Martin Marietta Materials, Inc.

Ladies and gentlemen, welcome to Martin Marietta's third quarter 2025 earnings conference call. All participants are currently in a listen-only mode. A question and answer session will follow the company's prepared remarks. As a reminder, today's call is being recorded and will be available for replay on the company's website. I will now turn the call over to your host, Ms. Jacqueline Rooker, Martin Marietta's Vice President of Investor Relations. Jacqueline, you may begin.

Good morning, and thank you for joining Martin Marietta's third quarter 2025 earnings call. With me today are Ward Nye, Chair and Chief Executive Officer, and Michael Petro, Senior Vice President and Chief Financial Officer. As a reminder, today's discussion may include forward-looking statements as defined by United States securities laws. These statements relate to future events, operating results, or financial performance, and are subject to risks and uncertainties that could cause actual results to differ materially. Martin Marietta undertakes no obligation to publicly update or revise any forward-looking statements, except as legally required, whether due to new information, future developments, or otherwise. For additional details, please refer to the legal disclaimers contained in today's earnings release and other public filings, which are available on both our own and the Securities and Exchange Commission's websites. Supplemental information is available both during this webcast and in the investor section of our website. It includes a summary of our financial results and trends with third quarter and year-to-date bridges from continuing operations to consolidated results on slides four and five, respectively. As a reminder, the company's Midlothian cement plant, related cement terminals, and Texas Ready Mix concrete plants are classified as assets held for sale as of September 30th, 2025. Their associated financial results are reported as discontinued operations for all periods presented. Our full year 2025 guidance summary on slide eight reflects continuing operations unless otherwise noted. Definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measure are provided in the appendix to the supplemental information in our SEC filings and on our website. Today's earnings call will begin with Ward Nye, who will discuss our third quarter operating performance and our preliminary view for 2026, supported by key market trends. Michael Petro will then review our financial results and capital allocation. Ward will return with closing remarks. Please note that all comparisons are to the prior year's corresponding period. A question and answer session will follow. Please limit your Q&A participation to one question. I will now turn the call over to Ward.

