.58 billion, an increase of 9.4%. Earnings from operations rose to $667.3 million from $479.4 million, and consolidated EBITDA reached a record $971.6 million. Gross margin excluding freight and delivery revenues improved to 25.4% from 22.1%, driven by aggregates product line pricing growth of 7.3% and volume growth of 1.4%. The Aggregates business contributed the majority of results, with net sales of $3.10 billion and earnings from operations of $576.0 million, while Cement and Magnesia Specialties posted net sales of $364.4 million and $238.0 million, respectively. Cash flow and balance sheet activity were significant. Operating cash flow was $678.7 million, up 18.4%. The company returned $364.2 million to shareholders through share repurchases of $259.2 million and dividends of $105.0 million, and the quarterly dividend was raised 5% to $0.42. Acquisitions included Rocky Mountain Materials (more than 500 million tons of mineral reserves) and the remaining interest in Ratliff Ready-Mix. Long-term debt was $1.69 billion at year end, and the consolidated net debt-to-EBITDA ratio was 1.7 times against a covenant maximum of 3.5 times. Management's 2017 guidance projects net sales of $3.75 billion to $3.95 billion, gross profit of $1.00 billion to $1.10 billion, and EBITDA of $1.05 billion to $1.13 billion. Key risks cited include weather, federal and state infrastructure funding timing, low oil prices affecting energy-sector shipments, rising interest rates, and potential changes to U.S. corporate tax rules.
Feb 24, 2017
2015
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2015
Martin Marietta Materials, Inc. reported 2015 net sales of $3.27 billion, up from $2.68 billion in 2014, and total revenues of $3.54 billion. Earnings from operations rose to $479.4 million from $314.9 million, and net earnings attributable to Martin Marietta were $288.8 million, or $4.29 per diluted share, compared with $2.71 in 2014. Excluding the loss on the sale of the California cement operations and the gain on the San Antonio asphalt sale, adjusted earnings per diluted share were $4.50 versus $3.74 in 2014. The Aggregates business generated 82% of 2015 consolidated net sales, with the Cement business at 11% and Magnesia Specialties at 7%. Management reports that the TXI integration was completed in 2015 with synergy guidance increased to $120 million per year. Operating cash flow was $573.2 million, and the company returned $627.4 million to shareholders through $520.0 million of share repurchases and $107.4 million of dividends. Consolidated debt-to-EBITDA was 1.9 times against a covenant maximum of 3.5 times, and long-term debt totaled $1.573 billion at year-end. Weather was a significant headwind in 2015, with record precipitation in key markets, which management says created a backlog of construction activity expected to be completed in 2016. For 2016, management guides to aggregates product line pricing growth of 6% to 8% and volume growth of 5% to 7%, with consolidated net sales of $3.5 billion to $3.7 billion and EBITDA of $930 million to $980 million. The company also cites the five-year, $305 billion FAST Act highway bill signed in December 2015 as a support for infrastructure demand, with meaningful impact not expected before the second half of 2016.
Feb 23, 2016
2014
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2014
Martin Marietta Materials, Inc. reported 2014 results that were shaped by the July 1, 2014 acquisition of Texas Industries, Inc. (TXI), which added a Cement segment and expanded its West Group. Net sales rose to $2.68 billion from $1.94 billion, an increase of 38%, with $511.6 million of net sales from acquired operations and $2.17 billion from heritage operations. Net earnings attributable to Martin Marietta were $155.6 million, or $2.71 per diluted share, compared with $121.3 million, or $2.61 per diluted share, in 2013. Management's adjusted earnings per diluted share, which exclude TXI acquisition-related expenses and a one-time inventory markup, were $3.74, and it reported consolidated EBITDA of $537.0 million and adjusted EBITDA of $590.8 million. The Aggregates business generated 83% of 2014 consolidated net sales. Heritage aggregates shipments rose 7.5% and heritage aggregates pricing rose 4.1%, while the aggregates product line's volume growth including acquisitions was 13.7%. Long-term debt rose to $1.585 billion from $1.031 billion, and total equity rose to $4.353 billion from $1.575 billion, mainly from the issuance of 20.3 million shares to TXI shareholders. The company's 2015 outlook calls for aggregates product line shipments to increase 10% to 12%, pricing to increase 4% to 6%, consolidated EBITDA of $825 million to $875 million, and capital expenditures of approximately $320 million. Management also said it expects to allocate up to $300 million to share repurchases in 2015. The most significant risks cited are federal highway funding, since MAP-21 was extended only through May 31, 2015, and uncertainty over the Highway Trust Fund. Other risks include the integration of TXI, energy and fuel costs, and the cyclical construction market. The company's debt-to-EBITDA covenant ratio was 2.46 times at year-end against a 3.50 times maximum.
