Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Flowserve (NYSE: FLS) and the best and worst performers in the gas and liquid handling industry.

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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 2.8% below.

Thankfully, share prices of the companies have been resilient as they are up 9.5% on average since the latest earnings results.

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 $1.19 billion, up 2.7% year on year. This print fell short of analysts’ expectations by 3.1%, but it was still a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

“Our strong second quarter results reflect the successful ongoing execution of our 3D strategy and the Flowserve Business System. We delivered another quarter of sales and earnings growth while also expanding margins, reflecting the resilience of our business model and progress on our operating initiatives. With the Flowserve Business System firmly established across the organization, we recently went live with our commercial excellence pillar to complement our 80/20 program and drive outsized growth, leveraging the optimized portfolio and delivering the best value to our customers,” said Scott Rowe, Flowserve’s President and Chief Executive Officer.

Unsurprisingly, the stock is down 5.2% since reporting and currently trades at $52.01.

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

Best Q2: 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 $212.5 million, down 3.4% year on year, outperforming analysts’ expectations by 5.5%. The business had an incredible quarter with an impressive beat of analysts’ organic revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Helios delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 37.1% since reporting. It currently trades at $50.51.

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

Weakest Q2: 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 $571.8 million, up 3.4% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates.

Graco delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.3% since the results and currently trades at $83.46.

Read our full analysis of Graco’s results here.

Standex (NYSE: SXI)

Holding over 500 patents globally, Standex (NYSE: SXI) is a manufacturer and distributor of industrial components for various sectors.

Standex reported revenues of $222 million, up 23.2% year on year. This number surpassed analysts’ expectations by 3.5%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Standex delivered the fastest revenue growth among its peers. The stock is up 29.3% since reporting and currently trades at $213.31.

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

Gorman-Rupp (NYSE: GRC)

Powering fluid dynamics since 1934, Gorman-Rupp (NYSE: GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.

Gorman-Rupp reported revenues of $179 million, up 5.6% year on year. This print topped analysts’ expectations by 2.5%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA and revenue estimates.

The stock is up 21.9% since reporting and currently trades at $46.19.

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

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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