Gibraltar Industries Wraps Acquisition Loan

Let’s dig into the relative performance of Simpson and its peers as we unravel the now-completed Q3 home construction materials earnings season.

Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential 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 home construction materials companies.

The 12 home construction materials stocks we track reported a slower Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Simpson

Aiming to build safer and stronger buildings, Simpson designs and manufactures structural connectors, anchors, and other construction products.

Simpson reported revenues of $623.5 million, up 6.2% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ revenue estimates but a miss of analysts’ EBITDA estimates.

"We delivered solid third quarter results despite ongoing softness in residential housing markets across the U.S. and Europe," said Mike Olosky, President and Chief Executive Officer of Simpson Manufacturing Co., Inc.

Interestingly, the stock is up 2% since reporting and currently trades at $179.39.

Best Q3: Quanex

Starting in the seamless tube industry, Quanex manufactures building products like window, door, kitchen, and bath cabinet components.

Quanex reported revenues of $489.8 million, flat year on year, outperforming analysts’ expectations by 4.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 22.8% since reporting. It currently trades at $18.52.

Slowest Q3: American Woodmark

Starting as a small millwork shop, American Woodmark is a cabinet manufacturing company that helps customers from inspiration to installation.

American Woodmark reported revenues of $394.6 million, down 12.8% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 13.1% since the results and currently trades at $58.65.

Read our full analysis of American Woodmark’s results here.

Gibraltar

Gibraltar makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.

Gibraltar reported revenues of $310.9 million, up 12.2% year on year. This result missed analysts’ expectations by 2.1%. It was a softer quarter as it also logged a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.

Gibraltar scored the highest full-year guidance raise among its peers. The stock is down 24.4% since reporting and currently trades at $50.72.

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

Masco

Headquartered just outside of Detroit, MI, Masco designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.

Masco reported revenues of $1.92 billion, down 3.3% year on year. This number came in 1.5% below analysts' expectations. Overall, it was a disappointing quarter as it also recorded a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

The stock is down 1.8% since reporting and currently trades at $67.17.

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

What Happened?

A number of stocks jumped in the afternoon session after the US president announced a framework for a future deal with Greenland. Wall Street saw a broad-based rally, with the S&P 500 gaining 1.2% as investor concerns over global trade tensions eased. The positive sentiment followed an announcement that reversed course on plans to impose tariffs linked to Greenland, which had caused steep market losses earlier in the week. This recovery reflected renewed optimism in the market, as the threat of a widening trade conflict appeared to subside, encouraging investors to move back into equities.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Renewable Energy company Array jumped 6.4%. Is now the time to buy Array? Access our full analysis report here, it’s free.
• Waste Management company Quest Resource jumped 15.8%. Is now the time to buy Quest Resource? Access our full analysis report here, it’s free.
• Home Construction Materials company Gibraltar jumped 7.3%. Is now the time to buy Gibraltar? Access our full analysis report here, it’s free.
• Energy Products and Services company FTAI Infrastructure jumped 5.1%. Is now the time to buy FTAI Infrastructure? Access our full analysis report here, it’s free.
• Renewable Energy company Sunrun jumped 9.1%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free.

Zooming In On Quest Resource (QRHC)

Quest Resource’s shares are extremely volatile and have had 60 moves greater than 5% over the last year. But moves this big are rare even for Quest Resource and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 11 months ago when the stock dropped 32.2% on the news that the company reported weak fourth-quarter results as revenue barely grew, missing expectations, and EBITDA declined significantly. The real story was the sharp drop in profitability, with adjusted EBITDA falling by more than half compared to the previous year, weighed down by higher costs, client attrition, and weaker demand in industrial end markets. With earnings pressure mounting, the company announced a 15% workforce reduction and an annualized $3 million cut in operating expenses. The company also named Perry Moss as CEO, signaling a shift in leadership.Overall, this was a disappointing quarter with little revenue growth and weaker earnings.

Quest Resource is up 13.4% since the beginning of the year, but at $2.25 per share, it is still trading 62.3% below its 52-week high of $5.96 from January 2025. Investors who bought $1,000 worth of Quest Resource’s shares 5 years ago would now be looking at an investment worth $787.72.