|
|
|
|
|||||
|
|
|
Martin Marietta Materials, Inc. MLM reported lower-than-expected results for the third quarter of 2025. The quarterly earnings and revenues missed the Zacks Consensus Estimate, but grew on a year-over-year basis.
Following the results, MLM stock inched up 0.2% during today’s pre-market trading session.
The company’s quarterly performance was backed by strong infrastructure activity, with nonresidential construction booming because of accelerated data center development, recovering warehouse sector and improving momentum in domestic manufacturing. Robust demand trends across its key end markets were favorable during the quarter.
Although residential demand is weak in the near term, in the long term, the trends are expected to normalize. The prospects are stemming from the optimism around Fed rate cuts and moderating mortgage rates. Moving forward, MLM remains well-positioned with its aggregates-led platform and execution of its SOAR 2025 initiatives.
Martin Marietta reported earnings per share (EPS) from continuing operations of $5.97, which missed the Zacks Consensus Estimate of $6.65 by 10.2%. However, the metric grew 23% from the year-ago quarter’s EPS (from continuing operations) of $4.84.
Revenues of $1.85 billion also missed the consensus mark of $2.05 billion by 9.8% but increased 12% from the year-ago figure of $1.64 billion.
Martin Marietta Materials, Inc. price-consensus-eps-surprise-chart | Martin Marietta Materials, Inc. Quote
Consolidated gross margin expanded 190 basis points (bps) year over year to 33.1% in the reported quarter (we predicted the gross margin to be 34.1% for the quarter).
Adjusted EBITDA from continuing operations was $667 million, up 22% year over year, with adjusted EBITDA margin (from continuing operations) expanding 300 bps to 36%.
Building Materials reported revenues of $1.72 billion (down from our prediction of $1.95 billion), which grew 10% year over year. The segment’s gross margin increased 200 bps year over year to 34% in the quarter.
Within the Building Materials umbrella, aggregates’ revenues grew 17% to $1.46 billion from the year-ago quarter. Aggregates shipments moved up 8% year over year to 57.9 million tons, with the average selling price (per ton) growing 8% to $23.24. Shipment volume increased because of favorable demand recovery across MLM’s geographic footprint, backed by normalized weather throughout the Southeast and Texas.
Aggregates’ gross profit per ton increased year over year by 12% to $9.17. Aggregates' gross profit increased 21% to $531 million, with gross margin expanding 100 bps to 36%.
Revenues from Other Building Materials declined 10% year over year to $351 million. The gross profit of this business section declined 15.6% year over year to $54 million, with the gross margin contracting 200 bps to 15%. The decline in gross profit was due to reduced asphalt revenues, due to lower shipments and pricing, alongside a decrease in paving revenues.
Specialties reported record third-quarter revenues of $131 million, up 59.8% from $82 million a year ago. We predicted a comparatively lower value of $87.7 million year over year. The gross margin was down by a whopping 900 bps to 26% from 35% a year ago.
As of Sept. 30, 2025, Martin Marietta had cash and cash equivalents of $57 million compared with $670 million at 2024-end. It had $1.1 billion of unused borrowing capacity on its existing credit facilities as of the third quarter. Long-term debt (excluding current maturities) was $5.29 billion, at par with the end of 2024 value.
Net cash provided by operations was $1.16 billion as of the first nine months of 2025, up from $773 million in the year-ago period.
During the first nine months of 2025, MLM returned $597 million to its shareholders through dividend payments and share repurchases. As of Sept. 30, 11 million shares remained under the current repurchase authorization.
On Aug. 3, 2025, the company entered into a definitive agreement with Quikrete Holdings, Inc. regarding certain asset exchanges. Per the agreement, MLM will be selling its Midlothian cement plant, related cement terminals and certain Texas ready-mixed concrete assets to QUIKRETE. In exchange, it will receive aggregates operations producing about 20 million tons annually in Virginia, Missouri, Kansas and Vancouver, British Columbia, and cash proceeds. Upon the satisfaction of customary closing conditions, this strategic transaction is expected to close in the fourth quarter of 2025.
Based on this asset exchange agreement, MLM’s cement and mixed concrete-related operations were considered as discontinued operations as of Sept. 30, 2025.
The guidance provided during this quarter is for the continuing operations, unlike the prior guidance, which included the discontinued operations.
Upon revision, Martin Marietta now expects total revenues between $6.075 billion and $6.25 billion. Adjusted EBITDA is now projected to be between $2.055 billion and $2.095 billion.
Martin Marietta’s net earnings from continuing operations are now anticipated to be between $985 million and $1.015 billion.
Aggregate shipment is now expected to be up about 4% (from up 1-4%). Total aggregate pricing per ton is still anticipated to rise between 6.8% and 7.8%. Aggregate gross profit is currently expected to be in the range of $1.705-$1.735 billion (from $1.665-$1.715 billion range).
Other Building Materials’ business section gross profit is projected between $82 million and $87 million.
Specialties’ gross profit is now expected to be between $137 million and $142 million, up from the previously expected $130-$140 million range.
Capital expenditures are now anticipated to be in the range of $810-$840 million, down from $820-$850 million range expected before.
Martin Marietta currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vulcan Materials Company VMC reported impressive third-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.
The quarterly performance of Vulcan was driven by solid contributions from its aggregates-led business, alongside effective commercial and operational execution. The market’s public infrastructure spending trends are favoring its business prospects, despite tariff-related uncertainties circling the economy. Vulcan now expects adjusted EBITDA for 2025 to be between $2.35 billion and $2.45 billion, up from $2.06 billion reported in 2024.
Masco Corporation MAS posted lackluster third-quarter 2025 results, wherein the adjusted earnings and net sales missed the Zacks Consensus Estimate and tumbled year over year. The quarter’s performance was hurt due to the weak contributions from the Decorative Architectural Products segment, which outweighed the improved performance of the Plumbing Products segment.
The ongoing uncertainties in the global economy and tariff-related risks are restricting Masco’s near-term prospects. Masco expects net sales to be down in low single digits year over year, with an adjusted operating margin of approximately 16.5% (compared with 17.5% in 2024). Adjusted EPS is now expected to be between $3.90 and $3.95, compared with $3.90-$4.10 expected earlier. The revised range compares with the adjusted EPS of $4.10 reported in 2024.
United Rentals, Inc.’s URI third-quarter 2025 EPS missed the Zacks Consensus Estimate and revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 1 hour | |
| 3 hours | |
| 4 hours | |
| 5 hours | |
| 6 hours | |
| 6 hours | |
| 9 hours | |
| 10 hours | |
| 10 hours | |
| Nov-03 | |
| Nov-03 | |
| Nov-03 | |
| Nov-03 | |
| Oct-31 | |
| Oct-31 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite