As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the heavy transportation equipment industry, including Allison Transmission (NYSE: ALSN) 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 satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 1.2%.
Luckily, heavy transportation equipment stocks have performed well with share prices up 19.5% on average since the latest earnings results.
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 $766 million, down 2.9% year on year. This print fell short of analysts’ expectations by 3.2%, but it was still a strong quarter for the company with full-year EBITDA and revenue guidance beating analysts’ expectations.
David S. Graziosi, Chair and Chief Executive Officer of Allison Transmission commented, "Allison is well-positioned to navigate current trade uncertainties, utilizing our global footprint to provide our North American customers with Made in USA products while supplying our Outside North America customers with on-highway products produced outside North America."
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $92.88.
Is now the time to buy Allison Transmission? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $115.1 million, up 20.3% year on year, outperforming analysts’ expectations by 6.7%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Douglas Dynamics pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 18% since reporting. It currently trades at $28.81.
Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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. Interestingly, the stock is up 1.1% since the results and currently trades at $45.26.
Read our full analysis of Greenbrier’s results here.
Trinity (NYSE: TRN)
Operating under the trade name TrinityRail, Trinity (NYSE: TRN) is a provider of railcar products and services in North America.
Trinity reported revenues of $585.4 million, down 27.7% year on year. This print missed analysts’ expectations by 5.6%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ EPS estimates and a slight miss of analysts’ EBITDA estimates.
Trinity had the slowest revenue growth among its peers. The stock is up 4.9% since reporting and currently trades at $26.34.
Read our full, actionable report on Trinity 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 $204.6 million, up 3.4% year on year. This result beat analysts’ expectations by 2.8%. It was an incredible quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Shyft achieved the highest full-year guidance raise among its peers. The stock is up 68.4% since reporting and currently trades at $12.28.
Read our full, actionable report on Shyft 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.
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