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 Kennametal (NYSE: KMT) and the rest of the professional tools and equipment stocks fared in Q2.
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 8 professional tools and equipment stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 14.3% above.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q2: 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 $736.6 million, up 42.6% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a stunning quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Kennametal scored the fastest revenue growth and highest full-year guidance raise among its peers. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 13.4% since reporting and currently trades at $31.24.
Is now the time to buy Kennametal? Access our full analysis of the earnings results here, it’s free.
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 $3.96 billion, flat year on year, in line with analysts’ expectations. The business had a very strong quarter with a 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 8.1% since reporting. It currently trades at $101.84.
Is now the time to buy Stanley Black & Decker? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Lincoln Electric (NASDAQ: LECO)
Headquartered in Ohio, Lincoln Electric (NASDAQ: LECO) manufactures and sells welding equipment for various industries.
Lincoln Electric reported revenues of $1.22 billion, up 12% year on year, exceeding analysts’ expectations by 4.6%. Still, it was a mixed quarter as it posted a significant miss of analysts’ organic revenue estimates.
Interestingly, the stock is up 11.3% since the results and currently trades at $287.04.
Read our full analysis of Lincoln Electric’s results here.
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 $812.9 million, down 15% year on year. This print surpassed analysts’ expectations by 1%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates.
Hyster-Yale Materials Handling had the slowest revenue growth of the whole group. The stock is down 1.8% since reporting and currently trades at $34.51.
Read our full, actionable report on Hyster-Yale Materials Handling here, it’s free.
Hillman (NASDAQ: HLMN)
Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ: HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Hillman reported revenues of $442.3 million, up 9.8% year on year. This number topped analysts’ expectations by 1.3%. Overall, it was a very strong quarter as it also put up full-year revenue guidance beating analysts’ expectations and full-year EBITDA guidance beating analysts’ expectations.
Hillman had the weakest full-year guidance update in the group. The stock is up 4.6% since reporting and currently trades at $8.70.
Read our full, actionable report on Hillman 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 Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
