Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Builders FirstSource (NYSE: BLDR) and its peers.

Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential 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 home construction materials companies.

The 10 home construction materials stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.6% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.1% since the latest earnings results.

Builders FirstSource (NYSE: BLDR)

Headquartered in Irving, TX, Builders FirstSource (NYSE: BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.

Builders FirstSource reported revenues of $3.94 billion, down 6.9% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ Windows, doors & millwork revenue estimates.

Unsurprisingly, the stock is down 12.7% since reporting and currently trades at $100.68.

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

Best Q3: Hayward (NYSE: HAYW)

Credited with introducing the first variable-speed pool pump, Hayward (NYSE: HAYW) makes residential and commercial pool equipment and accessories.

Hayward reported revenues of $244.3 million, up 7.4% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Hayward scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $15.70.

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

Weakest Q3: JELD-WEN (NYSE: JELD)

Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.

JELD-WEN reported revenues of $809.5 million, down 13.4% year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ adjusted operating income estimates.

JELD-WEN delivered the slowest revenue growth in the group. As expected, the stock is down 43.5% since the results and currently trades at $2.38.

Read our full analysis of JELD-WEN’s results here.

Gibraltar (NASDAQ: ROCK)

Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.

Gibraltar reported revenues of $310.9 million, up 12.2% year on year. This print missed analysts’ expectations by 2.1%. It was a softer quarter as it also produced a significant miss of analysts’ revenue and EBITDA estimates.

The stock is down 28.2% since reporting and currently trades at $48.22.

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

Masco (NYSE: MAS)

Headquartered just outside of Detroit, MI, Masco (NYSE: MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.

Masco reported revenues of $1.92 billion, down 3.3% year on year. This number lagged analysts' expectations by 1.5%. Overall, it was a disappointing quarter as it also recorded a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

The stock is down 10% since reporting and currently trades at $61.59.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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