(Reuters) - Construction material firm Martin Marietta Materials (NYSE:MLM) forecast a weaker-than-expected full-year 2024 revenue on Wednesday, due to an affordability-driven housing slowdown and a softening in warehouse and data center construction. During the quarter, the company's aggregates shipments fell 2.1%.
However, demand for construction materials in the U.S. saw an uptick, as the country upgrades its infrastructure under a $1 trillion government funding package.
"As mortgage rates stabilize and affordability headwinds recede, we fully expect single-family residential construction to recover, as demand still far exceeds supply, particularly in our key markets," said CEO Ward Nye.
The Raleigh, North Carolina-based company expects its full-year revenue to be between $6.75 billion and $7.18 billion, compared with analysts' estimates of about $7.36 billion, according to LSEG data.
Net income in the fourth quarter ended Dec. 31 rose to $287.7 million or $4.63 per share, compared to $187.4 million or $3.01 per share a year ago.
The company also snapped up some aggregates operations of Blue Water Industries for $2.05 billion in cash on Monday to boost supplies from the division.