Q2 Rundown: Matrix Service (NASDAQ:MTRX) Vs Other Construction and Maintenance Services Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Matrix Service (NASDAQ:MTRX) and the best and worst performers in the construction and maintenance services industry.

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 Q2. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 2% below.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, construction and maintenance services stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.

Matrix Service (NASDAQ:MTRX)

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

Matrix Service reported revenues of $189.5 million, down 7.9% year on year. This print fell short of analysts’ expectations by 6.6%, but it was still a very strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ earnings estimates.

“We advanced work on multiple large projects during the quarter, which contributed to meaningful cash generation to close-out the fiscal year,” said John Hewitt, President and Chief Executive Officer.

Matrix Service achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 16.7% since reporting and currently trades at $10.67.

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

Best Q2: 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 $170.1 million, up 28.2% year on year, outperforming analysts’ expectations by 3.5%. The business had an incredible quarter with an impressive beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 17% since reporting. It currently trades at $9.48.

Is now the time to buy Great Lakes Dredge & Dock? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Orion (NYSE:ORN)

Established in 1994, Orion (NYSE:ORN) provides construction services for marine infrastructure and industrial projects.

Orion reported revenues of $192.2 million, up 5.3% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.

As expected, the stock is down 47.2% since the results and currently trades at $5.83.

Read our full analysis of Orion’s results here.

WillScot Mobile Mini (NASDAQ:WSC)

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

WillScot Mobile Mini reported revenues of $604.6 million, up 3.9% year on year. This print lagged analysts' expectations by 1.7%. It was a disappointing quarter as it also produced underwhelming EBITDA guidance for the full year and a miss of analysts’ Leasing revenue estimates.

The stock is down 3.2% since reporting and currently trades at $38.53.

Read our full, actionable report on WillScot Mobile Mini here, it’s free.

Comfort Systems (NYSE:FIX)

Having historically grown through organic means as well as acquisitions of numerous peers and competitors, Comfort Systems USA (NYSE:FIX) provides mechanical and electrical contracting services.

Comfort Systems reported revenues of $1.81 billion, up 39.6% year on year. This number surpassed analysts’ expectations by 6.9%. It was a strong quarter as it also put up an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates.

Comfort Systems achieved the fastest revenue growth among its peers. The stock is up 15.9% since reporting and currently trades at $339.02.

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

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