A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q2 FY2026, MLM achieved a 21.0% YoY revenue increase to $1.95B driven by strategic acquisitions and organic price gains, though net income dropped 23.5% YoY to $251M due to acquisition-related inventory markups and increased operating costs.
Revenue
$1.95B
+21.01% YoY
EPS (Diluted)
$4.17
-23.20% YoY
Gross Margin
25.4%
-5.4 pts YoY
Operating Income
$372M
-9.93% YoY
Martin Marietta Materials (MLM) reported Q2 FY2026 revenue of $1.95B, up 21.0% year over year. The company posted net income of $251M, down 23.5% from a year earlier, with diluted EPS of $4.17. Gross margin was 25.4%. Operating income was $372M, down 9.9% year over year. MLM's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
MLM reported Q2 FY2026 revenue of $1.95B (+21.0% YoY) and diluted EPS of $4.17 (-23.2% YoY), reflecting strong acquired volume expansion offset by acquisition accounting markups and cost inflation.
Last 4 quarters: 2 beats, 2 misses
Adjusted (non-GAAP) EPS of $5.00 versus the $4.79 analyst consensus — a +4.3% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $4.17.
Aggregates shipments expanded 17.0% YoY to 61.6 million tons in Q2 FY2026, driven by 2.3% organic shipment growth, full-quarter contributions from the QUIKRETE acquisition, and partial-quarter contributions from the New Frontier Materials (NFM) acquisition. Average selling price (ASP) per ton declined 2.0% to $22.74 due to acquisition geographic mix headwinds, despite organic ASP rising 2.1% to $23.70.
Source: 10-Q Item 2 MD&A, p.28
Aggregates gross profit decreased 3% YoY to $418M in Q2 FY2026. Profitability was temporarily reduced by a $52M expense associated with selling acquired inventory fair-value markups under acquisition accounting, alongside higher depreciation, depletion, and amortization expenses.
Source: 10-Q Item 2 MD&A, p.28
The Specialties segment delivered revenue of $152M and a 39% increase in gross profit to $50M during Q2 FY2026. Growth was propelled by contributions from the July 2025 Premier Magnesia acquisition and organic pricing gains across all product lines.
Source: 10-Q Item 2 MD&A, p.29
MLM completed the sale of its Midlothian cement plant, related terminals, and Texas ready mixed concrete operations in February 2026, recognizing a $1.4B after-tax divestiture gain recorded in discontinued operations during the fiscal year to date.
Source: 10-Q Item 2 MD&A, p.31
To prepare for the pending Lhoist North America (LNA) transaction, MLM secured a $1.5B senior unsecured term loan commitment on July 15, 2026, and amended its revolving credit facility covenant to temporarily raise the permitted consolidated net debt-to-EBITDA ratio limit up to 4.75x.
Source: 10-Q Item 2 MD&A, p.33-34
Demand for MLM's aggregates depends on public infrastructure funding and private construction spending, particularly across top revenue states such as Texas, North Carolina, and California. Prolonged federal budget disputes, interest rate hikes, or reductions in state transportation budgets could delay project bids and depress shipment volumes.
Source: 10-Q Item 1A, p.40
Aggregates market pricing is determined locally and is vulnerable to shifts in demand, local excess capacity, or shifts in product mix toward lower-value stone. Widespread pricing declines or an inability to pass along rising input costs can compress gross margins and lower returns on invested capital.
Source: 10-Q Item 1A, p.41
Heavy-side outdoor construction operations are sensitive to extreme rainfall, winter freezes, wildfires, and droughts. Adverse weather events disrupt shipment corridors, impede production efficiency, and increase site maintenance and water removal expenses.
Source: 10-Q Item 1A, p.41
Rapid portfolio growth through large transactions like QUIKRETE, NFM, and the pending LNA deal creates potential integration delays, system migration challenges, and heightened leverage. Failure to achieve anticipated operational synergies or obtain required environmental permits could harm financial results.
Source: 10-Q Item 1A, p.42-43
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Martin Marietta Materials (MLM) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the MLM earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.95B | $1.61B | +21.01% |
Cost of Revenue | $1.45B | $1.11B | +30.46% |
Gross Profit | $495M | $496M | -0.20% |
Operating Income | $372M | $413M | -9.93% |
Net Income | $251M | $328M | -23.48% |
EPS (Basic) | $4.18 | $5.44 | -23.16% |
EPS (Diluted) | $4.17 | $5.43 | -23.20% |
SG&A Expense | $116M | $104M | +11.54% |
MLM generated $1.95B in total revenue in Q2 FY2026, representing a 21.0% YoY increase compared to $1.61B in Q2 FY2025. Revenue growth was driven by a 17.0% increase in aggregates shipment volumes from organic expansion and contributions from the QUIKRETE and New Frontier Materials acquisitions.
Net income decreased 23.5% YoY to $251M in Q2 FY2026. The earnings reduction was primarily caused by a $52M pre-tax charge related to selling acquired inventory marked up to fair value under acquisition accounting, higher depreciation expenses, and raw material cost inflation in downstream operations.
During Q2 FY2026, MLM integrated the New Frontier Materials acquisition completed on May 15, 2026, and secured a $1.5B term loan commitment for its pending Lhoist North America acquisition. Additionally, the company recorded a $1.4B after-tax divestiture gain earlier in 2026 from selling its Midlothian cement and Texas ready-mix assets.
MLM highlighted risks related to infrastructure spending delays across major states like Texas and California, seasonal adverse weather impacts on outdoor quarrying, and potential aggregates price concessions. Management also underscored operational and regulatory risks associated with integrating recent large-scale acquisitions.
Martin Marietta Materials (MLM) is next expected to report earnings on Nov 2, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
MLM reported Q1 FY2026 revenue of $1.36B (+17.2% YoY), but gross profit declined 1.6% as cost pressures compressed margins, while net income surged to $1.51B (+1,204% YoY) driven by a large non-operating gain rather than core operating performance.
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.
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