Page 3 - Martin Marietta - 2024 Sustainability Report

CEO Letter

A Message from Our CEO

Building on a Sustainable Foundation

Continued Delivery of Solid Financial Results

We delivered record profitability for total aggregates operations in 2024 even though
we faced uncontrollable circumstances, underscoring the resiliency of our aggregates-
led business strategically positioned in the country’s fastest-growing markets. These
included a series of well-chronicled, extreme weather events including significant
precipitation together with Tropical Storm Debby in North Carolina, Hurricane Beryl in
Texas and Hurricane Helene across much of our Southeast footprint. At the same time,
we were navigating several challenging product demand dynamics including a private
construction slowdown. Despite these challenges, we remained focused on the long-
term aspects of our business that we can meaningfully impact: world-class safety, the
consistent and disciplined execution of our Strategic Operating Analysis and Review
(SOAR) 2025 initiatives, and resolute adherence to our leading commercial strategy.
We achieved another year of double-digit organic aggregates unit profitability growth.
More specifically, the Company’s total gross profit per ton increased 9% and organic
aggregates gross profit per ton was up 13%. We increased our dividend approximately
7% in August 2024 (the Company’s ninth consecutive year of increasing the dividend),
and collectively with share repurchases, we returned $639 million to shareholders. Our
cumulative Total Shareholder Return (TSR) since the start of SOAR 2025 on January 1,
2021 is 87% as compared to the S&P 500’s TSR of 66%. These significant
accomplishments demonstrate that Martin Marietta has built an increasingly resilient,
efficient and cash flow generative business and is poised to continue building a
resilient, aggregates-led, sustainable company.

Most Active Year for M&A Creates an Optimized Portfolio

We continued our disciplined adherence to and execution of our proven SOAR initiatives in 2024. Over the last four years,
Martin Marietta completed over $3 billion of non-core asset divestitures to partially fund approximately $7 billion of
aggregates-led acquisitions. Remarkably, 2024 surpassed 2021 as our most active M&A year ever, with nearly $4 billion of
acquisitions and over $2 billion of asset divestitures. Since our Texas Industries acquisition a little over a decade ago, to the
February 2024 divestiture of our South Texas cement business and related ready mixed concrete operations, and our
acquisition of multiple pure-play aggregates businesses in high growth regions of the United States, we have sought to
maximize the value of our business through a purposeful portfolio evolution. By using cyclical cement and ready mixed
concrete as consideration for pure aggregate assets, we have met a fourfold objective of: (i) creating a more durable
earnings profile, (ii) increasing the gross profit contribution from our core aggregates product line, (iii) expanding geographic
diversification, and (iv) reducing greenhouse gas impacts – all while maintaining a strong balance sheet well-positioned for
further acquisitive growth.

We are pleased to have added nearly one billion tons of aggregates reserves to our footprint in 2024. We completed the
acquisition and integration of both Blue Water Industries (BWI Southeast) and Albert Frei & Sons Inc. last year, as well as a
limestone source on Florida’s Gulf coast, sand and gravel in southern California and sand and gravel in west Texas. All of
these aggregates bolt-on acquisitions are in attractive, SOAR-identified geographies.

Through purposeful portfolio evolution and curation, we thoughtfully cultivate acquisitions and selectively prune assets at
opportune times. Our active portfolio management helps maximize the value of our business for our shareholders.

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