Let’s dig into the relative performance of Manitowoc (NYSE: MTW) and its peers as we unravel the now-completed Q4 construction machinery earnings season.
Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new sales opportunities for construction machinery companies. On the other hand, construction machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.
The 4 construction machinery stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1.4%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.1% since the latest earnings results.
Manitowoc (NYSE: MTW)
Contracted by the United States Navy during WWII, Manitowoc (NYSE: MTW) provides cranes and lifting equipment.
Manitowoc reported revenues of $596 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS and backlog estimates.
“Fourth quarter results were in line with our expectations. I thank the Manitowoc team for their hard work, dedication, and resilience in managing through a difficult environment. Our 2024 results highlight the strength of our aftermarket business which generated a record $629.1 million of revenue. Comparing to 2020, the year before the launch of our CRANES+50 strategy, non-new machine sales have increased by over 67%,” said Aaron H. Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc.
Unsurprisingly, the stock is down 19.2% since reporting and currently trades at $7.92.
Read our full report on Manitowoc here, it’s free.
Best Q4: Astec (NASDAQ: ASTE)
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Astec reported revenues of $359 million, up 6.5% year on year, falling short of analysts’ expectations by 4%. However, the business still had a strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Astec achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 19.8% since reporting. It currently trades at $37.39.
Is now the time to buy Astec? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Caterpillar (NYSE: CAT)
With its iconic yellow machinery working on construction sites, Caterpillar (NYSE: CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Caterpillar reported revenues of $16.22 billion, down 5% year on year, falling short of analysts’ expectations by 2%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ organic revenue estimates.
Caterpillar delivered the slowest revenue growth in the group. As expected, the stock is down 21.9% since the results and currently trades at $307.06.
Read our full analysis of Caterpillar’s results here.
Terex (NYSE: TEX)
With humble beginnings as a dump truck company, Terex (NYSE: TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.
Terex reported revenues of $1.24 billion, up 1.5% year on year. This print beat analysts’ expectations by 0.8%. However, it was a slower quarter as it produced full-year EBITDA guidance missing analysts’ expectations.
Terex scored the biggest analyst estimates beat among its peers. The stock is down 23.2% since reporting and currently trades at $36.87.
Read our full, actionable report on Terex here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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