Let’s dig into the relative performance of Wabtec (NYSE: WAB) and its peers as we unravel the now-completed Q1 heavy transportation equipment earnings season.
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 14 heavy transportation equipment stocks we track reported a strong Q1. As a group, revenues were in line with analysts’ consensus estimates.
Luckily, heavy transportation equipment stocks have performed well with share prices up 33.5% on average since the latest earnings results.
Wabtec (NYSE: WAB)
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.
Wabtec reported revenues of $2.61 billion, up 4.5% year on year. This print fell short of analysts’ expectations by 0.8%, but it was still a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“The Wabtec team has started the year strong, delivering over 20% in earnings per share growth and highlighting the continued business momentum across both the Freight and Transit segments,” said Rafael Santana, Wabtec’s President and CEO.
Interestingly, the stock is up 25.3% since reporting and currently trades at $215.30.
Is now the time to buy Wabtec? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $115.1 million, up 20.3% year on year, outperforming analysts’ expectations by 6.7%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Douglas Dynamics achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 25.9% since reporting. It currently trades at $30.75.
Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $380.9 million, down 26.1% year on year, falling short of analysts’ expectations by 7.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Wabash delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 13.3% since the results and currently trades at $11.28.
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 $6.91 billion, down 16% year on year. This print missed analysts’ expectations by 0.8%. It was a disappointing quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.
The stock is up 7.2% since reporting and currently trades at $98.70.
Read our full, actionable report on PACCAR here, it’s free.
Cummins (NYSE: CMI)
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE: CMI) offers engines and power systems.
Cummins reported revenues of $8.17 billion, down 2.7% year on year. This number surpassed analysts’ expectations by 0.6%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The stock is up 10.3% since reporting and currently trades at $330.75.
Read our full, actionable report on Cummins here, it’s free.
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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