Looking back on heavy transportation equipment stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Blue Bird (NASDAQ: BLBD) and its peers.
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 13 heavy transportation equipment stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.7%.
Luckily, heavy transportation equipment stocks have performed well with share prices up 15.7% on average since the latest earnings results.
Blue Bird (NASDAQ: BLBD)
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $358.9 million, up 3.7% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates.
“I am incredibly proud of our team in delivering another outstanding result, achieving a new all-time quarterly record revenue and profit,” said John Wyskiel, President & CEO of Blue Bird Corporation.
Interestingly, the stock is up 5% since reporting and currently trades at $39.60.
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 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 13.3% since reporting. It currently trades at $27.66.
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.
As expected, the stock is down 10.1% since the results and currently trades at $8.95.
Read our full analysis of Wabash’s results here.
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 number lagged analysts' expectations by 0.8%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
The stock is up 19.3% since reporting and currently trades at $205.
Read our full, actionable report on Wabtec 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 result topped analysts’ expectations by 0.6%. It was an exceptional quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
The stock is up 9.1% since reporting and currently trades at $327.15.
Read our full, actionable report on Cummins here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 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.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
