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Martin Marietta Materials, Inc. MLM reported lower-than-expected results for the fourth quarter of 2025. The quarterly earnings (from continued operations) and revenues missed the Zacks Consensus Estimate, with the top line growing on a year-over-year basis while the bottom line declining.
Following the results, MLM stock moved down 4.5% during today’s pre-market trading session.
The company’s quarterly performance was backed by favorable weather across its business footprint and strong infrastructure activity, with nonresidential construction booming. The Aggregates business thrived during the quarter with strong pricing and increased shipments more than offsetting higher costs.
Besides, the company’s portfolio optimization initiative aims at further strengthening the aggregates and asphalt business in the upcoming period.
However, elevated costs marred the bottom-line growth during the quarter, with a weak residential market limiting near-term growth prospects. Nonetheless, Martin Marietta remains well-positioned with its aggregates-led platform and execution of its SOAR 2030 initiatives for the long term, indicating sustained growth and shareholder value.
The company reported earnings per share (EPS) from continuing operations of $3.85, which missed the Zacks Consensus Estimate of $4.68 by 17.7%. The metric also tumbled 4% from the year-ago quarter’s EPS (from continuing operations) of $4.03.
Revenues of $1.53 billion also missed the consensus mark of $1.56 billion by 1.9% but increased 9% from the year-ago figure of $1.41 billion.
Martin Marietta Materials, Inc. price-consensus-eps-surprise-chart | Martin Marietta Materials, Inc. Quote
Consolidated gross margin remained flat year over year at 30% in the reported quarter, with gross profit increasing 10% to $468 million.
Adjusted EBITDA from continuing operations was $515 million, up 10% year over year, with adjusted EBITDA margin (from continuing operations) expanding 100 basis points (bps) to 34%.
Building Materials reported revenues of $1.4 billion, which grew 4.9% year over year. The segment’s gross margin increased 200 bps year over year to 32% in the quarter.
Within the Building Materials umbrella, revenues from the Aggregates business grew 7.7% to $1.23 billion from the year-ago quarter. Aggregates shipments moved up 2% year over year to 48.9 million tons, with the average selling price (per ton) growing 5% to $23.11. Aggregates’ gross profit per ton increased year over year by 9% to $8.59. Aggregates' gross profit increased 11% to $420 million, with gross margin expanding 100 bps to 34%.
Revenues from Other Building Materials declined 6.1% year over year to $248 million. The gross profit of this business section declined 17.9% year over year to $23 million, with the gross margin contracting 200 bps to 9%. The decline in gross profit was due to the impact of the divestiture of the California paving operations in April 2025.
Specialties reported revenues of $133 million, up 72.7% from $77 million a year ago. The gross margin was down a whopping 700 bps to 22% from 29% a year ago.
During the year, revenues moved up 9% year over year to $6.15 billion, with EPS from continuing operations tumbling 45% to $16.34.
Gross profit increased 16% to $1.89 billion and the gross margin expanded 200 bps to 31%. Adjusted EBITDA from continuing operations was up 17% year over year to $2.07 billion, with adjusted EBITDA margin expanding 300 bps.
As of Dec. 31, 2025, Martin Marietta had cash and cash equivalents of $67 million compared with $670 million at 2024-end. It had $1.17 billion of unused borrowing capacity on its existing credit facilities as of 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 $1.79 billion at the end of 2025, up from $1.46 billion in the year-ago period.
During 2025, MLM returned $647 million to its shareholders, including $197 million in dividend payments and $450 million in share repurchases. As of Dec. 31, 2025, 11 million shares remained under the current repurchase authorization.
On Dec. 19, 2025, Martin Marietta acquired aggregates and FOB asphalt assets in Minnesota from CRH, which expanded its existing operations in the Twin Cities and St. Cloud markets and included approximately 40 million tons of aggregate reserves.
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. Currently, this transaction is expected to close in the first quarter of 2026, upon the satisfaction of customary closing conditions. 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 is for the continuing operations and excludes any potential impact related to the QUIKRETE transaction.
Martin Marietta expects total revenues between $6.42 billion and $6.78 billion ($6.6 billion at midpoint). Adjusted EBITDA is projected to be between $2.16 billion and $2.31 billion ($2.235 billion at midpoint).
Net earnings from continuing operations are anticipated to be between $1.043 billion and $1.158 billion ($1.1 billion at midpoint).
Aggregate shipment is expected to be up between 1% and 3% (2% at midpoint). Total aggregate pricing per ton is anticipated to rise between 4% and 6% (5% at midpoint). Aggregate gross profit is currently expected to be in the range of $1.81-$1.9 billion ($1.855 billion at midpoint).
Other Building Materials’ business section gross profit is projected between $80 million and $110 million ($95 million at midpoint).
Specialties’ gross profit is now expected to be between $150 million and $170 million ($160 million at midpoint).
Capital expenditures are now anticipated to be in the range of $550-$600 million ($575 million at midpoint).
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.
Masco Corporation MAS posted mixed fourth-quarter 2025 results, wherein the adjusted earnings surpassed the Zacks Consensus Estimate, while net sales missed the same. Both metrics tumbled on a year-over-year basis.
The quarter’s performance was largely in line with expectations as the company operated through a changing geopolitical and economic backdrop. It began restructuring actions to simplify operations, lower costs and reduce headcount. Masco also announced the integration of Liberty Hardware into the Delta Faucet business to better align brands and capabilities. For 2026, Masco expects demand across global repair and remodel markets to remain steady. Sales are projected to be flat to slightly higher on a currency-adjusted basis, with performance likely to outpace the broader market.
Jacobs Solutions Inc. J reported stellar first-quarter fiscal 2026 (ended Dec. 26, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and growing year over year.
Jacobs' quarterly results reflect stronger performance in the life sciences, data center, semiconductor, water and transportation sectors, alongside increased demand for digital consulting services, bolstering the quarter’s uptrend. With the announcement of acquiring the remaining stake in PA Consulting and favorable market fundamentals, Jacobs is optimistic about its performance in the remaining fiscal 2026. Adjusted net revenues are now expected to grow year over year between 6.5% and 10%, with adjusted EPS expected to be between $6.95 and $7.30.
Weyerhaeuser Company WY reported mixed fourth-quarter 2025 results, wherein its earnings topped the Zacks Consensus Estimate, but net sales missed the same. Meanwhile, on a year-over-year basis, both the top and bottom lines decreased.
Weyerhaeuser’s fourth-quarter results were impacted by persistent market headwinds across key markets, characterized by softened pricing and volatile demand dynamics. Despite these challenges, the company continued to optimize its portfolio through disciplined, capital-efficient transactions. Looking ahead, Weyerhaeuser is well-positioned to navigate the current environment, supported by a strong balance sheet and flexible capital allocation framework as it executes its refreshed 2030 strategy to drive growth and capitalize on durable long-term demand fundamentals.
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This article originally published on Zacks Investment Research (zacks.com).
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