Feb 24, 2015
2013
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2013
Martin Marietta Materials, Inc. (the "Company") reported 2013 net sales of $1.94 billion, up from $1.83 billion in 2012, and total revenues of $2.16 billion. Net earnings attributable to the Company were $121.3 million, or $2.61 per diluted share, compared with $84.5 million, or $1.83 per diluted share, in 2012. Earnings from operations rose to $218.0 million from $156.2 million, and 2012 results included $35.1 million of business development costs related to a Vulcan Materials transaction that was not consummated. The Aggregates business generated 88% of 2013 net sales, with the aggregates product line priced up 3.0% and volume flat at 0.1%. Specialty Products reached record earnings from operations of $73.5 million. The most significant development is the January 27, 2014 merger agreement with Texas Industries, Inc. (TXI), under which each TXI share will be exchanged for 0.70 of a Company share. The Company expects the deal to close in the second quarter of 2014, subject to TXI stockholder approval, Company shareholder approval, and antitrust clearance. Following the transaction, current Company shareholders are expected to own about 69% of the combined company. The merger agreement limits dividends to $0.40 per quarter and prohibits share repurchases until closing or termination. Moody's placed the Company's ratings under review for downgrade, and S&P placed them on CreditWatch with negative implications. The filing also highlights exposure to federal highway funding. The MAP-21 highway bill expires September 30, 2014, and the filing cites uncertainty over successor funding and the Highway Trust Fund. Infrastructure shipments fell 7% in 2013, while nonresidential shipments rose 8% and residential shipments rose 11%. Management's 2014 outlook anticipates aggregates product line shipments up 4% to 5% and pricing up 3% to 5%, excluding the TXI transaction.
Feb 24, 2014
2012
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2012
Martin Marietta Materials, Inc. (NYSE: MLM) reported 2012 net sales of $1.84 billion, up from $1.52 billion in 2011, and net earnings attributable to the company of $84.5 million, or $1.83 per diluted share, compared with $1.78 in 2011. The results include $35.1 million of business development costs tied to a proposed business combination with Vulcan Materials Company that was not consummated, which reduced earnings by $0.46 per diluted share. The Aggregates business, the second largest U.S. producer of aggregates, generated 89% of 2012 net sales. Its gross margin excluding freight and delivery revenues declined to 15.5% from 17.4%, mainly because of lower-margin vertically-integrated operations acquired in Colorado and Texas and internal freight costs from rail and water distribution. The Specialty Products segment, which makes magnesia-based chemicals and dolomitic lime, reported record gross profit and earnings from operations of $68.5 million. Management expects 2013 heritage aggregates shipments to rise 4% to 6% and heritage aggregates pricing to rise 2% to 4%, supported by the MAP-21 federal highway bill, which maintains highway spending at about $40 billion per year through September 30, 2014. Cash on hand was $25.4 million at year-end, with $297 million of unused revolving credit capacity and a consolidated debt-to-EBITDA ratio of 3.21x against a covenant that was temporarily raised to 3.75x through June 2013. The filing also notes that one rating agency reduced the company's rating to one level below investment grade in July 2012, while the composite rating remained investment grade. Shipments to the infrastructure market were flat in 2012, while residential and nonresidential shipments rose.
