Dj Ibd: Stocks Showing Improved Relative Strength: Construction Ptrs Cl A

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 APi 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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.8% since the latest earnings results.

APi

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

APi reported revenues of $2.09 billion, up 14.2% year on year. This print exceeded analysts’ expectations by 3.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ revenue estimates.

Russ Becker, APi’s President and Chief Executive Officer stated: “We approach 2026 with strong momentum across our global platform. We continue to accelerate organic growth while expanding adjusted EBITDA margins, growing our recurring inspection, service and monitoring business, building on our record backlog, and improving our free cash flow generation. We believe our proven operating model, built on our inspection and service-first strategy, purpose-driven leadership, and a disciplined approach to capital allocation, positions APi for sustained organic growth, margin expansion and value-accretive M&A. We are confident in our leaders’ ability to execute our strategy and deliver against our new 10/16/60+ financial targets, creating value for all our stakeholders. "

Interestingly, the stock is up 7% since reporting and currently trades at $36.87.

Is now the time to buy APi? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Comfort Systems

Formed through the merger of 12 companies, Comfort Systems provides mechanical and electrical contracting services.

Comfort Systems reported revenues of $2.45 billion, up 35.2% year on year, outperforming analysts’ expectations by 13.2%. The business had an incredible quarter with an impressive beat of analysts’ backlog and EPS estimates.

The market seems happy with the results as the stock is up 8.2% since reporting. It currently trades at $893.40.

Is now the time to buy Comfort Systems? Access our full analysis of the earnings results here, it’s free for active Edge members.

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. As expected, the stock is down 9.8% since the results and currently trades at $17.63.

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

Construction Partners

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

Construction Partners reported revenues of $899.8 million, up 67.2% year on year. This number was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also produced full-year EBITDA guidance beating analysts’ expectations but a significant miss of analysts’ organic revenue estimates.

Construction Partners scored the fastest revenue growth among its peers. The stock is down 2.6% since reporting and currently trades at $101.49.

Read our full, actionable report on Construction Partners here, it’s free for active Edge members.

Matrix Service

Founded in Oklahoma, Matrix Service provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.

Matrix Service reported revenues of $211.9 million, up 28% year on year. This result beat analysts’ expectations by 2.5%. However, it was a slower quarter as it produced a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.

Matrix Service had the weakest full-year guidance update among its peers. The stock is down 28.2% since reporting and currently trades at $11.21.

Read our full, actionable report on Matrix Service here, it’s free for active Edge members.