Martin Marietta Materials Inc Liquidation Value

Martin Marietta Materials (MLM) presents a deeply negative liquidation posture as of March 31, 2026, consistent with its asset-heavy aggregates business profile. Total reported assets of $20.5B are dominated by PP&E (gross $17.8B, net $12.6B) and goodwill ($3.8B), both of which take severe haircuts under a liquidation framework. Applying a 50-60% recovery rate to PP&E net book value yields approximately $6.3-7.6B in recoverable value; goodwill and other intangibles ($505M net) receive zero recovery. Cash of $273M recovers at par; AR of $780M recovers at approximately $700-740M at a 90-95% rate; inventory net of $1.2B recovers at roughly $730M at 60%. Gross haircutted asset recovery approximates $8.5-9.5B across all categories. Against total liabilities of $9.2B at face value — including $5.3B in long-term debt (fair value $4.7B but carried at face for liquidation purposes), $1.6B in deferred tax liabilities, $916M in other noncurrent liabilities, $394M in operating lease obligations (current plus noncurrent), and $1.0B in current liabilities — the residual to equity is materially negative. The MFFAIS CLV of negative $6.4B corroborates this math. The most significant change from the prior 10-K (FY2025) is the completion of the QUIKRETE asset exchange transaction in Q1 2026: MLM divested certain operations, received $450M in cash, and simultaneously acquired PP&E and goodwill (noncash PP&E acquired of $2.7B per XBRL, goodwill added of $220M) via the exchange. This transaction inflated both the asset base and the liability stack relative to year-end 2025. The company also repurchased $200M of common stock and paid $51M in dividends in Q1 2026, reducing cash and retained earnings. No new long-term debt was issued in Q1 2026; current LTD is zero, and both the $800M Revolving Facility and $400M Trade Receivable Facility were undrawn at March 31, 2026. Net equity on book is $11.3B, but under liquidation accounting the estimated recovery is negative approximately $4-6B depending on PP&E recovery assumption applied.