Page 170 - Martin Marietta - 2025 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
The Clean AirAct,originally passed in1963and periodically updatedbyamendments, isthe United States’nationalair pollution
control programthatgranted theUnitedStates Environmental Protection Agency (USEPA) authority to setlimitsonthe level
ofvariousair pollutants. To meet National AmbientAir QualityStandards, a definedgeographicarea must bebelow established
limits for six pollutants. Environmentalgroups have been successful in proceedings againstthe federaland certainstate
departments of transportation,delayinghighway construction in municipalareas not incompliance withthe CleanAir Act. The
USEPA designates geographicareas as nonattainment areas whenthe levelof air pollutants exceedsthe national standard.
Nonattainmentareas receivedeadlines to reduceair pollutantsbyinstituting variouscontrol strategies or otherwise face fines
orcontrol by theUSEPA. Includedasnonattainment areasare several major metropolitan areas inthe Company’s markets,
suchasHouston/Brazoria/Galveston, Texas; Dallas/FortWorth, Texas; BexarCountyinSan Antonio/New Braunfels, Texas;
Denver,Colorado; Boulder, Colorado; Fort Collins/Greeley/Loveland, Colorado; Baltimore, Maryland; LosAngeles-San
Bernardino Counties,California; LosAngeles – South Coast Basin, California; Phoenix/Mesa,Arizona;San Diego County,
California; SanFrancisco Bay Area, California;San JoaquinValley, California; and Sacramento County, California.Federal
transportation fundinghas been directly tied to compliance withthe CleanAir Act.
Large emitters (facilitiesthatemit25,000 metric tons or more per year) of greenhouse gases (GHG) must report GHG generation
to complywith theUSEPA’s MandatoryGreenhouseGases Reporting Rule (GHGRule). In2024, the Companyfiledannual
reports in accordance with theGHG Rule relating to operations at itscementplant in Texas, as well as its MagnesiaSpecialties
facilities in Woodville, Ohio, and Manistee, Michigan,eachofwhich emit certainGHG, including carbon dioxide, methaneand
nitrousoxide.IfCongresspassesadditional legislationlimitingGHG emissions, theseoperations willlikely besubjecttosuch
legislation. The Company believesthatany increasedoperating costsortaxes relatedtoGHG emission limitationsat its cement
orWoodville operations wouldbe passedonto its customers. TheManistee facilitymay have to absorb extracosts due to the
regulation ofGHG emissions to maintain competitivepricing in its markets. The Company cannot reasonably predict the
amount of those potential increasedcosts.

The Company is engaged incertain legaland administrative proceedings incidentalto its normal businessactivities.In
management's andcounsel's opinion, baseduponcurrently available facts,the likelihood is remotethatthe ultimate outcome
of any litigation or other proceedings, including those pertainingtoenvironmental matters, relatingtothe Companyand its
subsidiaries,will have a materialadverse effect on theoverall resultsof the Company’soperations, cash flowsor financial
position.
FINANCIAL OVERVIEW

Results of Operations
e following discussion andanalysis reflect management’s assessmentof the financialcondition and results of operations
(MD&A)of the Companyfor continuing operations andshouldbe read inconjunction with theaudited consolidated financial
statements(Item 8, Financial Statements and Supplementary Data). As discussed in moredetail, the Company’s operating
resultsare highly dependentuponactivitywithinthe construction marketplace, economic cycles within the public andprivate
businesssectors, and seasonal andother weather-relatedconditions. Accordingly, financial results foranyyear presented, or
year-to-yearcomparisons of reported results, may not be indicative offuture operating results.Aspermittedby the Securities
and Exchange Commission (SEC)underthe FAST ActModernization andSimplificationofRegulationS-K,the Company has
elected to omit thediscussion of theearliest period (2022) presentedbecause it wasincluded inits MD&A in its2023 Annual
ReportonForm10-K filed on February 23,2024, incorporated by reference from Item 7, Management’s Discussion and Analysis
of Financial Condition and Results of Operations thereto.
The Company’s Building Materials business generatedthe majority of consolidated revenues andearnings fromcontinuing
operations. The following comparativeanalysisand discussion should be read within this context. Further, sensitivity analysis
and certainother data are providedtoenhance the reader’sunderstanding of MD&A andare not intendedtobe indicativeof
management’sjudgment of materiality.

Page62 ♦ 2024 Annual Report