As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the general industrial machinery industry, including Otis (NYSE: OTIS) and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still 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 15 general industrial machinery stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.1% since the latest earnings results.

Otis (NYSE: OTIS)

Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE: OTIS) is an elevator and escalator manufacturing, installation and service company.

Otis reported revenues of $3.60 billion, flat year on year. This print fell short of analysts’ expectations by 2.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue and organic revenue estimates.

Unsurprisingly, the stock is down 12.4% since reporting and currently trades at $88.50.

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

Best Q2: Luxfer (NYSE: LXFR)

With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.

Luxfer reported revenues of $104 million, up 4.3% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems content with the results as the stock is up 3.6% since reporting. It currently trades at $12.78.

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

Weakest Q2: Icahn Enterprises (NASDAQ: IEP)

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.32 billion, up 5.3% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Icahn Enterprises delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.7% since the results and currently trades at $8.11.

Read our full analysis of Icahn Enterprises’s results here.

3M (NYSE: MMM)

Producers of the first asthma inhaler, 3M Company (NYSE: MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.

3M reported revenues of $6.16 billion, up 2.3% year on year. This number surpassed analysts’ expectations by 0.9%. It was a strong quarter as it also produced full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.

The stock is down 6.5% since reporting and currently trades at $148.75.

Read our full, actionable report on 3M here, it’s free for active Edge members.

Honeywell (NASDAQ: HON)

Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.

Honeywell reported revenues of $10.35 billion, up 8.1% year on year. This print topped analysts’ expectations by 2.8%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.

Honeywell had the weakest full-year guidance update among its peers. The stock is down 15.7% since reporting and currently trades at $201.98.

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

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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