MLM: Initial Thoughts on Announced Takeover of Lhoist North America

Research evidence excerpt

MLM: Initial Thoughts on Announced Takeover of Lhoist North America

Equity Research

Company Update — June 29, 2026

Construction Materials

Martin Marietta Materials, Inc.

Initial Thoughts on Announced Takeover of Lhoist North Equal Weight

America Price Target: $614.00

Our Call Ticker MLM

Upside/(Downside) to Target 6.0%

MLM's announced purchase of LNA represents a pivot from aggregates, but an attractive

pricing and EBITDA mgn dynamic, with a calculated 3-6% accretion (with and w/o Price (06/29/2026) $579.45

synergies). We consider the deal compelling, but the new business is a show-me story. 52 Week Range $525.38 - 710.97

Market Cap (MM) $34,999

Deal accretive on spreadsheet. MLM said Mon it planned to acquire Lhoist North Enterprise Value (MM) $40,255

America (LNA) for $13.5B ($7B cash, $6.5B stock), implying ~15x on ~$900M of 2026E Average Daily Value (MM) $293

EBITDA. Mgmt saw $85M of annual synergies across procurement, distribution, and Dividend Yield 0.6%

SG&A. On our 17.5x 2026E, the math screens attractive and suggests ~5-8% upside to

our price target. Yet the pivot from a more pure-play aggregates story into more cyclical $ (Dec) Q1 Q2 Q3 Q4 FY

limestone may drive investor pushback and likely becomes a “show-me” story. EBITDA (MM)

2026E 364.0 A 597.4 E 803.7 E 642.3 E 2.41B E

Lime volumes cyclical, pricing stable ex recent spike: Digging through USGS data, we 2027E 401.2 E 749.8 E 916.9 E 747.6 E 2.82B E

found U.S. lime production has been volatile since 1995, while pricing has been more

Source: Company Data, Wells Fargo Securities estimates, and Factset.

stable (Exhibits 2 and 3) until the post-COVID period. Quicklime pricing from 1996 to NA = Not Available, NC = No Change, NE = No Estimate