Q2 Earnings Highlights: Wabtec (NYSE:WAB) Vs The Rest Of The Heavy Transportation Equipment Stocks

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Wabtec (NYSE:WAB) 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 13 heavy transportation equipment stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6%.

In light of this news, share prices of the companies have held steady as they are up 3.9% on average since the latest earnings results.

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 print fell short of analysts’ expectations by 2.5%. Overall, it was a slower quarter for the company with a significant miss of analysts’ organic revenue estimates.

“The Wabtec team has delivered another strong quarter, highlighted by margin expansion and double digit earnings per share growth,” said Rafael Santana, Wabtec’s President and CEO.

Unsurprisingly, the stock is down 7.8% since reporting and currently trades at $197.80.

Is now the time to buy Wabtec? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 20% since reporting. It currently trades at $434.17.

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

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’ revenue and EPS estimates.

Trinity delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 10.2% since the results and currently trades at $27.56.

Read our full analysis of Trinity’s results here.

Allison Transmission (NYSE:ALSN)

Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.

Allison Transmission reported revenues of $814 million, flat year on year. This print topped analysts’ expectations by 1.7%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and .

The stock is down 4.9% since reporting and currently trades at $83.69.

Read our full, actionable report on Allison Transmission here, it’s free for active Edge members.

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 surpassed analysts’ expectations by 6.3%. It was an exceptional quarter as it also produced a beat of analysts’ EPS and EBITDA estimates.

Douglas Dynamics achieved the highest full-year guidance raise among its peers. The stock is up 7.1% since reporting and currently trades at $30.30.

Read our full, actionable report on Douglas Dynamics here, it’s free for active Edge members.

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.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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