Here's What to Know Ahead of Martin Marietta's Q2 Earnings Release

Martin Marietta Materials, Inc. MLM is scheduled to report its second-quarter 2025 results on Aug. 7, before the opening bell.

In the last quarter, the company reported mixed results, with earnings missing the Zacks Consensus Estimate by 2.1% while the revenues marginally topped the same by 0.2%. Year over year, the top line grew 8% while the bottom line tumbled 89%.

Martin Marietta’s earnings topped the consensus mark in one of the last four quarters and missed on the remaining three occasions, having an average negative surprise of 2.8%.

Trend in MLM’s Estimate Revision

The Zacks Consensus Estimate for MLM’s second-quarter earnings per share has trended downward in the past 30 days to $5.30 from $5.44. However, the estimated figure indicates 0.8% year-over-year growth from $5.26. 

Martin Marietta Materials, Inc. Price and EPS Surprise

Martin Marietta Materials, Inc. price-eps-surprise | Martin Marietta Materials, Inc. Quote

The consensus mark for revenues is pegged at $1.88 billion, indicating a 6.8% increase from the prior-year quarter’s figure of $1.76 billion.

Factors Likely to Shape Martin Marietta’s Q2 Results

Revenues

Martin Marietta’s top-line performance during the second quarter is expected to have benefited from the robust infrastructure demand trends surrounding the market currently, given the continued strength from public infrastructure projects and AI/data center-related nonresidential projects. Specifically, the increased federal and state demand for projects prioritizing national and regional benefits, like roads, bridges and ports, over local transit, rail and bike/pedestrian trails, is likely to have been in favor of the company’s revenue visibility. Although residential demand is currently on the softer side, a surge in public infrastructure, alongside MLM’s focus on pricing improvements and growth initiatives, is likely to have aided the quarter’s performance.

For the quarter to be reported, our model indicates aggregates pricing to increase to $23.26 per ton, marking 7.6% year-over-year growth. We expect total aggregates revenues to increase to $1.3 billion from $1.24 billion a year ago. For cement, we expect pricing per ton to grow 2.7% year over year to $191.78, with revenues increasing to $99 million from $98.4 million.

Business-wise, we expect the revenues from the Building Materials business (comprising 93.6% of total revenues in the first quarter of 2025) to increase 8.4% year over year to $1.82 billion. For the Magnesia Specialties business (comprising 6.4% of total revenues in the first quarter of 2025), we expect revenues to increase 4.2% year over year to $84.4 million. 

Margins

For the quarter to be reported, MLM’s bottom line is expected to have gained on the back of organic price-cost improvement and margin-accretive acquisitions across its aggregates business. The higher raw material costs faced in the cement section are likely to have been a soft blow during the quarter. However, the company’s consistent focus on pricing improvements and cost-effective measures, alongside leverage from the increased top-line, is expected to have minimized the adverse impacts to a great extent.

Business-wise, our model predicts gross profit in the Building Materials and Magnesia Specialties businesses to increase year over year by 9.7% to $549.5 million and 1.1% to $27.3 million, respectively. Gross margin for the Building Materials business is expected to expand year over year by 30 basis points (bps) to 30.1%, while the same for the Magnesia Specialties business is likely to contract 100 bps to 32.3%.

What the Zacks Model Unveils for MLM

Our proven model predicts an earnings beat for Martin Marietta this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.

Earnings ESP of MLM: Martin Marietta has an Earnings ESP of +0.22%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

MLM Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Construction Releases

Mohawk Industries, Inc. MHK reported second-quarter 2025 results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, the top line remained flat, while the bottom line decreased.

Mohawk was supported by new premium residential and commercial product collections launched over the past two years and restructuring actions. With rising tariffs, it highlighted the advantage of its manufacturing base in North America, as it took steps such as adjusting prices and optimizing supply chains. Mohawk expects adjusted EPS in the range of $2.56-$2.66, excluding restructuring and other charges, compared with the year-ago figure of $2.9. 

Weyerhaeuser Company WY reported second-quarter 2025 results, wherein its earnings and net sales topped their respective Zacks Consensus Estimate.

On a year-over-year basis, the top and bottom lines declined due to lower domestic sales realizations with seasonally elevated per-unit log and haul costs, and forestry and road costs across its Timberlands segment. Besides, increased contributions from Weyerhaeuser’s Real Estate, Energy & Natural Resources segment boded well for the quarter to some extent. Weyerhaeuser remains optimistic about its business position on the back of its long-term demand fundamentals, stable balance sheet and flexible capital allocation framework.

United Rentals, Inc. URI reported second-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased but the bottom line declined.

United Rentals reported record second-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. This performance reflects continued momentum from the prior quarter. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. Going forward, United Rentals anticipates continued growth in large projects and strong performance in the specialty segment. Based on these trends, the company has raised its 2025 outlook.

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This article originally published on Zacks Investment Research (zacks.com).

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