01—Abstract
Summary
Summary of the 10-Q filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Martin Marietta Materials, Inc. reported first-quarter 2025 revenues of $1,353 milliona, up from $1,251 million a year earlier, and gross profit of $335 million versus $272 million.
Net earnings attributable to Martin Marietta were $116 millionb, or $1.90 per diluted share, compared with $1.0 billion, or $16.87 per diluted share, in the prior-year quarter. The prior-year figure was inflated by a $1.3 billion pretax gain on the divestiture of the South Texas cement business, so the comparison is not like-for-like. Adjusted EBITDA was $351 million versus $291 million.
Aggregates drove the improvement. Aggregates shipments rose 6.6% to 39.0 million tons, aided by acquisitions and partly offset by severe winter weather, and average selling price increased 6.8% to $23.77c per ton. Aggregates gross profit rose 24% to $297 million.
Cement and ready mixed concrete revenues fell 12% to $233 milliond, and Magnesia Specialties revenues rose 8% to $87 million. Cash flow and liquidity remained solid. Operating cash flow was $218 million versus $172 million, and capital expenditures were $233 million.
The company repurchased 910,831 shares for $450 million, and cash fell to $101 million from $670 million at year-end. Long-term debt was $5,289 million, and roughly $1.2 billion of unused borrowing capacity remained under its revolving and receivables facilities. The company was in compliance with its leverage covenant at March 31, 2025.
02—Key points
Key Highlights
- Revenues rose to $1,353 million from $1,251 million, and gross profit increased to $335 million from $272 million.
- Earnings from operations were $194 million, compared with $1.4 billion in the prior-year quarter, which included a $1.3 billion divestiture gain.
- Diluted EPS was $1.90, versus $16.87 in the prior-year quarter, which included an after-tax divestiture gain of $15.75 per diluted share.
- Aggregates shipments increased 6.6% to 39.0 million tons, and average selling price rose 6.8% to $23.77 per ton.
- Aggregates gross margin expanded to 30% from 27%, driven by organic price/cost improvement and margin-accretive acquisitions.
- Operating cash flow was $218 million, and the company repurchased $450 million of common stock.
- Cash and cash equivalents declined to $101 million from $670 million at December 31, 2024, and the company had about $1.2 billion of unused borrowing capacity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Martin Marietta Materials kept $0.10.
- Revenue$1.16B100.0%
- Cost of revenue−$847.0M72.9%
- Gross profit$315.0M27.1%
- Operating costs−$136.0M11.7%
- Operating income$179.0M15.4%
- Interest, other & tax−$63.0M5.4%
- Net income$116.0M10.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 30, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $1.16B$1.06B | +10.0% |
| Cost of Revenue | $847.00M$979.00M | −13.5% |
| Gross Profit | $315.00M$250.00M | +26.0% |
| SG&A Expenses | $125.00M$118.00M | +5.9% |
| Operating Income | $179.00M$1.42B | −87.4% |
| Interest Expense | $56.00M$40.00M | +40.0% |
| Net Income | $116.00M$1.04B | −88.9% |
| EPS (Basic) | $1.91$16.92 | −88.7% |
| EPS (Diluted) | $1.90$16.87 | −88.7% |
| Shares Outstanding (Basic) | 60.90M61.80M | −1.5% |
| Shares Outstanding (Diluted) | 61.00M62.00M | −1.6% |
05—Questions
Frequently Asked Questions
Why did net earnings fall so sharply year over year?
The first quarter of 2024 included an after-tax gain of $976 million, or $15.75 per diluted share, on the divestiture of the South Texas cement business. Excluding that one-time gain and related items, the 2025 results reflect operating growth, with gross profit up from $272 million to $335 million.
How did the aggregates business perform?
Aggregates revenues rose to $1,002 million from $885 million. Shipments increased 6.6% to 39.0 million tons, supported by acquisitions and partly offset by severe winter weather. Gross profit rose 24% to $297 million, and gross profit per ton increased 16% to $7.60.
What drove the decline in cement and ready mixed concrete revenues?
Revenues decreased 12% to $233 million, reflecting the February 2024 divestiture of the South Texas cement plant and related concrete operations, winter weather in February 2025, and slower residential demand. Gross profit fell 23% to $24 million as higher raw material costs weighed on ready mixed concrete.
How is the company managing its capital and debt?
The company repurchased 910,831 shares for $450 million during the quarter, and 11.0 million shares remained under its repurchase authorization at March 31, 2025. Long-term debt was $5,289 million, there were no borrowings under the $800 million revolving facility or the $400 million trade receivable facility, and the company was in compliance with its leverage covenant.
Are there any notable near-term obligations or risks?
The company deferred $102 million of income tax payments under IRS disaster relief tied to Hurricanes Debby and Helene, with the obligation due September 25, 2025. The trade receivable facility matures September 17, 2025. The filing also cites risks including weather, fuel and energy costs, interest rates, and infrastructure funding.
06—Continue