Earnings release
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1 MARTIN MARIETTA REPORTS RECORD THIRD-QUARTER 2026 RESULTS AND UPDATES FULL-YEAR 2026 GUIDANCE Strong Acquisition Performance Drives Record Results Despite Inflationary Pressures Lhoist North America (LNA) Combination Advances Portfolio Transformation Operational Efficiencies Drive Enhanced Cash Flow Benefits RALEIGH, N.C. (November 4, 2026) – Martin Marietta Materials, Inc. (NYSE: MLM) (Martin Marietta or the Company), a leading supplier of aggregates, lime and limestone products, magnesia -based products and other building materials, today reported results for the third quarter ended September 30, 2026. Third-Quarter and Nine Months Ended September 30, 2026 Highlights (Financial highlights are for continuing operations) (in millions, except per share and per ton data) Quarter Ended September 30, Nine Months Ended September 30, 2026 2025 % Change 2026 2025 % Change Revenues4 $ 2,369 $ 1,846 28% $ 5,678 $ 4,617 23% Net earnings from continuing operations attributable to Martin Marietta5 $ 256 $ 361 (29)% $ 592 $ 757 (22)% Adjusted EBITDA from continuing operations1 $ 808 $ 667 21% $ 1,809 $ 1,551 17% Earnings per diluted share from continuing operations5 $ 3.94 $ 5.97 (34)% $ 9.55 $ 12.49 (23)% Adjusted earnings per diluted share from continuing operations1 $ 5.47 $ 6.12 (11)% $ 12.48 $ 12.64 (1)% Aggregates product line Shipments (tons) 67.1 57.9 16% 172.6 149.6 15% Average selling price per ton (ASP)3 $ 22.41 $ 23.24 (4)% $ 22.85 $ 23.37 (2)% Revenues4 $ 1,662 $ 1,458 14% $ 4,337 $ 3,780 15% Gross profit2 $ 512 $ 531 (4)% $ 1,217 $ 1,257 (3)% Gross profit per ton2 $ 7.62 $ 9.17 (17)% $ 7.05 $ 8.40 (16)% Cash gross profit1 $ 696 $ 655 6% $ 1,772 $ 1,619 9% Cash gross profit per ton1 $ 10.36 $ 11.31 (8)% $ 10.27 $ 10.82 (5)% Specialties product line Revenues4 $ 362 $ 131 176% $ 656 $ 309 113% Gross profit2 $ 88 $ 34 155% $ 182 $ 108 68% Cash gross profit1 $ 163 $ 47 241% $ 279 $ 131 113% 1 Non-GAAP financial measures; see pages 15 and 17 through 19 for reconciliations to the nearest GAAP financial measures. 2 Aggregates gross profit, aggregates gross profit per ton and Specialties gross profit for the quarter ended September 30, 2026, included charges of $5 million, $0.08 per ton and $38 million, respectively, for the impact of selling acquired inventory after markup to fair value as part of acquisition accounting. 3 Organic mix-adjusted ASP increased 2.7 percent. For additional notes, see page 14.
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2 Ward Nye, Chair, President and CEO of Martin Marietta, stated, “Martin Marietta delivered record quarterly revenues of $2.37 billion and Adjusted EBITDA from continuing operations of $808 million, representing increases of 28% and 21%, respectively, over t he prior year third quarter, as strong performance from recent acquisitions more than offset the effects of expanding inflationary pressures and a dynamic macroeconomic environment. "The third quarter marked a defining milestone in Martin Marietta's portfolio transformation with the completion of our combination with Lhoist North America (LNA) on August 21. This transaction meaningfully scales our differentiated upstream Specialties platform, establishing Martin Marietta as the nation's leading producer of lime and limestone solutions and broadening our participation across steel, environmental, infrastructure and industrial end markets. Since the closing date, LNA delivered revenues, gross profit and cash gross profit1 of $216 million, $51 million and $115 million, respectively, providing early validation of the strategic and financial merits of the higher-quality, more resilient and diversified portfolio we have intentionally built. With the closing of LNA, we have updated the midpoints of our full -year 2026 Revenue and Adjusted EBITDA guidance to $7.80 billion and $2.48 billion, respectively, as acquisition contributions are anticipated to more than offset lower near -term expectations for our heritage operations. In 2027, we expect mid - to high-single digit aggregates pricing on a mix-adjusted basis, supported by January 1 pricing actions designed to address inflationary cost pressures. Acquired operations, which currently have selling prices below the Company average, provide meaningful opportunity for continued pricing growth. From an end market perspective, we currently expect continued strength in infrastructure and d ata centers with softer interest rate -sensitive private construction markets." Mr. Nye concluded, "As we integrate this year’s acquisitions, we remain focused on safety, commercial and operational excellence, and disciplined execution of the matters within our control. Martin Marietta has a proven playbook for responding decisively t o changing market conditions, managing inflationary pressures, protecting profitability and maximizing free cash flow. That playbook is already delivering results, with disciplined inventory management and capital spending reductions alone contributing over $290 million of year -to-date cash flow improvement. Looking ahead, January 1 pricing actions and further structural cost improvements are expected to restore a positive price-cost relationship in 2027. 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.”
