Page 160 - Martin Marietta - 2025 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
Magnesia Specialties

The Company operates a MagnesiaSpecialties business withproduction facilities in Michiganand Ohio. The Magnesia
Specialties businessproduces magnesia-based chemicalsproductsused in industrial, agricultural andenvironmental
applications. Italso producesdolomitic limesoldprimarily to customers for steel production andsoilstabilization. Magnesia
Specialties’products areshippedtocustomers domestically and worldwide.

Strategic Objectives
The Company’s strategicplanning process, or Strategic Operating Analysisand Review(SOAR), provides the framework for
execution of Martin Marietta’s long-termstrategic plan.Guidedby this framework andconsidering thecyclicality of the Building
Materials business, the Company determines capitalallocation priorities to maximize long-termshareholdervaluecreation.
The Company’sstrategyincludesongoing evaluation of aggregates-led opportunities of scale innew domestic markets(i.e.,
platformacquisitions) andexpansion throughacquisitionsthatcomplementexistingoperations(i.e.,bolt-on acquisitions). The
Companyfinances such opportunities with the goalof preserving its financial flexibility by having a leverage ratio(consolidated
net debttoconsolidated earnings before interest,taxes,depreciation, depletionand amortization,earnings/loss from
t
t
nonconsolidated equity affiliates andcertain otheradjustments as specified inthe ResultsofOperations section, or Adjusted
o
EBITDA) within a range of 2.0times to 2.5times within a reasonable periodof time (typically within 18 months) following the
completionof a debt-financedtransaction.SOARalso includesthe identification andpotential dispositionof assets that arenot
consistent withstatedstrategic goals. Notably, the Company completednearly $6.0billionworth of portfolio-optimizing
transactions in2024, divestingnon-strategic cement and related readymixed concrete businessesand redeployingthe net
proceeds into aggregates-led acquisitionsinattractive markets(seeNote B to theconsolidated financial statements).
The Company, by purposefuldesign, will continue to be an aggregates-led business that focuseson markets with strong,
underlyinggrowth fundamentals where it cansustain or achievea leading marketposition. Aggregates grossprofit represented
76% of 2024 totalreportablesegment grossprofit. ForMartinMarietta, strategic cement andtargeteddownstreamoperations
are located where the Company has, or envisions, amongother things, a clearpathtowarda leading aggregates position.
Additionally, strategic cement operations are gearedtoward markets in whichsupply cannot be meaningfully interdictedby
waterborne product deliveries.

Page52 ♦ 2024 Annual Report