Adjusted EBITDA grew 4% year-over-year to $313 million, with margin expanding 160 basis points to 38.5%.
Diluted earnings per share increased 8% to a quarterly record $2.29, supported by higher net income and lower diluted shares outstanding.
Gross profit increased $8 million to $402 million, driven by price increases partially offset by lower volumes and unfavorable material costs.
Net cash provided by operating activities was $184 million, up from $171 million, driven by lower working capital needs and higher gross profit, partially offset by acquisition expenses.
Net income rose $8 million to $195 million, helped by higher gross profit and unrealized mark-to-market gains, offset by $15 million acquisition-related expenses.
Net leverage ratio stood at 1.38x with $778 million cash and $745 million available credit, maintaining a flexible, covenant-light debt structure.
Second quarter 2025 net sales were $814 million, flat year-over-year, with a 47% increase in defense end market sales and record $142 million sales outside North America On-Highway, up 11%.
Aftermarket operations accounted for approximately 63% of total gross profit with parts, service, and collision center revenues reaching $636.3 million, a 1.4% increase year-over-year.
Board of Directors approved a $0.19 per share cash dividend, a 1% increase over the prior quarterly dividend and the ninth increase since July 2018.
Medium-duty Class 4-7 commercial vehicle sales increased 1% year-over-year with 3,626 units sold in the U.S. and 177 units in Canada.
New Class 8 truck sales in the U.S. were 3,178 units, a 20% year-over-year decrease primarily due to timing of large fleet deliveries in the prior year.
Repurchased $83.9 million of common stock during the quarter and paid $14.5 million in cash dividends.
Rush Truck Leasing achieved record revenues of $93.1 million, up 6.3% year-over-year.
Second quarter revenues were $1.9 billion with net income of $72.4 million or $0.90 per diluted share.
Technician turnover reached a 12-month low and aftermarket revenues reached their highest level in the past 12 months.
Used commercial vehicle sales were flat year-over-year at 1,715 units.
Aggregates revenues increased 6% to $1.32 billion, with gross profit rising 9% to $430 million and gross margin improving by 94 basis points to 33%.
Asphalt and Paving revenues decreased 7%, with gross profit down 8% due to lower shipments and higher costs.
Building Materials revenues rose 2% to $1.7 billion, with gross profit up 3% to $517 million and gross margin improving modestly to 30%.
Cement and Concrete revenues declined 6%, with gross profit down 25% due to lower operating leverage and higher raw material costs.
Full year 2025 adjusted EBITDA guidance was increased to $2.3 billion at the midpoint, reflecting strong first half results and contributions from the Premier Magnesia acquisition.
Magnesia Specialties achieved new quarterly record revenues of $90 million and set second quarter records for gross profit and gross margin, with margin increasing by 605 basis points.
Martin Marietta reported record second quarter 2025 financial results with consolidated adjusted EBITDA of $630 million, an 8% increase year-over-year.
Transformation and Margin Expansion in Industrial Segment
The Industrial segment achieved a record adjusted operating margin of 25.1%, up 90 basis points from the previous year, driven by The Win Strategy.
The company expects a 700 basis point margin expansion from FY '19 through FY '26, demonstrating significant margin resilience even during negative organic growth periods.
The portfolio's shift towards longer cycle, secular trend, and aftermarket revenues is a key factor, with 67% now in these categories.
International and diversified industrial businesses are using cost reduction and efficiency tools to sustain margin growth amid market challenges.
The transformation includes acquisitions and international distribution growth, with an aim for 85% of the portfolio to be longer cycle, secular, and aftermarket by FY '29.
Dafinchi
