stockrowWhat it does
Martin Marietta Materials supplies building materials used to construct roads, buildings and homes. Its main products are aggregates: crushed stone, sand and gravel produced to particular sizes and specifications. Customers use them as foundations and ingredients for construction projects, as well as in agriculture, utilities, environmental applications and railroad ballast.
The company produces aggregates at quarries and mines and moves them through a network of distribution yards. As of 2025, its network spanned 28 states, Canada and The Bahamas. In selected markets, it also supplied ready mixed concrete and asphalt and offered paving services. Its cement plant and Texas ready mixed concrete operations were held for sale as of December 31, 2025, as part of an asset exchange with Quikrete.
A separate Specialties business makes magnesia-based products and dolomitic lime. Customers use those materials in applications including wastewater treatment, steel production, soil stabilization, agriculture and consumer products. In 2026, the company completed a combination with Lhoist North America, expanding its specialties platform.
Martin Marietta was founded in 1993 and is headquartered in Raleigh. Its products are sold principally to commercial customers, including businesses working on public infrastructure rather than governments themselves.
How it makes money
Martin Marietta earns revenue by producing and selling aggregates, other building materials and specialties products. Aggregates accounted for 88% of total reportable segment gross profit in 2025.
The continuing Building Materials business is organized into two geographic segments. The East Group supplies aggregates and asphalt; the West Group supplies aggregates, ready mixed concrete, asphalt and paving services. The separate Specialties segment sells magnesia-based products and lime. In 2025, 67% of Specialties revenue came from magnesia-based products and 32% from lime.
The company generally sells aggregates and specialties products when customers place orders or make requests, and maintains inventory to meet their needs. Construction-material prices are set locally, influenced by supply and demand in each market. Infrastructure agreements can commit the company to specified prices for a period, so announced increases can take time to reach revenue; pricing escalators in some multiyear contracts help offset that delay. Customer purchase orders generally do not contain firm quantity commitments.
For 2025, total revenue was $6.2 billion; in the third quarter of 2026, aggregates revenue was $1.7 billion and Specialties revenue was $362 million.
The company also earns revenue from businesses it acquires. Its 2026 specialties results included contributions from the newly combined L&A business. Martin Marietta expects acquired aggregates volumes to affect reported average selling prices because those operations have lower average selling prices than its heritage business.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| East Group | $3.2 billion | 51.9% | 8.60% |
| Building Materials Business West Group | $2.5 billion | 40.9% | 4.75% |
| Specialties | $441.0 million | 7.17% | 37.8% |
Customers and how it sells
Martin Marietta sells mainly to commercial customers in private industry. Its materials also go into public projects, but relatively little is sold directly to government agencies. In 2025, 37% of aggregates shipments went to customers for highway and other public infrastructure projects; most of the remainder went to customers for nonresidential and residential construction. The company does not depend on one customer or a few customers for a material part of the business.
The aggregates network serves 28 states, Canada and The Bahamas. Trucks are the main distribution method, while rail and waterborne routes carry material into markets where local aggregates supply is limited. The rail network primarily serves Texas, the Southeast and the Gulf Coast; shipments from The Bahamas and Nova Scotia primarily serve East Coast and Gulf Coast markets.
In 2025, Texas, North Carolina, Colorado, California, Georgia, Florida, South Carolina, Arizona, Iowa and Minnesota accounted for 76% of continuing Building Materials revenue. The Specialties business ships domestically and worldwide, although its 2025 revenue was predominantly domestic. Specialties customers use its products across industrial, environmental, agricultural, construction and consumer applications.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| East Group | $3.2 billion | 51.9% | 8.60% |
| Building Materials Business West Group | $2.5 billion | 40.9% | 4.75% |
| Specialties | $441.0 million | 7.17% | 37.8% |
Suppliers and costs
Aggregates production relies primarily on the company’s own quarries and mines. Its distribution system mainly uses trucks, with rail and ships also moving materials over longer distances. The company has agreements with shipping companies to provide vessels; rail operations depend on railroad performance and the ability to negotiate shipping contracts.
Underground mines generally cost more to operate than surface quarries because of development, explosives and depreciation costs. For ready mixed concrete and asphalt, cement and liquid asphalt are key raw materials, and changes in their prices affect results. Energy costs, weather and operating efficiency also affect those businesses.
Specialties uses dolomitic limestone, magnesium-rich brine and magnesite. Its production requires natural gas, coal and petroleum coke, and a significant portion of its costs is fixed or semi-fixed. Low utilization can therefore hurt segment results, while higher utilization can increase operating leverage.
In the third quarter of 2026, the company identified labor as its largest aggregates cost category and said diesel and other energy expenses had increased costs. It was seeing an approximately $25 million headwind per quarter from diesel, including acquisitions.
