Slides
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* All information provided in these slides is qualified in its entirety by reference to the Company's filings with the Securities and Exchange Commission (SEC), which are available on both the Company’s and the SEC’s websites. Q4 and Full-Year 2024 SUPPLEMENTAL INFORMATION* February 12, 2025
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Q4 and Full-Year 2024 Supplemental Information 2 Statement Regarding Safe Harbor for Forward-Looking Statements Investors are cautioned that all statements herein that relate to the future involve risks and uncertainties and are based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual results. These statements, which are forward-looking statements under the Private Securities Litigation Reform Act of 1995, provide the investor with the Company’s expectations or forecasts of future events. You can identify these statements by the fact that they do not relate only to historical or current facts. They may use words such as “guidance”, “anticipate”, “may”, “expect”, “should”, “believe”, “will”, and other words of similar meaning in connection with future events or future operating or financial performance. Any or all of the Company’s forward-looking statements here and in other publications may turn out to be wrong. Non-GAAP Financial Measures This material contains financial measures that are not prepared in accordance with United States generally accepted accounting principles (GAAP). Reconciliations of these non-GAAP financial measures to the closest GAAP measures are provided in the accompanying Appendix. Management believes these non-GAAP measures are commonly used by investors to evaluate the Company’s performance. When read alongside the Company’s consolidated financial statements, they offer a useful tool for assessing the Company’s ongoing business, period-to- period performance and anticipated performance. Additionally, these are among the factors the Company uses internally to evaluate its overall performance. Management acknowledges that many items impact reported results, and the adjustments in these non-GAAP measures are not intended to capture all such items. Furthermore, these non-GAAP measures may not be comparable to similarly titled measures used by other companies. Results and Trends Results and trends described in this Supplemental Information may not necessarily be indicative of the Company’s future performance.
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Q4 and Full-Year 2024 Supplemental Information ✓ COMPANY HIGHLIGHTS 3 FY 2024 FINANCIAL HIGHLIGHTS $6.5B Total Revenues -4% y-o-y $2.0B Net Earnings from Continuing Operations Attributable to Martin Marietta1 +66% y-o-y +9% Aggregates Gross Profit per Ton improvement y-o-y 1. 2024 Net earnings from continuing operations attributable to Martin Marietta includes a $0.9 billion nonrecurring gain on a divestiture partially offset by acquisition, divestiture and integration expenses, impact of selling acquired inventory after its markup to fair value as part of acquisition accounting and a noncash asset and portfolio rationalization charge 2. Non-GAAP financial measure. See Appendix for reconciliation to nearest GAAP measure 3. Gross Profit from upstream materials reflects gross profit from aggregates, cement and Magnesia Specialties as a percentage of total reportable segments’ gross profit 4.Based on 2024 production levels $2.1B Adjusted EBITDA2 -3% y-o-y KEY INVESTMENT MERITS ACTIVE PORTFOLIO MANAGEMENT SAFEST YEAR IN COMPANY HISTORY 32% Adjusted EBITDA Margin2 +20 bps 2.3x Net Leverage2 As of Dec 31, 2024 Achieved world-class lost- time incident rate (LTIR) for the 8th consecutive year Achieved better than world- class total injury incident rate (TIIR) for the 4th consecutive year >90% Gross Profit from Upstream Materials3 Pure-Play Aggregates Acquisitions ✓ Non-Strategic Cement and Concrete Divestiture 85+ Years of Aggregates Reserves4 Returned $639 Million to shareholders through dividends and share repurchases Strong Balance Sheet and Significant Opportunities for Growth
