Page 171 - Martin Marietta - 2025 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
The Company’s consolidated operating results andoperating resultsasa percentage of revenuesare as follows:

years ended December 31 %of %of
(in millions, except for % of revenues) 2024 Revenues 2023 Revenues
Revenues $ 6,536 100 $ 6,777 100
Cost of revenues 4,658 71 4,754 70
Gross Profit 1,878 29 2,023 30
Selling, generaland administrative expenses 447 7 443 7
Acquisition,divestiture and integration expenses 50 12
Otheroperating income,net (1,326) (28)
Earnings from Operations 2,707 41 1,596 24
Interest expense 169 165
Othernonoperating income, net (58) (62)
Earnings from continuing operations before income tax
expense 2,596 1,493
Income tax expense 600 293
Earnings from continuing operations 1,996 31 1,200 18
Loss from discontinuedoperations, netofincome
tax benefit — (30)
Consolidated netearnings 1,996 1,170
Less: Netearningsattributabletononcontrolling interests 1 1
Net EarningsAttributable to Martin Marietta $ 1,995 31 $ 1,169 17

Consolidated Adjusted EBITDA
Earningsfrom continuing operations before interest; incometaxes;depreciation, depletionand amortization;earnings/loss
fromnonconsolidated equity affiliates; acquisition, divestitureand integrationexpenses; the impactof selling acquired
inventory after its markup to fairvalueas partof acquisition accounting(Inventory Markup);nonrecurringgainondivestiture;
andnoncash assetand portfolio rationalizationcharge, or Adjusted EBITDA, isan indicatorusedby the Companyand investors
toevaluatethe Company’soperating performance from periodtoperiod. EffectiveJanuary 1, 2024, the Company haselected
toadd back, for purposes of itsAdjusted EBITDAcalculation, acquisition,divestiture and integration expenses andthe Inventory
Markup only fortransactions with considerationof $2.0billionor moreand expected acquisition,divestiture and integration
expenses of at least $15 million. For2024,this includesthe acquisition of 20 active aggregates operations from affiliatesofBlue
Water Industries LLC (BWI Southeast) andthe Divestiture. SeeNote B to theconsolidated financialstatements for additional
information regardingthe BWISoutheast acquisition andthe Divestiture.
Adjusted EBITDA is not defined by U.S. generally accepted accounting principles (GAAP) and, assuch, should not beconstrued
asanalternative to netearningsattributable to Martin Marietta,earnings fromoperationsoroperating cash flow. Because
Adjusted EBITDA excludessome,but notall, items that affect netearningsand may vary among businesses, Adjusted EBITDA
aspresented by the Company may not be comparable to similarly titled measuresof other companies.

2024 Annual Report ♦ Page 63