Second quarter 2026
Filed Jul 30, 2026Second-Quarter Revenues Increase 21% to New Record; Raises Full-Year 2026 Revenues Guidance and Reaffirms Adjusted EBITDA Guidance
Record revenue, 13% Adjusted EBITDA growth and raised revenue guidance were offset by lower gross profit, operating earnings and GAAP earnings, including a $52 million acquisition-accounting inventory charge.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $1,947 million | – | 21% |
| Gross profitGAAP | $495 million | – | (0)% |
| Earnings from operationsGAAP | $372 million | – | (10)% |
| Net earnings from continuing operations attributable to Martin MariettaGAAP | $256 million | – | (12)% |
| Adjusted EBITDA from continuing operationsnon-GAAP | $638 million | – | 13% |
| Earnings per diluted share from continuing operationsGAAP | $4.26 | – | (12)% |
| Adjusted earnings per diluted share from continuing operationsnon-GAAP | $5.00 | – | 3% |
| Aggregates product line shipmentsother | 61.6 million tons | – | 17% |
| Aggregates average selling price per tonother | $22.74 per ton | – | (2)% |
| Aggregates revenuesGAAP | $1,533 million | – | 16% |
| Aggregates gross profitGAAP | $418 million | – | (3)% |
| Aggregates gross profit per tonGAAP | $6.78 per ton | – | (17)% |
| Acquisition-accounting inventory chargeGAAP | $52 million | – | – |
| Acquisition-accounting inventory charge per tonGAAP | $0.84 per ton | – | – |
| Organic ASP growthother | 2.1 percent | – | – |
| Organic mix-adjusted ASP growthother | 3.7 percent | – | – |
| Organic shipment growthother | 2.3 percent | – | – |
| Cost of goods sold per ton increaseother | 3.6 percent | – | – |
| Higher pass-through external freight costsother | 150 basis points | – | – |
| Lime ASP growthother | 4.0 percent | – | – |
| Lime mix-adjusted ASP growthother | 5.0 percent | – | – |
| Lime shipment growthother | 0.9 percent | – | – |
| Lime gross profit growthother | 7 percent | – | – |
| Cash provided by operating activities for the six months ended June 30, 2026GAAP | $339 million | – | – |
| Cash paid for property, plant and equipment additions for the six months ended June 30, 2026GAAP | $314 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AggregatesShipments increased 17.0 percent to a record of 61.6 million tons, reflecting a full quarter of contributions from QUIKRETE operations, a partial-quarter of contributions from NFM and organic shipment growth driven by strong infrastructure and heavy nonresidential demand. | $1,533 million | – | 16% |
| Other Building MaterialsGross profit decreased due to higher ready mix concrete raw material costs combined with lower organic paving revenues and job margins. | $303 million | – | 12 percent |
| SpecialtiesQuarterly-record revenue and gross profit reflected contributions from the July 2025 Premier Magnesia, LLC acquisition and organic pricing gains across all products. | $152 million | – | – |
Full-Year 2026 outlook
- Revenue$7.2 billion to $7.4 billion
- NoteAdjusted EBITDA from continuing operations: $2.36 billion to $2.5 billion
- NoteRevised 2026 guidance does not include any contribution from LNA.
Capital returns
- During the six months ended June 30, 2026, the Company returned $302 million to shareholders through dividend payments and share repurchases.
- As of June 30, 2026, 10.7 million shares remained available under the current repurchase authorization.
What drove it
- Infrastructure and heavy nonresidential construction activity supported favorable shipment trends.
- Revenue growth reflected strong organic performance and acquisition contributions.
- Acquisition-related mix headwinds reduced reported aggregates ASP, while organic ASP and organic mix-adjusted ASP increased.
- Cost management efforts supported strong organic cost performance.
- The July 2025 Premier Magnesia, LLC acquisition and organic pricing gains supported Specialties results.
- The May 15, 2026 acquisition of NFM expanded the aggregates platform along the I-70 corridor.
Concerns
- Gross profit was $495 million compared with $496 million, while earnings from operations declined 10% and net earnings from continuing operations attributable to Martin Marietta declined 12%.
- Aggregates gross profit decreased 3 percent and gross profit per ton decreased 17 percent, inclusive of the $52 million non-cash acquisition-accounting inventory charge.
- Other Building Materials gross profit decreased 14 percent due to higher ready mix concrete raw material costs, lower organic paving revenues and lower job margins.
- Cash provided by operating activities for the six months ended June 30, 2026, was lower than the prior-year period, primarily reflecting higher income tax payments related to the February 2026 divestiture and QUIKRETE asset exchange.
- The LNA transaction remains subject to regulatory approvals and other customary closing conditions.
What to watch
- Execution of the expected approximately $350 million of annualized cash flow improvements.
- Closure of the LNA transaction, expected in the second half of 2026, and the associated $1.5 billion term loan facility.
- Whether infrastructure and heavy nonresidential demand continues to support organic aggregates shipment growth.
- The trajectory of aggregates pricing, acquisition-related mix effects and freight costs.
- Progress in Other Building Materials margins and organic paving activity.
- Delivery against full-year revenue guidance of $7.2 billion to $7.4 billion and Adjusted EBITDA guidance of $2.36 billion to $2.5 billion.
