Looking back on industrial & environmental services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Pitney Bowes (NYSE: PBI) and its peers.

Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems.

The 7 industrial & environmental services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 1.3% below.

In light of this news, share prices of the companies have held steady as they are up 3.2% on average since the latest earnings results.

Weakest Q2: Pitney Bowes (NYSE: PBI)

With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE: PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.

Pitney Bowes reported revenues of $461.9 million, down 5.7% year on year. This print fell short of analysts’ expectations by 2.9%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations and EPS in line with analysts’ estimates.

Pitney Bowes delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 3.8% since reporting and currently trades at $11.82.

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

Best Q2: CECO Environmental (NASDAQ: CECO)

With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.

CECO Environmental reported revenues of $185.4 million, up 34.8% year on year, outperforming analysts’ expectations by 3.5%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and full-year revenue guidance topping analysts’ expectations.

CECO Environmental achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 39.8% since reporting. It currently trades at $48.45.

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

Cintas (NASDAQ: CTAS)

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Cintas reported revenues of $2.67 billion, up 8% year on year, exceeding analysts’ expectations by 1.6%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a slight miss of analysts’ full-year EPS guidance estimates.

Cintas delivered the weakest full-year guidance update in the group. The stock is flat since the results and currently trades at $215.65.

Read our full analysis of Cintas’s results here.

Vestis (NYSE: VSTS)

Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE: VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.

Vestis reported revenues of $673.8 million, down 3.5% year on year. This print met analysts’ expectations. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates.

The stock is down 20.1% since reporting and currently trades at $4.78.

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

UniFirst (NYSE: UNF)

With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE: UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries.

UniFirst reported revenues of $610.8 million, up 1.2% year on year. This result missed analysts’ expectations by 0.6%. Taking a step back, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.

The stock is down 5.8% since reporting and currently trades at $179.11.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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