Page 104 - Martin Marietta - 2025 Proxy Statement

/ APPENDIX B

The Company Selected Measure of Adjusted EBITDA for Pay Versus Performance on page 85 includes continuing
operations and discontinued operations. The following presents a reconciliation of Consolidated Adjusted EBITDA from
continuing operations to Adjusted EBITDA for Pay for Performance for the years ended December 31, 2024, 2023, 2022,
2021 and 2020.

(dollars in millions) 2024 2023 2022 2021 2020
Net (loss) earnings from discontinued operations $ $ (31) $ 11 $ 1 $
Add back (deduct):
Interest expense
Income tax (benefit) expense (10) 5
Depreciation, depletion and amortization expense 1
Nonrecurring loss on divestitures 24 1
Impact of selling acquired inventory after mark up to fair value as part of acquisition
accounting 3
Adjusted EBITDA from discontinued operations (17) 17 5
Consolidated Adjusted EBITDA from continuing operations 2,066 2,128 1,600 1,528 1,393
Adjusted EBITDA for Pay for Performance $2,066 $2,111 $1,617 $1,533 $1,393

Leverage Ratio
The leverage ratio is our consolidated net debt-to-consolidated Adjusted EBITDA from continuing operations for the
trailing twelve months. Management uses this ratio to assess its capacity for additional borrowings. The following
calculation as of December 31, 2024 is not intended to be a substitute for the Company’s leverage covenant under its
credit facility:
(dollars in millions) 2024
Net earnings from continuing operations attributable to Martin Marietta $ 1,995
Add back:
Interest expense, net of interest income 128
Income tax expense for controlling interests 600
Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates 564
Acquisition, divestiture and integration expenses 40
Impact of selling acquired inventory after its markup to fair value as part of acquisition accounting 20
Nonrecurring gain on divestiture (1,331)
Noncash asset and portfolio rationalization charge 50
Consolidated Adjusted EBITDA from continuing operations for the twelve months ended December 31 $ 2,066
Consolidated debt at December 31 $ 5,413
Less: Unrestricted cash at December 31 (670)
Consolidated net debt at December 31 $ 4,743
Consolidated net debt-to-consolidated EBITDA at December 31 for trailing-twelve months Consolidated Adjusted
EBTIDA from continuing operations 2.3 times

MARTIN MARIETTA B-2