Wrapping up Q2 earnings, we look at the numbers and key takeaways for the professional tools and equipment stocks, including Kennametal (NYSE: KMT) and its peers.

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 9 professional tools and equipment stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.6% since the latest earnings results.

Weakest 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 $516.4 million, down 4.9% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

Kennametal delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 19.4% since reporting and currently trades at $20.24.

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

Best 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 $1.09 billion, up 6.6% year on year, outperforming analysts’ expectations by 5.1%. The business had a stunning quarter with a solid beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

Lincoln Electric scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 7.4% since reporting. It currently trades at $240.07.

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

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 $956.6 million, down 18.1% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Hyster-Yale Materials Handling delivered the slowest revenue growth in the group. As expected, the stock is down 14.7% since the results and currently trades at $36.10.

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

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 $402.8 million, up 6.2% year on year. This number surpassed analysts’ expectations by 2.6%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Hillman achieved the highest full-year guidance raise among its peers. The stock is up 20.9% since reporting and currently trades at $9.85.

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

Snap-on (NYSE: SNA)

Founded in 1920, Snap-on (NYSE: SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.

Snap-on reported revenues of $1.28 billion, flat year on year. This print topped analysts’ expectations by 2.1%. It was a strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and a narrow beat of analysts’ adjusted operating income estimates.

The stock is up 2.7% since reporting and currently trades at $321.89.

Read our full, actionable report on Snap-on 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% in November), 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 potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.