As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the energy products and services industry, including MDU Resources (NYSE:MDU) and its peers.
Areas like the energy transition and emission reduction are thematic and front of mind today. This can be a double-edged sword for the energy products and services industry. Those who innovate and build new expertise can jolt demand while those who cling to legacy technologies or fall behind in the trending areas could see their market shares diminish. Bigger picture, energy products and services companies are still at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.
The 4 energy products and services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 5.6%.
Luckily, energy products and services stocks have performed well with share prices up 39.2% on average since the latest earnings results.
MDU Resources (NYSE:MDU)
Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE:MDU) provides products and services in the utilities and construction materials industries.
MDU Resources reported revenues of $351.2 million, up 1.9% year on year. This print exceeded analysts’ expectations by 15.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.
"We continued our solid start to 2025, despite weather and operating cost challenges that impacted the second quarter results," said Nicole A. Kivisto, president and CEO of MDU Resources.
MDU Resources scored the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 12.5% since reporting and currently trades at $19.68.
Read our full report on MDU Resources here, it’s free for active Edge members.
Best Q2: Ameresco (NYSE:AMRC)
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors.
Ameresco reported revenues of $472.3 million, up 7.8% year on year, outperforming analysts’ expectations by 13%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 151% since reporting. It currently trades at $42.
Is now the time to buy Ameresco? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: FTAI Infrastructure (NASDAQ:FIP)
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
FTAI Infrastructure reported revenues of $122.3 million, up 44.1% year on year, falling short of analysts’ expectations by 9.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates.
FTAI Infrastructure delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 12.3% since the results and currently trades at $5.47.
Read our full analysis of FTAI Infrastructure’s results here.
Quanta (NYSE:PWR)
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Quanta reported revenues of $6.77 billion, up 21.1% year on year. This result surpassed analysts’ expectations by 3.5%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Quanta delivered the highest full-year guidance raise among its peers. The stock is up 5.5% since reporting and currently trades at $433.98.
Read our full, actionable report on Quanta here, it’s free for active Edge members.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.