As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at construction machinery stocks, starting with Terex (NYSE:TEX).
Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new sales opportunities for construction machinery companies. On the other hand, construction machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.
The 4 construction machinery stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 2.2%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.7% since the latest earnings results.
Terex (NYSE:TEX)
With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.
Terex reported revenues of $1.49 billion, up 7.6% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ organic revenue estimates but full-year EBITDA guidance missing analysts’ expectations significantly.
Terex achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 5% since reporting and currently trades at $48.50.
Is now the time to buy Terex? Access our full analysis of the earnings results here, it’s free.
Best Q2: Astec (NASDAQ:ASTE)
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Astec reported revenues of $330.3 million, down 4.4% year on year, falling short of analysts’ expectations by 6.7%. However, the business still had a strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 5% since reporting. It currently trades at $42.38.
Is now the time to buy Astec? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Manitowoc (NYSE:MTW)
Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment.
Manitowoc reported revenues of $539.5 million, down 4% year on year, falling short of analysts’ expectations by 6.5%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 18.8% since the results and currently trades at $10.19.
Read our full analysis of Manitowoc’s results here.
Caterpillar (NYSE:CAT)
With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Caterpillar reported revenues of $16.57 billion, flat year on year. This print topped analysts’ expectations by 1.2%. Taking a step back, it was a slower quarter as it logged a miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
The stock is down 6.1% since reporting and currently trades at $407.40.
Read our full, actionable report on Caterpillar here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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