Segments

9 Months Ended

Sep. 30, 2025

10.

Segments

The Building Materials business is comprised of four divisions that represent individual operating segments. These operating segments are consolidated into two reportable segments, the East Group and the West Group, for financial reporting purposes, as they meet the aggregation criteria. The Specialties business represents an individual operating and reportable segment.

The Company’s Chief Operating Decision Maker (CODM) is the Chair, President and Chief Executive Officer. The CODM reviews results by reportable segment on a quarterly basis and allocates resources to achieve the Company’s strategic objectives based on an evaluation of each reportable segment’s performance. This evaluation is largely based on segment earnings from operations, as management believes this is the best metric of segment profitability and operating performance. Segment earnings from operations is also a measure in the determination of incentive compensation targets and awards. Segment earnings from operations includes revenues less cost of revenues; selling, general and administrative expenses; other operating income and expenses, net; and exclude interest income and expense; other nonoperating income and expenses, net; and income tax expense.

The significant expense categories shown below align with the segment-level information regularly provided to the CODM. Other costs of revenues for each reportable segment mainly include repairs and maintenance, contract services, supplies and royalties.

Corporate loss from operations primarily includes depreciation and amortization; expenses for corporate administrative functions; acquisition, divestiture and integration expenses; and other nonrecurring income and expenses not attributable to operations of the Company's operating segments.

Earnings from operations for the West Group for the nine months ended September 30, 2024 included a $1.3 billion gain and $16 million in transaction expenses on the divestiture of the South Texas cement business and certain of its related ready mixed concrete operations (see Note 2) and a noncash asset and portfolio rationalization charge of $50 million (see Note 13).

The following tables display selected financial data for the Company’s reportable segments. Revenues, as presented on the consolidated statements of earnings and comprehensive earnings, reflect the elimination of intersegment revenues, which represent sales from one segment to another segment and are immaterial. Revenues and earnings (loss) from operations reflect continuing operations only. Income tax expense is not allocated to the Company's reportable segments.


	Three Months Ended September 30, 2025
	(Dollars in Millions)
	East Group			West Group			Specialties		Total Reportable Segments			Corporate			Total
Segment Revenues	$	953		$	762		$	131	$	1,846		$	—		$	1,846
Less:
Labor and benefits expense		114			82			17		213			3			216
Raw materials expense		42			49			8		99			—			99
Depreciation, depletion and amortization expense		81			53			8		142			1			143
Energy expense		41			28			10		79			—			79
External freight expense		34			70			11		115			—			115
Other costs of revenues		271			265			43		579			4			583
Selling, general and administrative expenses		41			36			8		85			25			110
Acquisition, divestiture and integration expenses		—			—			—		—			5			5
Other operating income, net		(2	)		(1	)		—		(3	)		(6	)		(9	)
Segment Earnings (Loss) from Operations	$	331		$	180		$	26	$	537		$	(32	)	$	505
Interest expense																59
Other nonoperating income, net																(4	)
Consolidated earnings from continuing operations before income tax expense															$	450


	Three Months Ended September 30, 2024
	(Dollars in Millions)
	East Group		West Group			Specialties			Total Reportable Segments		Corporate			Total
Segment Revenues	$	849	$	711		$	82		$	1,642	$	—		$	1,642
Less:
Labor and benefits expense		104		77			9			190		2			192
Raw materials expense		48		67			5			120		—			120
Depreciation, depletion and amortization expense		75		48			3			126		1			127
Energy expense		41		27			8			76		—			76
External freight expense		30		58			8			96		—			96
Other costs of revenues		235		248			20			503		15			518
Selling, general and administrative expenses		34		32			5			71		30			101
Acquisition, divestiture and integration expenses		—		—			—			—		3			3
Other operating expense (income), net		10		(5	)		(2	)		3		—			3
Segment Earnings (Loss) from Operations	$	272	$	159		$	26		$	457	$	(51	)	$	406
Interest expense															38
Other nonoperating income, net															(6	)
Consolidated earnings from continuing operations before income tax expense														$	374


	Nine Months Ended September 30, 2025
	(Dollars in Millions)
	East Group			West Group		Specialties		Total Reportable Segments			Corporate			Total
Segment Revenues	$	2,419		$	1,889	$	309	$	4,617		$	—		$	4,617
Less:
Labor and benefits expense		314			227		38		579			3			582
Raw materials expense		65			97		17		179			—			179
Depreciation, depletion and amortization expense		233			157		17		407			2			409
Energy expense		110			77		27		214			—			214
External freight expense		85			175		28		288			—			288
Other costs of revenues		744			692		74		1,510			13			1,523
Selling, general and administrative expenses		123			110		18		251			89			340
Acquisition, divestiture and integration expenses		—			—		—		—			9			9
Other operating (income) expense, net		(4	)		3		—		(1	)		(22	)		(23	)
Segment Earnings (Loss) from Operations	$	749		$	351	$	90	$	1,190		$	(94	)	$	1,096
Interest expense															172
Other nonoperating income, net															(23	)
Consolidated earnings from continuing operations before income tax expense														$	947


	Nine Months Ended September 30, 2024
	(Dollars in Millions)
	East Group		West Group			Specialties			Total Reportable Segments			Corporate			Total
Segment Revenues	$	2,198	$	1,809		$	243		$	4,250		$	—		$	4,250
Less:
Labor and benefits expense		295		226			29			550			2			552
Raw materials expense		72		143			14			229			—			229
Depreciation, depletion and amortization expense		189		143			11			343			2			345
Energy expense		111		80			24			215			—			215
External freight expense		82		156			24			262			—			262
Other costs of revenues		689		660			57			1,406			30			1,436
Selling, general and administrative expenses		103		102			15			220			108			328
Acquisition, divestiture and integration expenses		—		16			—			16			28			44
Other operating expense (income), net		7		(1,277	)		(4	)		(1,274	)		(27	)		(1,301	)
Segment Earnings (Loss) from Operations	$	650	$	1,560		$	73		$	2,283		$	(143	)	$	2,140
Interest expense																118
Other nonoperating income, net																(51	)
Consolidated earnings from continuing operations before income tax expense															$	2,073

Assets employed by segment include assets directly identified with those operations. Corporate assets consist primarily of cash and cash equivalents; property, plant and equipment for corporate operations; and other assets not directly identifiable with a reportable segment.


	September 30,		December 31,
	2025		2024
Assets employed:	(Dollars in Millions)
East Group	$	8,738	$	8,452
West Group		8,034		7,941
Specialties		902		269
Total reportable segments		17,674		16,662
Corporate		979		1,508
Total	$	18,653	$	18,170

The following tables display property additions for the Company’s reportable segments.


	Nine Months Ended
	September 30,
	2025		2024
Total property additions, including the impact of acquisitions:	(Dollars in Millions)
East Group	$	307	$	2,219
West Group		173		683
Specialties		365		24
Total reportable segments		845		2,926
Corporate		18		12
Total	$	863	$	2,938


	Nine Months Ended
	September 30,
	2025		2024
Property additions through business combinations:	(Dollars in Millions)
East Group	$	—	$	2,052
West Group		2		472
Specialties		337		—
Total reportable segments		339		2,524
Corporate		—		—
Total	$	339	$	2,524

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

MARTIN MARIETTA MATERIALS INC 10-Q