Thank you, Jacqueline. Good morning, and thank you for joining today's teleconference. Martin Marietta delivered an exceptional third quarter, achieving record performance across both our aggregates and specialties businesses. These accomplishments reflect the enduring strength of our aggregates-led business model, the disciplined execution of our strategic priorities, and our steadfast commitment to safety. As detailed in this morning's release, third quarter highlights include several all-time quarterly records in our core aggregates product line, reflecting strong year-over-year improvement. Aggregates revenues of $1.5 billion, a 17% increase. Aggregates gross profit of $531 million, a 21% increase. Aggregates gross profit per ton of $9.17, a 12% increase. And aggregates gross margin of 36%, an increase of 142 basis points. Our specialties business also delivered outstanding performance, achieving record quarterly revenues of $131 million, a 60% increase, and third quarter record gross profit of $34 million, a 20% increase. As announced at our Capital Markets Day, we've rebranded the former Magnesia Specialties business to Specialties, a name that better reflects the broader portfolio of specialty products we provide within that segment, all of which are rooted in our core competencies, mining, brushing, and processing rock. These strong results reflect robust organic growth complemented by contributions from Premier Magnesia acquired at the end of July. Importantly, and I'm extremely proud to report, this outstanding financial performance coincided with our teams delivering the best year-to-date safety performance in our company's history, as measured by both total and lost time incident rates. a testament to our culture of world-class safety and operational excellence. Looking at the quarter holistically compared with the prior year, revenues from continuing operations were $1.8 billion, a 12% increase. Revenues inclusive of discontinued operations were $2.1 billion, a 10% increase. Adjusted EBITDA from continuing operations was up 22% to $667 million. Consolidated adjusted EBITDA, inclusive of discontinued operations, was up 15% to $743 million. Our earnings per diluted share from continuing operations were $5.97, an increase of 23%, and total earnings per diluted share, inclusive of discontinued operations, were $6.85, an increase of 16%. Building on this momentum, we're raising our full year 2025 consolidated adjusted EBITDA guidance to $2.32 billion at the midpoint, driven by strong performance in our core aggregates product line and October daily shipment trends. As outlined in today's earnings release, the revised consolidated adjusted EBITDA guidance includes results from both continuing operations and discontinued operations. On August 3rd, we entered into a definitive agreement with Quickrete Holdings, Inc., or Quickrete, for the exchange of certain assets. As part of the transaction, which is expected to close in the fourth quarter of 2025, Martin Marietta would receive aggregate operations producing approximately 20 million tons annually in Virginia, Missouri, Kansas, and Vancouver, British Columbia, and cash proceeds. In exchange, Quickrete would receive the company's Midlothian cement plant, related cement terminals, and certain Texas ready mix concrete assets. Following the close of this portfolio shaping transaction, we will be optimally positioned to accelerate into our next phase of growth under SOAR 2030. Looking ahead to 2026, we expect continued resilience in our aggregates business supported by sustained infrastructure investment, solid heavy non-residential demand, particularly from accelerating data center development, and an eventual recovery in residential construction. Our preliminary 2026 outlook reflects low single-digit aggregate swallowing growth and mid-single-digit pricing gains. As always, Martin Marietta's industry-leading teams remain focused on what we can control, executing our strategic plan, which includes upholding world-class safety standards and delivering attractive price-cost spread economics regardless of underlying demand trends. Turning to end market trends, infrastructure continues to benefit from sustained federal and state investment. According to the American Road and Transportation Builders Association, or ARPA, the value of state and local government highway, bridge, and tunnel contract awards, a leading indicator of future product demand, increased 10% year-over-year, reaching $128 billion for the 12-month period ended September 30, 2025. While the Infrastructure Investment and Jobs Act, or IIJA, is scheduled to expire in September 2026, over 50% of highway and bridge funding is still to be invested, providing meaningful tailwinds as reauthorization discussions begin. Moreover, at July's infrastructure conference, U.S. Transportation Secretary Sean Duffy reaffirmed the administration's commitment to long-term planning, funding stability, and accelerated project delivery. These priorities, combined with the bipartisan legislative support and healthy Department of Transportation budgets across our top states, reinforce our confidence in the durability of product demand within our most aggregates-intensive, counter-cyclical end market. While intermittent government shutdowns or their immediate aftermath may delay certain administrative functions, core highway, street, bridge, and road construction activities typically proceed uninterrupted, supported by stable funding from the Highway Trust Fund and advanced appropriations. Heavy non-residential construction demand remains steady across our key geographies, underpinned by sector-specific dynamics ranging from rapid expansion in data centers to a recovery in warehousing and distribution and early-stage momentum in energy and advanced manufacturing. Data center development continues to accelerate, with Texas emerging as a national leader in hyperscaler activity, highlighted by more than 100 data centers currently under construction. Meanwhile, warehouse and distribution activity is rebounding from a cyclical bottom as vacancy rates normalize. Investment in the energy sector is gaining traction, particularly along the Gulf Coast, where aggregates-intensive liquefied natural gas, or LNG, projects that were previously paused are advancing following the resumption of federal permitting. Additionally, the reshoring of pharmaceutical manufacturing is another emerging bright spot, bolstered by the reconciliation bill's enhanced investment and R&D tax credits. A few notable examples within Martin Marietta's footprint include Eli Lilly's $6.5 billion facility in Houston and two large projects in Raleigh, including Novo Nordisk's $4.1 billion expansion and Johnson & Johnson's $2 billion expansion. Land availability, proximity to highways, ports, and rail infrastructure, and business-friendly regulatory environments remain key factors influencing the location of large-scale, well-funded, heavy non-residential construction projects. As shown on slide 12 of our supplemental information, Martin Marietta's leading presence along major transportation corridors in high-growth markets positions us to deliver the right products at the right time in the right places. While affordability constraints continue to hinder near-term residential construction activity, moderating mortgage rates suggest a gradual path toward normalization. Encouragingly, in October, the National Association of Home Builders Wells Fargo Housing Market Index, or HMI, a key indicator of home builder confidence and overall health of the housing market, rose to its highest level since April, driven by a nine-point increase in the index's measure of expected single-family home sales over the next six months, the strongest reading since January. Historically, light non-residential construction demands tend to follow residential development, and although more sensitive to interest rates, this activity has demonstrated relative resilience during this most recent housing cycle due to significant population inflows into our key Sunbelt markets. That said, we fully expect light non-residential activity to accelerate as single-family housing recovers. I'll now turn the call over to Michael Petro to discuss our third quarter financial results. Michael.