Looking back on home construction materials stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Gibraltar (NASDAQ: ROCK) 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 mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.1% since the latest earnings results.

Gibraltar (NASDAQ: ROCK)

Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.

Gibraltar reported revenues of $268.7 million, up 16% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a narrow beat of analysts’ revenue estimates.

Gibraltar achieved the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 20.4% since reporting and currently trades at $39.20.

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

Best Q4: Trex (NYSE: TREX)

Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE: TREX) makes wood-alternative decking, railing, and patio furniture.

Trex reported revenues of $161.1 million, down 3.9% year on year, outperforming analysts’ expectations by 11.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Trex achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.1% since reporting. It currently trades at $37.26.

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

Weakest Q4: Fortune Brands (NYSE: FBIN)

Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE: FBIN) makes plumbing, security, and outdoor living products.

Fortune Brands reported revenues of $1.08 billion, down 2.4% year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 26.9% since the results and currently trades at $45.56.

Read our full analysis of Fortune Brands’s results here.

Quanex (NYSE: NX)

Starting in the seamless tube industry, Quanex (NYSE: NX) manufactures building products like window, door, kitchen, and bath cabinet components.

Quanex reported revenues of $409.1 million, up 2.3% year on year. This number beat analysts’ expectations by 0.9%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 8.7% since reporting and currently trades at $17.16.

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

JELD-WEN (NYSE: JELD)

Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.

JELD-WEN reported revenues of $802 million, down 10.5% year on year. This print topped analysts’ expectations by 7.6%. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but full-year EBITDA guidance missing analysts’ expectations significantly.

The stock is down 21.4% since reporting and currently trades at $1.65.

Read our full, actionable report on JELD-WEN 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 thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), 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 potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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