General Industrial Machinery Stocks Q3 Highlights: Crane (NYSE:CR)

What Happened?

A number of stocks jumped in the afternoon session after markets rotated out of tech names to position themselves for a massive injection of government spending. 

The sector was ignited by President Trump's call for a $1.5 trillion defense budget for 2027, a significant increase that sent defense contractors surging. Northrop Grumman jumped over 10% and Lockheed Martin gained nearly 8%, acting as the primary engine for the sector's outperformance.Beyond the immediate defense rally, the industrial sector benefited from a broader stabilization in energy costs, with crude prices rebounding. This combination of policy-driven demand and stabilizing input costs made heavy industry an attractive destination.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• General Industrial Machinery company Albany jumped 5.3%. Is now the time to buy Albany? Access our full analysis report here, it’s free.
• General Industrial Machinery company L.B. Foster jumped 3.3%. Is now the time to buy L.B. Foster? Access our full analysis report here, it’s free.
• General Industrial Machinery company Kadant jumped 5.7%. Is now the time to buy Kadant? Access our full analysis report here, it’s free.
• General Industrial Machinery company Illinois Tool Works jumped 3%. Is now the time to buy Illinois Tool Works? Access our full analysis report here, it’s free.
• General Industrial Machinery company Columbus McKinnon jumped 3.4%. Is now the time to buy Columbus McKinnon? Access our full analysis report here, it’s free.

Zooming In On Kadant (KAI)

Kadant’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 29 days ago when the stock gained 4.7% on the news that the Federal Reserve lowered its benchmark interest rate by a quarter-percentage point, signaling a more accommodative monetary policy. 

This dovish action, combined with highly accommodating signals from Chair Jerome Powell and the Federal Open Market Committee (FOMC), sent the Dow Jones Industrial Average and S&P 500 surging.The market's bullish reaction was rooted in several key takeaways from the Fed's announcement. Most significantly, the central bank confirmed it would begin expanding its balance sheet by buying short-term bonds, a move that injects critical liquidity and lowers short-term Treasury yields. 

Furthermore, the Fed signaled a shift in priority by removing language that described the labor market as "remaining low," suggesting it would be more focused on supporting economic growth. While the Fed's official forecast projected only one cut for the next year, traders immediately priced in the expectation of more aggressive easing, banking on at least two rate reductions. This widespread anticipation of sustained, low borrowing costs and the virtual certainty that rate hikes would be off the table boosted corporate valuations and created powerful momentum for the equity market rally.

Kadant is up 8.6% since the beginning of the year, but at $310.93 per share, it is still trading 22% below its 52-week high of $398.39 from February 2025. Investors who bought $1,000 worth of Kadant’s shares 5 years ago would now be looking at an investment worth $2,098.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how industrial machinery stocks fared in Q3, starting with 3D Systems .

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, generating new demand for industrial machinery and components. Companies that innovate and create digitized solutions can spur sales and speed up replacement cycles while those resting on their laurels can see dwindling market positions. Like the broader industrials sector, industrial machinery and components companies are also 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 58 industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.8% on average since the latest earnings results.

3D Systems

Founded by the inventor of stereolithography, 3D Systems engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.

3D Systems reported revenues of $91.25 million, down 19.2% year on year. This print fell short of analysts’ expectations by 2.5%. Overall, it was a softer quarter for the company with a miss of analysts’ revenue estimates.

"I am excited to step into the role of interim CFO," said Phyllis Nordstrom.

Unsurprisingly, the stock is down 16.4% since reporting and currently trades at $2.19.

Read our full report on 3D Systems here, it’s free for active Edge members.

Best Q3: Hillenbrand

Hillenbrand, Inc. is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $652.1 million, down 22.1% year on year, outperforming analysts’ expectations by 9.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $31.82.

Weakest Q3: Albany

Founded in 1895, Albany is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Albany reported revenues of $261.4 million, down 12.4% year on year, falling short of analysts’ expectations by 12.8%. It was a disappointing quarter as it posted a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.

Albany delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 2.1% since the results and currently trades at $53.46.

Read our full analysis of Albany’s results here.

Flowserve

Manufacturing the largest pump ever built for nuclear power generation, Flowserve manufactures and sells flow control equipment for various industries.

Flowserve reported revenues of $1.17 billion, up 3.6% year on year. This result came in 2.7% below analysts' expectations. Aside from that, it was a very strong quarter as it produced an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 36.4% since reporting and currently trades at $71.85.

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

Proto Labs

Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.

Proto Labs reported revenues of $135.4 million, up 7.8% year on year. This print surpassed analysts’ expectations by 1.1%. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 1.7% since reporting and currently trades at $53.95.

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

What Happened?

A number of stocks fell in the afternoon session after major indices pulled back from record highs reached the previous week. 