Feb 22, 2013
2011
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2011
Martin Marietta Materials, Inc. (MLM) reported 2011 total revenues of $1.71 billion and net sales of $1.52 billion, with net earnings attributable to the Company of $82.4 million, or $1.78 per diluted share, down from $97.0 million, or $2.10 per diluted share, in 2010. Results included $0.25 per diluted share of business development costs, largely tied to the proposed business combination with Vulcan Materials Company. The Aggregates business generated 87% of net sales, with net sales of $1.32 billion and earnings from operations of $127.5 million for continuing operations, while Specialty Products set record net sales of $200.6 million and earnings from operations of $66.3 million. Aggregates shipments declined 3.8% to 125.1 million tons, while heritage aggregates pricing rose 2.7%. The central event in the filing is the December 12, 2011 stock-for-stock exchange offer to acquire all outstanding Vulcan common stock at 0.50 of a Martin Marietta share per Vulcan share, which the filing states has the unanimous support of the Company's Board and would give former Vulcan shareholders about 58% of the combined company. Vulcan's board has recommended that its shareholders reject the offer, and the companies are engaged in litigation in Delaware, New Jersey and Alabama. The filing also discloses a $1.06 billion debt balance, a 3.25x debt-to-EBITDA ratio against a 3.50x covenant (temporarily raised to 3.95x for March and June 2012), $26.0 million of year-end cash, and a dividend of $1.60 per share maintained for 2011. For 2012, management guided to a 3% to 4% increase in heritage aggregates shipments and 2% to 4% heritage aggregates pricing, with Specialty Products earnings expected near $66 million and capital expenditures of about $155 million. The outlook excludes the potential effects of the Vulcan combination.
Feb 29, 2012
2010
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2010
Martin Marietta Materials, Inc. (NYSE: MLM) reported its 2010 Form 10-K, filed February 25, 2011. The Aggregates business, the second largest U.S. aggregates producer, generated 89% of 2010 net sales and shipped 130 million tons. Net sales were $1.55 billion, up from $1.50 billion in 2009, and diluted earnings per share were $2.10 versus $1.91 in 2009. Net earnings attributable to the Company were $97.0 million, compared with $85.5 million in 2009. Management described 2010 as a trough period in the construction cycle, with aggregates volume up 5.4% after several years of declines, while the average heritage aggregates selling price fell 3.4%. Profitability was mixed. Gross profit declined to $321.95 million from $337.73 million, driven by a $25.5 million increase in energy costs that reduced diluted EPS by $0.34. Earnings from operations rose to $196.4 million, supported by record results in the Specialty Products segment, which earned $50.6 million from operations. Cash from operations fell to $269.8 million from $318.4 million. The Company repaid $217.6 million of Floating Rate Senior Notes in cash, paid $73.6 million in dividends ($1.60 per share), and ended the year with total debt of $1.03 billion and cash of $70.3 million. The debt-to-EBITDA covenant ratio was 2.73 times against a 3.50 limit. Key near-term items include $242 million of 6.875% notes due April 2011, which management planned to refinance through a new multi-year credit facility expected in the first quarter of 2011. The federal highway bill had been extended by continuing resolution through March 4, 2011, and management's 2011 outlook called for flat to a 3% improvement in aggregates volume.
Feb 25, 2011
2009
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2009
Martin Marietta Materials, Inc. reported a difficult 2009 as the economic recession drove steep declines in aggregates demand. Net sales fell to $1.497 billion from $1.860 billion in 2008, and earnings from operations dropped to $187.6 million from $323.4 million. Net earnings attributable to the Company were $85.5 million, or $1.91 per diluted share, compared with $176.3 million, or $4.18 per diluted share, in 2008. Aggregates shipments declined 22.6% to 123.4 million tons, while heritage aggregates pricing still rose 1.9%. The Aggregates business generated 90% of 2009 net sales, and the Specialty Products segment delivered earnings from operations of $35.7 million. Balance sheet and liquidity remained a focus. Cash and cash equivalents rose to $263.6 million at December 31, 2009, and total equity increased to $1.406 billion, largely from the issuance of 3.8 million common shares that provided net proceeds of $293.4 million. Long-term debt including current maturities was $1.250 billion, and the company reported a consolidated debt-to-EBITDA ratio of 3.19 times against a covenant maximum of 3.75 to 1.00 for the period ending December 31, 2009, tightening to 3.50 to 1.00 from the quarter ending June 30, 2010. The company intends to use cash on hand and short-term credit capacity to repay $218 million of floating rate senior notes due April 2010. Management's 2010 outlook anticipates a 2% to 4% increase in aggregates volume and flat to 2% aggregates pricing, with the American Recovery and Reinvestment Act expected to drive most infrastructure work in 2010 and beyond. Key risks flagged in the filing include the pace of federal and state highway funding, continued weakness in commercial and residential construction, a $11.9 million legal reserve related to the Greenwood, Missouri litigation, and covenant headroom in a weak volume environment.
