As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the home construction materials industry, including Owens Corning (NYSE: OC) and its peers.
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.
While some home construction materials stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.
Owens Corning (NYSE: OC)
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 exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ organic revenue estimates.
The stock is down 5% since reporting and currently trades at $135.44.
Read our full report on Owens Corning here, it’s free.
Best Q1: Simpson (NYSE: SSD)
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 an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $157.80.
Is now the time to buy Simpson? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Masco (NYSE: MAS)
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.
The stock is flat since the results and currently trades at $61.79.
Read our full analysis of Masco’s results here.
Griffon (NYSE: GFF)
Initially in the defense industry, Griffon (NYSE: GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.
Griffon reported revenues of $611.7 million, down 9.1% year on year. This number lagged analysts' expectations by 1%. More broadly, it was actually a strong quarter as it put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The stock is up 4.4% since reporting and currently trades at $70.73.
Read our full, actionable report on Griffon here, it’s free.
Hayward (NYSE: HAYW)
Credited with introducing the first variable-speed pool pump, Hayward (NYSE: HAYW) makes residential and commercial pool equipment and accessories.
Hayward reported revenues of $228.8 million, up 7.7% year on year. This print beat analysts’ expectations by 7.1%. It was an exceptional quarter as it also produced a solid beat of analysts’ organic revenue and EBITDA estimates.
Hayward delivered the biggest analyst estimates beat among its peers. The stock is up 2% since reporting and currently trades at $13.60.
Read our full, actionable report on Hayward here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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