Let’s dig into the relative performance of Granite Construction (NYSE: GVA) and its peers as we unravel the now-completed Q4 construction and maintenance services earnings season.
Construction and maintenance services companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams - for example, fire escapes need to be inspected every five years–. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies’ offerings.
The 13 construction and maintenance services stocks we track reported a mixed Q4. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.4% since the latest earnings results.
Granite Construction (NYSE: GVA)
Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE: GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.
Granite Construction reported revenues of $977.3 million, up 4.7% year on year. This print exceeded analysts’ expectations by 2.8%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
"I want to thank our teams across the company for all of their hard work and dedication. 2024 was a record year for Granite,” said Kyle Larkin, Granite President and Chief Executive Officer.
The stock is down 14.8% since reporting and currently trades at $73.91.
Is now the time to buy Granite Construction? Access our full analysis of the earnings results here, it’s free.
Best Q4: Construction Partners (NASDAQ: ROAD)
Founded in 2001, Construction Partners (NASDAQ: ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.
Construction Partners reported revenues of $561.6 million, up 41.6% year on year, outperforming analysts’ expectations by 9.7%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Construction Partners achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 16.1% since reporting. It currently trades at $71.08.
Is now the time to buy Construction Partners? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Concrete Pumping (NASDAQ: BBCP)
Going public via SPAC in 2018, Concrete Pumping (NASDAQ: BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Concrete Pumping reported revenues of $86.45 million, down 11.5% year on year, falling short of analysts’ expectations by 4.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 11.2% since the results and currently trades at $5.37.
Read our full analysis of Concrete Pumping’s results here.
Limbach (NASDAQ: LMB)
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Limbach reported revenues of $143.7 million, flat year on year. This print missed analysts’ expectations by 3.8%. More broadly, it was actually an exceptional quarter as it recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 7.6% since reporting and currently trades at $74.01.
Read our full, actionable report on Limbach here, it’s free.
APi (NYSE: APG)
Started in 1926 as an insulation contractor, APi (NYSE: APG) provides life safety solutions and specialty services for buildings and infrastructure.
APi reported revenues of $1.86 billion, up 5.8% year on year. This result beat analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also recorded a narrow beat of analysts’ organic revenue estimates but EBITDA guidance for next quarter missing analysts’ expectations.
The stock is down 11.7% since reporting and currently trades at $35.45.
Read our full, actionable report on APi here, it’s free.
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