Let’s dig into the relative performance of Matrix Service (NASDAQ:MTRX) and its peers as we unravel the now-completed Q3 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 12 construction and maintenance services stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.
Luckily, construction and maintenance services stocks have performed well with share prices up 18% on average since the latest earnings results.
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 $165.6 million, down 16.2% year on year. This print fell short of analysts’ expectations by 2.3%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
“We are reiterating our full-year fiscal 2025 revenue guidance, supported by continued demand strength within our core infrastructure and industrial end-markets,” said John Hewitt, President and Chief Executive Officer.
Matrix Service delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 3.1% since reporting and currently trades at $12.50.
Read our full report on Matrix Service here, it’s free.
Best Q3: Limbach (NASDAQ:LMB)
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Limbach reported revenues of $133.9 million, up 4.8% year on year, outperforming analysts’ expectations by 3.4%. The business had a stunning quarter with a solid beat of analysts’ EPS and EBITDA estimates.
Limbach delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 28.2% since reporting. It currently trades at $100.
Is now the time to buy Limbach? 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 $1.08 billion, up 2.1% year on year, falling short of analysts’ expectations by 7.2%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Tutor Perini delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 10.2% since the results and currently trades at $27.18.
Read our full analysis of Tutor Perini’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 $226.7 million, up 34.5% year on year. This result came in 3.6% below analysts' expectations. In spite of that, it was a strong quarter as it recorded an impressive beat of analysts’ EPS and EBITDA estimates.
The stock is up 60.9% since reporting and currently trades at $8.72.
Read our full, actionable report on Orion here, it’s free.
Primoris (NYSE:PRIM)
Listed on the NASDAQ in 2008, Primoris (NYSE:PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Primoris reported revenues of $1.65 billion, up 7.8% year on year. This print topped analysts’ expectations by 3.5%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
The stock is up 29.1% since reporting and currently trades at $83.10.
Read our full, actionable report on Primoris here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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