Let’s dig into the relative performance of Terex (NYSE: TEX) and its peers as we unravel the now-completed Q1 construction machinery earnings season.
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 strong Q1. As a group, revenues missed analysts’ consensus estimates by 0.8%.
Luckily, construction machinery stocks have performed well with share prices up 21.6% on average since the latest earnings results.
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 $1.23 billion, down 4.9% year on year. This print fell short of analysts’ expectations by 1.3%, but it was still a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 29.3% since reporting and currently trades at $47.
Is now the time to buy Terex? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $329.4 million, up 6.5% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Astec pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 11.7% since reporting. It currently trades at $39.41.
Is now the time to buy Astec? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: 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 $14.25 billion, down 9.8% year on year, falling short of analysts’ expectations by 2.6%. It was a softer quarter as it posted a miss of analysts’ adjusted operating income and EPS estimates.
Caterpillar delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 15.6% since the results and currently trades at $354.94.
Read our full analysis of Caterpillar’s results here.
Manitowoc (NYSE: MTW)
Contracted by the United States Navy during WWII, Manitowoc (NYSE: MTW) provides cranes and lifting equipment.
Manitowoc reported revenues of $470.9 million, down 4.9% year on year. This result came in 2.3% below analysts' expectations. Zooming out, it was actually a strong quarter as it logged an impressive beat of analysts’ backlog and EBITDA estimates.
The stock is up 29.9% since reporting and currently trades at $10.78.
Read our full, actionable report on Manitowoc 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.
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.
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