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Q4 and Full-Year 2024 Supplemental Information Q4 2024 RESULTS 4 FINANCIAL HIGHLIGHTS AGGREGATES SHIPMENTS AGGREGATES AVERAGE SELLING PRICE (ASP) AGGREGATES GROSS PROFIT AGGREGATES GROSS PROFIT PER TON 47 48 Q4 2023 Q4 2024 $1.6B Revenues +1% y-o-y $294M Net Earnings from Continuing Operations Attributable to Martin Marietta +2% y-o-y 33% Adjusted EBITDA Margin1 +210 bps $545M Adjusted EBITDA1 +8% y-o-y (Tons in Millions) ($ in Millions) $329 $379 Q4 2023 Q4 2024 $7.04 $7.92 Q4 2023 Q4 2024 $20.22 $21.95 Q4 2023 Q4 2024 +2.7% +8.6% +16% +12% Q4 ACHIEVEMENTS (Per Ton) • Record fourth-quarter Aggregates Gross Profit of $379M (+16%) and Aggregates Gross Profit Per Ton of $7.92 (+12%) • Record fourth-quarter Aggregates Gross Margin of 33% (+120 basis points) • Record fourth-quarter Cash Flows from Operations of $685M (+23%) • Acquired aggregates-led, bolt-on assets in FL, CA and TX 1. Non-GAAP financial measure. See Appendix for reconciliation to nearest GAAP measure
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Q4 and Full-Year 2024 Supplemental Information 2025 GUIDANCE SUMMARY AT THE MIDPOINT 5 1. 2025 Guidance reflects the midpoint of guidance ranges provided in the February 12, 2025, earnings release 2. 2024 Net earnings from continuing operations attributable to Martin Marietta includes a $0.9 billion nonrecurring gain on a divestiture partially offset by acquisition, divestiture and integration expenses, impact of selling acquired inventory after its markup to fair value as part of acquisition accounting and a noncash asset and portfolio rationalization charge 3. Adjusted EBITDA is a Non-GAAP financial measure; see Appendix for reconciliation to nearest GAAP measure AGGREGATES FULL YEAR 2025 GUIDANCE1 199M Shipment Tons +4.0% $23.21 ASP +6.5% $8.35 Gross Profit Per Ton +10% $1.66B Gross Profit +15% CONSOLIDATED FULL YEAR 2025 GUIDANCE1 $7.03B Revenues +8% $2.25B Adjusted EBITDA3 +9% $1.09B Net Earnings from Continuing Operations Attributable To Martin Marietta2 -45% Note: All percent changes are versus 2024 actual figures. OTHER PRODUCT LINES FULL YEAR 2025 GUIDANCE1 $345M Gross Profit -4% Cement and Downstream $115M Gross Profit +8% Magnesia Specialties KEY DRIVERS Strong infrastructure and data center demand Full-year of contributions from operations acquired in 2024 Higher-for-longer interest rates and related residential construction softness Continued product pricing momentum Moderating cost inflation + + + + −
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Q4 and Full-Year 2024 Supplemental Information 2024 PORTFOLIO OPTIMIZATION EFFORTS INCREASED AGGREGATES GROSS PROFIT CONTRIBUTION… 6 GROSS PROFIT PRODUCT MIX 2.3x Target 2.0-2.5x DEBT PROFILE 4.0% Weighted Average Coupon 15 Years Weighted Average Maturity 100% Fixed Rate NET LEVERAGE2 …WHILE MAINTAINING A STRONG BALANCE SHEET FOR FUTURE GROWTH 1. Gross Profit reflects respective product line gross profit as a percentage of total reportable segments’ gross profit 2. Consolidated net debt to consolidated Adjusted EBITDA at December 31, 2024 is a non-GAAP financial measure. See Appendix for reconciliation to nearest GAAP measure 2023 Gross Profit1 2024 Gross Profit1 Aggregates 68% Cement & Downstream 27% Mag 5% Aggregates 76% Cement & Downstream 19% Mag 5% +740 BASIS POINTS IMPROVEMENT
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Q4 and Full-Year 2024 Supplemental Information − Single-family housing − Multi-family housing 7 2025 END MARKET OUTLOOK + Infrastructure Investment and Jobs Act (IIJA) + Record state Department of Transportation budgets + State and local ballot initiatives + Data centers − Warehouses − Light nonresidential − Manufacturing INFRASTRUCTURE NONRESIDENTIAL RESIDENTIAL
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APPENDIX
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Q4 and Full-Year 2024 Supplemental Information Three Months Ended Dec 31, 2024 Three Months Ended Dec 31, 2023 Year Ended Dec 31, 2024 Year Ended Dec 31, 2023 Net earnings from continuing operations attributable to Martin Marietta $294 $288 $1,995 $1,199 Add back (Deduct): Interest expense, net of interest income 43 26 128 119 Income tax expense for controlling interests 59 55 600 293 Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates 148 126 564 505 Acquisition, divestiture and integration expenses 1 8 40 12 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting – – 20 – Nonrecurring gain on divestiture – – (1,331) – Noncash asset and portfolio rationalization charge – – 50 – Adjusted EBITDA $545 $503 $2,066 $2,128 Revenues $1,632 $1,608 $6,536 $6,777 Adjusted EBITDA Margin 33% 31% 32% 31% 9 ADJUSTED EBITDA Earnings from continuing operations before interest; income taxes; depreciation, depletion and amortization expense; the earnings/loss from nonconsolidated equity affiliates; acquisition, divestiture and integration expenses and the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting subject to limitations described below; nonrecurring gain on divestiture; and noncash asset and portfolio rationalization charge (Adjusted EBITDA) is an indicator used by the Company and investors to evaluate the Company's operating performance from period to period. Effective January 1, 2024, transaction expenses and inventory acquisition accounting impacts are only excluded for transactions with at least $2 billion in consideration and transaction expenses expected to exceed $15 million. Adjusted EBITDA is not defined by GAAP and, as such, should not be construed as an alternative to earnings from operations, net earnings or operating cash flow. $ IN MILLIONS