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3 Third-Quarter Financial and Operating Results (All financial and operating results are for continuing operations and comparisons are versus the prior -year third quarter, unless otherwise noted) Building Materials Business Aggregates Third-quarter aggregates shipments increased 15.9 percent to a record of 67.1 million tons driven by acquisition contributions that more than offset a modest decline in organic shipments. ASP decreased 3.6 percent to $22.41 per ton, primarily reflecting acquisition-related mix, as acquired operations have average selling prices below the Company average. Organic ASP increased 1.0 percent, while organic mix-adjusted ASP6 increased 2.7 percent. Aggregates gross profit decreased 4 percent to $512 million, primarily due to higher depreciation, depletion and amortization, and energy -related costs. Aggregates cash gross profit 1, however, reached an all -time quarterly record of $696 million as acquisition contributions more than offset organic price-cost headwinds. Other Building Materials Other Building Materials revenues increased 14 percent to $399 million, and gross profit increased 17 percent to $63 million, benefiting from acquisition contributions and strong performance from the California asphalt business. Specialties Business Specialties delivered record revenues, gross profit and cash gross profit 1 of $362 million, $88 million and $163 million, respectively, reflecting strong organic performance and partial quarter contributions from LNA. Organic Specialties revenues and gross profit increased 11 percent and 6 percent, respectively. Portfolio Optimization On August 21, 2026, the Company completed the business combination with LNA, a leading producer of high - calcium lime, dolomitic lime and industrial mineral products serving diversified end markets through a network of 20 quarries and production facilities and 45 distribution terminals. On September 18, 2026, the Company acquired The Frazier Quarry, Inc., a pure-play aggregates business located in Harrisonburg, Virginia. Cash Generation, Capital Allocation and Liquidity Cash provided by operating activities for the nine months ended September 30, 2026, was $896 million compared with $1,156 million for the prior -year period. The year -over-year comparison includes $250 million of cash tax payments related to the gain recognized on the February 2026 QUIKRETE asset exchange. Cash paid for property, plant and equipment additions for the nine months ended September 30, 2026, was $445 million, compared with $602 million for the prior-year period. In July, the Company entered into a $1.5 billion three -year senior unsecured term loan facility and, in August, issued $5.5 billion of senior unsecured notes across five tranches to fund the cash consideration for the LNA
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4 combination. On August 21, 2026, the Company completed the LNA combination for total consideration of $12.9 billion, consisting of $7.0 billion in cash and approximately $5.9 billion of Martin Marietta common stock. During the nine months ended September 30, 2026, the Company returned $361 million to shareholders through dividend payments and share repurchases. As of September 30, 2026, 10.7 million shares remained available under the current repurchase authorization. As of September 30, 2026, the Company had $140 million of unrestricted cash and cash equivalents on hand and $1.4 billion of unused borrowing capacity under its existing credit facilities. Updated 2026 Guidance Based on strong acquisition performance, partially offset by softer heritage demand and inflationary cost pressures, the Company is updating its full-year 2026 guidance. 2026 Guidance (dollars in millions) Low Midpoint High Revenues $ 7,750 $ 7,800 $ 7,850 Interest expense, net of interest income $ 398 $ 403 $ 408 Estimated tax rate (excluding discrete events) 20.5 % 21.0 % 21.5 % Net earnings from continuing operations attributable to Martin Marietta $ 727 $ 800 $ 873 Adjusted EBITDA from continuing operations1 $ 2,450 $ 2,475 $ 2,500 Capital expenditures $ 590 $ 620 $ 650 Building Materials Business Aggregates Volume % growth2 12.5 % 13.0 % 13.5 % ASP % growth3 (3.0 )% (2.5 )% (2.0 )% Gross profit $ 1,540 $ 1,590 $ 1,640 Other Building Materials Gross profit $ 96 $ 106 $ 116 Specialties Gross profit $ 345 $ 375 $ 405 1 Non-GAAP financial measure; see page 16 for reconciliation to net earnings from continuing operations attributable to Martin Marietta. 2 Volume change is based on total aggregates shipments and is in comparison to 2025 shipments of 198.5 million tons. 3 ASP change is based on aggregates average selling price and is in comparison to 2025 ASP of $23.30 per ton.
