As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the professional tools and equipment industry, including Lincoln Electric (NASDAQ:LECO) 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 10 professional tools and equipment stocks we track reported a decent Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 0.9% below.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results.

Lincoln Electric (NASDAQ:LECO)

Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries.

Lincoln Electric reported revenues of $1.02 billion, down 3.7% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ earnings estimates but a miss of analysts’ organic revenue estimates.

“Our solid second quarter profit, earnings and cash conversion results demonstrate the team’s effective cost management and execution of our strategic initiatives while navigating a more challenging portion of the cycle,” stated Steven B. Hedlund, President and Chief Executive Officer.

Unsurprisingly, the stock is down 8.2% since reporting and currently trades at $194.27.

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

Best Q2: 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 $1.12 billion, up 2.5% year on year, outperforming analysts’ expectations by 3.5%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.