Looking back on specialty equipment distributors stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Herc (NYSE: HRI) and its peers.

Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.

The 9 specialty equipment distributors stocks we track reported a satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.

Luckily, specialty equipment distributors stocks have performed well with share prices up 12.2% on average since the latest earnings results.

Herc (NYSE: HRI)

Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE: HRI) provides equipment rental and related services to a wide range of industries.

Herc reported revenues of $861 million, up 7.1% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a disappointing quarter for the company with a miss of analysts’ Equipment rentals revenue estimates.

“As expected, the 2025 operating landscape continues to be a tale of two disparate economic trends,” said Larry Silber, president and chief executive officer.

Herc delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 8.8% since reporting and currently trades at $121.42.

Read our full report on Herc here, it’s free.

Best Q1: Hudson Technologies (NASDAQ: HDSN)

Founded in 1991, Hudson Technologies (NASDAQ: HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Hudson Technologies reported revenues of $55.34 million, down 15.2% year on year, outperforming analysts’ expectations by 6%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Hudson Technologies scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.7% since reporting. It currently trades at $7.36.

Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: H&E Equipment Services (NASDAQ: HEES)

Founded after recognizing a growth trend along the Mississippi River and opportunities developing in the earthmoving and construction equipment business, H&E (NASDAQ: HEES) offers machinery for companies to purchase or rent.

H&E Equipment Services reported revenues of $319.5 million, down 14% year on year, falling short of analysts’ expectations by 11.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

H&E Equipment Services delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 4.6% since the results and currently trades at $94.50.

Read our full analysis of H&E Equipment Services’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 $103.6 million, up 8.4% year on year. This print beat analysts’ expectations by 1.3%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ EBITDA estimates.

Karat Packaging achieved the fastest revenue growth among its peers. The stock is up 14.6% since reporting and currently trades at $31.32.

Read our full, actionable report on Karat Packaging here, it’s free.

SiteOne (NYSE: SITE)

Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE: SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.

SiteOne reported revenues of $939.4 million, up 3.8% year on year. This result topped analysts’ expectations by 0.6%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 9% since reporting and currently trades at $124.29.

Read our full, actionable report on SiteOne here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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