As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the gas and liquid handling industry, including Standex (NYSE: SXI) and its peers.
Gas and liquid handling companies possess the technical know-how and specialized equipment to handle valuable (and sometimes dangerous) substances. Lately, water conservation and carbon capture–which requires hydrogen and other gasses as well as specialized infrastructure–have been trending up, creating new demand for products such as filters, pumps, and valves. On the other hand, gas and liquid handling 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 11 gas and liquid handling stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 9.1% on average since the latest earnings results.
Standex (NYSE: SXI)
Holding over 500 patents globally, Standex (NYSE: SXI) is a manufacturer and distributor of industrial components for various sectors.
Standex reported revenues of $207.8 million, up 17.2% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates.
Commenting on the quarter's results, President and Chief Executive Officer David Dunbar said, "Following strong operating performance in the fiscal second quarter, we achieved several new records in our fiscal third quarter: record sales since the divestment of the Refrigeration business in April 2020, record adjusted gross margin of 42.3%, and record adjusted operating margin of 19.4%. These results reflect the continued solid operational performance from core businesses, a full quarter of ownership of the fast-growing Amran/Narayan group, and contribution from the recent McStarlite acquisition. Our fast growth market sales totaled $60.4 million or approximately 29% of total sales and are well on track to our expectations for the fiscal year of approximately $170 million. We remain confident about the Company's exposure to positive secular trends in electrical grid, electric and hybrid vehicles, renewable energy, commercialization of space, and defense, and we are reaffirming our long-term target for fast growth market sales of $340 million plus by fiscal year 2028. In addition, we launched three additional new products in the fiscal third quarter totaling 13 year-to-date, achieving our previously committed target of over a dozen and delivering more than 2% of incremental sales."
Standex pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 5.8% since reporting and currently trades at $153.49.
Is now the time to buy Standex? Access our full analysis of the earnings results here, it’s free.
Best Q1: Flowserve (NYSE: FLS)
Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE: FLS) manufactures and sells flow control equipment for various industries.
Flowserve reported revenues of $1.14 billion, up 5.2% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 6.7% since reporting. It currently trades at $47.91.
Is now the time to buy Flowserve? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Ingersoll Rand (NYSE: IR)
Started with the invention of the steam drill, Ingersoll Rand (NYSE: IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.
Ingersoll Rand reported revenues of $1.72 billion, up 2.8% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Interestingly, the stock is up 4% since the results and currently trades at $79.23.
Read our full analysis of Ingersoll Rand’s results here.
IDEX (NYSE: IEX)
Founded in 1988, IDEX (NYSE: IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.
IDEX reported revenues of $814.3 million, up 1.7% year on year. This print beat analysts’ expectations by 1.1%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 6.3% since reporting and currently trades at $184.65.
Read our full, actionable report on IDEX here, it’s free.
Graco (NYSE: GGG)
Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Graco reported revenues of $528.3 million, up 7.3% year on year. This number met analysts’ expectations. More broadly, it was a satisfactory quarter as it also recorded a decent beat of analysts’ EPS estimates but a miss of analysts’ Process revenue estimates.
The stock is up 6.2% since reporting and currently trades at $83.76.
Read our full, actionable report on Graco 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.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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