Martin Marietta reported its third-quarter financial results, noting that shipments in its aggregate business increased 8 percent to 57.9 million tons.
The increase reflects a broad volume recovery across Martin Marietta’s footprint. More normal weather throughout the Southeast and Texas contributed to the 8 percent increase. Pricing momentum continued in the third quarter, as well, with average selling price rising 8 percent to $23.24 per ton.
Martin Marietta’s gross profit in aggregates rose 21 percent to $531 million, and gross margin expanded 142 basis points to 36 percent – both all-time quarterly records.
Higher pricing and increased shipments more than offset cost inflation, the company says.
“Martin Marietta delivered outstanding third-quarter results, led by record-setting performance in our aggregates business, which achieved all-time quarterly records for revenues, gross profit, gross profit per ton and gross margin, underscoring the efficacy of our SOAR (Strategic Operating Analysis & Review) plan and the compounding benefits of diligently executing our aggregates-led product strategy,” says Ward Nye, chair and CEO of Martin Marietta. “These exceptional results were further complemented by record quarterly revenues and third-quarter gross profit in our specialties business.
“Notably, we also achieved our best year-to-date safety performance in our company’s history, as measured by total reportable and lost-time incident rates. Given our strong year-to-date performance and current aggregates shipment trends, we are raising our full-year 2025 guidance for consolidated adjusted EBITDA to $2.32 billion at the midpoint.”
Companywide, Martin Marietta’s third-quarter revenues were up 12 percent to $1.84 billion. The company’s gross profit increased 19 percent to $611 million, with adjusted EBITDA from continuing operations up 22 percent to $667 million.
“More broadly, our third-quarter and year-to-date performance provide a meaningful indication of likely future outcomes,” Nye says. “First, demand trends across our key end markets remain broadly constructive. Infrastructure activity continues to be strong, supported by record levels of federal and state investment.
“Second, nonresidential construction is benefiting from accelerating data center development, a recovering warehouse sector and early signs of renewed momentum in domestic manufacturing,” he adds. “Third, light nonresidential demand, while typically more interest rate-sensitive, has demonstrated notable resilience. While near-term residential demand remains subdued, moderating mortgage rates suggest a gradual path toward normalization. As product demand within these sectors collectively gain traction, Martin Marietta is well-positioned to capitalize on the positive opportunities with precision and discipline.”
Also in the third quarter, Martin Marietta completed the acquisition of Premier Magnesia, a privately-owned producer of magnesia-based products with operations in Nevada, North Carolina, Indiana and Pennsylvania.
Additionally, Martin Marietta reached an agreement with Quikrete on the exchange of certain assets. Under the terms of the agreement, Martin Marietta will receive aggregate operations producing about 20 million tons annually in Virginia, Missouri, Kansas and Vancouver, British Columbia, as well as cash proceeds. In exchange, Quikrete will receive Martin Marietta’s Midlothian cement plant, related cement terminals and certain Texas ready-mixed concrete assets.
The Martin Marietta-Quikrete deal is expected to close by the end of 2025.
Related: Petro named CFO at Martin Marietta
