Wrapping up Q2 earnings, we look at the numbers and key takeaways for the professional tools and equipment stocks, including Stanley Black & Decker (NYSE: SWK) and its peers.

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.

Stanley Black & Decker (NYSE: SWK)

With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE: SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.

Stanley Black & Decker reported revenues of $3.95 billion, down 2% year on year. This print fell short of analysts’ expectations by 1.7%, but it was still a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ organic revenue estimates.

Donald Allan, Jr., Stanley Black & Decker's President & CEO, commented, "We delivered a solid second quarter amid the dynamic operating environment with the continued growth of our professional DEWALT brand. With our supply chain transformation on track to completion in 2025, we are positioning the Company to embark on the next chapter of delivering sustainable growth and long term shareholder returns. Stanley Black & Decker is built on the strength of our people, iconic brands and a powerful innovation engine – attributes that transcend external market conditions."

Unsurprisingly, the stock is down 3.8% since reporting and currently trades at $71.10.

Is now the time to buy Stanley Black & Decker? Access our full analysis of the earnings results 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 8.2% since reporting. It currently trades at $241.81.

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 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 9.4% since the results and currently trades at $22.75.

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 result surpassed analysts’ expectations by 2.6%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts’ EBITDA estimates.

Hillman had the weakest full-year guidance update among its peers. The stock is up 19.7% since reporting and currently trades at $9.74.

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 print beat analysts’ expectations by 6%. Taking a step back, it was a mixed quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.

ESAB achieved the biggest analyst estimates beat among its peers. The stock is down 9% since reporting and currently trades at $120.10.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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