Wrapping up Q3 earnings, we look at the numbers and key takeaways for the commercial building products stocks, including Janus (NYSE:JBI) and its peers.
Commercial building products companies, which often serve more complicated projects, can supplement their core business with higher-margin installation and consulting services revenues. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of commercial 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 commercial building products companies.
The 5 commercial building products stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 5.6%.
While some commercial building products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.4% since the latest earnings results.
Janus (NYSE:JBI)
Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions.
Janus reported revenues of $230.1 million, down 17.9% year on year. This print fell short of analysts’ expectations by 7.3%. Overall, it was a disappointing quarter for the company with full-year revenue and EBITDA guidance missing analysts’ expectations.
“We saw continued pressure in the third quarter as headwinds from macroeconomic factors, interest rate uncertainty and project delays persisted,” said Ramey Jackson, Chief Executive Officer.
Janus delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 26.5% since reporting and currently trades at $7.58.
Read our full report on Janus here, it’s free.
Best Q3: Apogee (NASDAQ:APOG)
Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ:APOG) sells architectural products and services such as high-performance glass for commercial buildings.
Apogee reported revenues of $342.4 million, down 3.2% year on year, outperforming analysts’ expectations by 2%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
Apogee scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.1% since reporting. It currently trades at $71.22.
Is now the time to buy Apogee? Access our full analysis of the earnings results here, it’s free.
Insteel (NYSE:IIIN)
Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE:IIIN) provides steel wire reinforcing products for concrete.
Insteel reported revenues of $134.3 million, down 14.7% year on year, falling short of analysts’ expectations by 7.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
As expected, the stock is down 5.8% since the results and currently trades at $27.80.
Read our full analysis of Insteel’s results here.
Johnson Controls (NYSE:JCI)
Founded after patenting the electric room thermostat, Johnson Controls (NYSE:JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.
Johnson Controls reported revenues of $6.25 billion, up 6.7% year on year. This result missed analysts’ expectations by 14.7%. It was a softer quarter as it also produced full-year EPS guidance missing analysts’ expectations.
Johnson Controls scored the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is up 5.8% since reporting and currently trades at $79.19.
Read our full, actionable report on Johnson Controls here, it’s free.
AZZ (NYSE:AZZ)
Responsible for projects like nuclear facilities, AZZ (NYSE:AZZ) is a provider of metal coating and power infrastructure solutions.
AZZ reported revenues of $409 million, up 2.6% year on year. This print came in 0.7% below analysts' expectations. Overall, it was a slower quarter as it also recorded full-year EBITDA and revenue guidance missing analysts’ expectations.
The stock is flat since reporting and currently trades at $81.65.
Read our full, actionable report on AZZ here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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