Let’s dig into the relative performance of Rush Enterprises (NASDAQ: RUSHA) and its peers as we unravel the now-completed Q2 industrial distributors earnings season.
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 25 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 4.7% on average since the latest earnings results.
Rush Enterprises (NASDAQ: RUSHA)
Headquartered in Texas, Rush Enterprises (NASDAQ: RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.
Rush Enterprises reported revenues of $1.93 billion, down 4.8% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA and EPS estimates.
“The second quarter of 2025 continued to present challenges for commercial truck operators and the broader industry that supports them. While there have been sporadic signs of recovery from the freight recession that has impacted over-the-road carriers for more than two years, freight rates remain depressed, and overcapacity persists. In addition, ongoing economic uncertainty, particularly around U.S. trade policy and its potential impact on the supply chain and overall economy, combined with a lack of clarity regarding engine emissions regulations, has led many customers to delay vehicle acquisition and maintenance decisions,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises,
Rush Enterprises delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $53.58.
Is now the time to buy Rush Enterprises? Access our full analysis of the earnings results here, it’s free.
Best Q2: FTAI Aviation (NASDAQ: FTAI)
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
FTAI Aviation reported revenues of $676.2 million, up 52.4% year on year, outperforming analysts’ expectations by 5.8%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
FTAI Aviation pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 45.4% since reporting. It currently trades at $166.
Is now the time to buy FTAI Aviation? 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 13% since the results and currently trades at $404.30.
Read our full analysis of Watsco’s results here.
Karat Packaging (NASDAQ: KRT)
Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.
Karat Packaging reported revenues of $124 million, up 10.1% year on year. This print met analysts’ expectations. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and revenue guidance for next quarter missing analysts’ expectations.
The stock is down 5.4% since reporting and currently trades at $25.21.
Read our full, actionable report on Karat Packaging here, it’s free.
DistributionNOW (NYSE: DNOW)
Spun off from National Oilwell Varco, DistributionNOW (NYSE: DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.
DistributionNOW reported revenues of $628 million, flat year on year. This result surpassed analysts’ expectations by 2.6%. It was a stunning quarter as it also recorded a beat of analysts’ EPS and EBITDA estimates.
The stock is flat since reporting and currently trades at $15.25.
Read our full, actionable report on DistributionNOW here, it’s free.
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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