As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the general industrial machinery industry, including Illinois Tool Works (NYSE:ITW) and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still 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 15 general industrial machinery stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 5.5% below.

Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results.

Illinois Tool Works (NYSE:ITW)

Founded by Byron Smith, an investor who held over 100 patents, Illinois Tool Works (NYSE:ITW) manufactures engineered components and specialized equipment for numerous industries.

Illinois Tool Works reported revenues of $3.97 billion, down 1.6% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ EPS estimates but a miss of analysts’ organic revenue estimates.

“ITW delivered solid third quarter results, as our worldwide team continued to successfully navigate and overcome market challenges with strong operational execution as evidenced by operating margin of 26.5 percent, including 130 basis points contribution from enterprise initiatives, and EPS growth to $2.65 per share excluding a divesture gain,” said Christopher A. O’Herlihy, President and Chief Executive Officer.

Interestingly, the stock is up 5% since reporting and currently trades at $268.64.

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

Best Q3: Luxfer (NYSE:LXFR)

With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE:LXFR) offers specialized materials, components, and gas containment devices to various industries.

Luxfer reported revenues of $99.4 million, up 2.1% year on year, outperforming analysts’ expectations by 15.9%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Luxfer scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.6% since reporting. It currently trades at $13.72.

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

Weakest Q3: Icahn Enterprises (NASDAQ:IEP)

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.22 billion, down 25.7% year on year, falling short of analysts’ expectations by 4.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Icahn Enterprises delivered the slowest revenue growth in the group. As expected, the stock is down 23.5% since the results and currently trades at $9.86.

Read our full analysis of Icahn Enterprises’s results here.

L.B. Foster (NASDAQ:FSTR)

Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

L.B. Foster reported revenues of $137.5 million, down 5.4% year on year. This result came in 3.4% below analysts' expectations. Aside from that, it was a strong quarter as it produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 34.9% since reporting and currently trades at $28.55.

Read our full, actionable report on L.B. Foster here, it’s free.

John Bean (NYSE:JBT)

Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE:JBT) designs, manufactures, and sells equipment used for food processing and aviation.

John Bean reported revenues of $453.8 million, up 12.4% year on year. This number beat analysts’ expectations by 2.6%. Zooming out, it was a satisfactory quarter as it also produced a decent beat of analysts’ EPS estimates.

John Bean scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 27.1% since reporting and currently trades at $121.

Read our full, actionable report on John Bean here, it’s free.

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 has 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.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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