Looking back on commercial building products stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Johnson Controls (NYSE: JCI) and its peers.
Commercial building products companies, which often serve more complicated projects, can supplement their core business with higher-margin installation and consulting services revenues. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of commercial construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of commercial building products companies.
The 5 commercial building products stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 1.6% above.
Luckily, commercial building products stocks have performed well with share prices up 13.1% on average since the latest earnings results.
Johnson Controls (NYSE: JCI)
Founded after patenting the electric room thermostat, Johnson Controls (NYSE: JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.
Johnson Controls reported revenues of $5.68 billion, up 1.4% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a strong quarter for the company with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 13.6% since reporting and currently trades at $100.83.
Is now the time to buy Johnson Controls? Access our full analysis of the earnings results here, it’s free.
Best Q1: Insteel (NYSE: IIIN)
Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE: IIIN) provides steel wire reinforcing products for concrete.
Insteel reported revenues of $160.7 million, up 26.1% year on year, outperforming analysts’ expectations by 7.2%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Insteel delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 34.7% since reporting. It currently trades at $35.95.
Is now the time to buy Insteel? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: AZZ (NYSE: AZZ)
Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.
AZZ reported revenues of $351.9 million, down 4% year on year, falling short of analysts’ expectations by 4.3%. It was a slower quarter as it posted a miss of analysts’ EBITDA estimates.
AZZ delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 20% since the results and currently trades at $93.24.
Read our full analysis of AZZ’s results here.
Apogee (NASDAQ: APOG)
Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ: APOG) sells architectural products and services such as high-performance glass for commercial buildings.
Apogee reported revenues of $345.7 million, down 4.5% year on year. This result beat analysts’ expectations by 4.2%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and full-year revenue guidance beating analysts’ expectations.
Apogee scored the highest full-year guidance raise among its peers. The stock is down 15.5% since reporting and currently trades at $38.74.
Read our full, actionable report on Apogee here, it’s free.
Janus (NYSE: JBI)
Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.
Janus reported revenues of $210.5 million, down 17.3% year on year. This number topped analysts’ expectations by 2%. It was a very strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
Janus had the slowest revenue growth among its peers. The stock is up 12.5% since reporting and currently trades at $8.04.
Read our full, actionable report on Janus here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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