As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the building materials industry, including Valmont (NYSE: VMI) and its peers.

Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. 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 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 building materials companies.

The 9 building materials stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.

Luckily, building materials stocks have performed well with share prices up 14.5% on average since the latest earnings results.

Valmont (NYSE: VMI)

Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE: VMI) provides engineered products and infrastructure services for the agricultural industry.

Valmont reported revenues of $969.3 million, flat year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA and organic revenue estimates.

President and Chief Executive Officer Avner M. Applbaum commented, “Most of our end markets are showing resilience against the current backdrop of economic uncertainty, driving growth in key parts of our business. We’re seeing continued strength in Infrastructure, particularly Utility and Telecommunications, as well as solid demand trends in International Agriculture. Our infrastructure capacity investments are beginning to ramp up and are expected to contribute to sales growth as the year progresses. In Agriculture, strong international performance, especially from large-scale projects, is offsetting softness in the North American market. Our first-quarter results reflect disciplined execution and steady progress on our strategic priorities, which help us remain agile while navigating dynamic conditions, including tariff impacts. Across the organization, we’re executing well and remain confident in our full-year outlook, while also being alert to the rapidly-evolving environment in which we operate, as we deliver value for our customers and shareholders.”

Interestingly, the stock is up 26.1% since reporting and currently trades at $339.80.

Is now the time to buy Valmont? Access our full analysis of the earnings results here, it’s free.

Best Q1: Tecnoglass (NYSE: TGLS)

The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.

Tecnoglass reported revenues of $222.3 million, up 15.4% year on year, outperforming analysts’ expectations by 3.3%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 8.7% since reporting. It currently trades at $76.87.

Is now the time to buy Tecnoglass? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: UFP Industries (NASDAQ: UFPI)

Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ: UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.

UFP Industries reported revenues of $1.60 billion, down 2.7% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

UFP Industries delivered the slowest revenue growth in the group. The stock is flat since the results and currently trades at $106.79.

Read our full analysis of UFP Industries’s results here.

Carlisle (NYSE: CSL)

Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE: CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.

Carlisle reported revenues of $1.10 billion, flat year on year. This print surpassed analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EPS estimates.

The stock is up 14.7% since reporting and currently trades at $412.54.

Read our full, actionable report on Carlisle here, it’s free.

Sherwin-Williams (NYSE: SHW)

Widely known for its success in the paint industry, Sherwin-Williams (NYSE: SHW) is a manufacturer of paints, coatings, and related products.

Sherwin-Williams reported revenues of $5.31 billion, down 1.1% year on year. This number lagged analysts' expectations by 1.6%. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ organic revenue estimates.

The stock is up 6% since reporting and currently trades at $351.62.

Read our full, actionable report on Sherwin-Williams 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.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.