Whether you see them or not, industrials businesses play a crucial part in our daily activities. They are also bound to benefit from a friendlier regulatory environment with the Trump administration,
and this excitement has led to a six-month gain of 17.7% for the sector - higher than the S&P 500’s 8.8% return.
Shares of cabinet manufacturing company American Woodmark (NASDAQ:AMWD)
fell 3.6% in the pre-market session after the company reported second-quarter results that fell short of analyst expectations on both revenue and earnings.
American Woodmark Corp. (NASDAQ: AMWD) reported lower sales and net income for Q1 2026, missing analyst estimates. No financial guidance due to proposed merger.
Cabinet manufacturing company American Woodmark (NASDAQ:AMWD) fell short of the market’s revenue expectations in Q2 CY2025, with sales falling 12.2% year on year to $403 million. Its non-GAAP profit of $1.01 per share was 11% below analysts’ consensus estimates.
A number of stocks fell in the afternoon session after an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.
A number of stocks jumped in the morning session after an in-line inflation report fueled hopes for interest rate cuts and the U.S. and China agreed to extend their tariff truce. The Consumer Price Index (CPI), a key measure of inflation, came in largely as expected, holding steady at 2.7% year-over-year. This reading boosted investor optimism that the Federal Reserve will have room to lower interest rates at its next meeting, which could reduce borrowing costs for companies and consumers.
Shares of cabinet manufacturing company American Woodmark (NASDAQ:AMWD)
jumped 16.1% in the afternoon session after the company announced plans to combine with MasterBrand Inc. in an all-stock merger valued at approximately $2.4 billion. Under the terms of the agreement, American Woodmark shareholders received 5.150 shares of MasterBrand common stock for each share owned. The deal created North America's largest cabinet manufacturer. After the transaction, MasterBrand shareholders owned about 63% of the new entity, with American Woodmark shareholders holding the rest. The companies also projected achieving run-rate cost savings, or synergies, of approximately $90 million by the end of the third year after the merger's completion.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
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 home construction materials stocks fared in Q1, starting with American Woodmark (NASDAQ:AMWD).
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But this role also comes with a demand profile tethered to the ebbs and flows of the broader economy.
Thankfully, industrial end markets were stable over the past six months as the industry’s 6.3% gain has nearly mirrored the S&P 500.
