Q3 Earnings Highlights: Douglas Dynamics (NYSE:PLOW) Vs The Rest Of The Heavy Transportation Equipment Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how heavy transportation equipment stocks fared in Q3, starting with Douglas Dynamics (NYSE:PLOW).

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 mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1%.

Thankfully, share prices of the companies have been resilient as they are up 8% on average since the latest earnings results.

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 $162.1 million, up 25.3% year on year. This print fell short of analysts’ expectations by 0.7%, but it was still a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

Douglas Dynamics achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 14.7% since reporting and currently trades at $34.07.

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

Best Q3: REV Group (NYSE:REVG)

Offering the first full-electric North American fire truck, REV (NYSE:REVG) manufactures and sells specialty vehicles.

REV Group reported revenues of $664.4 million, up 11.1% year on year, outperforming analysts’ expectations by 4.5%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 7.4% since reporting. It currently trades at $59.75.

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

Weakest Q3: Wabash (NYSE:WNC)

With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.

Wabash reported revenues of $381.6 million, down 17.8% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.

Wabash delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 20.2% since the results and currently trades at $9.99.

Read our full analysis of Wabash’s results here.

PACCAR (NASDAQ:PCAR)

Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

PACCAR reported revenues of $6.67 billion, down 19% year on year. This result beat analysts’ expectations by 0.6%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ adjusted operating income estimates.

The stock is up 17.2% since reporting and currently trades at $114.54.

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

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 $759.5 million, down 27.9% year on year. This number missed analysts’ expectations by 0.6%. Overall, it was a slower quarter as it also logged full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.

Greenbrier pulled off the highest full-year guidance raise among its peers. The stock is up 4.6% since reporting and currently trades at $47.36.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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