Martin Marietta Q3 Revenue Hits Record as Acquisitions Boost EBITDA

Martin Marietta Materials reported record third-quarter revenue and adjusted EBITDA from continuing operations as recent acquisitions expanded both its aggregates and specialties businesses, although GAAP earnings declined and margins narrowed.

For the three months ended September 30, 2026, revenue from continuing operations increased 28% year over year to $2.37 billion. Adjusted EBITDA from continuing operations rose 21% to $808 million, setting a quarterly record, while the adjusted EBITDA margin decreased to 34% from 36%.

Net earnings from continuing operations attributable to Martin Marietta fell to $256 million from $361 million. The quarter included $82 million of acquisition, divestiture and integration expenses, compared with $7 million a year earlier, as well as a $38 million impact from selling acquired inventory following its markup to fair value. Interest expense, net of interest income, increased to $132 million from $56 million.

Free cash flow, a non-GAAP measure, rose to $426 million from $361 million. Net cash provided by operating activities was $557 million, compared with $551 million, while capital expenditures declined to $131 million from $190 million.

Acquisitions lift aggregates and specialties results

Aggregates shipments reached a quarterly record of 67.1 million tons, up 16% year over year, while aggregates revenue increased 14% to $1.66 billion. Aggregates cash gross profit rose 6% to $696 million, but the related margin contracted to 42% from 45%.

The segment’s profit growth came from recently acquired operations. Organic aggregates cash gross profit declined by $25 million to $630 million, while acquisitions contributed $66 million. For the first nine months of 2026, total aggregates cash gross profit increased to $1.77 billion from $1.62 billion, including a $145 million acquisition contribution. Organic aggregates cash gross profit was $1.63 billion, up $8 million.

Specialties cash gross profit increased to $163 million from $47 million, with the Lhoist North America combination contributing $115 million for the period from August 21 through September 30. Excluding LNA, specialties cash gross profit was $48 million, compared with $47 million a year earlier. Specialties revenue rose to $362 million from $131 million, and its cash gross margin increased to 45% from 36%.

Martin Marietta completed its combination with LNA on August 21 and acquired The Frazier Quarry on September 18. The company said the LNA transaction adds complementary lime and minerals capabilities, broadens its product offerings and diversifies its end markets. Including LNA, limestone represents more than 50% of Martin Marietta’s hard-rock reserves.

2026 guidance and preliminary 2027 pricing outlook

Martin Marietta provided updated full-year 2026 guidance with midpoint revenue of $7.80 billion and adjusted EBITDA from continuing operations of $2.48 billion. At the midpoint, the company expects net earnings from continuing operations attributable to Martin Marietta of $800 million and an adjusted EBITDA margin of 32%.

For 2027, the company’s preliminary outlook calls for mix-adjusted aggregates pricing growth in the mid-single to high-single digits.

The presentation described infrastructure spending and data-center construction as areas of support. Martin Marietta said significant Infrastructure Investment and Jobs Act funding remains available and noted that more than 60% of transportation funding in states where it operates is state-funded. Heavy nonresidential activity is expected to benefit from multiyear investment in data centers, power generation and warehouses.

At the same time, the company identified continued near-term cyclicality in private construction. Housing affordability constraints remain a challenge for residential construction, while Martin Marietta expects continued weakness in light nonresidential markets because of higher-for-longer interest rates. The company also cautioned that its outlook and other forward-looking statements depend on assumptions and are subject to risks and uncertainties that could cause actual results to differ materially.