Page 103 - Martin Marietta - 2025 Proxy Statement

Appendix B

Non-GAAP Measures

Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to
provide them with an alternative method for assessing our financial condition and operating results, and are often
requested by investors. These measures are not in accordance with, or a substitute for, generally accepted accounting
principles (GAAP) and may be different from or inconsistent with non-GAAP financial measures used by other companies.
Earnings from continuing operations before interest; income taxes; depreciation, depletion and amortization expense; the
earnings / loss from nonconsolidated equity affiliates; acquisition, divestiture and integration expenses and the impact of
selling acquired inventory after its markup to fair value as part of acquisition accounting subject to the limitations
described below; nonrecurring gain on divestiture; and noncash asset and portfolio rationalization charge (Adjusted
EBITDA) is an indicator used by the Company and investors to evaluate the Company’s operating performance period to
period. Effective January 1, 2024, transaction expenses and inventory acquisition accounting impacts are only excluded for
transactions with at least $2 billion in consideration and transaction expenses expected to exceed $15 million.

Adjusted EBITDA is a widely accepted financial indicator of a company’s ability to service and/or incur indebtedness.
Adjusted EBITDA is not defined by GAAP and, as such, should not be construed as an alternative to earnings from
operations, net earnings or operating cash flow.

The following presents a reconciliation of net earnings from continuing operations attributable to Martin Marietta to
consolidated Adjusted EBITDA from continuing operations for the years ended December 31, 2024, 2023, 2022, 2021,
and 2020.

Consolidated Adjusted EBITDA for year ended December 31:

(dollars in millions) 2024 2023 2022 2021 2020
Net earnings from continuing operations attributable to Martin Marietta $ 1,995 $1,199 $ 856 $ 702 $ 721
Add back (deduct):
Interest expense, net of interest income 128 119 155 142 118
Income tax expense for controlling interests 600 293 235 153 168
Depreciation, depletion and amortization expense and earnings/loss from
nonconsolidated equity affiliates 564 505 497 442 386
Acquisition, divestiture and integration expenses 40 12 9 58
Impact of selling acquired inventory after markup to fair value as part of
acquisition accounting 20 31
Nonrecurring gain on divestiture (1,331) (152)
Noncash asset and portfolio rationalization charge 50
Consolidated Adjusted EBITDA from continuing operations $ 2,066 $2,128 $1,600 $1,528 $1,393
Total revenues $ 6,536 $6,777 $6,161 $5,414 $4,729
Adjusted EBITDA margin 31.6% 31.4% 26.0% 28.2% 29.4%

B-1 2025 PROXY STATEMENT