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Q4 and Full-Year 2024 Supplemental Information Year Ended Dec 31, 2025 (Midpoint Guidance) 1 Net earnings from continuing operations attributable to Martin Marietta $1,090 Add back: Interest expense, net of interest income 225 Income tax expense for controlling interests 290 Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates 645 Adjusted EBITDA $2,250 Total Revenues $7,030 Adjusted EBITDA Margin 32% 1 2025 Guidance reflects the midpoint of guidance ranges provided in the February 12, 2025, earnings release 10 2025 ADJUSTED EBITDA GUIDANCE AT THE MIDPOINT Earnings from continuing operations before interest; income taxes; depreciation, depletion and amortization expense; and the earnings/loss from nonconsolidated equity affiliates (Adjusted EBITDA) is an indicator used by the Company and investors to evaluate the Company's operating performance from period to period. Adjusted EBITDA is not defined by GAAP and, as such, should not be construed as an alternative to earnings from operations, net earnings or operating cash flow. $ IN MILLIONS
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Q4 and Full-Year 2024 Supplemental Information Three Months Ended Dec 31, 2024 Three Months Ended Dec 31, 2023 Year Ended Dec 31, 2024 Year Ended Dec 31, 2023 Reported average selling price $21.95 $20.22 $21.80 $19.84 Adjustment for impact of acquisitions 0.12 – 0.22 – Organic average selling price $22.07 $20.22 $22.02 $19.84 Adjustment for impact of product, geographic and other mix (0.31) – (0.07) – Organic mix-adjusted ASP $21.76 $20.22 $21.95 $19.84 Reported average selling price variance 8.6% 9.9% Organic average selling price variance 9.1% 11.0% Organic mix-adjusted ASP variance 7.6% 10.7% 11 AGGREGATES ORGANIC MIX-ADJUSTED AVERAGE SELLING PRICE Aggregates organic mix-adjusted average selling price (mix-adjusted ASP) is a non-GAAP measure that excludes the impact of period-over-period product, geographic and other mix on the average selling price. Mix-adjusted ASP is calculated by comparing current-period shipments to like-for-like shipments in the comparable prior period. Management uses this metric to evaluate the realization of price changes and believes this information is useful to investors. PER TON
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Q4 and Full-Year 2024 Supplemental Information 12 NET LEVERAGE AT DECEMBER 31, 2024 Consolidated net debt to consolidated Adjusted EBITDA at December 31, 2024, for the trailing-12 months, is a non- GAAP measure. Management uses this ratio to assess its capacity for additional borrowings. The calculation in the table is not intended to be a substitute for the Company's leverage covenant under its credit facility. $ IN MILLIONS Twelve-Month Period January 1, 2024 to December 31, 2024 Net earnings from continuing operations attributable to Martin Marietta $ 1,995 Add back (Deduct): Interest expense, net of interest income 128 Income tax expense for controlling interests 600 Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates 564 Acquisition, divestiture and integration expenses1 40 Nonrecurring gain on divestiture (1,331) Noncash asset and portfolio rationalization charge 50 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 1 20 Consolidated Adjusted EBITDA $ 2,066 Consolidated debt at December 31, 2024 $ 5,413 Less: Unrestricted cash at December 31, 2024 (670) Consolidated net debt at December 31, 2024 $ 4,743 Consolidated net debt to Consolidated Adjusted EBITDA at December 31, 2024, for the trailing-12 months consolidated Adjusted EBITDA 2.3 times 1 The Company has elected to add back, for purposes of its Adjusted EBITDA calculation, acquisition, divestiture and integration expenses and the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting subject to limitations described below. Effective, January 1, 2024, transaction expenses and inventory acquisition accounting impacts are only excluded for transactions with at least $2 billion in consideration and transaction expenses expected to exceed $15 million.