The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Limbach (NASDAQ:LMB) and the rest of the construction and maintenance services stocks fared in Q4.

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 mixed Q4. As a group, revenues missed analysts’ consensus estimates by 0.9% 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 13.6% since the latest earnings results.

Limbach (NASDAQ:LMB)

Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.

Limbach reported revenues of $143.7 million, flat year on year. This print fell short of analysts’ expectations by 3.8%, but it was still an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

“In 2024, we produced record gross profit, record net income and record adjusted EBITDA by expanding and strengthening customer relationships in six verticals – healthcare, industrial and manufacturing, data centers, life science, higher education and cultural and entertainment,” Michael McCann, President and Chief Executive Officer of Limbach Holdings, said.

Interestingly, the stock is up 12.2% since reporting and currently trades at $77.15.

Is now the time to buy Limbach? Access our full analysis of the earnings results here, it’s free .

Best Q4: Construction Partners (NASDAQ:ROAD)

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

Construction Partners reported revenues of $561.6 million, up 41.6% year on year, outperforming analysts’ expectations by 9.7%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Construction Partners achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.3% since reporting. It currently trades at $78.59.

Is now the time to buy Construction Partners? Access our full analysis of the earnings results here, it’s free .

Weakest Q4: Concrete Pumping (NASDAQ:BBCP)

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

Concrete Pumping reported revenues of $86.45 million, down 11.5% year on year, falling short of analysts’ expectations by 4.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 17% since the results and currently trades at $5.02.

Read our full analysis of Concrete Pumping’s results here.

MYR Group (NASDAQ:MYRG)

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

MYR Group reported revenues of $829.8 million, down 17.4% year on year. This number missed analysts’ expectations by 6.6%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EPS estimates but a miss of analysts’ backlog estimates.

MYR Group had the slowest revenue growth among its peers. The stock is down 11.1% since reporting and currently trades at $111.88.

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

Great Lakes Dredge & Dock (NASDAQ:GLDD)

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Great Lakes Dredge & Dock reported revenues of $202.8 million, up 11.6% year on year. This result lagged analysts' expectations by 4%. More broadly, it was actually a strong quarter as it recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 21.5% since reporting and currently trades at $8.64.

Read our full, actionable report on Great Lakes Dredge & Dock here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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