01—Abstract
Summary
Summary of the 10-Q filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Martin Marietta Materials, Inc. reported second-quarter 2026 revenues of $1.947 billiona, up from $1.609 billion a year earlier, and net earnings from continuing operations attributable to Martin Marietta of $256 million, or $4.26 per diluted share, versus $292 million, or $4.84, in the prior-year quarter.
Earnings were pressured by $45 millionb of after-tax charges tied to acquisition, divestiture and integration expenses and the sale of acquired inventory at fair value, along with higher depreciation, depletion and amortization. For the six months, consolidated net earnings were $1.764 billion, driven by a $1.4 billion after-tax gain on the February 23, 2026 divestiture of the Midlothian cement plant and related Texas assets in the asset exchange with QUIKRETE Holdings, Inc. Adjusted EBITDA from continuing operations was $638 million for the quarter versus $565 million a year earlier, and $1.001 billion for the six months versus $883 million. The balance sheet expanded significantly.
Total assets rose to $21.305 billionc from $18.711 billion at December 31, 2025, and total debt increased to $5.951 billion from $5.323 billion, with $860 million classified as current maturities. Operating cash flow for the six months was $339 million, down from $605 million, and cash used for capital expenditures was $314 million. Shareholders' equity rose to $11.546 billion, and the company repurchased $200 million of common stock during the first half.
The most significant subsequent event is the June 27, 2026 agreement to acquire Lhoist North America, Inc. for $13.5 billiond, consisting of $7.0 billion in cash and 10,953,543 newly issued shares valued at $6.5 billion. The transaction is expected to close in the second half of 2026 and would leave the seller holding roughly 15% of outstanding common stock.
The company secured a $1.5 billion term loan commitment and amended its revolving credit covenant to allow a maximum net debt-to-EBITDA ratio of 4.75x after closing. Moody's has the company's rating under review for downgrade, and S&P has it on CreditWatch Negative.
02—Key points
Key Highlights
- Q2 2026 revenues of $1.947 billion versus $1.609 billion in Q2 2025; six-month revenues of $3.309 billion versus $2.771 billion.
- Q2 2026 diluted EPS from continuing operations of $4.26 versus $4.84; six-month diluted EPS from continuing operations of $5.56 versus $6.52.
- Six-month consolidated net earnings of $1.764 billion, including a $1.4 billion after-tax gain on the QUIKRETE asset exchange divestiture recorded in discontinued operations.
- Adjusted EBITDA from continuing operations of $638 million for Q2 2026 versus $565 million, and $1.001 billion for the six months versus $883 million.
- Pending $13.5 billion acquisition of Lhoist North America, Inc., funded with $7.0 billion cash and 10,953,543 new shares; expected to close in the second half of 2026.
- Total debt rose to $5.951 billion at June 30, 2026 from $5.323 billion at December 31, 2025, and the company amended its revolving facility covenant to allow up to 4.75x net debt-to-EBITDA after the LNA closing.
- Fitch rates BBB+ with negative outlook, Moody's Baa2 is under review for downgrade, and S&P BBB+ is on CreditWatch Negative.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Martin Marietta Materials kept $0.13.
- Revenue$1.95B100.0%
- Cost of revenue−$1.45B74.6%
- Gross profit$495.0M25.4%
- Operating costs−$123.0M6.3%
- Operating income$372.0M19.1%
- Interest, other & tax−$121.0M6.2%
- Net income$251.0M12.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 30, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.95B$1.61B | +21.0% |
| Cost of Revenue | $1.45B$1.11B | +30.5% |
| Gross Profit | $495.00M$496.00M | −0.2% |
| SG&A Expenses | $116.00M$104.00M | +11.5% |
| Operating Income | $372.00M$413.00M | −9.9% |
| Interest Expense | $59.00M$57.00M | +3.5% |
| Net Income | $251.00M$328.00M | −23.5% |
| EPS (Basic) | $4.18$5.44 | −23.2% |
| EPS (Diluted) | $4.17$5.43 | −23.2% |
| Shares Outstanding (Basic) | 60.10M60.30M | −0.3% |
| Shares Outstanding (Diluted) | 60.20M60.40M | −0.3% |
05—Questions
Frequently Asked Questions
How did Martin Marietta perform in the second quarter of 2026?
Revenues were $1.947 billion, up from $1.609 billion in the second quarter of 2025. Earnings from continuing operations attributable to Martin Marietta were $256 million, or $4.26 per diluted share, compared with $292 million, or $4.84, a year earlier. The filing attributes results to $45 million of after-tax charges for acquisition-related expenses and the sale of acquired inventory at fair value, plus higher depreciation, depletion and amortization.
Why did net earnings increase so much for the six months ended June 30, 2026?
Consolidated net earnings were $1.764 billion for the six months, compared with $444 million in 2025. The increase primarily reflects a $1.4 billion after-tax gain on the February 2026 divestiture of the Midlothian cement plant, related cement terminals and Texas ready mixed concrete plants, which is reported in discontinued operations. Earnings from continuing operations were $336 million, down from $396 million.
What is the Lhoist North America transaction and what would it mean for shareholders?
On June 27, 2026, the company agreed to acquire Lhoist North America, Inc. for $13.5 billion, paid with $7.0 billion in cash and 10,953,543 newly issued common shares. The filing says the seller would hold approximately 15% of outstanding common stock after closing, which would dilute existing shareholders. The transaction is expected to close in the second half of 2026, subject to regulatory approvals and other conditions, and the agreement may be terminated if it is not completed by June 15, 2027.
How has the company's debt and financial flexibility changed?
Total debt increased to $5.951 billion at June 30, 2026 from $5.323 billion at year-end 2025, including a $560 million Trade Receivable Facility balance and $95 million under the Revolving Facility. The company secured a $1.5 billion three-year term loan commitment on July 15, 2026 and amended its revolving covenant on July 10, 2026 to allow a maximum net debt-to-EBITDA ratio of 4.75x for the first three quarters after closing. At June 30, 2026, the company had $742 million of unused borrowing capacity under its revolving and receivable facilities.
What are the main credit rating concerns for investors?
As of June 30, 2026, Fitch rated the company BBB+ with a negative outlook, Moody's rated it Baa2 with the rating under review for downgrade, and S&P rated it BBB+ on CreditWatch Negative. The filing notes that a ratings downgrade associated with the LNA Transaction could increase borrowing costs and bring more restrictive covenants, though management does not believe a review should result in a reduction of its ratings.
06—Continue