Martin Marietta Materials said its fourth-quarter profit slipped and provided a 2026 revenue forecast that trails market estimates, as the building materials producer contends with rising costs.
The company reported quarterly net earnings of $279 million, or $4.62 per share, down from $294 million, or $4.79 per share, in the comparable period a year earlier. Revenue for the quarter increased 9% year-over-year to $1.53 billion.
Demand dynamics were mixed. An artificial-intelligence-led push to build more data centers, together with energy and infrastructure work, supported aggregates demand. That support helped nudge shipments up 2% in the quarter and contributed to price gains of over 5%.
Despite those volume and pricing improvements, rising costs pressured the company’s results. Management pointed to higher costs of fuel, energy, raw materials and equipment in an inflationary environment. Acquisition charges also weighed on earnings during the period.
Shares of the company fell about 3% in premarket trading following the results.
Management comment
CEO Ward Nye described the company's current position as one of offsetting trends, saying: "Accelerating momentum in data centers and energy to offset continued softness in private nonresidential and residential construction."
Guidance and market reaction
For 2026, Martin Marietta forecast revenue in a range between $6.42 billion and $6.78 billion. That guidance sits below analysts' estimates, which were compiled by LSEG at $6.86 billion. The guidance gap underscores caution from management about near-term top-line growth.
The combination of softer guidance and margin pressure from higher input and acquisition costs prompted the immediate drop in the company's share price in premarket trading.
Outlook considerations
- Aggregates demand remains supported by data center, energy and infrastructure projects.
- Cost inflation across fuel, energy, raw materials and equipment is reducing operating leverage.
- Management expects demand from data centers and energy to help balance weaker private construction segments.
Information in this report is limited to the figures and commentary provided by the company and the analyst consensus cited. No additional forecasts or assumptions have been introduced.