Wrapping up Q3 earnings, we look at the numbers and key takeaways for the commercial building products stocks, including Janus (NYSE: JBI) and its peers.

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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 0.8% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.7% since the latest earnings results.

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 $219.3 million, down 4.7% year on year. This print fell short of analysts’ expectations by 3.9%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.

Ramey Jackson, Chief Executive Officer, stated, “Our team continues to execute in an environment that remains challenging, maintaining focus on operational excellence while positioning the business for long-term success. Supported by our balance sheet and cash flow foundation, we will continue to develop our suite of solutions to further build upon our market leadership position and invest for future growth.”

Janus delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 27% since reporting and currently trades at $6.79.

Read our full report on Janus here, it’s free for active Edge members.

Best Q3: 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 $358.2 million, up 4.6% year on year, outperforming analysts’ expectations by 2.1%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Apogee delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.5% since reporting. It currently trades at $38.77.

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

Weakest Q3: 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 $177.4 million, up 32.1% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 15.5% since the results and currently trades at $31.71.

Read our full analysis of Insteel’s results here.

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 $6.44 billion, up 3.1% year on year. This print topped analysts’ expectations by 1.6%. It was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

The stock is up 8.5% since reporting and currently trades at $120.48.

Read our full, actionable report on Johnson Controls here, it’s free for active Edge members.

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 $417.3 million, up 2% year on year. This result lagged analysts' expectations by 2.1%. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.

AZZ scored the highest full-year guidance raise among its peers. The stock is up 2.1% since reporting and currently trades at $107.80.

Read our full, actionable report on AZZ here, it’s free for active Edge members.

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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