The S&P 500 and Nasdaq were under pressure as the dominant artificial intelligence trade cooled off. Notable names like Nvidia were down as traders locked in profits following a banner year where the Nasdaq surged over 20%. With the S&P 500 recently hitting intraday highs near 6,945, this dip reflected a shift in internal momentum rather than a response to major economic news.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• General Industrial Machinery company Icahn Enterprises fell 3.8%. Is now the time to buy Icahn Enterprises? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company Sunrun fell 2.8%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company SolarEdge fell 3.5%. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free for active Edge members.
• Engineered Components and Systems company Graham Corporation fell 3.3%. Is now the time to buy Graham Corporation? Access our full analysis report here, it’s free for active Edge members.
• Professional Tools and Equipment company Hyster-Yale Materials Handling fell 3.1%. Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Icahn Enterprises (IEP)

Icahn Enterprises’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 5 months ago when the stock gained 4.5% on the news that a new trade agreement between the United States and Japan spurred a broad market rally. 

The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks.

Icahn Enterprises is down 18.6% since the beginning of the year, and at $7.31 per share, it is trading 29.9% below its 52-week high of $10.43 from February 2025. Investors who bought $1,000 worth of Icahn Enterprises’s shares 5 years ago would now be looking at an investment worth $144.70.

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 L.B. Foster 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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.8% on average since the latest earnings results.

L.B. Foster

Founded with a $2,500 loan, L.B. Foster 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 $138.3 million, flat year on year. This print fell short of analysts’ expectations by 10.4%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue and EBITDA estimates.

John Kasel, President and Chief Executive Officer, commented, "We continued on a favorable trend in the third quarter, although the modest sales growth resulted in lower profitability compared to last year's high point realized in Q3. Sales were up 0.6%, while Adjusted EBITDA was down 7.9% driven primarily by lower margins for Precast Concrete within Infrastructure. Rail margins were also slightly lower, but this was primarily volume-timing related. With the improved customer demand and higher backlog in place, we expect a strong fourth quarter for both segments."

Interestingly, the stock is up 5.3% since reporting and currently trades at $28.86.

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

Best Q3: Hillenbrand

Hillenbrand, Inc. is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $652.1 million, down 22.1% year on year, outperforming analysts’ expectations by 9.8%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems content with the results as the stock is up 1% since reporting. It currently trades at $31.96.

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

Weakest Q3: Albany

Founded in 1895, Albany is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Albany reported revenues of $261.4 million, down 12.4% year on year, falling short of analysts’ expectations by 12.8%. It was a disappointing quarter as it posted a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.

Albany delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.2% since the results and currently trades at $51.24.

Read our full analysis of Albany’s results here.

Icahn Enterprises

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

Icahn Enterprises reported revenues of $2.51 billion, down 9.9% year on year. This number beat analysts’ expectations by 4.3%. Overall, it was an incredible quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is down 4.6% since reporting and currently trades at $7.75.

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

Kadant

Headquartered in Massachusetts, Kadant is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.

Kadant reported revenues of $271.6 million, flat year on year. This result topped analysts’ expectations by 4.2%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is down 3.6% since reporting and currently trades at $288.19.

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

What Happened?

Shares of industrial equipment and engineered products manufacturer Albany jumped 3.1% in the morning session after the company announced it was evaluating strategic options for its structures assembly business, including a potential sale that could boost profitability. The review concerned its AED Facility in Salt Lake City. Management disclosed that more than ten private equity investors had expressed interest in the business. The company expected that if a sale was completed, the Albany Engineered Composites segment's adjusted EBITDA margin would rise to the mid-to-high teens, signaling a move toward greater profitability for the unit. In other positive news, Albany's Board of Directors also declared a quarterly dividend of $0.28 per share.

After the initial pop the shares cooled down to $50.38, up 3.6% from previous close.

Is now the time to buy Albany? Access our full analysis report here.

What Is The Market Telling Us

Albany’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 28 days ago when the stock dropped 9.1% on the news that the company reported disappointing third-quarter financial results, announced a significant loss reserve, and withdrew its full-year 2025 guidance. Revenue for the quarter came in at $261.4 million, a 12.4% decline from the previous year and well below estimates of $297.9 million. The company reported a GAAP net loss of approximately $97.8 million, a sharp reversal from the $18 million profit recorded in the same period a year ago. A major factor in the poor results was the Albany Engineered Composites segment, which faced challenges with its CH-53K program. The company announced a $147 million loss reserve for the program, citing increased labor and material costs and stating there was no clear path to profitability. Due to the ongoing strategic review of this business, Albany International also withdrew its financial forecast for the full year, adding to investor uncertainty.

Albany is down 36.4% since the beginning of the year, and at $50.38 per share, it is trading 39.3% below its 52-week high of $82.96 from February 2025. Investors who bought $1,000 worth of Albany’s shares 5 years ago would now be looking at an investment worth $702.19.