Page 188 - Martin Marietta - 2025 Proxy Statement

ADDITIONAL NON-GAAP RECONCILIATIONS
Thenet leverage ratioat December31, 2024 forthe trailing-twelve months consolidated Adjusted EBITDA is anon-GAAP measure.
Managementusesthis ratio to assess itscapacityfor additional borrowings. The Company haselected to addback, forpurposes
ofits Adjusted EBITDA calculation, acquisition,divestiture and integration expenses andthe impact of selling acquired inventory
after its markup to fairvalueaspartof acquisition accounting subjecttothe following limitations. EffectiveJanuary 1, 2024,
transaction expenses and inventory acquisition accounting impacts areonly excluded for transactions with at least $2billion in
consideration andtransaction expenses expected to exceed $15 million. Thecalculation below isnot intendedtobea substitute
for the Company’s leverage covenant underthe Credit Agreement.

Twelve-Month Period
January 1, 2024 to
(dollars in millions) December 31, 2024
Netearnings fromcontinuingoperationsattributable to Martin Marietta $ 1,995
Addback(Deduct):
Interest expense, netofinterest income 128
Income tax expense forcontrolling interests 600
Depreciation,depletion andamortizationexpense andearnings/loss from nonconsolidated
equity affiliates 564
Acquisition,divestiture and integration expenses 40
Nonrecurring gain on divestiture (1,331)
Noncashasset andportfolio rationalizationcharge 50
Impact of selling acquired inventory after markupto fair value as part of acquisition
accounting 20
Consolidated Adjusted EBITDA $ 2,066

Consolidated debt at December 31,2024 $ 5,413
Less: Unrestricted cash at December 31,2024 (670)
Consolidated net debtat December31, 2024 $ 4,743
Leverage ratioat December31, 2024, forthe trailing-twelve months consolidated Adjusted EBITDA 2.3times

TheAdjusted EBITDA marginat December31, 2024 and 2023 isa non-GAAP measure. Management uses this measuretoevaluate
the Company’soperating performanceperiodto period.

years ended December 31
(in millions) 2024 2023
nsolidated Adjusted EBITDA $ 2,066 $ 2,128
Revenues $ 6,536 $ 6,777
Consolidated Adjusted EBITDA margin 31.6% 31.4%

Page80 ♦ 2024 Annual Report