As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at heavy transportation equipment stocks, starting with Douglas Dynamics (NYSE:PLOW).
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 Q3. As a group, revenues missed analysts’ consensus estimates by 1%.
In light of this news, share prices of the companies have held steady as they are up 4.6% on average 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 $129.4 million, down 10.2% year on year. This print fell short of analysts’ expectations by 8.4%. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $25.98.
Read our full report on Douglas Dynamics here, it’s free.
Best Q3: 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 $8.46 billion, flat year on year, outperforming analysts’ expectations by 1.8%. The business had a stunning quarter with 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 $368.91.
Is now the time to buy Cummins? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: 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 $464 million, down 26.7% year on year, falling short of analysts’ expectations by 2.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 7.7% since the results and currently trades at $15.74.
Read our full analysis of Wabash’s results here.
Allison Transmission (NYSE:ALSN)
Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.
Allison Transmission reported revenues of $824 million, up 12% year on year. This number beat analysts’ expectations by 4.3%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ EBITDA estimates.
The stock is up 20.3% since reporting and currently trades at $120.35.
Read our full, actionable report on Allison Transmission here, it’s free.
Shyft (NASDAQ:SHYF)
Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ:SHYF) offers specialty vehicles and truck bodies for various industries.
Shyft reported revenues of $194.1 million, down 3.6% year on year. This result came in 6.6% below analysts' expectations. It was a slower quarter as it also produced a miss of analysts’ adjusted operating income estimates.
The stock is up 10.3% since reporting and currently trades at $12.95.
Read our full, actionable report on Shyft here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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