Page 174 - Martin Marietta - 2025 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
Building Materials. Shipment data and volumevariances by productline for the BuildingMaterials businessare as follows:
years ended December 31
(in millions) 2024 2023 % Change
Aggregates tons 191.1 198.8 (3.8%)
Cement tons 2.3 4.0 (43.5%)
Ready mixed concrete cubicyards 5.0 6.5 (24.2%)
Asphalt tons 8.8 9.4 (5.9%)

Aggregates shipmentsdecreased 3.8% in 2024,drivenby the Company's value-over-volume pricing strategy, unfavorable
weather andsofter residential, warehouse and manufacturing demand, which were partially offset by shipments fromacquired
operations. Aggregates pricing increased 9.9%,or10.7% on an organic mix-adjustedbasis,compared with 2023, duetothe
cumulativeeffectof2023and 2024 pricing actions. During2024, aggregates shipmentstothe infrastructure,nonresidential
and residentialend use markets decreased 2%, 4% and5%, respectively.
Cement shipmentsand readymixed concrete shipmentsdecreased 43.5%and 24.2%, respectively,versusprioryear, primarily
duetothe Divestitureand significantprecipitation in Texas in2024relativeto2023.
In2024, asphalt shipmentsdecreased 5.9% from 2023,drivenby unfavorable weatherand softer market demand.Asphalt and
paving grossprofit decreased 7% in 2024 versus prior year, due to lowershipments andgeneral inflationary impactsthat more
than offset pricinggains andlower asphaltcement raw material costs.
Magnesia Specialties. In 2024, Magnesia Specialties reported revenuesof $320 millionand grossprofitof $107 million,
representing increases of 2% and 10%, respectively, compared with 2023. The profitability increase in2024 reflects pricing
gains in both thelimeand chemical productlines andlower energy costs, which morethanoffsetthe impact of lower
shipments.

Selling, General and Administrative Expenses
SG&A expenses for2024 and 2023 were 6.8% and6.5% ofrevenues, respectively.

Other Operating Income, Net

Otheroperating income,net, represented incomeof $1.3billion in2024 and$28 million in2023. The 2024 amount includeda
$1.3 billionpretax gainonthe Divestitureand $28 millionof gains on land sales, which were partially offset by a$50 million
pretax, noncashassetand portfolio rationalizationcharge (Rationalization Charge; seeNote R to theconsolidated financial
statements). In2023, otheroperating income,net, included$20 millionof gains on land sales.

Earnings from Operations
Consolidated earningsfrom operations were $2.7 billionand $1.6billion in2024 and 2023, respectively.The 2024 amount
includeda $1.3billionpretax gainonthe Divestiture.

Interest Expense
Interest expense was $169 million in2024 and$165 million in2023.

Other Nonoperating Income, Net
Consolidated othernonoperating income, net, was$58 million in2024 and$62 million in2023, inclusiveofinterest incomeof
$40 millionand $47 million, respectively.

Income Tax Expense
The Company’s estimatedeffective income taxrate for theyears ended December31, 2024 and 2023 was 23.1% and 19.6%,
respectively. Thehigher2024 effective incometax rate versus 2023 wasdrivenby the impact of the Divestiture, which included
the write-off of certain nondeductible goodwill. For further information, seeNote I to theconsolidated financial statements.
The Company does notanticipatethatthe tax law changesdue to Pillar Two will have a material impacton its estimated
effectiveincometax rate.

Page66 ♦ 2024 Annual Report