MARTIN MARIETTA MATERIALS INC Q1 FY2025 earnings call

• CFO transition: Jim Nickolas departed as CFO, Bob Cardin serves as Interim CFO. - Strong first quarter results: Record aggregate revenues, gross profit, gross margin, and gross profit per ton. - Segment performance: Aggregates had record first quarter, cement/concrete down due to divestiture, weather, and demand; asphalt/paving up but with loss; Magnesia Specialties set records. - Capital deployment: Focus on value-enhancing acquisitions, responsible reinvestment, and returning capital to shareholders; repurchased 911,000 shares and paid $49 million in dividends. - End market trends: Infrastructure to remain robust with IIJA funds, nonresidential (data centers, warehousing) has green shoots, residential faces affordability challenges but long-term fundamentals resilient

The Building Materials business posted revenues of $1.3 billion, an 8% increase. The aggregates business achieved record first quarter revenues of $1 billion, with gross profit of $297 million, a gross margin of 30%, and gross profit per ton of $7.60. Cement and Concrete revenues decreased 12% to $233 million due to the divestiture of the South Texas cement plant, winter weather, and slower residential demand. Asphalt and paving revenues grew 37% to $80 million but posted a $23 million gross loss. Magnesia Specialties achieved all-time quarterly records for revenues ($87 million), gross profit ($38 million), and gross margin (44%)

• Reaffirmed full year 2025 adjusted EBITDA guidance of $2.25 billion at midpoint. - Will revisit guidance at midyear. - Organic March aggregate shipments, April daily shipment trends, and April price increases provide confidence in guidance

• Macro uncertainty affecting results. - Tariffs present both opportunities and challenges. - Potential reallocation of state budgets away from transportation funding if economy sees tax revenue shortfall

Q: What gives confidence in volume guidance and maintaining it?

A: Infrastructure is strong with IIJA funds not fully utilized, data centers and warehousing have green shoots, customer backlogs are up and no project cancellations Q: How are margins in cement and concrete segment thought about?

A: Cement performed well despite lower production, ready-mix had headwinds from seasonality and demand, but mid-single digit pricing growth expected Q: What is value-added M&A for Magnesia Specialty?

A: Magnesia Specialty has high barriers to entry, pricing power, and has earned right to grow organically and via M&A due to its strong performance and attributes like aggregates Q: Thoughts on new legislation for infrastructure?

A: Likely to be done before midterms, focusing on regional and national scope projects, and discussing funding for EVs and hybrids