The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Lincoln Electric (NASDAQ: LECO) and the rest of the professional tools and equipment stocks fared in Q1.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment 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 10 professional tools and equipment stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 1% above.

While some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.

Lincoln Electric (NASDAQ: LECO)

Headquartered in Ohio, Lincoln Electric (NASDAQ: LECO) manufactures and sells welding equipment for various industries.

Lincoln Electric reported revenues of $1.12 billion, up 11.7% year on year. This print exceeded analysts’ expectations by 4.2%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ organic revenue estimates.

“We achieved solid first quarter performance driven by disciplined cost management and improving industrial activity in the Americas,” said Steven B. Hedlund, Chairman and Chief Executive Officer.

The market seems disappointed with the results as the stock is down 1.9% since reporting and currently trades at $252.73.

Read our full report on Lincoln Electric here, it’s free.

Best Q1: Kennametal (NYSE: KMT)

Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE: KMT) is a provider of industrial materials and tools for various sectors.

Kennametal reported revenues of $592.6 million, up 21.8% year on year, outperforming analysts’ expectations by 4.8%. The business had a stunning quarter with a solid beat of analysts’ organic revenue estimates and full-year EPS guidance exceeding analysts’ expectations.

Kennametal scored the fastest revenue growth and highest full-year guidance raise of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 10.1% since reporting. It currently trades at $33.74.

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

Weakest Q1: Hyster-Yale Materials Handling (NYSE: HY)

Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE: HY) designs, manufactures, and sells materials handling equipment to various sectors.

Hyster-Yale Materials Handling reported revenues of $795.2 million, down 12.7% year on year, falling short of analysts’ expectations by 9.4%. It was a slower quarter, leaving some shareholders looking for more.

Hyster-Yale Materials Handling delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 17.4% since the results and currently trades at $33.00.

Read our full analysis of Hyster-Yale Materials Handling’s results here.

Stanley Black & Decker (NYSE: SWK)

With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE: SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.

Stanley Black & Decker reported revenues of $3.85 billion, up 2.7% year on year. This result beat analysts’ expectations by 2.7%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ organic revenue estimates.

The stock is up 15% since reporting and currently trades at $90.06.

Read our full, actionable report on Stanley Black & Decker here, it’s free.

Fortive (NYSE: FTV)

Taking its name from the Latin root of "strong", Fortive (NYSE: FTV) manufactures products and develops industrial software for numerous industries.

Fortive reported revenues of $1.07 billion, up 7.7% year on year. This number surpassed analysts’ expectations by 2.4%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EBITDA and EPS estimates.

The stock is flat since reporting and currently trades at $61.78.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.