Page 50 - Martin Marietta - 2025 Proxy Statement

SUMMARY OF OUR COMPENSATION CONSIDERATIONS /

yielded annual cash incentive plan payouts for 2024 of 135% of target and PSU payouts for the 2022-2024 cycle of 233%
of target, demonstrating alignment of our executive pay programs with shareholder interests.

SOLID FINANCIAL RESULTS reflected commercial
excellence efforts and record aggregates unit $639 MILLION RETURNED TO SHAREHOLDERS;
profitability that more than offset lower shipment levels; $450 million in share repurchases and 7% quarterly
AGGREGATES UNIT PROFITABILITY UP 9% TO dividend increase effective in August 2024
RECORD $7.58 PER TON
Continuous commitment to SUSTAINABILITY AND Exited year at 2.3X NET LEVERAGE RATIO* as of
ENTERPRISE EXCELLENCE, which is included in our December 31, 2024
strategy and compensation decisions
Successful completion of nearly $7 billion portfolio
optimizing, aggregates-led acquisitions and non-core
ANOTHER SAFEST YEAR ON RECORD; Safety asset divestitures over the SOAR 2025 period that
performance better than world-class levels
collectively improved the enterprise’s durability and
margin profile
* Adjusted EBITDA and Net Leverage Ratio are non-GAAP measures. See Appendix B for reconciliation to reported net earnings from continuing
operations attributable to Martin Marietta and related disclosures.
The SOAR process, supplemented by our annual planning process, has guided us since 2010 as we have grown the
Company in an intentional, contemplative, and disciplined manner. SOAR 2025 set ambitious-yet-achievable targets for
future growth and value creation, including platform and bolt-on acquisitions in high growth regions, commercial and
enterprise excellence, excellent safety performance, and returning value to shareholders. Importantly, the Company’s
strategic efforts and proactive balance sheet management in recent years provide a platform for continued expansion in
future years.

2024 Highlights Disciplined Capital Allocation

Solid financial performance reflected efficacy of Most Active M&A Year Ever with nearly $4 billion
value-over-volume strategy, continued focus on of acquisitions and over $2 billion of non-core /
operational and commercial excellence, and non-strategic asset divestitures
resilient geographic footprint
Completed the sale of South Texas cement and
Increased Net Margin by 1,280 basis points, related ready mixed concrete businesses
expanded Consolidated Adjusted EBITDA* strategically narrowing our cement portfolio
margin by 20 basis points and achieved
aggregates gross profit per ton improvement $639 million returned to shareholders;
of 9% $450 million share repurchases coupled with 7%
quarterly dividend increase effective in August
Achieved the Company’s safest year on record; 2024
99.9% of employees experienced zero lost-time
incidents Exited year at 2.3x net leverage ratio*; extended
our $800 million revolving credit agreement to
Total organic aggregates gross profit per ton 2029
increased 13%

* Net Margin is defined as the ratio between Net Earnings from Continuing Operations Attributable to Martin Marietta and Total Revenues and includes
the impact of a $976 million after-tax nonrecurring gain on the divestiture of the Company’s South Texas cement plant and related ready mixed
concrete operations in 2024. Adjusted EBITDA Margin and Net Leverage Ratio are non-GAAP measures. See Appendix B for reconciliation to reported
net earnings from continuing operations attributable to Martin Marietta and related disclosures.

44 2025 PROXY STATEMENT