Page 153 - Martin Marietta - 2024 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

INTRODUCTORY OVERVIEW

Martin Marietta Materials, Inc. (the Company or Martin Marietta) is a natural resource‐based building materials company, with
2023 total revenues of $6.78 billion and 2023 net earningsfrom continuing operations attributable to Martin Marietta of $1.20
billion. These results were achieved in part by supplying aggregates (crushed stone, sand and gravel) through its network of
approximately 360 quarries, mines and distribution yards in 28 states, Canada and The Bahamas. Martin Marietta also provides
cement and downstream products, namely ready mixed concrete, asphalt and paving services, in certain markets where the
Company has a leading aggregates position. Specifically, the Company has two cement plants in Texas, ready mixed concrete
operations in Arizona and Texas, and asphalt operations in Arizona, California, Colorado and Minnesota. Paving services are offered
in California and Colorado. As of December 31, 2023, the Company's South Texas cement business and 20 ready mixed concrete
operations that serve the Austin and San Antonio region are classified as assets held for sale. The Company divested these
operations on February 9, 2024.

On February 11, 2024, the Company entered into a definitive agreement to acquire 20 active aggregates operations in Alabama,
South Carolina, South Florida, Tennessee, and Virginia from affiliates of Blue Water Industries LLC (BWI Southeast) for $2.05 billion
in cash. The BWI Southeast acquisition complements Martin Marietta’s existing geographic footprint in the dynamic southeast
region by allowing the Company to expand into new growth platforms in target markets including Nashville and Miami. The
transaction is expected to close during 2024, subject to regulatory approvals and other customary closing conditions.
The Company’s heavy‐side building materials are used in infrastructure, nonresidential and residential construction projects.
Aggregates are also used in agricultural, utility and environmental applications and as railroad ballast. The aggregates, cement,
ready mixed concrete and asphalt and paving product lines are reported collectively as the “Building Materials” business.

023 Annual Report ♦ Page 51