Feb 26, 2010
2008
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2008
Martin Marietta Materials, Inc. is a leading producer of construction aggregates, and its Aggregates business accounted for 91% of 2008 total net sales, with the Specialty Products segment making up the remaining 9%. Net sales for 2008 were $1.863 billion, down from $1.956 billion in 2007, and net earnings were $176.3 million, or $4.20 per diluted share, versus $262.7 million, or $6.06 per diluted share, in 2007. The filing attributes the decline mainly to the economic recession, with aggregates product line shipments down 12.6% to 159.4 million tons, higher petroleum-based product costs that lowered earnings by $0.65 per diluted share, and reduced gross margin excluding freight and delivery revenues of 25.2% versus 29.1% in 2007. The company reported total debt of $1.35 billion at December 31, 2008, after issuing $300 million of 6.6% Senior Notes due 2018 and borrowing $200 million under its credit agreement to finance the swap with Vulcan Materials Company and repay maturing notes. Moody's downgraded the company's long-term rating to Baa3 from Baa1 in 2008, and Standard & Poor's reaffirmed its BBB+ senior unsecured rating but moved the outlook to negative. The company cut its workforce by 8% and reduced capital spending to $258 million in 2008, with 2009 spending expected to approximately $185 million. Management's 2009 outlook, which the filing does not incorporate by reference into the 10-K, is for aggregates volumes down 9% to 12% excluding the economic stimulus plan, with pricing growth of 4% to 6% and earnings per diluted share of $3.70 to $4.30. The filing also states that the American Recovery and Reinvestment Act of 2009, signed February 17, 2009, could increase demand, though the timing and extent of its impact remain uncertain.
Feb 17, 2009
2007
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2007
Martin Marietta Materials, Inc. (NYSE: MLM) reported record 2007 results in this Form 10-K filed February 25, 2008. Aggregates generated 92% of 2007 net sales. Net sales were $1.97 billion (up 2% from $1.93 billion in 2006), and total revenues were $2.21 billion. Earnings from operations rose to $433.0 million from $390.5 million, and net earnings were $262.7 million, or $6.06 per diluted share, compared with $5.29 in 2006. The filing cites record diluted earnings per share, gross margin excluding freight and delivery revenues of 29.0% (up 180 basis points), and a 2007 shipment volume decline of 8.1% in aggregates, offset by heritage pricing up 10.3%. Capital allocation was a major theme. The company returned $629 million to shareholders in 2007, including $575 million for repurchases of 4,189,100 shares and $54 million in dividends. It issued $250 million of 6.25% Senior Notes due 2037 and $225 million of Floating Rate Senior Notes due 2010 to fund these repurchases and refinance the $125 million 6.9% Notes that matured in August 2007. Total long-term debt including current maturities rose to $1.124 billion from $705.3 million. The debt-to-EBITDA ratio, as defined under the credit agreement, was 1.86 at year-end and was nearly 2.0 in January 2008. Management's 2008 outlook calls for record net earnings per diluted share in a range of $6.25 to $7.00, assuming aggregates volume from up 1% to down 3% and price increases of 5.5% to 7.5%. Management flagged residential construction declines, state highway funding pressure in North Carolina, Texas and South Carolina, and the health of the U.S. economy as the main risks to that range.
