Let’s dig into the relative performance of Johnson Controls (NYSE: JCI) and its peers as we unravel the now-completed Q2 commercial building products earnings season.

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 very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 8.7% 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 $6.05 billion, up 2.6% 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 a decent beat of analysts’ adjusted operating income estimates.

"As we celebrate 140 years of innovation and customer commitment, our strong third quarter results and record backlog reflect the momentum we've built and the opportunities ahead," said Joakim Weidemanis, CEO.

Unsurprisingly, the stock is down 3% since reporting and currently trades at $108.21.

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

Best Q2: 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 $346.6 million, up 4.6% year on year, outperforming analysts’ expectations by 6.3%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

Apogee pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 11.8% since reporting. It currently trades at $44.34.

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

Slowest Q2: 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 $422 million, up 2.1% year on year, falling short of analysts’ expectations by 3.2%. Still, it was a satisfactory quarter as it posted a solid beat 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 14.6% since the results and currently trades at $115.58.

Read our full analysis of AZZ’s results here.

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 $179.9 million, up 23.4% year on year. This print topped analysts’ expectations by 2.2%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Insteel scored the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $38.68.

Read our full, actionable report on Insteel 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 $228.1 million, down 8.2% year on year. This number beat analysts’ expectations by 5.5%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Janus had the slowest revenue growth among its peers. The stock is up 19.6% since reporting and currently trades at $10.38.

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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