Let’s dig into the relative performance of Apogee (NASDAQ: APOG) and its peers as we unravel the now-completed Q2 commercial building products earnings season.

Commercial building products companies, which often serve more complicated projects, can supplement their core business with higher-margin installation and consulting services revenues. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of commercial 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 commercial building products companies.

The 5 commercial building products stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.3% on average since the latest earnings results.

Best Q2: Apogee (NASDAQ: APOG)

Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ: APOG) sells architectural products and services such as high-performance glass for commercial buildings.

Apogee reported revenues of $346.6 million, up 4.6% year on year. This print exceeded analysts’ expectations by 6.3%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

Apogee achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 4.2% since reporting and currently trades at $41.35.

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

Insteel (NYSE: IIIN)

Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE: IIIN) provides steel wire reinforcing products for concrete.

Insteel reported revenues of $179.9 million, up 23.4% year on year, outperforming analysts’ expectations by 2.2%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA and EPS estimates.

Insteel pulled off the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $38.06.

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

Slowest Q2: AZZ (NYSE: AZZ)

Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.

AZZ reported revenues of $422 million, up 2.1% year on year, falling short of analysts’ expectations by 3.2%. Still, it was a satisfactory quarter as it posted a solid beat of analysts’ EBITDA estimates.

AZZ delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 11.4% since the results and currently trades at $112.40.

Read our full analysis of AZZ’s results here.

Johnson Controls (NYSE: JCI)

Founded after patenting the electric room thermostat, Johnson Controls (NYSE: JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.

Johnson Controls reported revenues of $6.05 billion, up 2.6% year on year. This number beat analysts’ expectations by 0.7%. It was a strong quarter as it also recorded a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ adjusted operating income estimates.

The stock is down 5% since reporting and currently trades at $105.96.

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

Janus (NYSE: JBI)

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.

Janus reported revenues of $228.1 million, down 8.2% year on year. This print topped analysts’ expectations by 5.5%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Janus had the slowest revenue growth among its peers. The stock is up 16.9% since reporting and currently trades at $10.15.

Read our full, actionable report on Janus 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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