What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Martin Marietta Materials (MLM) revenue becomes net income?

For TTM through Q1 2026, Martin Marietta Materials turned $6.55B of revenue into $2.53B of net income — a net margin of 38.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Martin Marietta Materials (MLM) gross, operating, and net margins?

For TTM through Q1 2026, Martin Marietta Materials reported a gross margin of 29.6%, an operating margin of 22.7%, and a net margin of 38.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Martin Marietta Materials (MLM) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Martin Marietta Materials (MLM) Income Statement Waterfall

Revenue

$6.55B

Gross Margin

+29.6%

Operating Margin

+22.7%

Net Margin

+38.7%

Income statement waterfall for Martin Marietta Materials (MLM) — TTM through Q1 2026

Net income: $2.53B

Margin breakdown for Martin Marietta Materials (MLM) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$6.55B	$6.55B
Cost of Revenue	-$4.62B	$1.94B
Gross Profit	$1.94B	$1.94B
Operating Expenses	-$447M	$1.49B
Operating Income	$1.49B	$1.49B
Other Income / Expense	-$233M	$1.26B
Pre-tax Income	$1.26B	$1.26B
Income Tax	-$256M	$1B
Other Items	$1.53B	$2.53B
Net Income	$2.53B	$2.53B

Revenue$6.55B
Cost of Revenue-$4.62B
Gross Profit$1.94B
Operating Expenses-$447M
Operating Income$1.49B
Other Income / Expense-$233M
Pre-tax Income$1.26B
Income Tax-$256M
Other Items$1.53B
Net Income$2.53B

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