Building Materials Stocks Q1 Recap: Benchmarking Carlisle (NYSE:CSL)

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 building materials industry, including Carlisle (NYSE:CSL) and its peers.

Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. 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 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 building materials companies.

The 9 building materials stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.

Luckily, building materials stocks have performed well with share prices up 11.4% on average since the latest earnings results.

Carlisle (NYSE:CSL)

Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE:CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.

Carlisle reported revenues of $1.10 billion, flat year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EPS estimates.

Interestingly, the stock is up 10.5% since reporting and currently trades at $397.63.

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

Best Q1: Tecnoglass (NYSE:TGLS)

The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE:TGLS) is a manufacturer of architectural glass, windows, and aluminum products.

Tecnoglass reported revenues of $222.3 million, up 15.4% year on year, outperforming analysts’ expectations by 3.3%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 5% since reporting. It currently trades at $74.28.

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

Weakest Q1: UFP Industries (NASDAQ:UFPI)

Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ:UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.

UFP Industries reported revenues of $1.60 billion, down 2.7% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

UFP Industries delivered the slowest revenue growth in the group. As expected, the stock is down 3.1% since the results and currently trades at $103.17.

Read our full analysis of UFP Industries’s results here.

Vulcan Materials (NYSE:VMC)

Founded in 1909, Vulcan Materials (NYSE:VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.

Vulcan Materials reported revenues of $1.63 billion, up 5.8% year on year. This number missed analysts’ expectations by 2.8%. Aside from that, it was a strong quarter as it produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Vulcan Materials had the weakest performance against analyst estimates among its peers. The stock is up 6.1% since reporting and currently trades at $260.20.

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

Resideo (NYSE:REZI)

Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security.

Resideo reported revenues of $1.77 billion, up 19.1% year on year. This result surpassed analysts’ expectations by 3%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Resideo achieved the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 32.2% since reporting and currently trades at $23.08.

Read our full, actionable report on Resideo 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 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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