Page 36 - Martin Marietta - 2024 Sustainability Report
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OUR SUSTAINABILITY APPROACH
Martin Marietta Continues to Focus on
Sustainability via our SOAR Strategy
The Company’s strategic planning process, or Strategic Operating Analysis and Review (SOAR), provides the framework
for execution of Martin Marietta’s long-term strategic plan. Guided by this framework and considering the cyclicality of
the Building Materials business, the Company determines capital allocation priorities to maximize long-term shareholder
value creation. The Company’s strategy includes ongoing evaluation of aggregates-led opportunities of scale in new
domestic markets (i.e., platform acquisitions) and expansion through acquisitions that complement existing operations
(i.e., bolt-on acquisitions). The Company finances such opportunities with the goal of preserving its financial flexibility by
having a leverage ratio (consolidated net debt to consolidated earnings before interest, taxes, depreciation, depletion and
amortization, earnings/loss from nonconsolidated equity affiliates and certain other adjustments as specified in the Results
of Operations section, or Adjusted EBITDA) within a range of 2.0 times to 2.5 times within a reasonable period of time
(typically within 18 months) following the completion of a debt-financed transaction. SOAR also includes the identification
and potential disposition of assets that are not consistent with stated strategic goals. Notably, the Company completed
nearly $6.0 billion worth of portfolio-optimizing transactions in 2024, divesting non-strategic cement and related ready
mixed concrete businesses and redeploying the net proceeds into aggregates-led acquisitions in attractive markets.
The Company, by purposeful design, will continue to be an aggregates-led business that focuses on markets with strong,
underlying growth fundamentals where it can sustain or achieve a leading market position. Aggregates gross profit
represented 76% of 2024 total reportable segment gross profit. The Company added nearly one billion tons of
aggregates reserves to our footprint in 2024, completing the acquisition and integration of Blue Water Industries (BWI
Southeast), Albert Frei & Sons Inc., 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.
34 2024 SUSTAINABILITY REPORT