Feb 25, 2008
2006
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2006
Martin Marietta Materials, Inc. describes itself as the second largest producer of aggregates for the construction industry in the United States, with a smaller Specialty Products segment (magnesia-based chemicals, dolomitic lime and structural composites). In 2006 the Aggregates business accounted for 92% of total net sales and shipped 198.5 million tons, generating net sales and earnings from operations of $1.9 billion and $400.3 million. The filing reports 2006 net sales of $1,942,897 thousand (up from $1,745,671 thousand in 2005), net earnings of $245.4 million, and record diluted earnings per share of $5.29 versus $4.08 in 2005. Gross margin excluding freight and delivery revenues rose to 26.9% from 24.3%, which management attributes to aggregates pricing gains (heritage aggregates price increase of 13.5%) partially offset by a 1.7% heritage volume decline. The filing highlights continued exposure to cyclical construction spending, weather, and rail and barge logistics. Residential construction declined in 2006 and is expected to decline further in 2007, while public infrastructure funding under the $286.4 billion SAFETEA-LU law and the outlook for commercial construction are cited as supports. Management expects 2007 aggregates pricing to rise 9% to 11% and projects 2007 diluted earnings per share in a range of $5.95 to $6.50. The company returned $219 million to shareholders in 2006 through share repurchases and dividends, and is reviewing its capital structure with a view to adding leverage. The structural composites product line, which has not yet been profitable, has 2007 quarterly benchmarks to meet. Cash from operations was $338.2 million in 2006, with $266.0 million of property additions. Long-term debt, including current maturities, was $705.3 million at year-end, and the debt-to-capitalization ratio was 36% on a total-debt basis (35% net of available cash and investments). Shareholders' equity was $1.254 billion, and the company held 4.2 million shares of repurchase authorization.
Feb 28, 2007
2005
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2005
Martin Marietta Materials, Inc. is the second largest producer of construction aggregates in the United States, and its Aggregates segment accounted for 93% of 2005 total net sales, with the Specialty Products segment (Magnesia Specialties and Structural Composite Products) accounting for the remaining 7%. The Aggregates segment shipped 203.2 million tons in 2005, generating net sales and earnings from operations of $1.6 billion and $299.2 million, respectively. Net sales for the company rose to $1.755 billion in 2005 from $1.521 billion in 2004, and net earnings increased to $192.7 million, or $4.08 per diluted share, from $129.2 million, or $2.66 per diluted share. Management cited heritage aggregates pricing and volume increases of 8.2% and 5.4%, respectively, and noted that 2005 net earnings included one-time favorable tax benefits of $0.15 per diluted share. The company's results remain exposed to construction cyclicality, weather (including Hurricanes Katrina and Rita in 2005), and a growing reliance on rail and water distribution, which the filing says lowers gross margin because of embedded freight. Management highlighted continued divestiture of underperforming assets, the formation of the Hunt Midwest joint venture effective January 1, 2005, and repurchases of 2,658,000 shares during 2005, with an additional 5 million shares authorized in February 2006. The Structural Composite Products business reported a 2005 loss from operations of $14.3 million and is described as a start-up business that has not yet generated profits. For 2006, management projected aggregates pricing to increase 9% to 11% and expected net earnings per diluted share between $4.95 and $5.25, inclusive of stock-based compensation expense. Financial statements and most MD&A content are incorporated by reference from the 2005 Annual Report to Shareholders, which is included in this filing as Exhibit 13.01.
Feb 27, 2006
2004
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2004
Martin Marietta Materials, Inc. describes itself as the United States' second largest producer of aggregates for construction, with a Specialty Products segment (magnesia-based chemicals, dolomitic lime, and structural composite products). In 2004 the Aggregates segment accounted for 93% of net sales. The Aggregates division shipped 191.5 million tons, generating net sales and earnings from operations of $1.4 billion and $220 million, respectively. Total 2004 net sales were $1.55 billion, with total revenues of $1.76 billion, earnings from operations of $226.6 million, and net earnings of $129.2 million, or $2.66 per diluted share, compared with $93.6 million in 2003. Gross margin rose to 22.1% from 21.0%, and management attributes the improvement to pricing gains, productivity initiatives, and divestitures of nonstrategic assets. The company remained active in portfolio reshaping during 2004, divesting nonstrategic aggregates and asphalt operations and forming a joint venture with Hunt Midwest Enterprises effective January 1, 2005, to operate Kansas City-area aggregates facilities. Operating cash flow was $266.8 million, capital expenditures for property, plant and equipment were $163.4 million, and the company repurchased $71.5 million of common stock in cash-flow terms. Management's 2005 outlook projects aggregates shipments up 2% to 4% and aggregates pricing up 3% to 4%, with 2005 net earnings expected at $2.85 to $3.20 per diluted share. The filing flags risks tied to construction cycles, federal highway funding (the TEA-21 successor bill remained pending), weather and hurricanes, rail and water transportation dependence, and the Structural Composite Products business, which the company says is approximately six months behind plan in commercialization and incurred a $10.7 million operating loss in 2004.
