Wrapping up Q1 earnings, we look at the numbers and key takeaways for the electrical systems stocks, including Powell (NASDAQ: POWL) 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 14 electrical systems stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was 3.3% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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 $296.6 million, up 6.5% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.

Brett A. Cope, Powell’s Chairman and Chief Executive Officer, stated, “The commercial momentum we observed to start the fiscal year continued throughout the second quarter, driving a well-balanced and strong order total of $490 million which led to a 1.7x book-to-bill ratio. That momentum has continued into our fiscal third quarter as evidenced by the mega(4) data center order we were awarded after the fiscal second quarter-end with a value in excess of $400 million – the largest order in Powell history. Meanwhile, the team continues to demonstrate high levels of project execution, delivering a gross margin of 29.6% in the quarter. We remain acutely focused on executing our key growth objectives and delivering on project schedules for our customers to further Powell’s competitive position against a favorable demand landscape for engineered-to-order distribution solutions.”

The market seems disappointed with the results as the stock is down 12.3% since reporting and currently trades at $236.74.

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

Best Q1: Garrett Motion (NASDAQ: GTX)

A key player in the transition to cleaner vehicles, Garrett Motion (NYSE: GTX) designs and manufactures turbochargers, air compressors, and electric motor technologies for vehicle manufacturers and industrial applications.

Garrett Motion reported revenues of $985 million, up 12.2% year on year, outperforming analysts’ expectations by 9.3%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA and EPS estimates.

The market seems happy with the results as the stock is up 55.8% since reporting. It currently trades at $31.92.

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

Weakest Q1: 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 $3.27 billion, down 9.6% year on year, falling short of analysts’ expectations by 4.4%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.

Whirlpool delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 25.5% since the results and currently trades at $40.75.

Read our full analysis of Whirlpool’s results here.

Acuity Brands (NYSE: AYI)

One of the pioneers of smart lights, Acuity (NYSE: AYI) designs and manufactures light fixtures and building management systems used in various industries.

Acuity Brands reported revenues of $1.20 billion, up 1.6% year on year. This number beat analysts’ expectations by 1.2%. It was a strong quarter as it also logged an impressive beat of analysts’ EBITDA and EPS estimates.

The stock is up 15.4% since reporting and currently trades at $333.09.

Read our full, actionable report on Acuity Brands here, it’s free.

GE Vernova (NYSE: GEV)

Born from the energy business of industrial giant General Electric in a 2023 spin-off, GE Vernova (NYSE: GEV) designs, manufactures, and services power generation equipment and grid technologies to help customers build more reliable and sustainable electric systems.

GE Vernova reported revenues of $9.34 billion, up 16.3% year on year. This print topped analysts’ expectations by 0.8%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates.

The stock is up 10.3% since reporting and currently trades at $1,093.

Read our full, actionable report on GE Vernova here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.