Martin Marietta Materials, Inc. (NYSE:MLM) shares are trading lower after the company reported mixed fourth-quarter results and issued FY26 sales guidance below estimates.
Details
Revenue of $1.534 billion, up 9% year-over-year, missed the consensus of $1.589 billion. Net earnings from continuing operations fell 6% Y/Y to $233 million, while EPS reached $4.62, which beat the street view of $4.59.
Adjusted EBITDA from continuing operations grew 10% Y/Y to $515 million. Gross profit increased 10% Y/Y to $468 million. Cash from operating activities for the year totaled $1.79 billion.
The company returned $647 million to shareholders through dividends and repurchases in 2025.
Martin Marietta ended the quarter with $67 million in cash and cash equivalents and $1.17 billion in available credit.
Segment Performance
The Building Materials business delivered $1.4 billion in revenue and gross profit of $443 million.
Aggregates revenue stood at $1.23 billion, with shipments increasing 2.0% Y/Y, aided by strong infrastructure and nonresidential construction activity, favorable weather and contributions from acquisitions. Average selling price (ASP) increased 5.3% Y/Y to $23.11 per ton.
Aggregates’ gross profit climbed 11% Y/Y to $420 million, with margin expanding 93 basis points Y/Y to 34% in the quarter.
Management Commentary
Chair, President and CEO Ward Nye added, ”Notably, we delivered these results despite single-family housing and nonresidential square footage starts, the two macro indicators most highly correlated with aggregates demand, remaining approximately 20% below their post-COVID peaks.
”At the same time, we successfully executed the priorities of our five-year Strategic Operating Analysis and Review (SOAR) 2025 plan, launched SOAR 2030 and advanced portfolio optimization initiatives to enhance the durability and quality of the enterprise, all while maintaining a strong balance sheet to support continued acquisitive growth.”
Outlook
Martin Marietta expects FY26 sales of $6.420 billion-$6.780 billion (vs the street view of $6.967 billion) and adjusted EBITDA of $2.410 billion-$2.560 billion.
MLM Price Action: MLM shares were trading 5.81% lower at $667.70 at publiction on Wednesday.
Photo: Jonathan Weiss via Shutterstock
