Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at WillScot Mobile Mini (NASDAQ: WSC) 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 13 construction and maintenance services stocks we track reported a mixed Q4. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15.5% since the latest earnings results.

WillScot Mobile Mini (NASDAQ: WSC)

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

WillScot Mobile Mini reported revenues of $602.5 million, down 1.6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations.

Brad Soultz, Chief Executive Officer of WillScot, commented “Our fourth quarter financial results capped another solid year for WillScot, notably Adjusted EBITDA margins of 47.3% in the period and Adjusted Free Cash Flow of $137 million at a margin of 22.7%. We believe we have a robust and sustainable free cash flow profile that reflects the resiliency of our cash flows across the cycle, the strength of our balance sheet, and our confidence in the Company’s long-term growth strategy. The initiation of our quarterly dividend program provides an additional avenue to return surplus capital to shareholders."

WillScot Mobile Mini delivered the weakest full-year guidance update of the whole group. The stock is down 32.4% since reporting and currently trades at $26.13.

Read our full report on WillScot Mobile Mini here, it’s free.

Best Q4: 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 $561.6 million, up 41.6% year on year, outperforming analysts’ expectations by 9.7%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Construction Partners achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 9.3% since reporting. It currently trades at $76.91.

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

Weakest Q4: Concrete Pumping (NASDAQ: BBCP)

Going public via SPAC in 2018, Concrete Pumping (NASDAQ: BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.

Concrete Pumping reported revenues of $86.45 million, down 11.5% year on year, falling short of analysts’ expectations by 4.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 4.8% since the results and currently trades at $5.76.

Read our full analysis of Concrete Pumping’s results here.

MYR Group (NASDAQ: MYRG)

Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ: MYRG) is a specialty contractor in the electrical construction industry.

MYR Group reported revenues of $829.8 million, down 17.4% year on year. This result missed analysts’ expectations by 6.6%. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts’ EPS estimates but a miss of analysts’ backlog estimates.

MYR Group had the slowest revenue growth among its peers. The stock is down 12.6% since reporting and currently trades at $110.

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

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 $202.8 million, up 11.6% year on year. This number came in 4% below analysts' expectations. More broadly, it was actually a strong quarter as it put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 19.9% since reporting and currently trades at $8.81.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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