Feb 25, 2005
2003
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2003
Martin Marietta Materials, Inc. (the "Company") describes itself as the second largest producer of aggregates for the construction industry in the United States, with a smaller Specialty Products segment that makes magnesia-based chemicals, dolomitic lime, and developing structural composite products. In 2003, Aggregates accounted for 94% of total net sales and Specialty Products for 6%. The Company shipped approximately 192 million tons of aggregates in 2003 across 31 states, Canada and the Bahamas, generating aggregates net sales and earnings from operations of $1.4 billion and $185 million, respectively. Consolidated net sales were $1.50 billion in 2003, up from $1.43 billion in 2002, and net earnings were $93.6 million, or $1.91 per diluted share, after a $6.9 million cumulative effect charge from adopting FAS 143. Earnings before that cumulative effect were $100.5 million, or $2.05 per diluted share. The filing highlights a business tied closely to public infrastructure. About 46% of Aggregates shipments went to highway and public infrastructure projects, and the Company notes that the federal highway bill (TEA-21) expired on September 30, 2003, with the program running under a continuing resolution at $33.6 billion for fiscal 2004. The Company also flags exposure to weather, fuel and freight costs, and a shift toward rail and water distribution that embeds freight costs and lowers gross margin. Gross margin was 20.5% in 2003 versus 20.6% in 2002. Management's Outlook 2004 expects aggregates shipments to rise 1% to 3% and pricing to rise 1.5% to 2%, with diluted earnings per share between $2.30 and $2.60. Balance sheet and cash flow improved during 2003. Operating cash flow rose to $277.2 million from $203.6 million, cash ended at $125.1 million, and total debt declined to $718.1 million from $744.9 million. The debt-to-capitalization ratio, net of cash and swaps, fell to 34% from 40%. The Company repurchased 331,100 shares for $15.0 million and paid dividends of $0.69 per share, and it made a $32.0 million voluntary pension contribution in January 2004.
Mar 15, 2004
2002
Martin Marietta Materials Annual Report, Year Ended Dec 31, 2002
Martin Marietta Materials, Inc. (NYSE: MLM) describes itself as the United States' second largest producer of aggregates for construction, with a smaller magnesia-based chemicals and dolomitic lime business. In 2002 the Aggregates segment accounted for 95% of total net sales and Magnesia Specialties for 5%. Consolidated net sales were $1.497 billion in 2002 versus $1.506 billion in 2001, and net earnings fell to $86.3 million, or $1.77 per diluted share, from $105.4 million, or $2.19 per diluted share. Earnings before the $11.5 million cumulative effect of the FAS 142 goodwill impairment were $97.8 million, or $2.00 per diluted share. Operating cash flow was $203.6 million, down from $252.9 million in 2001. Management attributes the weak results to the recessionary economy, with commercial construction declining sharply, wet weather, and twelve hurricanes or tropical storms in 2002. Gross margin declined to 19.7% from 20.6%, and 2002 results included $20.0 million of nonrecurring divestiture gains. Aggregates shipments fell 2% to 188.6 million tons. Heritage price increases were 2.4%. The company completed six acquisitions for $48.0 million in cash and sold nonstrategic operations. Total debt fell to $744.9 million from $801.9 million, and the debt-to-capitalization ratio improved to 41% from 44%. For 2003, management expects heritage aggregates volume to be flat, with price increases of 1.5% to 2%, and projects net earnings of $1.95 to $2.25 per diluted share. It cites war with Iraq and weakening economic conditions as downside risks, and considers those risks to outweigh the upside. The company is also building a structural composites business, with manufacturing in Sparta, North Carolina expected to start in the second half of 2003.
Mar 27, 2003