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5 Non-GAAP Financial Information This earnings release includes financial measures not prepared in accordance with United States generally accepted accounting principles (GAAP). Reconciliations of these non -GAAP financial measures to the most comparable GAAP measures are provided in the Appendix. Management believes these non-GAAP measures are widely used by investors to evaluate the Company’s performance and, when considered alongside the Company’s consolidated financial statements, offer valuable insight into the Company’s ongoing and expected business results. These measures also inform internal evaluat ions of overall business performance. Management recognizes that reported results are influenced by numerous factors, and the adjustments in non-GAAP measures may not reflect all such impacts. Additionally, these measures may not be comparable to similarly titled measures used by other companies. Conference Call Information Martin Marietta will discuss its third-quarter 2026 earnings results today, November 4, 2026, via a conference call and live webcast beginning at 10:00 a.m. Eastern Time. To participate, dial +1 (646) 307 -1963 and enter conference ID 9935145. Participants are encouraged to dial in at least 15 minutes before the scheduled start time to ensure a timely connection. An on-demand replay will be posted to the Company's website approximately two hours after the conclusion of the live broadcast and will be available for one year . Access links for both the live and archived events, along with the Q3 2026 Supplemental Information, are available on the Investors section of the Company's website.
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6 About Martin Marietta Martin Marietta, a member of the S&P 500 Index, is an American -based company and a leading supplier of aggregates, lime and limestone products, magnesia -based products and other building materials. Supported by industry-leading reserves and a network of operations across the United States, Canada and the Caribbean, Martin Marietta supplies the essential materials that help build, connect and sustain communities across North America. For more information, visit www.martinmarietta.com or www.magnesiaspecialties.com. Investor Contact: Jacklyn Rooker Vice President, Investor Relations +1 (919) 510-4736 Jacklyn.Rooker@martinmarietta.com MLM-E. This earnings release contains forward-looking statements under the federal securities laws, including the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties and are based on assumptions that the Company believes are reas onable, but which may differ materially from actual results. These statements reflect the Company’s current expectations or forecasts of future events. You can identify these statements because they do not relate only to historical or current facts and may use words such as “guidance,” “anticipate,” “may,” “expect,” "could," “should,” “believe,” "estimate," "forecast," "intend," "outlook," "plan," "project," "schedule," “will,” and other words of similar meaning in connection with future events or future pe rformance. Any or all of the Company’s forward-looking statements herein and in other publications may prove to be incorrect. Third-quarter results and trends described in this release may not necessarily be indicative of the Company’s future performance. The Company’s outlook is subject to risks and uncertainties and is based on assumptions that the Company believes are reasonab le, but which may be materially different from actual results. Factors that the Company currently believes could cause actual results to differ materially from the forward -looking statements, including the outlook and 2026 Guidance, include, but are not li mited to: the Company’s ability to address challenges, including shipment declines caused by economic and weather events beyond its control; a widespread decline in aggregates pricing, including reduced shipment volume negatively affecting price; the termi nation, capping, reduction or suspension of federal and/or state fuel tax(es) or other revenue related to public construction; the level and timing of federal, state or local transportation or infrastructure or public projects funding, including any issues arising from such budgets, particularly in Texas, North Carolina, Colorado, California, Georgia, Florida, South Carolina, Arizona, Iowa and Minnesota; the United States Congress’ inability to reach agreement internally or with the Executive Branch on poli cy affecting the federal budget; a prolonged federal government shutdown; the ability of states or other entities to finance approved projects through tax revenues or alternative financing; construction spending levels in the Company’s markets; reductions in defense spending and impacts on construction activity on or near military bases; declines in energy-related construction due to changes in oil production or capital spending, particularly in Texas; sustained high mortgage interest rates and factors leading to a slowdown in private construction in some areas; the Company’s ability to identify, acquire, permit and develop quality aggregates reserves within an economic haul radius; unfavorable weather, including storms, hurricanes, wildfires, timing of seasons, drought, rainfall, or extreme temperatures affecting production schedules, shipment volumes, product/geographic mix and profitability; volatility in fuel and energy costs, including diesel, electricity, natural gas and consumables like steel, explosives, tires and conveyor belts, as well as natural gas, coal
