As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the general industrial machinery industry, including Hillenbrand (NYSE: HI) and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 15 general industrial machinery stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Hillenbrand (NYSE: HI)

Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $598.9 million, down 23.9% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was a strong quarter for the company with full-year EBITDA guidance slightly topping analysts’ expectations.

"We continued to advance our strategic initiatives this quarter, including refining our portfolio, reducing debt, and advancing the integration and commercial synergy potential of our Food, Health, and Nutrition (FHN) business, despite the ongoing uncertainty stemming from macroeconomic conditions and tariffs. We used proceeds from the MIME divestiture and the sale of our minority interest in TerraSource to reduce debt by over $300 million during the fiscal year. These portfolio moves allow us to focus on our higher margin, higher growth, and higher ROIC businesses serving the performance materials and FHN end markets. Within our FHN business, we recently achieved the $30 million in run-rate cost synergies from the Linxis and FPM acquisitions, and over the last several quarters we are beginning to see the proof points of the combined assets' commercial synergy potential," said Kim Ryan, President and Chief Executive Officer of Hillenbrand.

Hillenbrand delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 21.2% since reporting and currently trades at $23.99.

Is now the time to buy Hillenbrand? Access our full analysis of the earnings results here, it’s free.

Best Q2: Luxfer (NYSE: LXFR)

With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.

Luxfer reported revenues of $104 million, up 4.3% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $12.34.

Is now the time to buy Luxfer? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Icahn Enterprises (NASDAQ: IEP)

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.32 billion, up 5.3% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Icahn Enterprises delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 2.5% since the results and currently trades at $9.20.

Read our full analysis of Icahn Enterprises’s results here.

Otis (NYSE: OTIS)

Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE: OTIS) is an elevator and escalator manufacturing, installation and service company.

Otis reported revenues of $3.59 billion, flat year on year. This result lagged analysts' expectations by 2.6%. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ organic revenue estimates and a miss of analysts’ EBITDA estimates.

Otis had the weakest full-year guidance update among its peers. The stock is down 12.6% since reporting and currently trades at $88.29.

Read our full, actionable report on Otis here, it’s free.

GE Aerospace (NYSE: GE)

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

GE Aerospace reported revenues of $10.15 billion, up 23.4% year on year. This number topped analysts’ expectations by 6.5%. It was a stunning quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

GE Aerospace delivered the biggest analyst estimates beat among its peers. The stock is up 5.1% since reporting and currently trades at $280.01.

Read our full, actionable report on GE Aerospace here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 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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