Looking back on heavy transportation equipment stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Douglas Dynamics (NYSE: PLOW) 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 14 heavy transportation equipment stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 20.5% since the latest earnings results.
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 $143.5 million, up 6.9% year on year. This print fell short of analysts’ expectations by 7.5%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ EPS estimates.
Douglas Dynamics achieved the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 13.2% since reporting and currently trades at $23.41.
Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.
Best Q4: REV Group (NYSE: REVG)
Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.
REV Group reported revenues of $525.1 million, down 10.4% year on year, outperforming analysts’ expectations by 6.5%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 13.2% since reporting. It currently trades at $30.87.
Is now the time to buy REV Group? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Greenbrier (NYSE: GBX)
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE: GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $762.1 million, down 11.7% year on year, falling short of analysts’ expectations by 15.2%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Greenbrier delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 9.6% since the results and currently trades at $40.47.
Read our full analysis of Greenbrier’s results here.
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 $8.45 billion, down 1.1% year on year. This number topped analysts’ expectations by 4.7%. Overall, it was a stunning quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ Engine revenue estimates.
The stock is down 17.5% since reporting and currently trades at $287.11.
Read our full, actionable report on Cummins here, it’s free.
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 $7.36 billion, down 14.3% year on year. This print came in 1.3% below analysts' expectations. Overall, it was a slower quarter as it also recorded a miss of analysts’ EPS and EBITDA estimates.
The stock is down 19.5% since reporting and currently trades at $88.40.
Read our full, actionable report on PACCAR 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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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