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7 and petroleum coke for the Company’s Specialties business; increased raw materials costs, such as bitumen; rising costs of repair and supply parts; construction labor shortages and supply chain cha llenges; labor relations risks, such as unionization efforts, work stoppages or strikes, including at the Company’s suppliers, railroads and logistics providers; workforce demographics-related challenges in recruiting and retaining skilled employees, parti cularly for physically demanding roles in rural or less -populated areas; unexpected equipment failures, unscheduled maintenance, scheduled or unscheduled kiln outages, industrial accidents, catastrophic events or prolonged production disruption; resiliency and potential declines of the Company's construction end -use markets; changes in demand from the steel, mining, construction and infrastructure, water treatment and other industries served by the Company’s Specialties business, and structural declines in demand from coal-fired utility and paper industry customers; delays, cost overruns or underperformance of kiln modernization, facility expansion and other capital projects; potential impacts of disease outbreaks, epidemics, pandemics, or similar health thr eats, or fear of such events, and related economic/societal responses, affecting suppliers, customers, partners or employees; the performance of the overall United States economy; governmental regulation, including environmental laws and climate change regulations at state and federal levels; compliance with regulations relating to the Company’s lime operations; implementation of emissions taxes, carbon-pricing schemes, or stricter climate-related rules that could increase operating costs or restrict Specialties production; delays or difficulties in securing, renewing or maintaining timely land use approvals, envi ronmental permits, or mineral or water rights amid changing regulatory expectations; increasing legal actions or public pressure related to environmental impact, emissions, or land use could result in reputational harm or financial liability; the outcome o f pending or future litigation and other legal proceedings; failure to meet evolving environmental, social, and governance (ESG) standards or investor benchmarks may affect access to capital or shareholder confidence; changes in external ESG ratings or methodologies could affect investor sentiment or index inclusion; increasing competition for water access or stricter water usage regulations could impact production, especially in drought -prone regions; outcomes of environmental or land-use proceedings, or i ncreased costs associated with regulatory obligations, including site reclamation; elevated premiums or reduced coverage availability for property, casualty, or environmental liability could increase risk exposure; transportation availability and investmen t in rail infrastructure impacting the movement of materials especially to the Company’s Texas, Southeast and Gulf Coast markets, the movement of essential dolomitic lime to the Company’s Specialties plant in Manistee, Michigan and its customers, and the movement of magnesite from the Company's Specialties' Gabbs, Nevada facility to processing plants in North Carolina, Indiana and Pennsylvania and the Company's customers; increased transportation costs, including increases from energy price fluctuations, fu el surcharges, and compliance with tightening regulations, including water shipments; availability of trucks and licensed drivers for material transport; availability and cost of construction equipment in the United States; weakness in the steel industry m arkets served by the Company’s dolomitic lime products; geopolitical risks and tensions that could affect energy markets, costs, supply chains and global economic conditions; trade disputes and tariffs impacting the U.S. economy; currency, regulatory and cross- border risks associated with the Company’s operations in Canada, Jamaica and The Bahamas; unplanned cost changes or customer realignments affecting earnings; dependence on information technology and automated systems; risks related to third-party vendors, including exposure to cybersecurity vulnerabilities or service outages; inflation pressures on production and interest costs; customer concentration in construction markets increasing the risk of potential losses on customer receivables and payment delays; demand levels, production volumes, and cost management affecting operating leverage and profitability; global economic conditions; adverse industry conditions; the Company’s ability to obtain financing on favorable terms or at all and the resulting increase in the Company’s indebtedness and potential effects on the Company’s credit ratings; the Company’s substantial indebtedness following the combination with LNA, and its ability to service, repay or refinance such indebtedness and to reduce leverage to its long -term target ratio within the anticipated timeframe; sustained high or rising
