Looking back on industrial distributors stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Boise Cascade (NYSE: BCC) and its peers.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Distributors that boast a reliable selection of products–everything from hardhats and fasteners for jet engines to ceiling systems–and quickly deliver goods to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to better interact with customers. Additionally, distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 26 industrial distributors stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 2.6% below.

In light of this news, share prices of the companies have held steady as they are up 3.7% on average since the latest earnings results.

Boise Cascade (NYSE: BCC)

Formed through the merger of two lumber companies, Boise Cascade Company (NYSE: BCC) manufactures and distributes wood products and other building materials.

Boise Cascade reported revenues of $1.74 billion, down 3.2% year on year. This print fell short of analysts’ expectations by 0.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

“During the second quarter of 2025, we experienced sequential volume growth driven by seasonally stronger activity, although underlying demand for new residential construction remained muted,” said Nate Jorgensen, CEO.

Unsurprisingly, the stock is down 7.2% since reporting and currently trades at $76.65.

Read our full report on Boise Cascade here, it’s free.

Best Q2: Transcat (NASDAQ: TRNS)

Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ: TRNS) provides measurement instruments and supplies.

Transcat reported revenues of $76.42 million, up 14.6% year on year, outperforming analysts’ expectations by 5.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7% since reporting. It currently trades at $72.94.

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

Weakest Q2: Watsco (NYSE: WSO)

Originally a manufacturing company, Watsco (NYSE: WSO) today only distributes air conditioning, heating, and refrigeration equipment, as well as related parts and supplies.

Watsco reported revenues of $2.06 billion, down 3.6% year on year, falling short of analysts’ expectations by 7.2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Watsco delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 15.2% since the results and currently trades at $393.75.

Read our full analysis of Watsco’s results here.

United Rentals (NYSE: URI)

Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.

United Rentals reported revenues of $3.94 billion, up 4.5% year on year. This result topped analysts’ expectations by 0.8%. It was a strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

The stock is up 16.5% since reporting and currently trades at $931.25.

Read our full, actionable report on United Rentals here, it’s free.

Distribution Solutions (NASDAQ: DSGR)

Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Distribution Solutions reported revenues of $502.4 million, up 14.3% year on year. This number beat analysts’ expectations by 3.7%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ EBITDA and EPS estimates.

The stock is flat since reporting and currently trades at $29.03.

Read our full, actionable report on Distribution Solutions 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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