Martin Marietta to Acquire Lhoist North America for $13.5 Billion
The deal would triple projected 2026 revenue to $9.1 billion and expand margins.
Martin Marietta Materials (MLM) agreed to combine with Lhoist North America in a $13.5 billion transaction, marking the largest acquisition in the heavy-materials producer’s history and a strategic pivot into lime and specialty minerals. The deal, announced alongside first-quarter results, would create a company with projected 2026 revenue of $9.1 billion—more than triple Martin Marietta’s standalone guidance—and lift adjusted EBITDA margins to 37%.
The transaction reflects a bet on industrial demand for lime, which is used in steelmaking, water treatment, and chemical processing, alongside Martin Marietta’s core aggregates business. Management expects the combination to be accretive to earnings and margins in the first full year following close, with $85 million in annual run-rate cost synergies. The deal values Lhoist North America at approximately 15 times adjusted EBITDA for the twelve months ended December 31, 2025, including synergies.
First-quarter revenue rose 17% year-over-year to $1.362 billion, accelerating from 12% growth in the prior quarter. Adjusted EBITDA from continuing operations increased 14% to $364 million, while aggregates shipments jumped 12.4% to 43.9 million tons, the fastest growth in six quarters. The company attributed the volume surge to contributions from the QUIKRETE asset exchange, completed in February, and other acquisitions.
Despite the strong volumes, aggregates pricing remained flat at $23.70 per ton, pressured by geographic and acquisition-related mix headwinds. The Specialties segment, which includes magnesia-based products, posted record revenue of $143 million, up 64% year-over-year, though gross profit growth slowed to 18%. The company completed the acquisition of New Frontier Materials in May, adding over 8 million tons of annual aggregates capacity.
For 2026, Martin Marietta raised its aggregates volume growth guidance to 12% at the midpoint, up from 2% in the prior quarter, while trimming price growth expectations to 2.5% from 5%, citing acquisition-related headwinds. Organic volume growth guidance was also lifted to 2% from 1%, signaling improved underlying demand. The company reaffirmed its 2026 adjusted EBITDA guidance of $2.43 billion at the midpoint, unchanged from the prior quarter despite the Lhoist transaction.
The Lhoist deal, expected to close in the first half of 2027, would reshape Martin Marietta’s portfolio and financial profile. Combined free cash flow conversion is projected to reach 81% in 2026, up from the standalone guidance of 76%. The company also updated its segment reporting, consolidating into two groups following the QUIKRETE asset exchange.