The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how gas and liquid handling stocks fared in Q2, starting with CECO (NASDAQ:CECO).

Gas and liquid handling companies possess the technical know-how and specialized equipment to handle valuable (and sometimes dangerous) substances. Lately, water conservation and carbon capture–which requires hydrogen and other gasses as well as specialized infrastructure–have been trending up, creating new demand for products such as filters, pumps, and valves. On the other hand, gas and liquid handling 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 12 gas and liquid handling stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9%.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, gas and liquid handling stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.

CECO (NASDAQ:CECO)

Started in a Cincinnati garage, CECO (NASDAQ:CECO) is a global provider of industrial air quality and fluid handling systems.

CECO reported revenues of $137.5 million, up 6.5% year on year. This print fell short of analysts’ expectations by 4%. Overall, it was a weak quarter for the company with a miss of analysts’ operating margin and earnings estimates.

“We continue to deliver strong results while maintaining our strategic investments and programmatic M&A to advance our operating model as we pursue exciting growth opportunities across industrial air, industrial water and energy transition. During the quarter, we delivered several impressive financial records including our highest second quarter sales, gross profit, adjusted EBITDA dollars, and excellent year-over-year margin expansion,” said CECO’s Chief Executive Officer, Todd Gleason.

Unsurprisingly, the stock is down 5% since reporting and currently trades at $28.52.

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

Best Q2: Flowserve (NYSE:FLS)

Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE:FLS) manufactures and sells flow control equipment for various industries.