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8 interest rates increasing the Company’s borrowing and refinancing costs; the issuance of newly -issued shares of Martin Marietta common stock as consideration for acqui sitions and the resulting dilution to the Company’s existing shareholders; potential business uncertainty, including changes to existing business relationships during the integration of acquisitions that could affect financial performance, integration challenges, market conditions, and the impact of M&A transactions on the Company's stakeholders; the possibility that acquisition synergies may not be realized as expected or within anticipated timeframes, potentially impacting profitability and debt covenant compliance; the possibility that diligence may not identify previously unknown liabilities of acquired businesses, or that acquisitions or divestitures may not be completed on expected terms or timelines or may be delayed, conditioned or not approved by re gulators; risks related to executive succession, retention and leadership development critical to strategy execution, including impacts from unexpected leadership changes; changes in tax laws or interpretations, including those related to acquisitions or d ivestitures, which could increase tax rates; violation of the Company’s debt covenants in the event of price and/or volume instability; new or revised accounting rules or changes in the critical accounting estimates and assumptions used by management could impact financial reporting, asset valuations, or covenant compliance; challenges in implementing new technologies or automation systems could lead to inefficiencies, cost overruns, or operational disruptions; cybersecurity risks; downward pressure on the Company’s common stock price affecting goodwill and other intangible asset impairment evaluations; potential credit rating downgrades to non-investment grade; and other risk factors listed from time to time in the Company’s SEC filings. You should also review the risk factors discussed in Martin Marietta’s Annual Report on Form 10 -K for the year ended December 31, 2025, the Form 10 -Q for the quarters ended March 31, 2026, June 30, 2026 and the forthcoming Form 10 -Q for the quarter ended S eptember 30, 2026, and other periodic SEC filings. All forward - looking statements should be evaluated with these considerations in mind. Other risks and uncertainties not presently known or currently deemed immaterial may also affect the Company’s performance or the accuracy of forward-looking statements. The Company undertakes no obligation to update any such forward -looking statements.
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Appendix 9 MARTIN MARIETTA MATERIALS, INC. Unaudited Statements of Earnings Three Months Ended Nine Months Ended September 30, September 30, (in millions, except per share data) 2026 2025 2026 2025 Revenues $ 2,369 $ 1,846 $ 5,678 $ 4,617 Cost of revenues 1,718 1,235 4,222 3,195 Gross Profit 651 611 1,456 1,422 Selling, general and administrative expenses 133 110 382 340 Acquisition, divestiture and integration expenses 84 5 107 9 Other operating income, net (4 ) (9 ) (5 ) (23 ) Earnings from Operations 438 505 972 1,096 Interest expense 138 59 254 172 Other nonoperating income, net (13 ) (4 ) (33 ) (23 ) Earnings from continuing operations before income tax expense 313 450 751 947 Income tax expense 57 89 159 190 Earnings from continuing operations5 256 361 592 757 Earnings from discontinued operations, net of income tax expense — 53 1,428 101 Consolidated net earnings 256 414 2,020 858 Less: Net earnings attributable to noncontrolling interests — — — — Net Earnings Attributable to Martin Marietta $ 256 $ 414 $ 2,020 $ 858 Net Earnings Attributable to Martin Marietta Basic earnings per share from continuing operations $ 3.94 $ 5.98 $ 9.57 $ 12.51 Basic earnings per share from discontinued operations — 0.88 23.12 1.67 Total basic earnings per share attributable to common shareholders $ 3.94 $ 6.86 $ 32.69 $ 14.18 Diluted earnings per share from continuing operations5 $ 3.94 $ 5.97 $ 9.55 $ 12.49 Diluted earnings per share from discontinued operations — 0.88 23.09 1.66 Total diluted earnings per share attributable to common shareholders $ 3.94 $ 6.85 $ 32.64 $ 14.15 Weighted-Average Common Shares Outstanding Basic 65.0 60.3 61.8 60.5 Diluted 65.1 60.4 61.9 60.6
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Appendix 10 MARTIN MARIETTA MATERIALS, INC. Unaudited Reportable Segment* Financial Highlights (Continuing Operations Only) Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2026 2025 2026 2025 Revenues East Group $ 1,020 $ 943 $ 2,827 $ 2,578 West Group 987 772 2,195 1,730 Total Building Materials business 2,007 1,715 5,022 4,308 Specialties 362 131 656 309 Total $ 2,369 $ 1,846 $ 5,678 $ 4,617 Earnings (Loss) from operations East Group $ 312 $ 335 $ 837 $ 874 West Group 180 176 218 226 Total Building Materials business 492 511 1,055 1,100 Specialties 68 26 144 90 Total reportable segments 560 537 1,199 1,190 Corporate (122 ) (32 ) (227 ) (94 ) Earnings from operations 438 505 972 1,096 Interest expense 138 59 254 172 Other nonoperating income, net (13 ) (4 ) (33 ) (23 ) Earnings from continuing operations before income tax expense $ 313 $ 450 $ 751 $ 947 * In connection with the closing of the QUIKRETE asset exchange during the quarter ended March 31, 2026, the Company updated its reportable segments. As of March 31, 2026, the Building Materials business includes two reportable segments: East Group (comprise d of the East and Southwest divisions) and West Group (comprised of the Central and West divisions). The Company has recast all comparative prior-period information presented in this earnings release to reflect the updated reportable segments.
