Wrapping up Q1 earnings, we look at the numbers and key takeaways for the construction and maintenance services stocks, 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 very strong Q1. As a group, revenues beat analysts’ consensus estimates by 5.9%.
Luckily, construction and maintenance services stocks have performed well with share prices up 17.6% 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 16.7% year on year. This print exceeded analysts’ expectations by 10.6%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“Primoris had another great quarter to start 2025, delivering solid execution on our strategy to expand margins and increase cash flow generation,” said David King, Chairman and Interim President and Chief Executive Officer of Primoris.
The stock is up 4.4% since reporting and currently trades at $69.99.
We think Primoris is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q1: Comfort Systems (NYSE:FIX)
Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services.
Comfort Systems reported revenues of $1.83 billion, up 19.1% year on year, outperforming analysts’ expectations by 4.2%. The business had an incredible quarter with a solid beat of analysts’ backlog estimates and an impressive beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 24.5% since reporting. It currently trades at $469.
Is now the time to buy Comfort Systems? Access our full analysis of the earnings results here, it’s free.
Matrix Service (NASDAQ:MTRX)
Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.
Matrix Service reported revenues of $200.2 million, up 20.6% year on year, falling short of analysts’ expectations by 6.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Matrix Service delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 1.6% since the results and currently trades at $12.04.
Read our full analysis of Matrix Service’s results here.
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 $1.25 billion, up 18.8% year on year. This number topped analysts’ expectations by 16.7%. Overall, it was an incredible quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 48.9% since reporting and currently trades at $35.18.
Read our full, actionable report on Tutor Perini here, it’s free.
APi (NYSE:APG)
Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure.
APi reported revenues of $1.72 billion, up 7.4% year on year. This result surpassed analysts’ expectations by 4.7%. It was a very strong quarter as it also put up a solid beat of analysts’ organic revenue estimates and full-year EBITDA guidance exceeding analysts’ expectations.
The stock is up 22.9% since reporting and currently trades at $46.43.
Read our full, actionable report on APi here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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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