Unpacking Q2 Earnings: Greenbrier (NYSE:GBX) In The Context Of Other Heavy Transportation Equipment Stocks

Looking back on heavy transportation equipment stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Greenbrier (NYSE:GBX) and its peers.

Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.

The 12 heavy transportation equipment stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.4%.

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

Greenbrier (NYSE:GBX)

Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.

Greenbrier reported revenues of $842.7 million, up 2.7% year on year. This print exceeded analysts’ expectations by 7.3%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ sales volume estimates and a beat of analysts’ EPS estimates.

Greenbrier achieved the biggest analyst estimates beat of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $46.77.

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

Best Q2: Cummins (NYSE:CMI)

With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems.

Cummins reported revenues of $8.64 billion, down 1.7% year on year, outperforming analysts’ expectations by 3.4%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 10.5% since reporting. It currently trades at $399.77.

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

Weakest Q2: Trinity (NYSE:TRN)

Operating under the trade name TrinityRail, Trinity (NYSE:TRN) is a provider of railcar products and services in North America.

Trinity reported revenues of $506.2 million, down 39.8% year on year, falling short of analysts’ expectations by 13.3%. It was a slower quarter as it posted a significant miss of analysts’ EPS and EBITDA estimates.

Trinity delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 14.2% since the results and currently trades at $28.55.

Read our full analysis of Trinity’s results here.

Wabtec (NYSE:WAB)

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.

Wabtec reported revenues of $2.71 billion, up 2.3% year on year. This number came in 2.5% below analysts' expectations. It was a slower quarter as it also produced a significant miss of analysts’ organic revenue estimates and a slight miss of analysts’ EBITDA estimates.

The stock is down 8.5% since reporting and currently trades at $196.20.

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

Douglas Dynamics (NYSE:PLOW)

Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.

Douglas Dynamics reported revenues of $194.3 million, down 2.8% year on year. This result beat analysts’ expectations by 6.3%. Overall, it was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Douglas Dynamics delivered the highest full-year guidance raise among its peers. The stock is up 19% since reporting and currently trades at $33.66.

Read our full, actionable report on Douglas Dynamics 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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