Ply Gem Holdings Inc. saw its fourth-quarter earnings decrease by 26.5 percent, missing analyst expectations.

The Cary-based exterior home manufacturing business reported on Friday earnings of $6.7 million over the fourth quarter, or 10 cents per share. Adjusted for onetime gains, earnings were 14 cents per share compared to average analyst estimates of 15 cents per share.

The company attributed its 22.4 percent gross profit margin decline to increased materials costs.

These fourth quarter declines come as the home manufacturing season gears up over the next several months. The U.S. Census Bureau reported January housing starts of 1.2 million units, up 10.5 percent from last year. Meanwhile, newly started units in the Southeast region of the country are up 19.2 percent.

“I am pleased by our acceleration of sales growth in the fourth quarter and our strong operating and cash generating performance,” said Gary Robinette, Ply Gem’s Chairman and CEO.

Net sales for siding, fencing and stone was $207.1 million, increasing 9.0 percent compared to the fourth quarter of 2015, the company attributing that increase to improved U.S. market demand for our products and new business wins.

Net sales for windows and doors were up to $255.2 million, increasing $14.7 million, or 6.1 percent, from the same quarter a year ago. Along with increasing demand for new construction, Ply Gem said this growth was also due to increasing market demand for home repair and remodeling.

Ply Gem expects the U.S. single family housing starts market to grow 5 percent to 10 percent over the next year and 3 percent to 5 percent growth in the U.S high-price repair and remodeling projects.

The company’s shares rose 85 cents to $18.20 on Friday.