(Reuters) -Martin Marietta Materials reported a higher third-quarter profit on Tuesday, helped by infrastructure demand and stronger pricing.
An AI-led push for more data center infrastructure has helped boost construction activity over the past few years.
Construction companies have also benefited from former U.S. President Joe Biden’s Infrastructure Investment and Jobs Act, which outlined $1 trillion in investments.
The company also raised its annual adjusted EBITDA forecast to a midpoint of $2.32 billion from $2.30 billion. CEO Ward Nye cited “strong year-to-date performance and current aggregates shipment trends” for the upbeat outlook.
“Looking ahead, Martin Marietta sees its glass as half-full with demand trends described as ‘broadly constructive’ with infrastructure strong, non-residential construction improving,” RBC Capital Markets analyst Anthony Codling said.
During the quarter, the U.S. construction materials supplier’s aggregates shipments rose by 8% from a year ago.
However, as a result of an asset exchange with peer Quikrete, Martin Marietta held its Midlothian cement plant, associated cement terminals, and ready-mixed concrete assets in North Texas for sale, marking those operations as discontinued in the quarterly results.
Quarterly revenue from continuing operations was up 12% from a year ago to $1.85 billion.
Including the discontinued operations, Martin Marietta posted a revenue of $2.09 billion. Analysts expected $2.06 billion, according to data compiled by LSEG.
The company’s net earnings from continuing operations rose 22% to $361 million, or $5.97 per share, in the quarter ended September 30, from $297 million, or $4.84 per share, a year ago.
(Reporting by Nathan Gomes and Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo)
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