Question · Q4 2025
Brian Daniel Brophy requested details on the network optimization initiative's pilot program, feedback on its implications for the total business's cost and margin profile upon full rollout, and the expected timing of these benefits.
Answer
Chair, President and CEO Ward Nye explained the initiative involves optimizing quarry networks by idling or running sites harder for efficiency, always prioritizing customer needs. Senior Vice President and Chief Financial Officer Michael J. Pietropola added that the pilot in the West showed COGS per ton declining year-over-year in Q4 2025. The company expects to quantify the broader opportunity and update guidance by mid-year, noting current guidance includes conservatism with a 3% COGS per ton assumption, while underlying Q4 COGS per ton growth was 2.7%.
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