Looking back on construction and maintenance services stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including MYR Group (NASDAQ: MYRG) and its peers.
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 20.1% on average since the latest earnings results.
MYR Group (NASDAQ: MYRG)
Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ: MYRG) is a specialty contractor in the electrical construction industry.
MYR Group reported revenues of $833.6 million, up 2.2% year on year. This print exceeded analysts’ expectations by 5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 35.1% since reporting and currently trades at $164.56.
Is now the time to buy MYR Group? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 50% since reporting. It currently trades at $35.44.
Is now the time to buy Tutor Perini? Access our full analysis of the earnings results here, it’s free.
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.
Matrix Service delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 4.4% since the results and currently trades at $12.77.
Read our full analysis of Matrix Service’s results here.
Comfort Systems (NYSE: FIX)
Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.
Comfort Systems reported revenues of $1.83 billion, up 19.1% year on year. This print surpassed analysts’ expectations by 4.2%. It was an incredible quarter as it also logged a solid beat of analysts’ backlog estimates and an impressive beat of analysts’ EPS estimates.
The stock is up 25.3% since reporting and currently trades at $471.97.
Read our full, actionable report on Comfort Systems here, it’s free.
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 $699.5 million, up 4.1% year on year. This result came in 0.9% below analysts' expectations. In spite of that, it was a very strong quarter as it logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 5.8% since reporting and currently trades at $86.
Read our full, actionable report on Granite Construction here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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