Building Momentum in Construction Materials: Marietta and Vulcan Lead the Aggregates Sector

The concrete and aggregates industry is experiencing a significant upturn, driven by sustained government spending and private sector expansion. Within this landscape, two companies are emerging as particularly well-positioned to capture growth: Martin Marietta Materials, headquartered in Raleigh, North Carolina, and Vulcan Materials. Both firms stand to benefit from structural tailwinds reshaping the construction materials market through 2026 and beyond.

Martin Marietta Materials: A Raleigh-Based Aggregates Leader

Martin Marietta, based in Raleigh, NC, has established itself as a dominant force in the production and supply of construction aggregates and heavy building materials, particularly cement. The company’s strategic location in North Carolina provides access to growing infrastructure projects and nonresidential development across the southeastern United States. Marietta’s growth engine is fueled by robust demand across its core markets, underpinned by substantial federal and state infrastructure funding streams and steady activity in heavy nonresidential construction.

Federal and state infrastructure programs—including multi-year funding allocations from the Infrastructure Investment and Jobs Act—create a predictable pipeline of highway, bridge, and road projects that anchor aggregates demand. Beyond traditional infrastructure, heavy nonresidential activity is accelerating through data center proliferation, emerging manufacturing initiatives, and energy-related projects throughout the high-growth Sunbelt region where Marietta operates. While residential construction remains constrained by affordability challenges and elevated mortgage rates, signs of eventual stabilization are appearing as rates moderate.

Marietta’s business model, anchored in aggregates with disciplined pricing execution and portfolio optimization, positions the company to capitalize on these structural growth drivers. Over the past year, Martin Marietta shares have appreciated 19.6%. Analyst consensus for 2026 EPS has trended upward to $21.78 from $21.77 over the past 30 days, reflecting growing confidence in the company’s prospects. Expected growth in both EPS and revenue reaches 6.5% and 23.8%, respectively. The company surpassed earnings estimates in two of the last four quarters, missing on two occasions with an average negative surprise of 1.5%.

Vulcan Materials: Diversification and Operational Excellence

Vulcan Materials, operating from Birmingham, Alabama, rounds out the sector’s leadership through its comprehensive portfolio of construction aggregates, asphalt mix, and ready-mixed concrete. The company’s growth trajectory is supported by resilient end-market demand and disciplined operational execution rooted in the Vulcan Way of Operating—a systematic approach to enhancing plant efficiency, managing costs, and expanding unit profitability.

Public construction projects remain a powerful growth catalyst, backed by multi-year infrastructure funding and stronger contract awards in Vulcan’s core operating regions. These provide stable visibility into aggregates shipments and revenue generation. Private nonresidential construction is also strengthening, particularly through momentum in data center development and large-scale industrial projects positioned near Vulcan’s key facilities. The company’s geographic diversity and concentration in faster-growing Sunbelt markets help cushion weakness in residential demand.

Vulcan’s disciplined pricing strategy and leading market positions support steady price realization and margin expansion. Strategic portfolio actions—including divestitures of non-core downstream assets—sharpen the company’s aggregates-focused strategy while freeing capital for high-return growth opportunities. Year-to-date, Vulcan has gained 8.3% over the past 12 months. The 2026 EPS estimate reflects 7.5% year-over-year growth, with a three-to-five-year expected growth rate of 14.8%. The company surpassed earnings estimates in three of the trailing four quarters, missing once, with an average positive surprise of 13%.

Industry Growth Drivers: Infrastructure, Efficiency, and Market Dynamics

The Building Products - Concrete & Aggregates sector benefits from three powerful catalysts reshaping the competitive landscape. First, infrastructure revitalization through landmark legislation—the Infrastructure Investment and Jobs Act, the CHIPS Act, and the Inflation Reduction Act—signals sustained commitment to American infrastructure renewal. These initiatives channel capital into transportation, energy, broadband, water systems, and related sectors, providing a stable foundation for aggregates demand.

Second, industry participants are increasingly pursuing strategic acquisitions to enhance their domestic and international portfolios while simultaneously driving operational efficiency gains. Cost discipline and margin expansion through productivity improvements are enabling companies to generate higher earnings and cash flows even amid input price volatility. The pricing environment across major product categories remains constructive, supporting healthy margin dynamics.

Third, the sector faces persistent headwinds from escalating material costs, labor shortages, rising wages, and weather-related disruptions. Companies face exposure to volatile electricity, diesel fuel, and petroleum-based material costs. Weather events—including excessive rainfall, hurricanes, and seasonal disruptions—can affect production schedules and profitability. Despite these challenges, leading operators are successfully mitigating pressures through disciplined operations and strategic execution.

Industry Valuation and Prospects: Zacks Analysis

The Zacks Building Products - Concrete & Aggregates industry, comprising five major publicly traded companies, currently carries a Zacks Industry Rank of #97, positioning it within the top 40% of more than 250 Zacks-ranked industries. Historical analysis demonstrates that top 50% ranked industries outperform bottom 50% performers by a factor exceeding 2 to 1.

Over the past 12 months, this industry group has substantially outperformed both the broader Construction sector and the S&P 500 Composite. Concrete and aggregates stocks have collectively gained 21.2% compared with the Construction sector’s 7.7% rise and the S&P 500’s 17.7% gain. On a forward 12-month price-to-earnings basis, the industry trades at 24.99X versus the S&P 500’s 23.36X and the sector’s 20.65X. Over the past five years, valuation multiples have ranged from a low of 13.86X to a high of 24.99X, with a median of 20.08X.

Earnings Momentum and Analyst Sentiment

Aggregate earnings estimates for the sector have increased materially since November 2025. The 2026 earnings per share estimate has risen to $2.69 from $2.38, reflecting improving analyst confidence in the group’s earnings growth potential. This upward revision trajectory suggests market participants expect demand visibility to remain robust, pricing dynamics to stay healthy, and long-term fundamentals to prove durable—especially for industry frontrunners like Marietta and Vulcan.

The combination of infrastructure support, private sector investment acceleration, disciplined management execution, and favorable pricing environments positions these companies for sustained performance into 2026 and beyond. For investors seeking exposure to construction materials and infrastructure plays, both Martin Marietta Materials and Vulcan Materials warrant close monitoring as they navigate the next growth cycle.