Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Gorman-Rupp (NYSE:GRC) and its peers.
Gas and liquid handling companies possess the technical know-how and specialized equipment to handle valuable (and sometimes dangerous) substances. Lately, water conservation and carbon capture–which requires hydrogen and other gasses as well as specialized infrastructure–have been trending up, creating new demand for products such as filters, pumps, and valves. On the other hand, gas and liquid handling companies are 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 12 gas and liquid handling stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 2.7% below.
Thankfully, share prices of the companies have been resilient as they are up 9.4% on average since the latest earnings results.
Gorman-Rupp (NYSE:GRC)
Powering fluid dynamics since 1934, Gorman-Rupp (NYSE:GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.
Gorman-Rupp reported revenues of $179 million, up 5.6% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Scott A. King, President and CEO, commented, “We were pleased to report record sales, earnings per share and incoming orders during the quarter. Sales increased in the majority of our markets led by the municipal market benefiting from infrastructure spending, including strong demand for flood control and storm water management. In addition, a number of our markets are benefiting from increased demand related to data center construction. While we will continue to monitor tariffs and plan to mitigate their impact through selling price increases, we believe that our primarily U.S. based supply chain provides a competitive advantage. Our strong cash flow has allowed us to reduce our debt levels, including a $30 million reduction in the first half of 2025, contributing to our significant improvement in interest expense. With positive incoming order trends and current backlog levels, we are well positioned for the second half of the year.”
Interestingly, the stock is up 12.4% since reporting and currently trades at $42.59.
Is now the time to buy Gorman-Rupp? Access our full analysis of the earnings results here, it’s free.
Best Q2: Helios (NYSE:HLIO)
Founded on the principle of treating others as one wants to be treated, Helios (NYSE:HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.
Helios reported revenues of $212.5 million, down 3.4% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with a solid beat of analysts’ organic revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Helios pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 51.8% since reporting. It currently trades at $55.92.
Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Graco (NYSE:GGG)
Founded in 1926, Graco (NYSE:GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Graco reported revenues of $571.8 million, up 3.4% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Graco delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 2.7% since the results and currently trades at $84.80.
Read our full analysis of Graco’s results here.
Parker-Hannifin (NYSE:PH)
Founded in 1917, Parker Hannifin (NYSE:PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.
Parker-Hannifin reported revenues of $5.24 billion, up 1.1% year on year. This result topped analysts’ expectations by 2.6%. Taking a step back, it was a satisfactory quarter as it also produced a solid beat of analysts’ organic revenue estimates but a significant miss of analysts’ adjusted operating income estimates.
The stock is up 9.9% since reporting and currently trades at $765.28.
Read our full, actionable report on Parker-Hannifin here, it’s free.
Standex (NYSE:SXI)
Holding over 500 patents globally, Standex (NYSE:SXI) is a manufacturer and distributor of industrial components for various sectors.
Standex reported revenues of $222 million, up 23.2% year on year. This number surpassed analysts’ expectations by 3.5%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
Standex scored the fastest revenue growth among its peers. The stock is up 22.5% since reporting and currently trades at $202.09.
Read our full, actionable report on Standex here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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