C. Howard Nye
Chairman of the Board, President and Chief Executive Officer at Martin Marietta Materials
Thank you, Suzanne, and thank you all for joining today's teleconference. Martin Marietta's diligent execution of our strategic operating analysis and review plan, otherwise known as SOAR, has been and continues to be the foundation of our long-term success, differentiating us from our competitors. This year was no exception as our impressive 2021 results continue to underscore the importance of disciplined strategic planning combined with functional excellence. Our team's steadfast commitment to our strategic priorities enabled Martin Marietta to extend our proven track record of delivering industry-leading safety, growth and financial performance for our shareholders. Among our accomplishments in 2021, we achieved the safest and most profitable year in Martin Marietta's history.
This year marks our tenth consecutive year of increases in consolidated product and services revenues, adjusted gross profit, adjusted EBITDA and adjusted earnings per diluted share. We also made significant progress on our SOAR 2020/2025 initiatives, among them, successfully completing more than $3 billion in value-enhancing acquisitions. These transactions expanded our product offerings in attractive new and existing markets, establishing a formidable coast-to-coast geographic footprint. Supported by robust underlying demand, we will continue to build on these achievements with a focus on delivering sustainable, long-term operational and financial success in 2022 and beyond. Before discussing our full year results, I'll briefly highlight a few notable takeaways from our record fourth quarter and portfolio optimization efforts.
Pricing momentum and growing product shipments, aided in part by mild weather extending the 2021 construction season, provided a strong finish to the year. We completed the acquisition of the Lehigh Hanson West Region business on October one, which provides Martin Marietta with new growth platforms in three of the nation's largest mega regions in California and Arizona and will serve as a valuable platform for continued expansion in the years ahead. And finally, in the fourth quarter, we achieved a 27% increase in products and services revenues and a 17.5% increase in adjusted EBITDA, capping off a 12-month period of continued growth, robust M&A activity and record-setting financial performance. Consistent with our SOAR 2025 priorities, we continue to really look for ways to optimize our portfolio through asset swaps and divestitures.
To that end, following the closing of the Lehigh Hanson West acquisition, we received expressions of interest in the California-based cement and concrete operations. As we focus on the product mix of our business to enhance value for our shareholders, we are currently evaluating alternatives for these operations and have classified these assets as held for sale. We anticipate providing more clarity regarding our plans for these assets during the first half of 2022. As I noted earlier, for the full year 2021, we established new financial records, marking the tenth consecutive year of growth in each of the following metrics: products and services revenues increased 15% year-over-year to $5.1 billion, adjusted gross profit increased 10% year-over-year to $1.4 billion, adjusted EBITDA of $1.53 billion increased 10% year-over-year or 14% excluding nonrecurring gains and adjusted diluted earnings per share of $12.28 grew 6% year-over-year or 13% excluding nonrecurring gains.
I'm especially pleased to note that Martin Marietta's strong earnings growth and thoughtful SOAR execution provided our investors with a total shareholder return of 56% in 2021, more than double the S&P 500. Operating our business safely sets the foundation for achieving long-standing financial success. I'm proud to report that we achieved a company-wide world-class lost time incident rate for the fifth consecutive year. With a 7% reduction in total reportable incidents, Martin Marietta also reported a total entry incident rate of 0.84, exceeding world-class rate levels for the first time in our history. Even more rewarding is that our strong 2021 safety performance includes the safety results of our newly acquired operations. I'm incredibly grateful to our employees, both new and tenured, who embrace Martin Marietta's Guardian Angel culture each and every day.
With that overview, let's now turn to the full year operating performance. The Building Materials business experienced solid product demand across our geographic footprint, driven by single-family housing growth, infrastructure investment and continued strength in warehouses and data centers. Organic aggregate shipments increased nearly 4% to 193 million tons, in line with the high end of our original 2021 guidance for volume growth and above 2019 pre-COVID levels. Acquired operations contributed an additional eight million tons. Organic aggregates average selling price increased 3% with realized price increases, partially offset by higher sales of lower-priced base and excess fill material shipments in the second half of 2021. Importantly, all divisions contributed to this growth.
Aggregates pricing fundamentals remain very attractive. Underpinned by market support for our announced price increases and overall customer confidence, we anticipate being well positioned commercially and otherwise, to respond to strong demand and more than offset inflationary headwinds in 2022. Our Texas Cement business grew modestly to four million tons, establishing a new record for shipments, supported by large projects, recovering energy sector activity and incremental pull-through from our internal downstream customers. Cement pricing grew 7% following multiple pricing increases during the year. As the largest cement producer in Texas, our cement operations are well positioned to continue to benefit from tight supply and healthy demand supported by diversified customer backlogs and our announced April 2022 price increase of $12 per ton.
Turning to our targeted downstream businesses. Organic ready-mix concrete shipments increased 16%, reflecting the healthy Texas and Colorado demand environment, pricing grew modestly. Despite solid fourth quarter volume improvement, our Colorado asphalt and paving business was unable to overcome shipment declines from weather challenges and liquid asphalt supply disruptions that hindered construction activity during the traditionally productive summer months. Organic asphalt pricing improved 4%. I'll now turn the call over to Jim to conclude our full year 2021 discussion with a review of our financial results and liquidity. Jim?