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 professional tools and equipment stocks, starting with Hyster-Yale Materials Handling (NYSE: HY).

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 10 professional tools and equipment stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Hyster-Yale Materials Handling (NYSE: HY)

Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE: HY) designs, manufactures, and sells materials handling equipment to various sectors.

Hyster-Yale Materials Handling reported revenues of $956.6 million, down 18.1% year on year. This print exceeded analysts’ expectations by 2.1%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

Hyster-Yale Materials Handling delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 12.1% since reporting and currently trades at $37.21.

Read our full report on Hyster-Yale Materials Handling here, it’s free for active Edge members.

Best Q2: Lincoln Electric (NASDAQ: LECO)

Headquartered in Ohio, Lincoln Electric (NASDAQ: LECO) manufactures and sells welding equipment for various industries.

Lincoln Electric reported revenues of $1.09 billion, up 6.6% year on year, outperforming analysts’ expectations by 5.1%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 8.4% since reporting. It currently trades at $242.21.

Is now the time to buy Lincoln Electric? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Kennametal (NYSE: KMT)

Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE: KMT) is a provider of industrial materials and tools for various sectors.

Kennametal reported revenues of $516.4 million, down 4.9% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

Kennametal delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 8.6% since the results and currently trades at $22.97.

Read our full analysis of Kennametal’s results here.

Hillman (NASDAQ: HLMN)

Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ: HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.

Hillman reported revenues of $402.8 million, up 6.2% year on year. This print topped analysts’ expectations by 2.6%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Hillman had the weakest full-year guidance update among its peers. The stock is up 16.1% since reporting and currently trades at $9.45.

Read our full, actionable report on Hillman here, it’s free for active Edge members.

ESAB (NYSE: ESAB)

Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE: ESAB) manufactures and sells welding and cutting equipment for numerous industries.

ESAB reported revenues of $715.6 million, up 1.2% year on year. This number surpassed analysts’ expectations by 6%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.

ESAB delivered the biggest analyst estimates beat among its peers. The stock is down 6.6% since reporting and currently trades at $123.33.

Read our full, actionable report on ESAB here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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