Martin Marietta Materials, Inc. (MLM Quick QuoteMLM - Free Report) reported mixed results for first-quarter 2025, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased but the bottom line declined.

Following the results, shares of this producer and supplier of construction aggregates and other heavy building materials gained 1.1% in today’s pre-market trading session.

The company reported strong first-quarter results, setting records in consolidated gross profit, gross margin, adjusted EBITDA and adjusted EBITDA margin. Aggregates’ gross profit per ton rose year over year, driven by continued pricing momentum and effective cost management. The Magnesia Specialties business also reached new quarterly records for revenues, gross profit and gross margin, building on its solid 2024 performance.

Infrastructure demand continues to be a key driver in a challenging macroeconomic environment. Construction activity in this sector is expected to grow in 2025, supported by federal and state investments. While only about one-third of the Infrastructure Investment and Jobs Act (“IIJA”) funds had been reimbursed to states by February 2025, contributions from the IIJA are anticipated to peak in 2026. Nonresidential construction remains strong, driven by data center demand and warehouse construction appears to have reached a cyclical bottom.

While residential affordability challenges are expected to persist in the near term, the company’s strong positions in key markets with notable population growth provide opportunities to capitalize on structurally underbuilt markets. These will position the company to benefit from pent-up demand when single-family housing construction recovers.

Inside Martin Marietta’s Q1 Results

Martin Marietta reported adjusted earnings per share (EPS) from continuing operations of $1.90, which missed the Zacks Consensus Estimate of $1.94 by 2.1% and decreased 1.6% from the year-ago quarter’s $1.93. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Total revenues of $1.353 billion marginally surpassed the consensus mark of $1.35 billion by 0.2% and inched up 8% from the year-ago figure of $1.251 billion.

The gross margin expanded 300 basis points (bps) year over year to 25% in the reported quarter (we predicted the gross margin to be 22.7% for the quarter). Adjusted EBITDA of $351 million gained 21% year over year.

MLM’s Segmental Discussion

Building Materials reported revenues of $1.27 billion (in-line with our prediction), which grew 8% year over year. The segment’s gross margin increased 300 bps year over year to 24% in the first quarter.

Within the Building Materials umbrella, aggregates’ revenues grew 13.2% to $1 billion from the year-ago quarter. Aggregates shipments rose 6.6% year over year to 39 million tons and the average selling price grew 6.8% to $23.77. Shipments grew owing to the contributions from acquisitions, partially offset by challenging winter weather in January and February across many Southeast, Southwest and Midwest markets.

Aggregates’ gross profit per ton increased 16% to a first-quarter record of $7.60.

Cement and ready-mixed concrete revenues fell 12.1% year over year to $233 million. Cement shipments declined 26.7% year over year. Ready-mixed concrete shipments declined 6.9% from the year-ago period.

Asphalt and Paving revenues increased 35.6% to $80 million from the year-ago period, driven by higher asphalt shipments in California. Asphalt shipments also increased 26.3% year over year.

Magnesia Specialties reported record first-quarter revenues of $87 million, up from $81 million a year ago. This was backed by pricing growth and continued cost discipline. We predicted a comparatively lower value of $82.4 million year over year. The gross margin was up 800 bps, which rose to 44% from 36% a year ago.

Martin Marietta’s Financial Position

As of March 31, 2025, Martin Marietta had cash and cash equivalents of $101 million compared with $670 million at 2024-end. It had $1.2 billion of unused borrowing capacity on its existing credit facilities at March 2025-end. Long-term debt (excluding current maturities) was $5.29 billion, which aligned with the end of 2024.

Net cash provided by operations was $218 billion in the first quarter, up from $172 million in the year-ago period. In this period, MLM returned $499 million to its shareholders through dividend payments and share repurchases. As of March 31, 2025, 11 million shares remained under the current repurchase authorization.

MLM’s 2025 Guidance Maintained

Martin Marietta expects total revenues of $6.830-$7.230 billion, up from $6.54 billion in 2024. Adjusted EBITDA is projected to be between $2.150 billion and $2.350 billion, up from $2.07 billion reported in 2024.

Martin Marietta’s net earnings from continuing operations are anticipated to be $1.005-$1.175 billion, down from $1.995 billion in 2024.

Aggregate shipment is expected to be down 2.5-5.5%. Total aggregate pricing per ton is now anticipated to rise 5.5-7.5%.

Aggregate gross profit is expected to be in the $1.61-$1.71 billion range.

Cement and Downstream gross profit are expected to be in the $305-$385 million range. Magnesia Specialties’ gross profit is now expected to be in the $110-$120 million range.

Capital expenditures are anticipated to be in the range of $725-$775 million.

MLM’s Zacks Rank & Recent Construction Releases

Martin Marietta currently carries a Zacks Rank #3 (Hold).
 
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masco Corporation (MAS Quick QuoteMAS - Free Report) posted weaker-than-expected results for the first quarter of 2025, with both earnings and revenues falling short of the Zacks Consensus Estimate. The company reported adjusted EPS of 87 cents, down from 93 cents a year ago. Net sales of $1.8 billion declined 6% from the prior-year period. Excluding divestitures, net sales of Masco declined 3% year over year in local currency.

Citing ongoing uncertainty around how these external developments will affect industry-wide demand, pricing dynamics and input costs, Masco management has refrained from providing full-year 2025 financial guidance.

Leggett & Platt, Incorporated (LEG Quick QuoteLEG - Free Report) reported first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Leggett reported adjusted EPS of 24 cents, an increase from the year-ago adjusted EPS of 23 cents. Net trade sales of $1.022 billion declined 7% from the prior-year quarter’s $1.097 billion (all organic).

Leggett has largely maintained its full-year guidance, with a few updates to volume and pricing expectations. The company still expects sales of $4-$4.3 billion, indicating a 2-9% decline year over year.

UFP Industries, Inc. (UFPI Quick QuoteUFPI - Free Report) reported tepid results for the first quarter of 2025. Both earnings and net sales missed the Zacks Consensus Estimate and declined year over year.

The quarterly results of UFP Industries were affected by softer demand and broad-based pricing pressures. While economic challenges are expected to persist in 2025, UFP Industries noted sequential improvement in business activity throughout the quarter, which continued into April.