Martin Marietta Materials (MLM) risk factors, FY2024 10-K

Other

1. 01An investment in Martin Marietta common stock or debt securities involves risks and uncertainties. You should consider the following factors carefully, in addition to the other information contained in this Form 10-K, before deciding to purchase or otherwise trade the Company’s securities
2. 02Our business depends on activity within the construction industry, which can be cyclical
3. 03Part I ♦ Item 1A – Risk Factors
4. 04Our Building Materials business is seasonal and subject to the weather, which can significantly impact operations
5. 05Our Building Materials business depends on the availability of quality aggregates reserves or deposits and our ability to mine them economically
6. 06Our businesses face many competitors
7. 07Our future growth depends in part on acquiring other businesses in our industry, and we have the ability to acquire businesses by paying all or in part with shares of our common stock
8. 08Our integration of the acquisition or business combination with other businesses may not be as successful as projected
9. 09Our acquisitions and divestitures could harm our results of operations
10. 10we may be unable to retain the customers and partners of acquired businesses following the acquisition
11. 11Our cement and Magnesia Specialties businesses may become capacity-constrained
12. 12Our cement business could suffer if cement or clinker imports from other countries significantly increase or are sold in the United States in violation of U.S. fair trade laws
13. 13Changes in legal requirements and governmental policies concerning zoning, land use, the environment, health and safety and other areas of the law, as well as litigation relating to these matters, affect our businesses. Our operations expose us to the risk of material environmental liabilities
14. 14Legislation or regulations to address climate change and transition to a low-carbon economy may adversely impact our business, including financial impacts
15. 15Weather patterns may result in physical impacts that could have adverse effects on our operations or financial condition
16. 16Our business is dependent on funding from a combination of federal, state and local sources
17. 17Our operations are highly dependent upon the interest rate-sensitive construction and steelmaking industries. Therefore, our business in these industries may experience declines from sustained high or rising interest rates and cost increases
18. 18Increases in our effective income tax rate may harm our results of operations
19. 19Investor and stakeholder focus on climate change and sustainability matters and any related reporting obligations may impact our businesses
20. 20Our businesses could be adversely affected by outbreak of disease, epidemic or pandemic, or similar public health threat, or fear of such an event and its related economic and societal response
21. 21Labor disputes could disrupt operations of our businesses
22. 22We depend on the recruitment and retention of qualified personnel, and our failure to attract and retain such personnel could adversely affect our business
23. 23Our reputation, ability to do business and results of operations could be impaired by improper conduct by any of our employees, agents or business partners
24. 24Investment returns on our pension assets may be lower than expected, or interest rates may decline, requiring us to make significant additional cash contributions to our benefit plans
25. 25Our business is capital intensive
26. 26Our earnings are affected by the application of accounting standards and our critical accounting policies, which involve subjective judgments and estimates by our management. Our estimates and assumptions could be wrong
27. 27The adoption of new accounting standards may affect our financial results
28. 28Impairment charges could have a material adverse effect on our financial results
29. 29Disruptions in the credit markets could affect our business
30. 30Our Magnesia Specialties business faces currency risks from its overseas activities
31. 31Unexpected equipment failures, catastrophic events and scheduled maintenance may lead to production curtailments or shutdowns
32. 32Our paving operations present additional risks to our business
33. 33Our ready mixed concrete and asphalt and paving product lines have lower profit margins and operating results can be more volatile
34. 34Short supplies and high costs of fuel, energy and raw materials affect our businesses
35. 35Cement is sensitive to supply and price volatility
36. 36Our Magnesia Specialties business depends in part on the steel industry and the supply of reasonably priced fuels
37. 37We are dependent on information technology and our systems and infrastructure face certain risks, including cybersecurity risks and data leakage risks
38. 38Delays or interruptions in shipping products of our businesses could affect our operations
39. 39Our articles of incorporation and bylaws and North Carolina law may inhibit a change in control that you may favor