As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the construction machinery industry, including Manitowoc (NYSE:MTW) 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 strong Q1. As a group, revenues missed analysts’ consensus estimates by 0.8%.
Luckily, construction machinery stocks have performed well with share prices up 25.2% on average since the latest earnings results.
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 print fell short of analysts’ expectations by 2.3%, but it was still a strong quarter for the company with an impressive beat of analysts’ backlog and EBITDA estimates.
“First-quarter results exceeded our expectations. We began to see signs of a turnaround in our Europe tower crane business with machine orders up 68% year-over-year, marking the third consecutive quarter of year-over-year growth. Our non-new machine sales for the first quarter grew 11% year-over-year to $161 million. Although the tariff situation remains fluid, our team continues to find different ways to mitigate the impact and, therefore, we are maintaining our guidance,” said Aaron Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc.
Interestingly, the stock is up 37.2% since reporting and currently trades at $11.39.
Is now the time to buy Manitowoc? 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 scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 20.3% since reporting. It currently trades at $42.44.
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 14.9% since the results and currently trades at $353.
Read our full analysis of Caterpillar’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 $1.23 billion, down 4.9% year on year. This number missed analysts’ expectations by 1.3%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
The stock is up 28.3% since reporting and currently trades at $46.65.
Read our full, actionable report on Terex here, it’s free.
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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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