As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the professional tools and equipment industry, including Lincoln Electric (NASDAQ: LECO) 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.

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. This print exceeded analysts’ expectations by 5.1%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Interestingly, the stock is up 8.2% since reporting and 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.

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, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 19.7% since reporting. It currently trades at $9.74.

Is now the time to buy Hillman? 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.

Snap-on (NYSE: SNA)

Founded in 1920, Snap-on (NYSE: SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.

Snap-on reported revenues of $1.29 billion, up 3.6% year on year. This print surpassed analysts’ expectations by 2.7%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ EBITDA estimates.

The stock is up 3.4% since reporting and currently trades at $343.93.

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

Fortive (NYSE: FTV)

Taking its name from the Latin root of "strong", Fortive (NYSE: FTV) manufactures products and develops industrial software for numerous industries.

Fortive reported revenues of $1.02 billion, flat year on year. This result was in line with analysts’ expectations. Aside from that, it was a satisfactory quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.

The stock is down 4.4% since reporting and currently trades at $48.65.

Read our full, actionable report on Fortive 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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