The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Astec (NASDAQ: ASTE) and the rest of the construction machinery stocks fared in Q1.
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 25.5% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 2.8%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
"We are pleased to report another strong quarter in line with our plans to deliver consistency, profitability and growth," said Jaco van der Merwe, Chief Executive Officer.
Astec achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 17.8% since reporting and currently trades at $41.54.
Is now the time to buy Astec? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 2.3%. However, the business still had a strong quarter with a solid beat of analysts’ backlog and EBITDA estimates.
The market seems happy with the results as the stock is up 38% since reporting. It currently trades at $11.45.
Is now the time to buy Manitowoc? 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 13.6% since the results and currently trades at $348.95.
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 result lagged analysts' expectations by 1.3%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
The stock is up 32.7% since reporting and currently trades at $48.23.
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 Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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