Martin Marietta's Q2 Earnings Top, Revenues Miss, '25 View Revised

Martin Marietta Materials, Inc. MLM reported mixed results for the second quarter of 2025, with earnings topping the Zacks Consensus Estimate and revenues missing the same. On a year-over-year basis, both metrics grew.

Following the results, shares of this producer and supplier of construction aggregates and other heavy building materials inched up 0.3% during today’s pre-market trading session.

The company’s quarterly performance was driven by the robust infrastructure demand trends backed by sustained federal and state investment levels, with data center development and warehouse recovery projects being the primary contributors. Although declines in light commercial construction and housing market softness are pulling back near-term prospects, the favorable market trends are expected to boost growth in the long term.

During the quarter, the Magnesia Specialties business reached record revenue and margin levels, inducing optimism about the company’s upcoming performance trends.

MLM’s continued focus on sustained pricing momentum and effective cost management is expected to support its margins, moving forward.

Inside MLM’s Q2 Results

Martin Marietta reported earnings per share (EPS) from continuing operations of $5.43, which topped the Zacks Consensus Estimate of $5.32 by 2.1% and grew 14% from the year-ago quarter’s figure of $4.76.

Revenues of $1.81 billion marginally missed the consensus mark of $1.82 billion by 0.3% but increased 3% from the year-ago figure of $1.76 billion.

Martin Marietta Materials, Inc. Price, Consensus and EPS Surprise

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

The gross margin expanded 70 basis points (bps) year over year to 30% in the reported quarter (we predicted the gross margin to be 31.9% for the quarter). Adjusted EBITDA of $630 million grew 8% year over year, with adjusted EBITDA margin expanding 170 bps to 34.8%.

Martin Marietta’s Segmental Discussion

Building Materials reported revenues of $1.7 billion (down from our prediction of $1.82 billion), which grew 2% year over year. The segment’s gross margin increased 100 bps year over year to 30% in the quarter.

Within the Building Materials umbrella, aggregates’ revenues grew 6.3% to $1.32 billion from the year-ago quarter. Aggregates shipments declined 0.6% year over year to 52.7 million tons while the average selling price grew 7.4% to $23.21. Shipments tumbled because of soft demand trends in Colorado and wet weather, which largely offset strong demand trends in the Southeast and incremental acquisition contributions.

Aggregates’ gross profit per ton increased year over year by 10% to $8.16. Aggregates' gross profit increased 9% to $430 million, with gross margin expanding 94 bps to 33%.

Cement and ready-mixed concrete revenues fell 6% year over year to $245 million, mainly due to lower shipments. Cement shipments declined 11.5% year over year to 0.5 million tons. Ready-mixed concrete shipments declined 1.2% from the year-ago period. 

Asphalt and paving revenues tumbled 7% to $228 million from the year-ago period. Asphalt shipments also decreased 6.6% year over year.

Magnesia Specialties reported record second-quarter revenues of $90 million, up 11.1% from $81 million a year ago. We predicted a comparatively lower value of $84.4 million year over year. The gross margin was up 60 bps to 40% from 34% a year ago. The segment’s performance reflects strong pricing, improved lime shipments, operational reliability and efficiency gains.

Martin Marietta’s Financial Position

As of June 30, 2025, Martin Marietta had cash and cash equivalents of $225 million compared with $670 million at 2024-end. It had $1.2 billion of unused borrowing capacity on its existing credit facilities at June 2025-end. Long-term debt (excluding current maturities) was $5.29 billion, at par with the end of 2024 value.

Net cash provided by operations was $605 billion as of the first six months of 2025, up from $173 million in the year-ago period.

During the first six months of 2025, MLM returned $547 million to its shareholders through dividend payments and share repurchases. As of June 30, 11 million shares remained under the current repurchase authorization.

Martin Marietta Revises 2025 Guidance

Martin Marietta now expects total revenues between $6.82 billion and $7.12 billion (from $6.83-$7.230 billion), up from $6.54 billion in 2024. Adjusted EBITDA is now projected to be between $2.25 billion and $2.35 billion (from $2.15 billion and $2.35 billion), up from $2.07 billion reported in 2024.

Martin Marietta’s net earnings from continuing operations are now anticipated to be between $1.095 billion and $1.185 billion (from $1.005-$1.175 billion), down from $1.995 billion in 2024.

Aggregate shipment is now expected to be up 1-4% (from down 2.5-5.5%). Total aggregate pricing per ton is now anticipated to rise between 6.8% and 7.8% (from up 5.5-7.5%). Aggregate gross profit is currently expected to be in the range of $1.665-$1.715 billion (from $1.61-$1.71 billion range).

Cement, ready-mixed concrete, and asphalt and paving gross profit are now expected to be in the range of $295-$330 million (from $305-$385 million range). Magnesia Specialties’ gross profit is now expected to be between $130 million and 140 million, up from the previously expected $110-$120 million range.

Capital expenditures are now anticipated to be in the range of $820-$850 million, up from $725-$775 million range expected before.

MLM’s Zacks Rank & Recent Construction Releases

Martin Marietta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vulcan Materials Company VMC reported lower-than-expected second-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate but increasing year over year.

The quarterly performance of the company improved year over year due to its continuous pricing discipline and operational execution despite lower shipments and risky weather conditions. The contributions from all three reported segments aided the top line during the quarter, positioning Vulcan favorably for the remainder of 2025. Moreover, its aggregates-driven business model and strong commercial performance bode well for the near and long term

Quanta Services, Inc. PWR posted a robust second-quarter 2025 performance, highlighted by double-digit revenue growth, margin expansion, and strategic capital deployment. The results reflect strong demand for utility-scale infrastructure and energy transition projects, as well as operational execution across its diversified service portfolio.

Quanta completed the $1.35 billion acquisition of Dynamic Systems in July, adding significant turnkey mechanical and process infrastructure capabilities. Quanta raised its full-year 2025 outlook, expecting revenues between $27.4 billion and $27.9 billion, and adjusted EPS in the range of $10.28-$10.88.

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.

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