"Road Building Is Booming – This Is the One You Want!" Jim Cramer’s Bullish Case for Martin Marietta Materials (MLM)

Jim Cramer, the outspoken host of Mad Money, has long been a vocal advocate for Martin Marietta Materials, Inc. (NYSE:MLM), the nation’s largest producer of aggregates (crushed stone, sand, and gravel). In April 2025, he doubled down on his bullish stance, declaring: “Road Building Is Booming – This Is the One You Want!” This article dissects Cramer’s rationale, the company’s financial health, and why investors should take note of this infrastructure play.

The Infrastructure Tailwind: Why Road Building Matters

The U.S. infrastructure boom is no fleeting trend. Since the passage of Biden’s $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) in 2021, funding has trickled down to states, fueling projects like highways, bridges, and public transit. Martin Marietta, with its coast-to-coast network of quarries and distribution centers, sits squarely in the bull’s-eye of this spending.

Cramer’s thesis hinges on two pillars:
1. Geographic dominance: MLM’s acquisitions, including a $2.3 billion buy of HeidelbergCement’s U.S. West Coast operations in 2021, give it an unmatched footprint to serve projects in states like Texas, Florida, and California.
2. Inelastic demand: Aggregates are the unsung heroes of construction—used in 95% of all infrastructure projects. Even in a slowing economy, road repairs and public works remain politically untouchable.

MLM’s stock has risen steadily since early 2024, reflecting optimism around infrastructure spending.

Cramer’s Case: More Than Just a Tariff-Proof Play

Cramer has consistently highlighted MLM’s resilience to external shocks:
- Tariff resistance: Unlike global competitors, MLM sources nearly all aggregates domestically, shielding it from trade wars. In April 2025, he grouped it with McDonald’s and Yeti as “resilient picks amid new U.S. tariffs.”
- Stable cash flows: The company’s 10% revenue growth in Q2 2024 (to $1.82 billion) and a $1.45 billion aggregates gross profit in 2024 underscore its pricing power.
- Hedge fund confidence: As of Q4 2024, 54 hedge funds held MLM, including top institutional investors like Viking Global and Dimensional Fund Advisors.

Yet Cramer isn’t blind to risks. He urged investors to “wait to see the quarter” before Q1 2025 results, citing concerns about delayed infrastructure projects and weather disruptions. The company delivered, with Q1 2025 results showing aggregates volume growth of 2.5%–5.5% and ASP hikes of 5.5%–7.5%, aligning with its 2025 guidance.

The Numbers Back the Narrative

MLM’s 2025 financial targets are ambitious but achievable:
- Adjusted EBITDA: $2.15 billion to $2.35 billion, a 9% increase from 2024.
- Aggregates gross profit: $1.61 billion–$1.71 billion, fueled by price hikes and volume growth.
- Balance sheet strength: $670 million in cash and $1.2 billion in credit capacity allow it to pursue bolt-on acquisitions (e.g., recent moves in Florida and Texas) without overleveraging.

Compare this to its peers:
- Vulcan Materials (VMC), the second-largest aggregates producer, has lagged in geographic diversification.
- Eagle Materials (EXP), focused on cement and building products, faces higher volatility due to residential construction trends.

MLM’s focus on infrastructure-driven demand—not housing cycles—gives it a defensive edge.

Risks on the Horizon

No investment is risk-free. Key concerns include:
1. Funding delays: State-level projects often face bureaucratic hurdles. For example, Texas’s $28 billion road plan has seen delays due to permitting bottlenecks.
2. Labor shortages: The construction industry’s worker deficit could slow project timelines, squeezing margins.
3. Interest rates: While MLM’s business is less sensitive to rate hikes than, say, tech stocks, higher borrowing costs could dampen private construction.

Cramer’s rebuttal? “The infrastructure train has left the station—it’s too late to derail now.”

Conclusion: A Solid Bet on the U.S. Buildout

Martin Marietta Materials is a low-risk, high-reward play on the U.S. infrastructure renaissance. With $2.25 billion in EBITDA expected by 2025, a dividend yield of 1.5%, and a fortress balance sheet, it offers both growth and stability.

MLM’s stock has outperformed the S&P 500 since 2021, reflecting its defensive profile.

While investors should monitor near-term risks like labor shortages, the long-term story is clear: As roads, bridges, and utilities age, the demand for aggregates will only grow. Cramer’s “road building is booming” call isn’t just a slogan—it’s an investment thesis grounded in data and geography. For 2025 and beyond, MLM looks like the one to want.

Data as of April 2025. Past performance does not guarantee future results.