The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how construction and maintenance services stocks fared in Q1, starting with Great Lakes Dredge & Dock (NASDAQ: GLDD).
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 12 construction and maintenance services stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 5.9%.
Luckily, construction and maintenance services stocks have performed well with share prices up 23.3% on average since the latest earnings results.
Great Lakes Dredge & Dock (NASDAQ: GLDD)
Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.
Great Lakes Dredge & Dock reported revenues of $242.9 million, up 22.3% year on year. This print exceeded analysts’ expectations by 17.5%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Great Lakes Dredge & Dock scored the biggest analyst estimates beat of the whole group. The stock is up 20.3% since reporting and currently trades at $11.49.
Is now the time to buy Great Lakes Dredge & Dock? Access our full analysis of the earnings results here, it’s free.
Tutor Perini (NYSE: TPC)
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Tutor Perini reported revenues of $1.25 billion, up 18.8% year on year, outperforming analysts’ expectations by 16.7%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 57% since reporting. It currently trades at $37.10.
Is now the time to buy Tutor Perini? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: Matrix Service (NASDAQ: MTRX)
Founded in Oklahoma, Matrix Service (NASDAQ: MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.
Matrix Service reported revenues of $200.2 million, up 20.6% year on year, falling short of analysts’ expectations by 6.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
Matrix Service delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 4.5% since the results and currently trades at $12.79.
Read our full analysis of Matrix Service’s results here.
Orion (NYSE: ORN)
Established in 1994, Orion (NYSE: ORN) provides construction services for marine infrastructure and industrial projects.
Orion reported revenues of $188.7 million, up 17.4% year on year. This number topped analysts’ expectations by 8.8%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 32.4% since reporting and currently trades at $8.38.
Read our full, actionable report on Orion here, it’s free.
Limbach (NASDAQ: LMB)
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Limbach reported revenues of $133.1 million, up 11.9% year on year. This print surpassed analysts’ expectations by 10%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 31.4% since reporting and currently trades at $135.51.
Read our full, actionable report on Limbach here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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