Looking back on gas and liquid handling stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Flowserve (NYSE: FLS) and its peers.
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 11 gas and liquid handling stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 9.1% on average since the latest earnings results.
Best Q1: 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.
Flowserve reported revenues of $1.14 billion, up 5.2% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“Our first quarter results were a strong start to the year, with robust bookings growth, margin expansion, and earnings acceleration all driven by healthy end markets and improved execution. These results demonstrate the strength of our diversified portfolio and the exceptional performance of our associates around the world operating under the Flowserve Business System,” said Scott Rowe, Flowserve’s President and Chief Executive Officer.
Interestingly, the stock is up 6.7% since reporting and currently trades at $47.91.
Is now the time to buy Flowserve? Access our full analysis of the earnings results here, it’s free.
Helios (NYSE: HLIO)
Founded on the principle of treating others as one wants to be treated, Helios (NYSE: HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.
Helios reported revenues of $195.5 million, down 7.8% year on year, outperforming analysts’ expectations by 3.8%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue and EBITDA estimates.
Helios pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 15.6% since reporting. It currently trades at $31.34.
Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Ingersoll Rand (NYSE: IR)
Started with the invention of the steam drill, Ingersoll Rand (NYSE: IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.
Ingersoll Rand reported revenues of $1.72 billion, up 2.8% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Interestingly, the stock is up 4% since the results and currently trades at $79.23.
Read our full analysis of Ingersoll Rand’s results here.
ITT (NYSE: ITT)
Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE: ITT) provides motion and fluid handling equipment for various industries
ITT reported revenues of $913 million, flat year on year. This number surpassed analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA estimates but full-year EPS guidance meeting analysts’ expectations.
The stock is up 4.6% since reporting and currently trades at $143.44.
Read our full, actionable report on ITT here, it’s free.
Graco (NYSE: GGG)
Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Graco reported revenues of $528.3 million, up 7.3% year on year. This result met analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also recorded a decent beat of analysts’ EPS estimates but a miss of analysts’ Process revenue estimates.
The stock is up 6.2% since reporting and currently trades at $83.76.
Read our full, actionable report on Graco 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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