Construction Machinery Stocks Q2 Teardown: Caterpillar (NYSE:CAT) Vs The Rest

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

Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new sales opportunities for construction machinery companies. On the other hand, construction machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.

The 4 construction machinery stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 2.5%.

Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.

Caterpillar (NYSE:CAT)

With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.

Caterpillar reported revenues of $16.57 billion, flat year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS and EBITDA estimates.

"The Caterpillar team remained focused on customer success and demonstrated solid operational performance this quarter," said CEO Joe Creed.

Interestingly, the stock is up 15.6% since reporting and currently trades at $501.41.

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

Best Q2: Astec (NASDAQ:ASTE)

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Astec reported revenues of $330.3 million, down 4.4% year on year, falling short of analysts’ expectations by 6.7%. However, the business still had a strong quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 15.6% since reporting. It currently trades at $46.66.

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

Weakest Q2: Manitowoc (NYSE:MTW)

Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment.

Manitowoc reported revenues of $539.5 million, down 4% year on year, falling short of analysts’ expectations by 7.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates.

Manitowoc delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 15.7% since the results and currently trades at $10.58.

Read our full analysis of Manitowoc’s results here.

Terex (NYSE:TEX)

With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.

Terex reported revenues of $1.49 billion, up 7.6% year on year. This result surpassed analysts’ expectations by 3.4%. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ revenue estimates but full-year EBITDA guidance missing analysts’ expectations.

Terex pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 8.3% since reporting and currently trades at $54.

Read our full, actionable report on Terex 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.

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