The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Custom Truck One Source (NYSE: CTOS) and the rest of the specialty equipment distributors stocks fared in Q2.
Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.
The 8 specialty equipment distributors stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.1%.
In light of this news, share prices of the companies have held steady as they are up 4% on average since the latest earnings results.
Custom Truck One Source (NYSE: CTOS)
Inspired by a family gas station, Custom Truck One Source (NYSE: CTOS) is a distributor of trucks and heavy equipment.
Custom Truck One Source reported revenues of $563.4 million, up 10.2% year on year. This print exceeded analysts’ expectations by 8.8%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
Custom Truck One Source achieved the highest full-year guidance raise among its peers. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 5.9% since reporting and currently trades at $10.
Is now the time to buy Custom Truck One Source? Access our full analysis of the earnings results here, it’s free.
Best Q2: Richardson Electronics (NASDAQ: RELL)
Founded in 1947, Richardson Electronics (NASDAQ: RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Richardson Electronics reported revenues of $66.2 million, up 27.6% year on year, outperforming analysts’ expectations by 19.6%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
Richardson Electronics achieved the biggest analyst estimate beat and fastest revenue growth of the whole group. The market seems happy with the results as the stock is up 11.2% since reporting. It currently trades at $20.02.
Is now the time to buy Richardson Electronics? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: SiteOne (NYSE: SITE)
Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE: SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.
SiteOne reported revenues of $1.53 billion, up 4.7% year on year, falling short of analysts’ expectations by 0.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS and EBITDA estimates.
As expected, the stock is down 7.6% since the results and currently trades at $95.65.
Read our full analysis of SiteOne’s results here.
Herc (NYSE: HRI)
Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE: HRI) provides equipment rental and related services to a wide range of industries.
Herc reported revenues of $1.20 billion, up 20.2% year on year. This number surpassed analysts’ expectations by 4.9%. Aside from that, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly.
Herc had the weakest full-year guidance update in the group. The stock is up 8.2% since reporting and currently trades at $173.15.
Read our full, actionable report on Herc here, it’s free.
Karat Packaging (NASDAQ: KRT)
Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.
Karat Packaging reported revenues of $136.3 million, up 9.9% year on year. This print topped analysts’ expectations by 0.6%. Overall, it was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 12.7% since reporting and currently trades at $47.76.
Read our full, actionable report on Karat Packaging here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
