VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Friday, January 2, 2026
Martin Marietta Materials, Inc.
MLM · NYSE
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Martin Marietta Materials, Inc. is a U.S. natural resource-based building materials company with two Building Materials reportable segments (East Group and West Group) and a smaller Specialties segment. The core moat is local, supply-side advantage in aggregates driven by a large quarry and distribution network and control of reserves. Pricing power appears meaningful in aggregates, as reflected by sustained increases in average selling price per ton. Key risks include construction-cycle downturns, weather disruption, input cost inflation, and regulatory/permitting constraints on quarry development.
Primary segment
East Group
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
3 segments · 6 tags
Updated 2026-01-01
Segments
East Group
Construction aggregates and asphalt products (crushed stone, sand & gravel; asphalt) in local/regional markets
Revenue
52.4%
Structure
Oligopoly
Pricing
strong
Share
—
Peers
West Group
Construction aggregates and downstream products/services (including asphalt/ready-mix/paving in some markets) in local/regional markets
Revenue
40.9%
Structure
Oligopoly
Pricing
strong
Share
—
Peers
Specialties (formerly Magnesia Specialties)
Magnesia-based specialty products and related industrial materials
Revenue
6.7%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
—
Moat Claims
East Group
Construction aggregates and asphalt products (crushed stone, sand & gravel; asphalt) in local/regional markets
Revenue share based on nine months ended 2025-09-30 segment revenues (East $2,419m of total reportable segments $4,617m) per Form 10-Q.
Physical Network Density
Supply
Physical Network Density
Strength
Durability
Confidence
Evidence
Dense network of quarries/mines and distribution yards supports reliable local supply and lowers delivered cost versus more distant sources.
Erosion risks
- Reserve depletion at key quarries
- Operational disruptions (weather, labor, equipment)
- Competitive quarry acquisitions in core markets
Leading indicators
- Quarry reserve life and permitted acreage disclosures
- Capex and acquisitions for aggregates footprint
- Shipment volumes in East Group markets
Counterarguments
- Large peers also operate dense quarry networks in many of the same metro corridors
- Some demand can be served by alternative supply routes (rail/barge) if pricing spreads widen
Geographic Natural
Supply
Geographic Natural
Strength
Durability
Confidence
Evidence
Control of economically viable reserves near demand centers creates a location-based supply advantage that is difficult to replicate organically.
Erosion risks
- Permitting and land-use changes that restrict expansion
- Increased recycled aggregates substitution in some applications
- Demand shocks (construction downturn)
Leading indicators
- Local permitting outcomes and community opposition in key markets
- Recycled aggregates penetration and specs acceptance
- Infrastructure letting volumes in core states
Counterarguments
- In some regions, reserves are not scarce and competitors can expand supply
- Delivered-cost advantage may narrow if logistics options improve
Benchmark Pricing Power
Financial
Benchmark Pricing Power
Strength
Durability
Confidence
Evidence
Sustained price increases per ton suggest the ability to pass through inflation and capture value in tight local aggregates markets; cyclicality limits durability.
Erosion risks
- Price resistance in a construction slowdown
- New supply from competitors or imports in coastal markets
- Input cost spikes (diesel) compressing delivered margins
Leading indicators
- Aggregates average selling price per ton
- Gross profit per ton / EBITDA per ton
- Backlog and bid activity in infrastructure and nonresidential
Counterarguments
- Price gains may reflect inflation pass-through and mix effects, not durable pricing power
- During weak demand, competitors can discount to keep plants utilized
West Group
Construction aggregates and downstream products/services (including asphalt/ready-mix/paving in some markets) in local/regional markets
Revenue share based on nine months ended 2025-09-30 segment revenues (West $1,889m of total reportable segments $4,617m) per Form 10-Q.
Physical Network Density
Supply
Physical Network Density
Strength
Durability
Confidence
Evidence
Large multi-state quarry and distribution network supports proximity-based advantages and service levels in local markets across the West Group footprint.
