As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the industrial & environmental services industry, including CECO Environmental (NASDAQ:CECO) and its peers.
Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems.
The 8 industrial & environmental services stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was 1.2% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.1% since the latest earnings results.
Best Q4: CECO Environmental (NASDAQ:CECO)
With roots dating back to 1869 and a focus on creating cleaner industrial processes, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps companies improve air quality, optimize water treatment, and increase energy efficiency across industrial applications.
CECO Environmental reported revenues of $158.6 million, up 3.2% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.
Todd Gleason, CECO's Chief Executive Officer commented, “While we acknowledge mixed results in 2024 driven by customer project and market related order delays, we are energized by our fourth quarter record orders bookings of $219 million, which provides incredible momentum moving into 2025. The steady progress we continue to make on expanding margins and upgrading our portfolio through organic and inorganic investments will help us maximize the tremendous opportunities that exist in key growth markets we serve such as power generation, reshoring of industrial manufacturing, global infrastructure and data center expansion.”
CECO Environmental pulled off the highest full-year guidance raise of the whole group. The stock is up 3.2% since reporting and currently trades at $23.40.
Is now the time to buy CECO Environmental? Access our full analysis of the earnings results here, it’s free.
Pitney Bowes (NYSE:PBI)
With a century-long history dating back to 1920 and once synonymous with postage meters, Pitney Bowes (NYSE:PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes, helping them manage their shipping and mailing operations.
Pitney Bowes reported revenues of $516.1 million, down 2% year on year, outperforming analysts’ expectations by 1.3%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 7.4% since reporting. It currently trades at $9.41.
Is now the time to buy Pitney Bowes? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: Driven Brands (NASDAQ:DRVN)
With a diverse portfolio of well-known brands including CARSTAR, Maaco, Meineke, and Take 5 Oil Change, Driven Brands (NASDAQ:DRVN) operates North America's largest automotive services company with approximately 5,000 locations offering maintenance, car wash, paint, collision, and glass repair services.
Driven Brands reported revenues of $564.1 million, up 1.9% year on year, falling short of analysts’ expectations by 1.6%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ full-year EPS guidance estimates.
Driven Brands delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 8.2% since the results and currently trades at $16.60.
Read our full analysis of Driven Brands’s results here.
Cintas (NASDAQ:CTAS)
Starting as a rag-cleaning business during the Great Depression before evolving into a corporate giant, Cintas (NASDAQ:CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.
Cintas reported revenues of $2.56 billion, up 7.8% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EPS estimates and a decent beat of analysts’ full-year EPS guidance estimates.
The stock is down 6.5% since reporting and currently trades at $191.21.
Read our full, actionable report on Cintas here, it’s free.
Tetra Tech (NASDAQ:TTEK)
With its "Leading with Science" approach guiding over 100,000 projects annually across 100+ countries, Tetra Tech (NASDAQ:TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure projects worldwide.
Tetra Tech reported revenues of $1.20 billion, up 17.9% year on year. This print topped analysts’ expectations by 8.6%. It was a strong quarter as it also put up revenue guidance for next quarter slightly topping analysts’ expectations and a decent beat of analysts’ EPS estimates.
Tetra Tech pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 23.5% since reporting and currently trades at $28.80.
Read our full, actionable report on Tetra Tech here, it’s free.
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