Page 184 - Martin Marietta - 2025 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 thevolatility offueland energy costs, particularly diesel fuel,electricity,natural gasand the impactonthe cost,orthe
availability generally,of other consumables, namely steel,explosives, tiresand conveyor belts, and with respect to the
Company’s Magnesia Specialtiesbusiness, naturalgas;
 continued increases in thecostof other repair andsupply parts;
 construction laborshortages and/or supply chain challenges;
 unexpectedequipment failures, unscheduled maintenance, industrialaccidentorother prolongedand/or significant
disruptiontoproduction facilities;
 the resiliencyand potentialdeclines of the Company's variousconstructionend-use markets;
 the potential negative impactsof new wavesof outbreakof diseases, epidemic or pandemic, or similarpublic health
threat, orfear of such eventand its related economic or societal response,including any impactonthe Company's
suppliers,customers,orother businesspartnersas wellason its employees;
 the performance of theUnitedStateseconomy;
 Governmental regulation, including environmentallawsand climatechange regulations at both thestate and federal
levels;
 transportation availability ora sustained reduction in capitalinvestment by the railroads,notably theavailability of
railcars, locomotive powerand thecondition of rail infrastructure to move trains to supply the Company’s Texas,
Southeastand GulfCoast markets, including the movementof essentialdolomitic lime for magnesia chemicalstothe
Company’splant in Manistee, Michigan and its customers;
 increasedtransportationcosts, including increases fromhigheror fluctuating passed-throughenergycosts orfuel
surcharges, and othercosts to complywith tightening regulations, as well as highervolumesofrailand water
shipments;
 availability of trucksand licenseddrivers fortransport of the Company’s materials;
 availabilityand cost of construction equipment inthe United States;
 weakening inthe steel industry markets served by the Company’s dolomiticlime products;
 potential impactoncosts, supply chain,oil andgas prices,orother matters relatingtogeopolitical conflicts,including
the warbetween Russia andUkraine,the war in Israeland relatedconflict inthe Middle Eastand the potential conflict
between Chinaand Taiwan;
 tradedisputes withone or more nations impacting theU.S.economy, including the impactof tariffs;
 unplannedchanges in costsor realignmentof customers that introduce volatility toearnings, including that of the
MagnesiaSpecialties business;
 properfunctioningofinformation technology andautomated operating systems to manage or support operations;
 inflationand itseffectonbothproductionand interest costs;
 theconcentration of customers inconstruction markets andthe increased riskof potential lossesoncustomer
receivables;
 the impactof the levelof demand inthe Company’send-use markets,productionlevelsand management of
production costsonthe operating leverage andtherefore profitability of the Company;
 the possibility thatthe expected synergies fromacquisitions will not be realized orwill not be realized within the
expectedtime period, including achieving anticipatedprofitability to maintaincompliancewiththe Company’s
leverage ratiodebtcovenant;
 the possibility thatthe strategicbenefits, outlook, performanceand opportunities expected as a resultof acquisitions
and portfolio optimization will not be realized;
 changes intax laws,the interpretation of such laws and/or administrative practices, including acquisitions or
divestitures, that would increasethe Company’stax rate;
 violationof the Company’sdebtcovenant if price and/orvolumes returntopreviouslevelsofinstability;
 downward pressure on the Company’s common stockprice and its impact on goodwill impairment evaluations;
 the possibility of a reduction of the Company’scredit ratingtonon-investmentgrade; and
 other risk factors listed from time to time found in the Company’s filings with theSEC.

Page76 ♦ 2024 Annual Report