As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at construction and maintenance services stocks, starting with Orion (NYSE: ORN).
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.
While some construction and maintenance services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.7% since the latest earnings results.
Orion (NYSE: ORN)
Established in 1994, Orion (NYSE: ORN) provides construction services for marine infrastructure and industrial projects.
Orion reported revenues of $216.9 million, up 7.6% year on year. This print fell short of analysts’ expectations by 20.2%. Overall, it was a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
“2024 ended on a high note with our team delivering improved performance through the disciplined execution of our strategic objectives. We remain focused on smart, profitable revenue growth and better earnings. For the full year, revenue was up almost 12% to $796.4 million, gross profit improved 48% to $91 million, and Adjusted EBITDA increased 76%,” said Travis Boone, Chief Executive Officer of Orion Group Holdings.
Orion delivered the weakest performance against analyst estimates of the whole group. The stock is down 2.2% since reporting and currently trades at $6.33.
Read our full report on Orion 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 a solid beat of analysts’ EPS estimates and an impressive 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 to its peers, the market seems unhappy with the results as the stock is down 9% since reporting. It currently trades at $77.12.
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 1.7% since the results and currently trades at $5.95.
Read our full analysis of Concrete Pumping’s results here.
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 produced a narrow beat of analysts’ organic revenue estimates but EBITDA guidance for next quarter missing analysts’ expectations.
The stock is down 5.3% since reporting and currently trades at $38.
Read our full, actionable report on APi 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 $143.7 million, flat year on year. This number lagged analysts' expectations by 3.8%. In spite of that, it was an exceptional quarter as it recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 21.9% since reporting and currently trades at $83.85.
Read our full, actionable report on Limbach here, it’s free.
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