Balance sheet and cash flow
- Cash provided by operating activities for the six months ended June 30, 2026, was $339 million, compared with $605 million for the prior-year period.
- Cash paid for property, plant and equipment additions for the six months ended June 30, 2026, was $314 million.
- As of June 30, 2026, the Company had $112 million of unrestricted cash and cash equivalents on hand and $742 million of unused borrowing capacity under its existing credit facilities.
- On July 15, 2026, the Company secured a commitment for a new three-year senior unsecured term loan facility in an aggregate principal amount of $1.5 billion subject to consummation of the LNA acquisition and other customary conditions.
- The expanded enterprise review identified opportunities expected to generate approximately $350 million of annualized cash flow improvements.
- Through disciplined inventory management and reductions in capital spending, the Company unlocked more than $200 million of cash year-to-date compared with the prior-year period.
Analysis
Martin Marietta reported record second-quarter revenue of $1,947 million, up 21%, and Adjusted EBITDA from continuing operations of $638 million, up 13%. The revenue outcome reflected strong organic performance and acquisition contributions. Management cited infrastructure and heavy nonresidential activity as support for shipment trends, and raised full-year revenue guidance to $7.2 billion to $7.4 billion while reaffirming Adjusted EBITDA from continuing operations guidance of $2.36 billion to $2.5 billion.
Aggregates was the principal growth engine. Revenue increased 16% to $1,533 million as shipments increased 17% to a record 61.6 million tons. A full quarter of acquired QUIKRETE operations, a partial quarter of NFM contributions, and 2.3 percent organic shipment growth supported volume. Reported ASP decreased 2.0 percent to $22.74 per ton due primarily to acquisition-related mix headwinds, although organic ASP increased 2.1 percent and organic mix-adjusted ASP increased 3.7 percent.
Profitability was pressured despite the top-line expansion. Gross profit was $495 million compared with $496 million, earnings from operations decreased 10% to $372 million, and net earnings from continuing operations attributable to Martin Marietta decreased 12% to $256 million. Aggregates gross profit declined 3% to $418 million and gross profit per ton declined 17% to $6.78 per ton, including a $52 million non-cash charge from acquisition-accounting inventory step-up adjustments. Other Building Materials gross profit decreased 14%, while Specialties reported record revenue of $152 million and gross profit of $50 million.
Cash generation was lower for the first six months, with cash provided by operating activities of $339 million compared with $605 million in the prior-year period. The release attributed the decline primarily to higher income tax payments related to the February 2026 divestiture and QUIKRETE asset exchange. The company paid $314 million for property, plant and equipment additions, returned $302 million through dividends and share repurchases, and had $112 million of unrestricted cash plus $742 million of unused borrowing capacity at June 30, 2026.
Portfolio activity and efficiency initiatives are central to the outlook. Martin Marietta acquired NFM on May 15 and agreed on June 27 to combine with LNA in a transaction valued at approximately $13.5 billion. The LNA transaction is expected to close in the second half of 2026 and is excluded from revised guidance. Management also identified opportunities expected to produce approximately $350 million of annualized cash flow improvements, while citing more than $200 million of year-to-date cash unlocked through inventory management and lower capital spending.
Management, verbatim
Building on our positive trends entering 2026, Martin Marietta delivered record second-quarter revenues and Adjusted EBITDA from continuing operations. Revenues increased 21% and Adjusted EBITDA from continuing operations grew 13%, driven by strong organic performance and acquisition contributions. Infrastructure and heavy nonresidential construction activity across much of our footprint supported favorable shipment trends and underscored the earnings power and resilience of our business model. Most importantly, our team delivered the safest first half in the Company's history, as measured by Total Injury Incident and Lost-Time Incident Rates. Based on our strong first-half results and continued momentum, we are raising our full-year revenue guidance to a range of $7.2 billion to $7.4 billion and reaffirming our full-year Adjusted EBITDA from continuing operations guidance of $2.36 billion to $2.5 billion.
Ward Nye, Chair, President and CEO of Martin Marietta
Beyond these portfolio actions, our expanded enterprise review identified opportunities that are expected to generate approximately $350 million of annualized cash flow improvements as we optimize our evolving asset base, network footprint, and sustaining capital requirements. Through disciplined inventory management and reductions in capital spending, we have unlocked more than $200 million of cash year-to-date compared with the prior-year period. Combined with our strong second-quarter organic cost performance, these actions reflect meaningful progress toward our efficiency and cash generation objectives.
Ward Nye, Chair, President and CEO of Martin Marietta
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported second-quarter metrics.
- Quarterly cash provided by operating activities.
- Free cash flow.
- Debt balance as of June 30, 2026.
- Separate dividend payments and share repurchases amounts.
- Gross margin percentage.
- Operating margin percentage.
- Guidance for gross margin, operating expenses, tax rate, capital expenditures, earnings per share, operating cash flow or free cash flow.
- Prior guidance figures, as no previous outlook section was provided.
- Year-over-year comparison for Specialties revenue and gross profit.
- Prior-year cash paid for property, plant and equipment additions.
- Prior-year capital returns amount.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.