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Construction and Maintenance Services Stocks Q1 In Review: Primoris (NYSE:PRIM) Vs Peers


Jabin Bastian /
2024/06/27 5:14 am EDT

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 construction and maintenance services industry, including Primoris (NYSE:PRIM) 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 6 construction and maintenance services stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.6%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and construction and maintenance services stocks have held roughly steady amidst all this, with share prices up 3.8% on average since the previous earnings results.

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 $1.41 billion, up 12.4% year on year, topping analysts' expectations by 1.9%. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.

“Primoris had a strong first quarter to begin 2024, delivering improved revenues, margins, earnings per share and adjusted EBITDA compared to the prior year,” said Tom McCormick, President and Chief Executive Officer of Primoris.

Primoris Total Revenue

The stock is up 6.7% since the results and currently trades at $51.01.

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

Best Q1: Comfort Systems (NYSE:FIX)

Having historically grown through organic means as well as acquisitions of numerous peers and competitors, Comfort Systems USA (NYSE:FIX) provides mechanical and electrical contracting services.

Comfort Systems reported revenues of $1.54 billion, up 30.8% year on year, outperforming analysts' expectations by 4.8%. It was an incredible quarter for the company, with an impressive beat of analysts' backlog sales and earnings estimates.

Comfort Systems Total Revenue

Comfort Systems delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 0% since the results and currently trades at $311.69.

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

Weakest Q1: APi (NYSE:APG)

Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure.

APi reported revenues of $1.60 billion, down 0.8% year on year, falling short of analysts' expectations by 0.1%. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.

APi had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 0.1% since the results and currently trades at $37.77.

Read our full analysis of APi's results here.

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 $587.2 million, up 3.8% year on year, surpassing analysts' expectations by 1.1%. It was a weaker quarter for the company, with underwhelming EBITDA guidance for the full year and a miss of analysts' operating margin estimates.

WillScot Mobile Mini had the weakest full-year guidance update among its peers. The stock is up 0.6% since the results and currently trades at $37.85.

Read our full, actionable report on WillScot Mobile Mini here, it's free.

Granite Construction (NYSE:GVA)

Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE:GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.

Granite Construction reported revenues of $672.3 million, up 20% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.

The stock is up 12.2% since the results and currently trades at $61.64.

Read our full, actionable report on Granite Construction here, it's free.

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