Erosion risks
- Supply disruptions (weather events, quarry issues)
- Competitive capacity additions in fast-growth metros
- Higher logistics costs reducing delivered competitiveness
Leading indicators
- West Group shipment volumes and pricing trends
- Capital additions and plant/yard expansions
- Severe weather disruption frequency in key states
Counterarguments
- Network-density advantages are market-by-market and may not hold uniformly across the entire footprint
- Some competitors have comparable terminal networks in rail- and barge-served markets
Geographic Natural
Supply
Geographic Natural
Strength
Durability
Confidence
Evidence
Control of reserves near fast-growing metros and infrastructure corridors supports local supply advantage where new quarry development is difficult.
Erosion risks
- Alternative materials substitution (recycled aggregates, slag) where specs allow
- Regional overbuilding leading to excess capacity
- Policy changes that reduce infrastructure spending
Leading indicators
- Infrastructure spending and letting trends in key states
- Industrial project announcements (data centers, manufacturing)
- Competitive capacity expansions / new quarry permits in key metros
Counterarguments
- Where reserves are plentiful, advantage may be primarily cost execution rather than scarcity
- Customers can dual-source across nearby suppliers if capacity is ample
Benchmark Pricing Power
Financial
Benchmark Pricing Power
Strength
Durability
Confidence
Evidence
Per-ton price increases indicate pricing leverage, but durability depends on construction cycle and competitive supply in each local market.
Erosion risks
- Downturn in Texas/West construction activity
- Competitive discounting to fill capacity
- Fuel and wage inflation outpacing price realization
Leading indicators
- Aggregates ASP and gross profit per ton
- Shipment volume growth in industrial/nonres end markets
- Backlog trends for downstream operations (where applicable)
Counterarguments
- Per-ton metrics can be influenced by mix and weather, not just pricing power
- Competitors can respond with price cuts during weak demand periods
Specialties (formerly Magnesia Specialties)
Magnesia-based specialty products and related industrial materials
Revenue share based on nine months ended 2025-09-30 segment revenues (Specialties $309m of total reportable segments $4,617m) per Form 10-Q.
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength
Durability
Confidence
Evidence
Multi-site manufacturing footprint suggests capital-intensive processing and operational know-how that can be difficult for new entrants to replicate quickly.
Erosion risks
- Customer switching if products are not highly differentiated
- Lower-cost imports or substitution by alternative materials
- Energy and input-cost volatility affecting cost competitiveness
Leading indicators
- Specialties segment margin and volume trends
- Capacity utilization and energy cost exposure disclosures
- End-market shifts (steel/environmental) affecting demand
Counterarguments
- If products are standardized, scale/know-how may not confer strong pricing power
- Industrial customers may have significant buyer power and multi-source strategies
Evidence
As of September 30, 2025, the Company supplies aggregates ... through its network of approximately 390 quarries, mines and distribution yards...
Shows the breadth/density of the production and distribution footprint that underpins local market advantage.
Martin Marietta ... is a natural resource-based building materials company.
Supports the reserve/location framing of the business (resource-based with quarry assets).
average selling price (ASP) increased 8.0% to $23.24 per ton
Direct disclosure of year-over-year aggregates ASP increase.
average selling price ... rising 7% to $23.77 per ton
Independent reporting corroborating per-ton pricing momentum.
...network of approximately 390 quarries, mines and distribution yards...
Footprint scale supports a network-density moat across the company's local markets.
Showing 5 of 9 sources.
Risks & Indicators
Erosion risks
- Reserve depletion at key quarries
- Operational disruptions (weather, labor, equipment)
- Competitive quarry acquisitions in core markets
- Permitting and land-use changes that restrict expansion
- Increased recycled aggregates substitution in some applications
- Demand shocks (construction downturn)
Leading indicators
- Quarry reserve life and permitted acreage disclosures
- Capex and acquisitions for aggregates footprint
- Shipment volumes in East Group markets
- Local permitting outcomes and community opposition in key markets
- Recycled aggregates penetration and specs acceptance
- Infrastructure letting volumes in core states
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
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