Winners And Losers Of Q3: Primoris (NYSE:PRIM) Vs The Rest Of The Construction and Maintenance Services Stocks

November 26, 2024 at 04:20 AM EST

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Looking back on construction and maintenance services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Primoris (NYSE: PRIM) and its peers.

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 19.4% on average since the latest earnings results.

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 exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates.

“In the third quarter, Primoris achieved record levels of revenue, earnings and backlog while also delivering strong operating cash flow,” said Tom McCormick, President and Chief Executive Officer of Primoris.

Interestingly, the stock is up 29% since reporting and currently trades at $82.98.

Is now the time to buy Primoris? Access our full analysis of the earnings results 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 an impressive beat of analysts’ EPS and EBITDA estimates.

Limbach achieved the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 31.9% since reporting. It currently trades at $102.88.

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

Slowest Q3: 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 5.6% since the results and currently trades at $28.57.

Read our full analysis of Tutor Perini’s results here.

Great Lakes Dredge & Dock (NASDAQ: GLDD)

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Great Lakes Dredge & Dock reported revenues of $191.2 million, up 63.1% year on year. This print topped analysts’ expectations by 3.5%. However, it was a slower quarter as it recorded a significant miss of analysts’ EBITDA and EPS estimates.

Great Lakes Dredge & Dock delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 6.8% since reporting and currently trades at $12.40.

Read our full, actionable report on Great Lakes Dredge & Dock here, it’s free.

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 $538.2 million, up 13.3% year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also recorded full-year revenue guidance slightly topping analysts’ expectations but a miss of analysts’ EPS estimates.

The stock is up 10.6% since reporting and currently trades at $101.01.

Read our full, actionable report on Construction Partners 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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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