Wrapping up Q4 earnings, we look at the numbers and key takeaways for the building materials stocks, including 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 strong Q4. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 1.8% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.2% 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 $1.86 billion, up 20.9% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
"Resideo finished 2024 in a strong position, exceeding the high-end of the range for all four of our key financial metrics. The ADI and Products and Solutions teams drove excellent operational execution, generating organic net revenue growth in both segments, continued gross margin expansion, healthy Adjusted EBITDA growth, and record operating cash generation," said Jay Geldmacher, Resideo's President and CEO.
The stock is down 14.6% since reporting and currently trades at $18.34.
Read our full report on Resideo here, it’s free.
Best Q4: 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 $1.85 billion, up 1.1% year on year, outperforming analysts’ expectations by 2.1%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 10.6% since reporting. It currently trades at $241.75.
Is now the time to buy Vulcan Materials? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $1.12 billion, flat year on year, falling short of analysts’ expectations by 1.9%. It was a slower quarter as it posted a miss of analysts’ EBITDA and organic revenue estimates.
Carlisle delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7.6% since the results and currently trades at $347.55.
Read our full analysis of Carlisle’s results here.
Valmont (NYSE: VMI)
Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE: VMI) provides engineered products and infrastructure services for the agricultural industry.
Valmont reported revenues of $1.04 billion, up 2.1% year on year. This result beat analysts’ expectations by 2.6%. It was a very strong quarter as it also recorded a solid beat of analysts’ organic revenue and adjusted operating income estimates.
Valmont had the weakest full-year guidance update among its peers. The stock is down 6.8% since reporting and currently trades at $298.30.
Read our full, actionable report on Valmont here, it’s free.
AZEK (NYSE: AZEK)
With a significant portion of its products made from recycled materials, AZEK (NYSE: AZEK) designs and manufactures goods for outdoor living spaces.
AZEK reported revenues of $285.4 million, up 18.7% year on year. This number surpassed analysts’ expectations by 7.9%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.
AZEK achieved the biggest analyst estimates beat among its peers. The stock is down 3.6% since reporting and currently trades at $48.50.
Read our full, actionable report on AZEK here, it’s free.
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