Martin Marietta raises 2026 revenue forecast, but Q3 EPS misses estimates

Martin Marietta (MLM) said Nov. 4 that third-quarter revenue rose 28% from a year earlier to a record $2.37 billion. Revenue topped the $2.26 billion consensus estimate, but adjusted earnings per diluted share of $5.47 missed the $6.10 consensus estimate.

Shares were little changed in regular trading as of 9:58 a.m. ET, from a previous close of $543.77.

The quarter included the company's combination with Lhoist North America (LNA), completed on Aug. 21 for total consideration of $12.9 billion. That consideration consisted of $7.0 billion in cash and about $5.9 billion of Martin Marietta common stock.

Martin Marietta supplies aggregates, lime and limestone products, magnesia-based products and other building materials across the United States, Canada and the Caribbean.

Here's how the company did:

• Revenue: $2.37 billion vs. $1.85 billion a year earlier, against the $2.26 billion consensus estimate
• Adjusted EPS: $5.47 vs. $6.12 a year earlier, missed the $6.10 consensus estimate
• GAAP diluted EPS from continuing operations: $3.94 vs. $5.97 a year earlier
• Adjusted EBITDA from continuing operations: $808 million vs. $667 million a year earlier

Chair, President and CEO Ward Nye said: “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.”

2026 guidance

The company raised the midpoint of its full-year 2026 revenue guidance to $7.80 billion. The new range is $7.75 billion to $7.85 billion, up from the $7.2 billion to $7.4 billion range it gave on July 30.

The company now expects Adjusted EBITDA from continuing operations of $2.45 billion to $2.50 billion, with a midpoint of $2.48 billion. In July it reaffirmed a range of $2.36 billion to $2.5 billion.

The company expects net earnings from continuing operations attributable to Martin Marietta of $727 million to $873 million, with a midpoint of $800 million.

The company said acquisition contributions are anticipated to more than offset lower near-term expectations for its heritage operations.

Segment results

Aggregates shipments rose 15.9% to a record 67.1 million tons, driven by acquisitions. Aggregates average selling price fell 3.6% to $22.41 per ton, primarily reflecting acquisition-related mix. Organic mix-adjusted ASP rose 2.7%.

Aggregates cash gross profit reached an all-time quarterly record of $696 million. Aggregates gross profit fell 4% to $512 million, primarily due to higher depreciation, depletion and amortization and energy-related costs.

Specialties revenue was $362 million, up from $131 million a year earlier, including a partial quarter of LNA. Other Building Materials revenue rose 14% to $399 million.

Cash and capital

Cash provided by operating activities was $896 million for the nine months ended Sept. 30, compared with $1,156 million a year earlier. That comparison includes $250 million of cash tax payments tied to the gain on the February 2026 QUIKRETE asset exchange.

In July the company entered into a $1.5 billion three-year senior unsecured term loan facility. In August it issued $5.5 billion of senior unsecured notes across five tranches to fund the cash portion of the LNA combination.

The company returned $361 million to shareholders through dividends and share repurchases in the nine months. It had $140 million of unrestricted cash on Sept. 30, and $1.4 billion of unused borrowing capacity under its existing credit facilities.

On Sept. 18 the company acquired The Frazier Quarry, Inc., a pure-play aggregates business in Harrisonburg, Virginia.