Hyster-Yale Materials Handling, Limbach, Astec, American Woodmark, and Meritage Homes Stocks Trade Down, What You Need To Know

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:

• Marine Transportation company Matson jumped 3%. Is now the time to buy Matson? Access our full analysis report here, it’s free.
• Construction and Maintenance Services company Limbach jumped 3.6%. Is now the time to buy Limbach? Access our full analysis report here, it’s free.

Zooming In On Limbach (LMB)

Limbach’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 18.5% on the news that the company reported mixed second-quarter financial results, where a miss on revenue overshadowed a strong earnings beat and an increased full-year outlook. 

The building systems provider posted adjusted earnings of $0.93 per share, which sailed past Wall Street's estimate of $0.77. However, quarterly revenue of $142.2 million fell short of the $145.68 million that analysts anticipated. This revenue miss seemed to capture investor attention, despite sales growing 16.4% compared to the same period last year. The company also raised its forecast for full-year 2025 revenue. Ultimately, the market appeared to weigh the revenue shortfall more heavily than the strong profitability and improved guidance, which prompted the stock's decline.

Limbach is up 8.4% since the beginning of the year, but at $85.68 per share, it is still trading 42.7% below its 52-week high of $149.53 from July 2025. Investors who bought $1,000 worth of Limbach’s shares 5 years ago would now be looking at an investment worth $5,461.

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the home construction materials stocks, including Trex and its peers.

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 were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% below.

Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results.

Trex

Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company makes wood-alternative decking, railing, and patio furniture.

Trex reported revenues of $285.3 million, up 22.1% year on year. This print fell short of analysts’ expectations by 5.3%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations and revenue guidance for next quarter missing analysts’ expectations significantly.

Trex achieved the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 24.1% since reporting and currently trades at $43.69.

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

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 and EBITDA estimates.

The market seems happy with the results as the stock is up 24.1% since reporting. It currently trades at $18.71.

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 and adjusted operating income estimates.

Interestingly, the stock is up 21.4% since the results and currently trades at $62.95.

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

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 result surpassed analysts’ expectations by 3.1%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ revenue estimates but a miss of analysts’ EBITDA estimates.

The stock is up 7% since reporting and currently trades at $188.13.

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

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 print came in 2.1% below analysts' expectations. Overall, it was a softer quarter as it also logged a significant miss of analysts’ revenue and EBITDA estimates.

The stock is down 15.1% since reporting and currently trades at $57.

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

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at home construction materials stocks, starting with Quanex .

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 were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% below.

Thankfully, share prices of the companies have been resilient as they are up 7.1% on average since the latest earnings results.

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. This print exceeded analysts’ expectations by 4.4%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

Interestingly, the stock is up 23.2% since reporting and currently trades at $18.58.

Hayward

Credited with introducing the first variable-speed pool pump, Hayward makes residential and commercial pool equipment and accessories.

Hayward reported revenues of $244.3 million, up 7.4% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue and EBITDA estimates.

Hayward delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 9% since reporting. It currently trades at $16.74.

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 22.1% since the results and currently trades at $63.33.

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

Builders FirstSource

Headquartered in Irving, TX, Builders FirstSource is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.

Builders FirstSource reported revenues of $3.94 billion, down 6.9% year on year. This print topped analysts’ expectations by 2.6%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ Windows, doors & millworkrevenue estimates.

The stock is up 10.7% since reporting and currently trades at $127.64.

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

Owens Corning

Credited with the discovery of fiberglass, Owens Corning supplies building and construction materials to the United States and international markets.

Owens Corning reported revenues of $2.68 billion, down 2.9% year on year. This number lagged analysts' expectations by 0.5%. Overall, it was a slower quarter as it also recorded revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

The stock is up 1.7% since reporting and currently trades at $124.75.

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