Note O: Segments

As of December 31, 2025, 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 accounting policies used for segment reporting are the same as those described in Note A.

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 include 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 include mainly repairs and maintenance, contract services, supplies and royalties.

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

Earnings from operations for the West Group included an asset and portfolio rationalization charge of $21 million (see note R) in 2025; a $1.3 billion gain and $16 million of transaction expenses in 2024 and $6 million of transaction expenses in 2023 on the divestiture of the South Texas cement business and certain of its related ready mixed concrete operations (see Note B); and an asset and portfolio rationalization charge of $50 million (see Note R) in 2024.

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


year ended December 31, 2025 (in millions)	East Group			West Group		Specialties		Total Reportable Segments		Corporate			Total
Segment Revenues	$	3,194		$	2,515	$	441	$	6,150	$	—		$	6,150
Less:
Labor and benefits expense		417			300		59		776		3			779
Raw materials expense		89			128		26		243		—			243
Depreciation, depletion and amortization expense		314			212		26		552		3			555
Energy expense		146			103		36		285		—			285
External freight expense		114			234		39		387		—			387
Other costs of revenues		962			915		118		1,995		17			2,012
Selling, general and administrative expenses		164			147		27		338		105			443
Acquisition, divestiture and integration expenses		—			—		—		—		15			15
Other operating (income) expense, net		(4	)		21		—		17		(23	)		(6	)
Segment Earnings (Loss) from Operations	$	992		$	455	$	110	$	1,557	$	(120	)	$	1,437
Interest expense														230
Other nonoperating income, net														(19	)
Earnings from continuing operations before income tax expense													$	1,226


year ended December 31, 2024 (in millions)	East Group		West Group			Specialties			Total Reportable Segments			Corporate			Total
Segment Revenues	$	2,941	$	2,401		$	320		$	5,662		$	—		$	5,662
Less:
Labor and benefits expense		391		296			39			726			1			727
Raw materials expense		96		178			18			292			—			292
Depreciation, depletion and amortization expense		259		191			15			465			3			468
Energy expense		145		105			31			281			—			281
External freight expense		108		208			31			347			—			347
Other costs of revenues		905		892			79			1,876			35			1,911
Selling, general and administrative expenses		139		136			20			295			134			429
Acquisition, divestiture and integration expenses		—		16			—			16			34			50
Other operating expense (income), net		7		(1,303	)		(3	)		(1,299	)		(23	)		(1,322	)
Segment Earnings (Loss) from Operations	$	891	$	1,682		$	90		$	2,663		$	(184	)		2,479
Interest expense																169
Other nonoperating income, net																(56	)
Earnings from continuing operations before income tax expense															$	2,366


year ended December 31, 2023 (in millions)	East Group			West Group			Specialties		Total Reportable Segments			Corporate			Total
Segment Revenues	$	2,763		$	2,773		$	315	$	5,851		$	—		$	5,851
Less:
Labor and benefits expense		362			328			36		726			(7	)		719
Raw materials expense		104			251			22		377			—			377
Depreciation, depletion and amortization expense		205			206			13		424			3			427
Energy expense		152			163			37		352			—			352
External freight expense		113			221			30		364			—			364
Other costs of revenues		854			932			80		1,866			1			1,867
Selling, general and administrative expenses		124			139			18		281			144			425
Acquisition, divestiture and integration expenses		—			6			—		6			6			12
Other operating (income) expense, net		(8	)		(7	)		3		(12	)		(13	)		(25	)
Segment Earnings (Loss) from Operations	$	857		$	534		$	76	$	1,467		$	(134	)	$	1,333
Interest expense																165
Other nonoperating income, net																(58	)
Earnings from continuing operations before income tax expense															$	1,226

Assets employed by segment include assets directly identified with those operations, including assets held for sale. Corporate assets consist primarily of cash, cash equivalents and restricted cash; property, plant and equipment for corporate operations; and other assets not directly identifiable with a reportable segment. Assets held for sale associated with discontinued operations are predominantly included in the West Group. The increase in assets employed in the Specialties segment is primarily due to the Premier acquisition (see Note B). The decrease in assets employed in the Corporate segment primarily relates to a decrease in cash and cash equivalents.


December 31 (in millions) Assets employed	2025		2024
East Group	$	8,783	$	8,452
West Group		7,972		7,941
Specialties		883		269
Total reportable segments		17,638		16,662
Corporate		1,073		1,508
Total	$	18,711	$	18,170

The following tables display property additions for the Company's reportable segments:


years ended December 31 (in millions) Total property additions, including the impact of acquisitions	2025		2024		2023
East Group	$	537	$	3,185	$	231
West Group		300		1,216		342
Specialties		377		32		39
Total reportable segments		1,214		4,433		612
Corporate		26		22		14
Total	$	1,240	$	4,455	$	626


years ended December 31 (in millions) Property additions through acquisitions	2025		2024		2023
East Group	$	92	$	2,853	$	—
West Group		2		732		—
Specialties		335		—		—
Total reportable segments		429		3,585		—
Corporate		—		—		—
Total	$	429	$	3,585	$	—

Historical Timeline

Fiscal Year	Filed
2025	Feb 19, 2026	Showing above
2024	Feb 21, 2025

2023	Feb 23, 2024

2022	Feb 24, 2023

2021	Feb 22, 2022

2020	Feb 19, 2021

2019	Feb 21, 2020

2018	Feb 25, 2019

2017	Feb 23, 2018

2016	Feb 24, 2017

2015	Feb 23, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

MARTIN MARIETTA MATERIALS INC Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures