As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the industrial & environmental services industry, including Tetra Tech (NASDAQ: TTEK) and its peers.

Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems.

The 7 industrial & environmental services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.1% while next quarter’s revenue guidance was 1% above.

Thankfully, share prices of the companies have been resilient as they are up 9.7% on average since the latest earnings results.

Tetra Tech (NASDAQ: TTEK)

With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ: TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide.

Tetra Tech reported revenues of $1.10 billion, up 4.9% year on year. This print exceeded analysts’ expectations by 6.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS guidance for next quarter estimates and full-year revenue guidance exceeding analysts’ expectations.

Tetra Tech scored the highest full-year guidance raise of the whole group. The stock is up 14.3% since reporting and currently trades at $35.31.

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

Best Q1: CECO Environmental (NASDAQ: CECO)

With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.

CECO Environmental reported revenues of $176.7 million, up 39.9% year on year, outperforming analysts’ expectations by 17%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.

CECO Environmental 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 42.4% since reporting. It currently trades at $27.34.

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

Weakest Q1: Vestis (NYSE: VSTS)

Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE: VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.

Vestis reported revenues of $665.2 million, down 5.7% year on year, falling short of analysts’ expectations by 4%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

Vestis delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 27.8% since the results and currently trades at $6.29.

Read our full analysis of Vestis’s results here.

UniFirst (NYSE: UNF)

With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE: UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries.

UniFirst reported revenues of $602.2 million, up 1.9% year on year. This print met analysts’ expectations. It was a strong quarter as it also put up a solid beat of analysts’ full-year EPS guidance estimates and an impressive beat of analysts’ EPS estimates.

The stock is up 7.9% since reporting and currently trades at $188.51.

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

Cintas (NASDAQ: CTAS)

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Cintas reported revenues of $2.61 billion, up 8.4% year on year. This result was in line with analysts’ expectations. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates.

The stock is up 15.9% since reporting and currently trades at $224.35.

Read our full, actionable report on Cintas 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 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.

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