Martin Marietta Materials (MLM), a Zacks Rank #5 (Strong Sell), is a building materials company that produces and supplies construction aggregates.
The stock has had a big run, moving from $450 after Liberation Day to $710 earlier this year. However, a recent earnings miss might have signaled a top to the move. For now, the technicals are holding up, but investors should be cautious if the stock starts to make a move lower.
About the Company
Founded in 1939 and going public in 1994, Martin Marietta has completed over 100 acquisitions to strengthen its aggregates-led position in the industry. The company primarily deals in crushed stone, sand, and gravel, but also with cement, ready-mixed concrete, asphalt, and paving products.
The company operates through two segments: Building Materials (92.8% of 2025 revenues), which includes aggregates, ready-mixed concrete, asphalt, and paving; and Specialties (7.2%), which produces magnesia-based chemicals and dolomitic lime for steel production and environmental applications.
The company has a market cap of $40B, with a Zacks Style Score of “C” in Growth and “F” in Value.
Q4 Earnings Miss
Martin Marietta stumbled in Q4, reporting a 17% EPS miss and revenue of $1.53 billion that fell short of the $1.55 billion estimate.
While management highlighted record aggregates profitability and margin expansion, these results came against a backdrop of persistent weakness in core demand drivers: single-family housing and nonresidential square footage starts remain approximately 20% below their post-COVID peaks, and current volumes sit roughly 14% below 2022 levels.
The company's 2026 guidance reflects this challenging reality, with aggregate shipment growth of just 1-3% (2% at the midpoint) and full-year revenue guidance of $6.42-6.78 billion coming in below the $6.75 billion consensus at the midpoint.
Management acknowledged "continued softness in private nonresidential and residential construction" and expects residential to remain "relatively flattish in 2026" due to affordability constraints. The outlook banks heavily on infrastructure spending peaking under the IIJA and explosive 60% growth in data center demand to offset weakness in traditional construction markets.
Earnings Estimates Fall After Earnings
Since reporting earnings, the earnings estimates have been taken lower across all time frames.
For the current quarter, estimates have fallen for $2.88 to $2.79, or 3% over the last 7 days. For next quarter, estimates fell from $6.13 to $5.87 or 4%.
Looking down the road, next year's numbers have been taken down 4%, going from $21.89 to $20.97.
And for next year we see a 5% drop, with estimates going from $24.59 to $23.37.
Technical Take
The stock has rallied over 60% from the Liberation Day sell off. Since the earnings release, investors have seen an 8% drawdown, with support being found at the $650 mark.
That $650 level is 50-day moving average support. If that were to test again and break, we would likely see a down to the 200-day at $600. While that is a downside move most investors can stomach a break of that level could see another leg down to the $545 area. The stock has not retraced since the April 2025 lows, putting the 61.8% Fibonacci retracement at $545.
In Summary
At this point, the risk/reward profile for Martin Marietta Materials (MLM) looks increasingly skewed to the downside. The stock is trading near cycle-high valuations despite slowing end-market demand, downward-revised earnings estimates, and guidance that already trails consensus.
With estimates moving lower, momentum fading, and key technical support clustered just below current levels, any further deterioration in housing or nonresidential activity could act as the catalyst for a deeper retracement.
For now, investors looking at the Construction space, should turn to TopBuild (BLD). The stock is a Zacks Rank #2 (Buy) that is trading near all-time highs.
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
Martin Marietta Materials, Inc. (MLM): Free Stock Analysis Report TopBuild Corp. (BLD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
