Feb 11 (Reuters) – Martin Marietta Materials forecast weak annual sales on Wednesday, after reporting a fall in its fourth-quarter profit, as the building material company navigates higher costs.
Shares of the company fell about 3% in premarket trading following the results.
An artificial-intelligence-led push to build more data centers, alongside energy and infrastructure projects, has supported aggregates demand, nudging shipments up 2% in the quarter and prices over 5%.
Still, higher costs of fuel, energy, raw materials and equipment in an inflationary environment, coupled with acquisition charges, weighed on its earnings.
“Accelerating momentum in data centers and energy to offset continued softness in private nonresidential and residential construction,” Martin Marietta CEO Ward Nye said.
The company forecast 2026 revenue between $6.42 billion and $6.78 billion, below analysts’ estimate of $6.86 billion, according to data compiled by LSEG.
Its overall revenue in the fourth quarter rose 9% to $1.53 billion from a year earlier.
Martin Marietta’s quarterly net earnings fell to $279 million, or $4.62 per share, from $294 million, or $4.79 per share, a year ago.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shreya Biswas)
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