Start here if you're new
what it is
Martin Marietta sells the rocks, cement, and road materials that end up in your highways, homes, and data centers.
how it gets paid
Last year Martin Marietta made $6.2B in revenue.
why it's growing
Revenue grew 300.9% last year. Revenue rose 9% vs. prior year and gross margin reached 30.5%.
what just happened
Martin Marietta posted $1.5B of quarterly revenue, but EPS of $3.85 missed the $4.26 consensus.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
85/100 earnings predictability — you can trust these numbers
40.7x trailing p/e — you're paying up for this one
0.5% dividend yield — cash in your pocket every quarter
8.5% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
Martin Marietta sells the rocks, cement, and road materials that end up in your highways, homes, and data centers.
Its moat is physical. Martin Marietta runs about 400 quarries, mines, and distribution yards across 28 states, Canada, and The Bahamas. If your jobsite needs 48.9 million tons of aggregates shipped in a year, distance matters more than branding, because freight costs can kill the economics.
How they make money
$6.2B
annual revenue · their business grew +300.9% last year
total revenue
$6.2B
+300.9%
The products that matter
quarried stone, sand, and gravel supply
Construction Aggregates
$6.2B revenue · core business
it's the business. this segment generated the full $6.2B in revenue shown on the page, and the company still kept a 19.0% net profit margin.
19% margin
portfolio reshaping via asset exchange
Quikrete Asset Exchange
2025 strategic move
management exchanged cement and ready-mix assets for aggregates operations. the idea is simple: lean harder into the business they think has better profitability and less weather sensitivity.
aggregates focus
earnings power investors are paying for
Forward Earnings Setup
$20.00 fy2026 EPS est
at $665.35, the stock trades at about 33x that $20.00 estimate. you are not buying a cheap cyclical. you are buying execution.
valuation watch
Key numbers
40.7x
trailing p/e
P/E → price-to-earnings → how many years of current profit you are paying for. At 40.7x, you need the rebound to show up.
$5.3B
long-term debt
Debt → money owed → less room for mistakes. It is 12% of capital, which is manageable but not invisible.
23.4%
operating margin
Operating margin → profit after running the business → pricing power. Selling rock with a 23.4% margin is why this stock gets a premium.
$758
18-month target
Target price → where the stock may trade in 18 months → your near-term upside. From $665.35, that is only about 14%.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 85 / 100
- long-term debt $5.3B (12% of capital)
- net profit margin 20.2% — keeps 20 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in MLM 3 years ago → it's now worth $18,660.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
Martin Marietta posted $1.5B of quarterly revenue, but EPS of $3.85 missed the $4.26 consensus.
Revenue rose 9% vs. prior year and gross margin reached 30.5%. The problem was simple: the market expected more, and the miss landed while the stock already traded at 40.7x trailing earnings.
$1.5B
revenue
$3.85
eps
30.5%
gross margin
the number that mattered
The 9.62% EPS miss mattered most because premium multiples stop being generous when estimates start slipping.
-
martin marietta materials completed a significant asset exchange with quikrete holdings.specifically, the company transferred to quikrete assets primarily related to its cement and ready-mix concrete operations at its midlothian cement plant and north texas ready-mix concrete sites and certain nonoperating land.
-
in exchange, martin marietta received quikrete’s assets mostly comprised of its aggregates operations in virginia, missouri, kansas, and vancouver, british columbia, along with $450 million in cash.management’s rationale for the deal centered on its belief that aggregates businesses are more profitable and less susceptible to adverse weather conditions. we agree and expect there to be less volatility in the company’s quarterly earnings presentation in the coming years. the asset deal, which resulted in a $2.43-a-share gain, was reflected as a discontinued in the company’s 2025 annual report and excluded from our per-share presentation.
-
we expect martin marietta’s bottom line to bounce back nicely this year.
-
accordingly, we are raising our 2026 earnings-per-share forecast by $0.75, to $20.00.
-
our initial call for next year also stands at $23.00.the bright outlook reflects a number of factors, including our expectation that gdp growth will accelerate over the next 12-plus months. infrastructure activity, boosted by funds allocated for major construction projects (roads, bridges, public transportation, water systems, broadband, and energy) under the 2021 infrastructure investment and jobs act, continues to remain strong. likewise, demand for heavy building materials should get a boost from the ongoing artificial intelligence infrastructure build out (i.e., large data centers) by technology hyperscalers.
source: company earnings report, 2026
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What could go wrong
the top threat is execution and legal friction around the quikrete asset exchange.
high
quikrete integration risk
martin marietta reshaped the portfolio by swapping cement and ready-mix assets for aggregates operations. that can improve quality, but integrations only look clean in slide decks.
if the exchange does not deliver better profitability, investors are left with a more concentrated $6.2B aggregates-heavy business and the same premium multiple.
high
legal dispute over confidential information
the page already flags a dispute risk tied to confidential information and the Quikrete agreement. this is company-specific, recent, and not the kind of issue investors can wave away as generic litigation noise.
the page does not quantify the legal exposure. that's the point. uncertainty lands on a company with roughly $40B in market value and a stock that is not priced for messy surprises.
med
construction demand, shipments, and pricing
this company sells basic building materials. if infrastructure activity, private construction demand, or local pricing soften, the impact shows up quickly because the page gives you one core revenue engine.
a slowdown hits both the current $6.2B revenue base and the $7B fiscal 2026 revenue expectation investors are leaning on.
med
valuation compression
40.7x trailing earnings is rich for a materials name with 8.5% return on capital and a 0.5% dividend yield. the stock does not need disaster to fall. it just needs less enthusiasm.
if fiscal 2026 EPS stalls near $20.00 or the fiscal 2027 view of $23.00 gets revised down, multiple compression can do the rest.
these risks sit on top of a business expected to do about $7B in fiscal 2026 revenue. when the stock is priced for clean execution, even ordinary stumbles get expensive fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings on april 29, 2026
you want to hear whether management still sounds comfortable with the $20.00 fiscal 2026 EPS path and the $7B revenue setup.
estimates
does the $23.00 fiscal 2027 EPS view hold
that number is doing real work in the valuation. if it moves down, the stock's margin for error gets thinner.
legal
any update on the quikrete dispute
this is the one non-operating issue that can still change the story fast because the page does not give you a clean dollar bound on the exposure.
numbers
revenue progress toward $7B
the business did $6.2B last year. if that bridge to $7B starts looking wobbly, the premium multiple will feel a lot less comfortable.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a strong near-term edge either way.
risk profile
average
stability score 3 — neither especially defensive nor unusually dangerous.
chart momentum
average
technical score 3 — the chart is not screaming a message. you're relying on fundamentals.
earnings predictability
85 / 100
management has been relatively reliable. for a cyclical business, that matters more than it sounds.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 376 buyers vs. 324 sellers in 4q2025. total institutional holdings: 58.8M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$563
$953
$665
current price
$758
target midpoint · +14% from current · 3-5yr high: $1045 (+55% · 12% ann'l return)
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