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Appendix 11 MARTIN MARIETTA MATERIALS, INC. Unaudited Product Line Financial Highlights (Continuing Operations Only) Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2026 2025 2026 2025 Revenues Building Materials Aggregates $ 1,662 $ 1,458 $ 4,337 $ 3,780 Other Building Materials 399 351 819 744 Less: Interproduct sales (54 ) (94 ) (134 ) (216 ) Total Building Materials business 2,007 1,715 5,022 4,308 Specialties 362 131 656 309 Total $ 2,369 $ 1,846 $ 5,678 $ 4,617 Gross profit (loss) Building Materials Aggregates $ 512 $ 531 $ 1,217 $ 1,257 Other Building Materials 63 54 82 75 Total Building Materials business 575 585 1,299 1,332 Specialties 88 34 182 108 Corporate (12 ) (8 ) (25 ) (18 ) Total $ 651 $ 611 $ 1,456 $ 1,422 Depreciation, Depletion and Amortization* Building Materials Aggregates $ 179 $ 124 $ 477 $ 361 Other Building Materials 14 10 38 30 Total Building Materials business 193 134 515 391 Specialties 37 8 59 18 Corporate 1 1 3 3 Total $ 231 $ 143 $ 577 $ 412 * Depreciation, depletion and amortization reflects the expense included in Cost of revenues and does not represent total depreciation, depletion and amortization.
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Appendix 12 MARTIN MARIETTA MATERIALS, INC. Balance Sheet Data September 30, December 31, 2026 2025 (in millions) Unaudited Audited Assets Cash and cash equivalents $ 140 $ 67 Restricted cash 12 — Accounts receivable, net 1,302 723 Inventories, net 1,243 1,078 Other current assets 116 95 Current assets held for sale 3 1,230 Property, plant and equipment, net 18,072 10,290 Intangible assets, net 14,912 4,073 Operating lease right-of-use assets, net 412 367 Other noncurrent assets 873 788 Total Assets $ 37,085 $ 18,711 Liabilities and Equity Current maturities of long-term debt $ 720 $ 30 Other current liabilities 1,010 865 Long-term debt (excluding current maturities) 12,103 5,293 Other noncurrent liabilities 5,591 2,489 Total equity 17,661 10,034 Total Liabilities and Equity $ 37,085 $ 18,711
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Appendix 13 MARTIN MARIETTA MATERIALS, INC. Unaudited Statements of Cash Flows Nine Months Ended September 30, (in millions) 2026 2025 Cash Flows from Operating Activities Consolidated net earnings $ 2,020 $ 858 Adjustments to reconcile consolidated net earnings to net cash provided by operating activities: Depreciation, depletion and amortization 617 480 Stock-based compensation expense 49 42 Gain on divestitures and sales of assets (1,987 ) (24 ) Deferred income taxes, net 260 75 Bridge financing commitment fees 27 — Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: Accounts receivable, net (326 ) (309 ) Inventories, net 145 10 Accounts payable 92 64 Other assets and liabilities, net 10 (33 ) Other items, net (11 ) (7 ) Net Cash Provided by Operating Activities 896 1,156 Cash Flows from Investing Activities Additions to property, plant and equipment (445 ) (602 ) Acquisitions, net of cash acquired (7,872 ) (577 ) Proceeds from divestitures and sales of assets 484 29 Investments in limited liability company (53 ) (54 ) Other investing activities, net 12 (9 ) Net Cash Used for Investing Activities (7,874 ) (1,213 ) Cash Flows from Financing Activities Proceeds from borrowings 8,552 510 Repayments of debt (1,040 ) (405 ) Bridge financing commitment fees (27 ) — Debt issuance costs (18 ) — Payments on finance lease obligations (14 ) (17 ) Dividends paid (161 ) (147 ) Repurchases of common stock (200 ) (450 ) Shares withheld for employees’ income tax obligations (29 ) (29 ) Other financing activities, net — (5 ) Net Cash Provided by (Used for) Financing Activities 7,063 (543 ) Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash 85 (600 ) Cash, Cash Equivalents and Restricted Cash, beginning of period 67 670 Cash, Cash Equivalents and Restricted Cash, end of period $ 152 $ 70
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Appendix 14 MARTIN MARIETTA MATERIALS, INC. Additional Notes 4. Revenues for the three- and nine-month periods ended September 30, 2026 and September 30, 2025, included the sales of products and services to customers (net of any discounts or allowances) and freight revenues for continuing operations. 