As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the construction and maintenance services industry, including Limbach (NASDAQ:LMB) 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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.

Luckily, construction and maintenance services stocks have performed well with share prices up 17.6% on average since the latest earnings results.

Best Q3: Limbach (NASDAQ:LMB)

Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.

Limbach reported revenues of $133.9 million, up 4.8% year on year. This print exceeded analysts’ expectations by 3.4%. 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.

“In the third quarter, we continued to execute the three pillars of our strategy with each pillar contributing to our EBITDA growth and gross margin expansion,” said Michael McCann, President and Chief Executive Officer of Limbach Holdings.

Limbach achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 31.9% since reporting and currently trades at $102.88.

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

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 7.8% year on year, outperforming analysts’ expectations by 3.5%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 29% since reporting. It currently trades at $82.98.

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

Slowest Q3: 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 $1.08 billion, up 2.1% year on year, falling short of analysts’ expectations by 7.2%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Tutor Perini delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.6% since the results and currently trades at $28.57.

Read our full analysis of Tutor Perini’s results here.

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 $165.6 million, down 16.2% year on year. This print missed analysts’ expectations by 2.3%. It was a softer quarter as it also produced a significant miss of analysts’ EBITDA and EPS estimates.

Matrix Service had the slowest revenue growth among its peers. The stock is up 3.3% since reporting and currently trades at $13.32.

Read our full, actionable report on Matrix Service here, it’s free.

Construction Partners (NASDAQ:ROAD)

Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.

Construction Partners reported revenues of $538.2 million, up 13.3% year on year. This result met analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded full-year revenue guidance slightly topping analysts’ expectations but a miss of analysts’ EPS estimates.

The stock is up 10.6% since reporting and currently trades at $101.01.

Read our full, actionable report on Construction Partners 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 Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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