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 electrical systems industry, including Verra Mobility (NASDAQ: VRRM) and its peers.

Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.

The 12 electrical systems stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 2.9% below.

Thankfully, share prices of the companies have been resilient as they are up 8.9% on average since the latest earnings results.

Verra Mobility (NASDAQ: VRRM)

Managing over 165 million tolling transactions per year, Verra Mobility (NYSE: VRRM) is a leading provider of smart mobility technology that enhances safety, efficiency, and convenience on roadways.

Verra Mobility reported revenues of $223.3 million, up 6.4% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates.

"We delivered a strong first quarter with all key financial measures ahead of our internal expectations," said David Roberts, President and CEO, Verra Mobility.

The stock is up 9.9% since reporting and currently trades at $24.38.

We think Verra Mobility is a good business, but is it a buy today? Read our full report here, it’s free.

Best Q1: Kimball Electronics (NASDAQ: KE)

Founded in 1961, Kimball Electronics (NYSE: KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.

Kimball Electronics reported revenues of $374.6 million, down 11.9% year on year, outperforming analysts’ expectations by 10.8%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Kimball Electronics scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 23.5% since reporting. It currently trades at $18.19.

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

Weakest Q1: Whirlpool (NYSE: WHR)

Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.

Whirlpool reported revenues of $3.62 billion, down 19.4% year on year, falling short of analysts’ expectations by 1%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations.

Whirlpool delivered the slowest revenue growth in the group. Interestingly, the stock is up 5.4% since the results and currently trades at $81.90.

Read our full analysis of Whirlpool’s results here.

Powell (NASDAQ: POWL)

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Powell reported revenues of $278.6 million, up 9.2% year on year. This number missed analysts’ expectations by 1.4%. More broadly, it was actually a satisfactory quarter as it logged a solid beat of analysts’ EBITDA estimates.

The stock is down 4.8% since reporting and currently trades at $181.

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

Acuity Brands (NYSE: AYI)

One of the pioneers of smart lights, Acuity (NYSE: AYI) designs and manufactures light fixtures and building management systems used in various industries.

Acuity Brands reported revenues of $1.01 billion, up 11.1% year on year. This print lagged analysts' expectations by 2.2%. It was a softer quarter as it also logged a miss of analysts’ organic revenue estimates and a slight miss of analysts’ EBITDA estimates.

Acuity Brands had the weakest performance against analyst estimates among its peers. The stock is flat since reporting and currently trades at $264.07.

Read our full, actionable report on Acuity Brands 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.

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