5. Net earnings from continuing operations attributable to Martin Marietta and earnings per diluted share from continuing operations included charges of $99 million and $1.53 per diluted share, respectively, for the quarter ended September 30, 2026, and $181 million and $2.93 per diluted share, respectively, for the year-to-date period ended September 30, 2026. These charges relate to (i) acquisition, divestiture and integrati on expenses and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting for transactions meeting the Company's threshold for adding back for purposes of Adjusted EBITDA from continuing operations; (ii) an asset and portfolio rationalization charge and (iii) solely for the year-to-date period ended September 30, 2026, the revaluation of deferred tax liabilities driven by changes in the state jurisdictional mix of the business following the February 2026 QUIKRETE asset exchange. 6. Organic mix-adjusted ASP represents Organic ASP adjusted to reflect consistent geographic mix between periods and is calculated by comparing Organic ASP for current -period shipments to Organic ASP for shipments in the comparable prior period. Please refer to the Investors section of the Company's website for definitions of ASP and Organic ASP.
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Appendix 15 MARTIN MARIETTA MATERIALS, INC. Non-GAAP Financial Measures Earnings from continuing operations before interest; income taxes; depreciation, depletion and amortization; earnings/loss from nonconsolidated equity affiliates; acquisition, divestiture and integration expenses; the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting (the Inventory Markup); and an asset and portfolio rationalization charge, or Adjusted EBITDA from continuing operations, is an indicator used by the Company and investors to evaluate the Comp any's operating performance from period to period. The Company has elected to add back, for purposes of its Adjusted EBITDA from continuing operations calculation, acquisition, divestiture and integration expenses and the Inventory Markup only for transactions with consideration of at least $2.0 billion for the Building Materials business or $200 million for the Specialties business. Adjusted EBITDA from continuing operations is not defined by accounting principles generally accepted in the United States (GAAP) and, as such, should not be construed as an alternative to net earnings attributable to Martin Marietta, earnings from operations, or operating cash flow. For further information on Adjusted EBITDA, refer to the Company’s website at www.martinmarietta.com. Reconciliation of Net Earnings from Continuing Operations Attributable to Martin Marietta to Adjusted EBITDA from Continuing Operations Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2026 2025 2026 2025 Net earnings from continuing operations attributable to Martin Marietta $ 256 $ 361 $ 592 $ 757 Add back: Interest expense, net of interest income 132 56 244 163 Income tax expense for controlling interests 57 89 159 190 Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates 242 149 609 429 Acquisition, divestiture and integration expenses 82 7 96 7 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 38 5 105 5 Asset and portfolio rationalization charge 1 — 4 — Adjusted EBITDA from continuing operations $ 808 $ 667 $ 1,809 $ 1,551
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Appendix 16 MARTIN MARIETTA MATERIALS, INC. Non-GAAP Financial Measures Reconciliation of 2026 Net Earnings from Continuing Operations Attributable to Martin Marietta Guidance to 2026 Adjusted EBITDA from Continuing Operations Guidance (in millions) Mid-Point of Range Net earnings from continuing operations attributable to Martin Marietta $ 800 Add back: Interest expense, net of interest income 403 Income tax expense for controlling interests 203 Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates 864 Acquisition, divestiture and integration expenses 96 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 105 Asset and portfolio rationalization charge 4 Adjusted EBITDA from continuing operations guidance $ 2,475
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Appendix 17 MARTIN MARIETTA MATERIALS, INC. Non-GAAP Financial Measures Adjusted earnings per diluted share from continuing operations is a non-GAAP financial measure used by the Company and by investors to evaluate operating performance and enhance comparability across reporting periods. The Company calculates Adjusted earnin gs per diluted share from continuing operations by excluding the impact of certain items that management believes are not indicative of the Company's underlying performance from period to period, including impacts directly related to acquisition and divest iture activity as well as asset and portfolio rationalization charges. The Company has elected to add back, for purposes of its Adjusted earnings per diluted share from continuing operations calculation, acquisition, divestiture and integration expenses, the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting