Construction and Maintenance Services Stocks Q3 In Review: Concrete Pumping (NASDAQ:BBCP) Vs Peers

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the construction and maintenance services stocks, including Concrete Pumping 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 13 construction and maintenance services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.

Luckily, construction and maintenance services stocks have performed well with share prices up 12.2% on average since the latest earnings results.

Concrete Pumping

Going public via SPAC in 2018, Concrete Pumping is a provider of concrete pumping and waste management services in the United States and the United Kingdom.

Concrete Pumping reported revenues of $108.8 million, down 2.4% year on year. This print exceeded analysts’ expectations by 5.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue and adjusted operating income estimates.

"This quarter, our results again reflected the resilience and adaptability of our business model amid persistent macroeconomic challenges," said CPH CEO Bruce Young.

Unsurprisingly, the stock is down 22% since reporting and currently trades at $5.77.

Best Q3: Primoris

Listed on the NASDAQ in 2008, Primoris builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.

Primoris reported revenues of $2.18 billion, up 32.1% year on year, outperforming analysts’ expectations by 17.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Primoris delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.1% since reporting. It currently trades at $152.02.

Weakest Q3: WillScot Mobile Mini

Originally focusing on mobile offices for construction sites, WillScot provides ready-to-use temporary spaces, largely for longer-term lease.

WillScot Mobile Mini reported revenues of $566.8 million, down 5.8% year on year, falling short of analysts’ expectations by 2.3%. It was a softer quarter as it posted a miss of analysts’ Delivery and Installation revenue estimates and revenue guidance for next quarter missing analysts’ expectations significantly.

WillScot Mobile Mini delivered the slowest revenue growth in the group. Interestingly, the stock is up 4.5% since the results and currently trades at $20.43.

Read our full analysis of WillScot Mobile Mini’s results here.

MYR Group

Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group is a specialty contractor in the electrical construction industry.

MYR Group reported revenues of $950.4 million, up 7% year on year. This print beat analysts’ expectations by 2.8%. It was a strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 13.6% since reporting and currently trades at $256.22.

Read our full, actionable report on MYR Group here, it’s free.

Limbach

Established in 1901, Limbach provides integrated building systems solutions, including mechanical, electrical, and plumbing services.

Limbach reported revenues of $184.6 million, up 37.8% year on year. This result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also produced full-year EBITDA guidance slightly topping analysts’ expectations but a miss of analysts’ EBITDA estimates.

Limbach achieved the highest full-year guidance raise among its peers. The stock is down 7.5% since reporting and currently trades at $84.03.

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