Asher Sohn

Asher Sohn inquired about Martin Marietta's expectations for key cost buckets in 2026, given the projected 250 basis points price-cost spread, and what provides confidence in cost management, whether lower inflation or other strategic levers.

Answer

Chair, President and CEO Ward Nye indicated inflation is running around 3.5%, with labor and supplies seeing some increases but no significant tariff activity. He noted Q4 2025 experienced higher external freight costs and one-time, non-recurring inventory write-offs. He also mentioned a comprehensive review of quarry and terminal networks, with a pilot project showing significant helpful results in cost management.