and the revaluation of deferred tax liabilities, only for transactions with consideration of at least $2.0 billion for the Building Materials business or $200 million for the Specialties business. Adjusted earnings per diluted share from continuing operations is not defined by accounting principles generally accepted in the United States (GAAP) and, as such, should not be construed as an alternative to earnings per diluted share from continuing oper ations. For further information on Adjusted earnings per diluted share from continuing operations, refer to the Company’s website at www.martinmarietta.com. Reconciliation of Earnings per Diluted Share from Continuing Operations to Adjusted Earnings per Diluted Share from Continuing Operations Three Months Ended Nine Months Ended September 30, September 30, (per diluted share) 2026 2025 2026 2025 Earnings per diluted share from continuing operations $ 3.94 $ 5.97 $ 9.55 $ 12.49 Add back: Acquisition, divestiture and integration expenses 1.09 0.08 1.34 0.08 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 0.43 0.07 1.29 0.07 Asset and portfolio rationalization charge 0.01 — 0.05 — Revaluation of deferred tax liabilities — — 0.25 — Adjusted earnings per diluted share from continuing operations $ 5.47 $ 6.12 $ 12.48 $ 12.64
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Appendix 18 MARTIN MARIETTA MATERIALS, INC. Non-GAAP Financial Measures Aggregates cash gross profit and Specialties cash gross profit are non -GAAP financial measures used by the Company and by investors to evaluate operating performance and enhance comparability across reporting periods. For each respective product line, the Company calculates cash gross profit by adding back to gross profit the noncash charges for depreciation, depletion and amortization and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting for that product line. Aggregates cash gross profit and Specialties cash gross profit are not defined by accounting principles generally accepted in the United States (GAAP) and, as such, should not be construed as alternatives to gross profit, the most directly comparable GAAP financial measure. For further information on aggregates cash gross profit and Specialties cash gross profit, refer to the Company’s website at www.martinmarietta.com. Reconciliation of Aggregates Gross Profit to Aggregates Cash Gross Profit Three Months Ended Nine Months Ended September 30, September 30, (in millions, except per ton) 2026 2025 2026 2025 Aggregates gross profit $ 512 $ 531 $ 1,217 $ 1,257 Add back: Aggregates depreciation, depletion and amortization expense 179 124 477 361 Aggregates impact of selling acquired inventory after markup to fair value as part of acquisition accounting 5 — 78 1 Aggregates cash gross profit $ 696 $ 655 $ 1,772 $ 1,619 Shipments 67.1 57.9 172.6 149.6 Aggregates cash gross profit per ton $ 10.36 $ 11.31 $ 10.27 $ 10.82 Reconciliation of Specialties Gross Profit to Specialties Cash Gross Profit Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2026 2025 2026 2025 Specialties gross profit $ 88 $ 34 $ 182 $ 108 Add back: Specialties depreciation, depletion and amortization expense 37 8 59 18 Specialties impact of selling acquired inventory after markup to fair value as part of acquisition accounting 38 5 38 5 Specialties cash gross profit $ 163 $ 47 $ 279 $ 131
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Appendix 19 MARTIN MARIETTA MATERIALS, INC. Non-GAAP Financial Measures LNA cash gross profit for the period August 21, 2026, through September 30, 2026, is a non -GAAP financial measure presented to enable the Company and investors to evaluate LNA's contribution to Specialties operating performance and enhance comparability of Specialties cash gross profit with and without LNA. The Company calculates LNA cash gross profit by adding back to LNA gross profit noncash charges for depreciation, depletion and amortization and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting. LNA cash gross profit is not defined by accounting principles generally accepted in the United States (GAAP) and, as such, should not be construed as an alternative to gross profit, the most directly comparable GAAP financial measure. See the accompanying reconciliation of LNA cash gross profit to LNA gross profit below. Reconciliation of LNA Gross Profit to LNA Cash Gross Profit Period from August 21, to September 30, (in millions) 2026 LNA gross profit $ 51 Add back: LNA depreciation, depletion and amortization expense 26 LNA impact of selling acquired inventory after markup to fair value as part of acquisition accounting 38 LNA cash gross profit $ 115