Building Materials Stocks Q3 Results: Benchmarking Tecnoglass (NYSE:TGLS)

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the building materials industry, including Tecnoglass (NYSE:TGLS) 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 8 building materials stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.1% below.

While some building materials stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.7% since the latest earnings results.

Weakest Q3: 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 $260.5 million, up 9.3% year on year. This print fell short of analysts’ expectations by 2.1%. 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.

The stock is down 7.4% since reporting and currently trades at $51.83.

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

Best Q3: 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 $1.35 billion, flat year on year, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income and organic revenue estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $328.38.

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

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 $1.56 billion, down 5.4% year on year, falling short of analysts’ expectations by 3.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

UFP Industries delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 1.6% since the results and currently trades at $91.46.

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

Armstrong World (NYSE:AWI)

Started as a two-man shop dating back to the 1860s, Armstrong (NYSE:AWI) provides ceiling and wall products to commercial and residential spaces.

Armstrong World reported revenues of $425.2 million, up 10% year on year. This number surpassed analysts’ expectations by 0.8%. Taking a step back, it was a mixed quarter as it also produced a narrow beat of analysts’ revenue estimates but a miss of analysts’ adjusted operating income estimates.

The stock is down 6% since reporting and currently trades at $190.56.

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

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 $2.29 billion, up 14.4% year on year. This print beat analysts’ expectations by 0.8%. Zooming out, it was a satisfactory quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but full-year EBITDA guidance slightly missing analysts’ expectations.

Vulcan Materials pulled off the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $292.72.

Read our full, actionable report on Vulcan Materials 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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.