Q3 earnings are in full swing, just as everyone starts thinking about next year. While the current demand backdrop remains mixed, some of the more notable commentary this week has been less about Q3 and more about how companies are positioning for 2027 and beyond.
In heavy materials, VMC offered an encouraging first look at 2027 pricing, pointing to mid-single-digit to high-single-digit increases. GVA went even further out, laying out 2027–2029 organic revenue growth targets of 10–12%, supported by its core vertically integrated markets as well as federal/defense, rail and data center opportunities.
The residential outlook remains much more cautious. BLDR laid out three illustrative 2027 scenarios, with single-family starts ranging from roughly flat to down 10%, reflecting weak fall demand and expectations that builders could pull back further.
At the same time, companies exposed to the large-project buildout continue to invest behind that opportunity. HRI is expanding its Specialty fleet to capture more megaproject activity, while URI is similarly investing in fleet to support continued large-project demand. MGRC added another data point this week, raising capex primarily to invest in TRS equipment as AI/chip demand drives strong utilization, while megaproject activity continues to support its Modular business. Management expects both drivers to persist through 2027.
The takeaway from this week’s earnings is that companies are already placing their bets on 2027. Residential expectations are being reset lower, but pricing, fleet and equipment investment, and positioning around megaprojects, AI and data centers suggest companies exposed to the largest buildouts continue to see a long runway ahead.
Disclosure: This content reflects the independent views of Thompson Research Group, LLC (“TRG”), is provided for informational purposes only, and does not constitute an offer or solicitation to buy or sell any security. Additional information, including analyst certification and compensation-related conflicts of interest, may be found here: (disclosures).