Martin Marietta Materials (NYSE:MLM) management highlighted record results for 2025 and outlined expectations for 2026, pointing to continued strength in infrastructure spending and accelerating demand tied to data centers and energy, while acknowledging ongoing softness in some private construction categories. The company’s fourth quarter and full-year 2025 earnings call also emphasized portfolio reshaping, capital allocation discipline, and initiatives aimed at improving operating efficiency.
Fourth-quarter performance: aggregates and specialties set records
Chair, President and CEO Ward Nye said 2025 delivered “record financial, operational, and safety performance,” led by the company’s aggregates business. In the fourth quarter, aggregates revenue increased 8% year over year to $1.2 billion, while gross profit rose 11% to $420 million. Gross profit per ton improved 9% to $8.59, and gross margin expanded 93 basis points to 34%.
Full-year 2025 results: pricing and volume growth in aggregates
CFO Michael Petro said the continuing operations building materials business generated 2025 revenue of $5.7 billion, up 7%, and gross profit of $1.8 billion, up 13%. Gross margin expanded 173 basis points to 31%, driven by aggregates performance that more than offset softness in downstream operations.
In aggregates, Petro reported:
- Revenue increased 11% to $5.0 billion, driven by 6.9% pricing growth and 3.8% volume growth.
- Gross profit increased 16% to $1.7 billion, with gross margin expanding 143 basis points to 34%.
- A price-cost spread of 239 basis points, as pricing and shipments more than offset freight, depreciation, and inflationary impacts.
Other building materials revenue fell 8% to $992 million, while gross profit decreased 18% to $98 million. Petro attributed the decline primarily to the Minnesota asphalt business and the impact of an April 2025 California paving divestiture.
Specialties delivered record full-year revenue and gross profit of $441 million and $137 million, respectively. Petro said performance reflected pricing, higher shipments across product lines, cost management, and five months of Premier Magnesia contributions following its July 25 closing.
The company’s cash flow from operations increased 22% to a record $1.8 billion. Petro said 2025 cash deployment included $812 million for business and land acquisitions, $680 million in plant and equipment investment, and $647 million returned to shareholders, which he said represented a total cash yield of about 1.7%. Martin Marietta ended the year with net debt to adjusted EBITDA of 2.3 times and total liquidity of $1.2 billion.
2026 outlook: modest shipment growth, pricing gains, and efficiency work
Management’s 2026 shipment guidance calls for 2% growth at the midpoint, with Nye describing a “balanced macro environment” in which infrastructure investment and growth in data centers and energy are expected to offset continued softness in private non-residential and residential construction.
Nye said the company is guiding to consolidated adjusted EBITDA of approximately $2.49 billion, inclusive of contributions from discontinued operations. Investor relations noted that the Midlothian cement plant, related terminals, and Texas ready-mixed concrete operations are classified as held for sale as of Dec. 31, 2025, and reported as discontinued operations. Management said it will provide updated 2026 adjusted EBITDA guidance after closing a previously announced asset exchange with Quikrete.
For aggregates, Petro said Martin Marietta expects low double-digit gross profit growth at the midpoint, supported by low single-digit shipment growth, mid-single-digit pricing improvement, and cost per ton generally in line with inflation. He also said the company is reviewing quarry and terminal networks to better align production with demand that remains about 14% below 2022 levels, though 2026 guidance only reflects benefits already realized from actions taken in a pilot region.
Petro added that specialties are expected to deliver high-teens gross profit growth (inclusive of acquisition contributions), while other building materials gross profit is expected to be relatively flat. Planned 2026 capital spending of $575 million represents a 29% year-over-year reduction, which management said should increase free cash flow available for acquisitions and share repurchases.
Demand signals: IIJA runway, data centers and energy, and housing affordability constraints
On infrastructure, Nye cited ARTBA data showing that as of Nov. 30, 2025, 71% of IIJA highway and bridge funds have been obligated while 48% has been dispersed, which he said implies a “construction runway” with reimbursements expected to peak in 2026. He also said state DOT budgets in the company’s states support a multi-year project pipeline, and highlighted local funding initiatives such as a Mecklenburg County, North Carolina, 1% sales tax referendum expected to generate about $19.4 billion over coming decades for transportation and transit projects.
In response to questions on the IIJA’s scheduled September 2026 expiration, Nye said both chambers appear intent on a five-year reauthorization and suggested a larger portion of the next bill could be directed to highways, bridges, roads, and streets compared with the prior bill. He also said that even under an interim measure, funding would likely continue at current levels (which he characterized as a record level).
For heavy non-residential construction, Nye described sustained strength in data center construction and corresponding power-generation needs, citing an estimate from Goldman Sachs Research that hyperscalers could deploy over $500 billion in capital in 2026. He also pointed to growing LNG development in the Gulf and said Martin Marietta’s rail distribution network positions it to supply large-scale projects.
On the residential side, Nye said affordability remains the primary near-term constraint, while also emphasizing the longer-term need for housing, citing a Freddie Mac estimate that the U.S. requires roughly 4 million additional homes to restore balance. He also suggested that the nomination of Kevin Warsh to succeed Jerome Powell as Federal Reserve chair is “likely to be a positive development” for lower interest rates.
During Q&A, management discussed pricing and mix considerations. Nye said 2026 pricing expectations are largely based on discussions already held with customers, while noting that geographic and product mix can create “optical” headwinds (including base stone pricing typically running below clean stone). Management also said data centers represent a “few million tons a year” currently, growing at a “multi-double-digit” rate; Petro added that in the fourth quarter, data centers, distribution/warehousing, manufacturing, and power generation each represented roughly 3% of shipments, with data centers growing about 60% and warehouses about 40% off an inflection point.
About Martin Marietta Materials (NYSE:MLM)
Martin Marietta Materials, Inc (NYSE: MLM) is a leading producer of aggregates and heavy building materials serving the construction and infrastructure markets. The company operates quarries, sand and gravel pits, and other extraction sites to supply crushed stone, sand and gravel, and a range of value‑added products for use in roads, bridges, commercial and residential construction, and other civil engineering projects.
In addition to its core aggregates business, Martin Marietta manufactures and sells asphalt, ready‑mixed concrete and related materials and services.