- Revenue$6.2B
- Cost of revenue−$4.3B
- Selling, general and administrative−$443.0M
- Other operating costs−$9.0M
- Operating income$1.4B
Competitive position
Aggregates competition is local because hauling heavy, relatively low-priced material is costly. Martin Marietta competes with small producers and large, vertically integrated companies, depending on the market. Other publicly traded companies among the ten-largest U.S. aggregates producers in 2025 included Vulcan Materials, CRH, Amrize, CEMEX, Arcosa, Heidelberg Materials, Holcim and Knife River.
A quarry’s proximity to customers or long-haul transportation corridors matters when selling aggregates. Martin Marietta uses rail and waterborne routes to reach some markets where local supply is limited. It also acquires land around quarries, which can provide buffers or additional reserves when the geology supports mining. At December 31, 2025, its aggregates reserves averaged approximately 85 years at the 2025 annual production level.
Our reading: Well-located reserves and distribution routes provide a meaningful local advantage because transport costs constrain how far aggregates can economically travel by truck. Our reading: Permitting constraints can protect existing quarry positions, but they also make it harder for Martin Marietta to expand or develop its own sites.
Barriers differ by product. Ready mixed concrete plants and delivery trucks require relatively low capital investment compared with quarrying, and asphalt and concrete markets face lower barriers to entry than aggregates. Specialties competes on quality, price, technological advances and technical support.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Vulcan Materials Company | U.S. aggregates production | Medium |
| CRH plc | U.S. aggregates production | Medium |
| Amrize Ltd. | U.S. aggregates production | Medium |
| CEMEX S.A.B. de C.V. | U.S. aggregates production | Medium |
| Arcosa, Inc. | U.S. aggregates production | Medium |
| Heidelberg Materials AG | U.S. aggregates production | Medium |
| Holcim Ltd. | U.S. aggregates production | Medium |
| Knife River Corporation | U.S. aggregates production | Medium |
Growth opportunities
Martin Marietta seeks to expand its aggregates business through acquisitions in new markets, smaller acquisitions that complement existing operations, and internal expansion projects. It also evaluates disposals of assets that do not fit its strategy. In 2025, it acquired aggregates assets in Minnesota and Premier Magnesia, which expanded its specialties product portfolio and domestic mineral reserves.
In 2026, Martin Marietta completed its combination with Lhoist North America. It was reported on 4 November 2026 that the combination involved $12.9 billion in cash and stock. The company is working to integrate the business and pursue sales opportunities involving both aggregates and lime, including public works and data center projects.
Infrastructure remains an important market. Martin Marietta said 40% of Infrastructure Investment and Jobs Act funding remained to be spent and that more than 60% of infrastructure funding across its top states came from state and other nonfederal sources. It also said data center project shipments more than doubled in the third quarter of 2026 from a year earlier.
The company expects mix-adjusted aggregates pricing growth in the mid- to high-single digits in 2027, based on communicated pricing actions and carryover from acquired businesses. It expects the lower average selling prices of acquired operations to temper reported price growth, particularly in the first half of the year.
- $5.4BFY2021
- $6.2BFY2022
- $5.9BFY2023
- $5.7BFY2024
- $6.2BFY2025
- $7.8BFY2026 guidance
Structural risks
- Construction cycles and funding: Demand depends on residential, nonresidential and public infrastructure activity, which is sensitive to interest rates, access to capital and infrastructure funding. The company said single-family residential and light nonresidential construction softened in September and October 2026 following higher interest rates.
- Costs and pricing: Fuel, energy, freight and other delivered costs can rise faster than the company can pass them through. Existing contracts can limit or delay price adjustments, while weak construction markets can make increases harder for customers to accept.
- Weather and operations: Outdoor production and construction are exposed to winter weather, heavy precipitation, extreme temperatures and other disruptions. These conditions can affect schedules, shipments, costs and profitability.
- Reserves and regulation: The business depends on acquiring, permitting and developing reserves within an economic haul radius. Zoning, environmental and land-use restrictions may make expansion harder, while some existing sites have limited reserves.
- Acquisition integration and financing: Acquisitions can involve unanticipated liabilities, permit issues, systems integration and difficulties retaining employees or customers. The company funded the L&A cash consideration with a term loan and senior notes and intends to reduce leverage.
Bottom line
Our reading
Martin Marietta is an aggregates-led materials business whose economics depend on local reserves, distribution and construction demand. Its expanded specialties platform adds another source of revenue, but acquisitions also bring integration work and financing commitments. The business’s exposure to infrastructure spending sits alongside cyclical private construction demand, weather disruption and pressure from energy and transportation costs.