General Industrial Machinery Stocks Q2 Highlights: Illinois Tool Works (NYSE:ITW)

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Illinois Tool Works (NYSE:ITW) and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still 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 15 general industrial machinery stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Illinois Tool Works (NYSE:ITW)

Founded by Byron Smith, an investor who held over 100 patents, Illinois Tool Works (NYSE:ITW) manufactures engineered components and specialized equipment for numerous industries.

Illinois Tool Works reported revenues of $4.05 billion, flat year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter for the company with full-year EPS guidance slightly topping analysts’ expectations.

“The ITW team outpaced underlying end market growth and delivered solid financial performance in the second quarter, achieving EPS of $2.58, operating income of $1.1 billion, and operating margin of 26.3 percent, all second-quarter records. Our results are a direct outcome of the strength of the ITW Business Model, the quality of our diversified and resilient portfolio, and the unwavering dedication of our global ITW colleagues to serving our customers and executing our strategy with excellence,” said Christopher A. O’Herlihy, President and Chief Executive Officer.

Interestingly, the stock is up 2.9% since reporting and currently trades at $266.68.

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

Best Q2: Luxfer (NYSE:LXFR)

With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE:LXFR) offers specialized materials, components, and gas containment devices to various industries.

Luxfer reported revenues of $104 million, up 4.3% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 10.3% since reporting. It currently trades at $13.61.

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

Weakest Q2: Icahn Enterprises (NASDAQ:IEP)

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.32 billion, up 5.3% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Icahn Enterprises delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.3% since the results and currently trades at $8.41.

Read our full analysis of Icahn Enterprises’s results here.

Columbus McKinnon (NASDAQ:CMCO)

With 19 different brands across the globe, Columbus McKinnon (NASDAQ:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.

Columbus McKinnon reported revenues of $235.9 million, down 1.6% year on year. This print topped analysts’ expectations by 2.2%. It was a strong quarter as it also produced a beat of analysts’ EPS estimates.

The stock is down 11.4% since reporting and currently trades at $14.91.

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

Hillenbrand (NYSE:HI)

Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $598.9 million, down 23.9% year on year. This number beat analysts’ expectations by 4.6%. It was a strong quarter as it also logged full-year EBITDA guidance slightly topping analysts’ expectations and full-year revenue guidance slightly topping analysts’ expectations.

Hillenbrand had the slowest revenue growth among its peers. The stock is up 29.5% since reporting and currently trades at $25.63.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.