Q2 Earnings Outperformers: Concrete Pumping (NASDAQ:BBCP) And The Rest Of The Construction and Maintenance Services Stocks

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the construction and maintenance services industry, including Concrete Pumping (NASDAQ:BBCP) 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 13 construction and maintenance services stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 8.3% on average since the latest earnings results.

Concrete Pumping (NASDAQ:BBCP)

Going public via SPAC in 2018, Concrete Pumping (NASDAQ:BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.

Concrete Pumping reported revenues of $103.7 million, down 5.4% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and full-year EBITDA guidance exceeding analysts’ expectations.

“This quarter, our results demonstrated the resilience and adaptability of our business model amid ongoing macroeconomic headwinds and localized weather-related disruptions,” said CPH CEO Bruce Young.

Concrete Pumping delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 1.3% since reporting and currently trades at $6.70.

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

Best Q2: 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 $1.89 billion, up 20.9% year on year, outperforming analysts’ expectations by 12.1%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Primoris achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 48.7% since reporting. It currently trades at $138.50.

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

Weakest Q2: 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 $216.4 million, up 14.2% year on year, falling short of analysts’ expectations by 6.8%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Matrix Service delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 11.7% since the results and currently trades at $12.57.

Read our full analysis of Matrix Service’s results here.

Great Lakes Dredge & Dock (NASDAQ:GLDD)

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Great Lakes Dredge & Dock reported revenues of $193.8 million, up 13.9% year on year. This print topped analysts’ expectations by 9%. Overall, it was an incredible quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 6.7% since reporting and currently trades at $11.32.

Read our full, actionable report on Great Lakes Dredge & Dock here, it’s free for active Edge members.

WillScot Mobile Mini (NASDAQ:WSC)

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

WillScot Mobile Mini reported revenues of $589.1 million, down 2.6% year on year. This result met analysts’ expectations. However, it was a softer quarter as it recorded a significant miss of analysts’ adjusted operating income and EPS estimates.

The stock is down 25.9% since reporting and currently trades at $21.75.

Read our full, actionable report on WillScot Mobile Mini 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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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