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 electrical systems industry, including Whirlpool (NYSE: WHR) and its peers.

Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.

The 13 electrical systems stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was 0.8% below.

Luckily, electrical systems stocks have performed well with share prices up 10.1% on average since the latest earnings results.

Weakest Q2: Whirlpool (NYSE: WHR)

Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.

Whirlpool reported revenues of $3.77 billion, down 5.4% year on year. This print fell short of analysts’ expectations by 3%. Overall, it was a softer quarter for the company with full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.

"As expected, the second quarter continued to be impacted by competitors stockpiling Asian imports into the U.S. Despite this, we are well positioned in North America with a robust pipeline of new products, the industry's leading U.S. manufacturing footprint, and favorable housing demand fundamentals. We are confident in our long-term strategy and believe that evolving tariff policies will ultimately support domestic manufacturers."

Whirlpool achieved the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 20.1% since reporting and currently trades at $73.20.

Read our full report on Whirlpool here, it’s free for active Edge members.

Best Q2: LSI (NASDAQ: LYTS)

Enhancing commercial environments, LSI (NASDAQ: LYTS) provides lighting and display solutions for businesses and retailers.

LSI reported revenues of $155.1 million, up 20.2% year on year, outperforming analysts’ expectations by 11.6%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 20.1% since reporting. It currently trades at $23.18.

Is now the time to buy LSI? Access our full analysis of the earnings results here, it’s free for active Edge members.

Thermon (NYSE: THR)

Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.

Thermon reported revenues of $108.9 million, down 5.4% year on year, falling short of analysts’ expectations by 11.1%. It was a slower quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates.

Thermon delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3.4% since the results and currently trades at $27.27.

Read our full analysis of Thermon’s results here.

Hubbell (NYSE: HUBB)

A respected player in the electrical segment, Hubbell (NYSE: HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Hubbell reported revenues of $1.48 billion, up 2.2% year on year. This result came in 1.9% below analysts' expectations. More broadly, it was actually a strong quarter as it logged an impressive beat of analysts’ EBITDA estimates.

The stock is flat since reporting and currently trades at $434.77.

Read our full, actionable report on Hubbell here, it’s free for active Edge members.

Powell (NASDAQ: POWL)

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Powell reported revenues of $286.3 million, flat year on year. This print missed analysts’ expectations by 5.1%. Zooming out, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ revenue estimates.

The stock is up 39.6% since reporting and currently trades at $331.50.

Read our full, actionable report on Powell here, it’s free for active Edge members.

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.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.