Q1 Earnings Highs And Lows: Quanex (NYSE:NX) Vs The Rest Of The Home Construction Materials Stocks
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 satisfactory Q1. As a group, revenues 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.
Starting in the seamless tube industry, Quanex (NYSE:NX) manufactures building products like window, door, kitchen, and bath cabinet components.
Quanex reported revenues of $452.5 million, up 70% year on year. This print exceeded analysts' expectations by 3.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates.
George Wilson, Chairman, President and Chief Executive Officer, commented, 'Our results for the second quarter of 2025 came in as expected and reflected normal seasonality in our business. Revenue in March was approximately 6% higher than February and revenue in April was approximately 9% higher than March. It was also encouraging to see volume growth in our European Fenestration segment during the second quarter of 2025. We continue to be pleased with the integration of Tyman, and are now confident we will deliver approximately $45 million in cost synergies over time, compared to our original target of $30 million within the first two years post-acquisition. On a run-rate basis, we see a path to achieving the original $30 million cost synergy target by early fiscal 2026. We also took advantage of our low stock price during the second quarter and spent over $23 million repurchasing our shares.
Quanex achieved the fastest revenue growth and highest full-year guidance raise of the whole group. The stock is up 20.2% since reporting and currently trades at $20.56.
Is now the time to buy Quanex? Access our full analysis of the earnings results here, it's free.
Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products.
Simpson reported revenues of $538.9 million, up 1.6% year on year, outperforming analysts' expectations by 2%. The business had an exceptional quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' EPS estimates.
The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $156.83.
Is now the time to buy Simpson? Access our full analysis of the earnings results here, it's free.
Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.
Masco reported revenues of $1.80 billion, down 6.5% year on year, falling short of analysts' expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates.
Interestingly, the stock is up 4.1% since the results and currently trades at $63.83.
Read our full analysis of Masco's results here.
Headquartered in Irving, TX, Builders FirstSource (NYSE:BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.
Builders FirstSource reported revenues of $3.66 billion, down 6% year on year. This number was in line with analysts' expectations. Zooming out, it was a slower quarter as it recorded a miss of analysts' Windows, doors & millwork revenue estimates and full-year EBITDA guidance missing analysts' expectations significantly.
Builders FirstSource had the weakest full-year guidance update among its peers. The stock is down 4% since reporting and currently trades at $114.55.
Read our full, actionable report on Builders FirstSource here, it's free.
Credited with the discovery of fiberglass, Owens Corning (NYSE:OC) supplies building and construction materials to the United States and international markets.
Owens Corning reported revenues of $2.53 billion, up 25.4% year on year. This print beat analysts' expectations by 0.7%. More broadly, it was a slower quarter as it logged a significant miss of analysts' organic revenue estimates.
The stock is down 2.6% since reporting and currently trades at $138.85.
Read our full, actionable report on Owens Corning here, it's free.
In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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