01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Martin Marietta Materials, Inc. reported second-quarter 2025 revenues of $1.811 billiona, up from $1.764 billion a year earlier, and net earnings attributable to Martin Marietta of $328 million, or $5.43 per diluted share, versus $294 million, or $4.76 per diluted share, in the prior-year quarter.
Gross profit rose to $544 millionb from $517 million, and Adjusted EBITDA was $630 million compared with $584 million. Aggregates shipments declined 0.6% to 52.7 million tons, as wet weather and residential softness offset acquisition contributions, while aggregates average selling price increased 7.4% to $23.21 per ton. Magnesia Specialties revenues grew 12% to $90 million.
For the six months ended June 30, 2025, net earnings attributable to Martin Marietta were $444 millionc, or $7.31 per diluted share, compared with $1.3 billion, or $21.66 per diluted share, in 2024. The prior-year period included a $1.3 billion pretax gain on the divestiture of the South Texas cement business, so the comparison is distorted. Operating cash flow improved to $605 million from $173 million, and the company repurchased 910,831 shares for $450 million during the period.
Subsequent to quarter-end, the company acquired Premier Magnesia, LLC on July 25, 2025, and on August 3, 2025 agreed to exchange certain assets with Quikrete Holdings, Inc. Martin Marietta would receive aggregates operations producing approximately 20 million tons annually plus $450 milliond in cash, in exchange for its Midlothian cement plant, related cement terminals and North Texas ready mixed concrete assets, with closing expected in the first quarter of 2026. Total debt was $5.416 billion at June 30, 2025, and the company had $1.2 billion of unused borrowing capacity under its revolving and trade receivable facilities.
02—Key points
Key Highlights
- Q2 2025 revenues of $1.811 billion, up from $1.764 billion in Q2 2024; gross profit of $544 million versus $517 million
- Q2 2025 net earnings attributable to Martin Marietta of $328 million, or $5.43 per diluted share, compared with $294 million, or $4.76 per diluted share, a year earlier
- Adjusted EBITDA of $630 million for Q2 2025 versus $584 million in Q2 2024; six-month Adjusted EBITDA of $982 million versus $875 million
- Aggregates shipments decreased 0.6% to 52.7 million tons in Q2, while aggregates average selling price increased 7.4% to $23.21 per ton
- Six-month operating cash flow of $605 million versus $173 million in 2024, which included higher tax payments on the divestiture gain
- Repurchased 910,831 shares of common stock for $450 million in the first six months of 2025; 11.0 million shares remain under the authorization
- Pending Quikrete asset exchange, with $450 million cash to Martin Marietta, expected to close in the first quarter of 2026
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Martin Marietta Materials kept $0.20.
- Revenue$1.61B100.0%
- Cost of revenue−$1.11B69.2%
- Gross profit$496.0M30.8%
- Operating costs−$83.0M5.2%
- Operating income$413.0M25.7%
- Interest, other & tax−$85.0M5.3%
- Net income$328.0M20.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.61B$1.55B | +3.7% |
| Cost of Revenue | $1.11B$1.25B | −10.7% |
| Gross Profit | $496.00M$449.00M | +10.5% |
| SG&A Expenses | $104.00M$117.00M | −11.1% |
| Operating Income | $413.00M$398.00M | +3.8% |
| Interest Expense | $57.00M$40.00M | +42.5% |
| Net Income | $328.00M$293.00M | +11.9% |
| EPS (Basic) | $5.44$4.77 | +14.0% |
| EPS (Diluted) | $5.43$4.76 | +14.1% |
| Shares Outstanding (Basic) | 60.30M61.50M | −2.0% |
| Shares Outstanding (Diluted) | 60.40M61.60M | −1.9% |
05—Questions
Frequently Asked Questions
Why did six-month 2025 net earnings fall so sharply compared with 2024?
The six months ended June 30, 2024 included a $1.3 billion pretax gain on the divestiture of the South Texas cement business. Six-month 2025 net earnings attributable to Martin Marietta were $444 million, or $7.31 per diluted share, versus $1.3 billion, or $21.66 per diluted share, in 2024, so the prior-year comparison is inflated by that one-time gain.
How did aggregates pricing and volumes trend in the second quarter?
Second-quarter aggregates shipments decreased 0.6% to 52.7 million tons due to wet weather in May 2025 and residential softness, partly offset by acquisitions. Average selling price rose 7.4% to $23.21 per ton, and aggregates gross profit increased 9% to $430 million, with gross margin at 33%.
What is the company's debt and liquidity position?
Total debt was $5.416 billion at June 30, 2025. No amounts were outstanding under the $800 million Revolving Facility or the $400 million Trade Receivable Facility, leaving $1.2 billion of unused borrowing capacity. The company stated it was in compliance with its 3.50x net debt-to-EBITDA covenant ratio at June 30, 2025.
What are the key pending transactions disclosed in the filing?
On July 25, 2025, the company acquired Premier Magnesia, LLC, a magnesia-based products producer. On August 3, 2025, it agreed to exchange its Midlothian cement plant, related cement terminals and North Texas ready mixed concrete assets to Quikrete Holdings, Inc. for aggregates operations producing approximately 20 million tons annually and $450 million in cash, with closing expected in the first quarter of 2026 subject to regulatory approvals.
What is the outlook for the residential and infrastructure markets?
In the second quarter, infrastructure shipments increased 1% and accounted for 37% of aggregates shipments, nonresidential was flat at 35%, and residential decreased 4% to 23%, driven by softness in single-family housing due to affordability headwinds. Management noted that demographic trends and undersupply in key Sunbelt markets remain intact.
06—Continue