AI Takeaway
MLM (Martin Marietta Materials) grew FY2025 revenue 8.6% to $6.15B on strong gross profit expansion, but operating and net income fell sharply (~42-43%) year-over-year, likely due to a large prior-year gain that inflated FY2024 comparisons, while operating cash flow surged 22.3% to $1.79B.
Revenue
$6.15B
++8.62% YoY
EPS (Basic)
$18.81
-42.12% YoY
Gross Margin
30.7%
++1.82% YoY
Operating Income
$1.44B
-42.03% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
MLM delivered $6.15B in revenue for FY2025, up 8.6% from $5.66B in FY2024, reflecting continued demand for aggregates and construction materials. Gross profit rose 15.5% to $1.89B, pushing gross margin to 30.7% from 28.9%, indicating improved pricing power and/or cost efficiency at the product level.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income fell 42.0% to $1.44B from $2.48B, and net income dropped 43.0% to $1.14B from $1.996B. This dramatic decline is likely attributable to a large non-recurring gain (e.g., asset divestiture) recorded in FY2024 that inflated prior-year results, rather than a fundamental deterioration in the business, as evidenced by the simultaneous improvement in gross margin.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow increased 22.3% year-over-year to $1.785B, well above net income of $1.14B, reflecting healthy non-cash add-backs (D&A of $637M, up 11.2%) and solid working capital management. This demonstrates the capital-intensive but cash-generative nature of MLM's aggregates business.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockThe 42-43% decline in operating and net income versus FY2024 appears driven by a large prior-year non-recurring gain rather than operational deterioration. Investors relying on headline year-over-year comparisons may misinterpret the company's underlying earnings trajectory. This creates a risk of mispricing if the nature of prior-year gains is not clearly communicated.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $4.62 versus the $4.69 analyst consensus — a -1.5% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.15B | $5.66B | +8.62% |
Cost of Revenue | $4.26B | $4.03B | +5.84% |
Gross Profit | $1.89B | $1.64B | +15.46% |
Operating Income | $1.44B | $2.48B | -42.03% |
Net Income | $1.14B | $2B | -43.03% |
EPS (Basic) | $18.81 | $32.50 | -42.12% |
EPS (Diluted) | $18.77 | $32.41 | -42.09% |
SG&A Expense | $443M | $429M | +3.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $18.71B | $18.17B | +2.98% |
Current Assets | $3.19B | $2.45B | +30.38% |
Total Liabilities | $8.68B | $8.71B | -0.42% |
Current Liabilities | $895M | $1B | -10.68% |
Stockholders' Equity | $10.03B | $9.45B | +6.13% |
Cash & Equivalents | $67M | $670M | -90.00% |
Long-Term Debt | $5.32B | $5.41B | -1.66% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.78B | $1.46B | +22.34% |
Investing Cash Flow | $-1.59B | $-2.44B | +35.02% |
Financing Cash Flow | $-800M | $373M | -314.48% |
Share Buybacks | $450M | $450M | 0.00% |
D&A | $637M | $573M | +11.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 30.7% | 28.9% | +1.82% |
Operating Margin | 23.4% | 43.8% | -20.42% |
Net Margin | 18.5% | — | — |
ROE | 11.3% | — | — |
ROA | 6.1% | — | — |
Current Ratio | $3.568 | — | — |
Debt to Equity | $0.865 | — | — |
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MLM's net income fell 43% to $1.14B in FY2025, but this is largely a comparison issue: FY2024 likely included a large non-recurring gain (such as an asset sale) that inflated prior-year results. The underlying business actually improved, with gross profit rising 15.5% and operating cash flow surging 22.3% to $1.785B.
Yes, MLM grew revenue 8.6% to $6.15B in FY2025, up from $5.66B in FY2024. Gross profit grew even faster at 15.5%, pushing gross margin to 30.7% from 28.9%, indicating improved pricing or cost efficiency.
The headline takeaway is that while reported earnings fell sharply (~43%), this reflects a tough comparison against a prior-year non-recurring gain rather than business deterioration. Core metrics like gross margin (30.7%), operating cash flow ($1.785B), and current ratio (3.57x) all improved, pointing to a fundamentally healthy business.
Based on the financial data, key risks include the near-depletion of cash reserves (down 90% to $67M), $5.32B in long-term debt that could become burdensome if construction demand slows, and the capital-intensive nature of the aggregates business which limits free cash flow relative to total assets of $18.7B.
MLM's financial health appears solid: it has a strong current ratio of 3.57x, generates $1.785B in annual operating cash flow, and has been steadily reducing long-term debt (down 1.7% to $5.32B). The main watch item is the very low cash balance of just $67M, which reduces the liquidity buffer, though robust cash generation mitigates this concern.