Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Resideo (NYSE:REZI) 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.
Thankfully, share prices of the companies have been resilient as they are up 9.4% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 3%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
"Resideo had a strong first quarter, reporting results at or above the high-end of the range for all of our key financial metrics. The ADI and Products and Solutions teams continued their excellent operational execution, with both segments generating organic net revenue growth, continued gross margin expansion, and healthy Adjusted EBITDA growth. We are re-affirming our 2025 outlook," said Jay Geldmacher, Resideo's President and CEO.
Resideo Total Revenue
Resideo scored the fastest revenue growth and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 19% since reporting and currently trades at $20.77.
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.
Tecnoglass Total Revenue
The market seems happy with the results as the stock is up 21.6% since reporting. It currently trades at $86.01.
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.
UFP Industries delivered the slowest revenue growth in the group. As expected, the stock is down 7.7% since the results and currently trades at $98.26.
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 print came in 2.8% below analysts' expectations. Aside from that, it was a strong quarter as it logged 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 8.2% since reporting and currently trades at $265.31.
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 number topped analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EPS estimates.
The stock is up 7.6% since reporting and currently trades at $387.34.
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.
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