Winners And Losers Of Q2: WillScot Mobile Mini (NASDAQ:WSC) Vs The Rest Of The Construction and Maintenance Services Stocks

Looking back on construction and maintenance services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including WillScot Mobile Mini (NASDAQ:WSC) and its peers.

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 11 construction and maintenance services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.6% 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 share prices up 1.7% on average since the latest earnings results.

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 fell short of analysts’ expectations by 1.7%. Overall, it was a weak quarter for the company with underwhelming EBITDA guidance for the full year and a miss of analysts’ Leasing revenue estimates.

Brad Soultz, Chief Executive Officer of WillScot, commented, "The operating environment was mixed during Q2 2024. We saw continued demand from larger-scale projects related to industrial, manufacturing, energy, onshoring, and infrastructure, offset by less demand from smaller, more transactional commercial construction and interest rate sensitive sectors."

WillScot Mobile Mini delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 4.5% since reporting and currently trades at $38.01.

Is now the time to buy WillScot Mobile Mini? 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%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 21.1% since reporting. It currently trades at $9.81.

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 weak quarter for the company with a miss of analysts’ earnings estimates.

As expected, the stock is down 31.1% since the results and currently trades at $7.61.

Read our full analysis of Orion’s results here.

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 $517.8 million, up 22.7% year on year, surpassing analysts’ expectations by 2.7%. Revenue aside, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates.

The stock is up 11.2% since reporting and currently trades at $64.74.

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

Tutor Perini (NYSE:TPC)

Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services.

Tutor Perini reported revenues of $1.13 billion, up 10.3% year on year, falling short of analysts’ expectations by 2%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

The stock is down 2.2% since reporting and currently trades at $23.18.

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

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