Update shared on05 Sep 2025
Fair value Increased 0.32%Analysts have raised their price target for Martin Marietta Materials on improving demand outlook, strong Q2 execution, and strategic benefits from the Quikrete deal, resulting in a modest target increase from $646.18 to $647.32.
Analyst Commentary
- Improving demand trends anticipated for construction materials industry in H2 2025 and 2026, with Q2 likely marking the trough of softer demand.
- Q2 earnings beat driven by strong pricing, effective cost control, and operational efficiencies offsetting anticipated quarterly volatility.
- Bullish analysts highlight the strategic value of the Quikrete deal, emphasizing enhanced footprint diversification and ability to drive price realization through “value over volume” strategy.
- Announced asset exchange with Quikrete expected to strengthen aggregates portfolio; preliminary Q2 results ahead of expectations provided incremental confidence.
- Mixed construction trends lead some to apply slightly lower valuation multiples, but expectations for a volume rebound and operating leverage remain supportive.
What's in the News
- Martin Marietta raised its quarterly dividend from $0.79 to $0.83 per share, annualizing to $3.32.
- The company has completed the repurchase of 8,802,350 shares (13.73% of shares) for $2,264.13 million; no shares repurchased in the latest quarter.
- Guidance for FY2025 raised: expected revenues of $6.82–$7.12 billion and net earnings of $1,095–$1,185 million.
- New CFO appointed: Michael J. Petro, formerly SVP of Strategy and Development, replaces interim CFO Robert J. Cardin; Cardin remains as SVP, Controller, and CAO.
- Dropped as a constituent from several Russell growth indexes, including the Russell 1000, 3000, and Midcap Growth benchmarks.
Valuation Changes
Summary of Valuation Changes for Martin Marietta Materials
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $646.18 to $647.32.
- The Future P/E for Martin Marietta Materials remained effectively unchanged, moving only marginally from 29.51x to 29.57x.
- The Discount Rate for Martin Marietta Materials remained effectively unchanged, at 7.68%.
Disclaimer
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