MARTIN MARIETTA MATERIALS INC Q3 FY26 Results

Martin Marietta delivered record quarterly revenues of $2.37 billion and Adjusted EBITDA from continuing operations of $808 million, representing increases of 28% and 21%, respectively, over the prior year third quarter, as strong performance from recent acquisitions more than offset the effects of expanding inflationary pressures and a dynamic macroeconomic environment. The third quarter marked a defining milestone in Martin Marietta's portfolio transformation with the completion of our combination with Lhoist North America (LNA) on August 21. This transaction meaningfully scales our differentiated upstream Specialties platform, establishing Martin Marietta as the nation's leading producer of lime and limestone solutions and broadening our participation across steel, environmental, infrastructure and industrial end markets. Since the closing date, LNA delivered revenues, gross profit and cash gross profit1 of $216 million, $51 million and $115 million, respectively, providing early validation of the strategic and financial merits of the higher-quality, more resilient and diversified portfolio we have intentionally built. With the closing of LNA, we have updated the midpoints of our full-year 2026 Revenue and Adjusted EBITDA guidance to $7.80 billion and $2.48 billion, respectively, as acquisition contributions are anticipated to more than offset lower near-term expectations for our heritage operations. In 2027, we expect mid- to high-single digit aggregates pricing on a mix-adjusted basis, supported by January 1 pricing actions designed to address inflationary cost pressures. Acquired operations, which currently have selling prices below the Company average, provide meaningful opportunity for continued pricing growth. From an end market perspective, we currently expect continued strength in infrastructure and data centers with softer interest rate-sensitive private construction markets. As we integrate this year’s acquisitions, we remain focused on safety, commercial and operational excellence, and disciplined execution of the matters within our control. Martin Marietta has a proven playbook for responding decisively to changing market conditions, managing inflationary pressures, protecting profitability and maximizing free cash flow. That playbook is already delivering results, with disciplined inventory management and capital spending reductions alone contributing over $290 million of year-to-date cash flow improvement. Looking ahead, January 1 pricing actions and further structural cost improvements are expected to restore a positive price-cost relationship in 2027. With today's broader end-market exposure and more resilient earnings profile, Martin Marietta is better positioned to navigate near-term uncertainty while capitalizing on the attractive long-term fundamentals of our business.