Let’s dig into the relative performance of LSI (NASDAQ:LYTS) and its peers as we unravel the now-completed Q3 electrical systems earnings season.
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 12 electrical systems stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was 1.1% 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.
LSI (NASDAQ:LYTS)
Enhancing commercial environments, LSI (NASDAQ:LYTS) provides lighting and display solutions for businesses and retailers.
LSI reported revenues of $157.2 million, up 13.9% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.
“Strong execution and favorable demand conditions supported a successful start to our fiscal year 2026, highlighted by a combination of solid organic sales growth, improved margin realization, and the impact of Canada’s Best Holdings, which we acquired in March 2025,” stated James A. Clark, President and CEO of LSI.
Unsurprisingly, the stock is down 21.4% since reporting and currently trades at $18.08.
Is now the time to buy LSI? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: Thermon (NYSE:THR)
Creating the first packaged tracing systems, Thermon (NYSE:THR) is a leading provider of engineered industrial process heating solutions for process industries.
Thermon reported revenues of $131.7 million, up 14.9% year on year, outperforming analysts’ expectations by 10.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Thermon achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 21.4% since reporting. It currently trades at $35.72.
Is now the time to buy Thermon? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: Atkore (NYSE:ATKR)
Protecting the things that power our world, Atkore (NYSE:ATKR) designs and manufactures electrical safety products.
Atkore reported revenues of $752 million, down 4.6% year on year, exceeding analysts’ expectations by 2.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Atkore delivered the slowest revenue growth in the group. As expected, the stock is down 1.1% since the results and currently trades at $65.78.
Read our full analysis of Atkore’s results here.
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 $4.03 billion, up 1% year on year. This number beat analysts’ expectations by 2.5%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations.
Whirlpool pulled off the highest full-year guidance raise among its peers. The stock is up 7.7% since reporting and currently trades at $79.49.
Read our full, actionable report on Whirlpool here, it’s free for active Edge members.
Sanmina (NASDAQ:SANM)
Founded in 1980, Sanmina (NASDAQ:SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries.
Sanmina reported revenues of $2.10 billion, up 3.9% year on year. This print topped analysts’ expectations by 2.2%. It was an exceptional quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations.
The stock is up 10% since reporting and currently trades at $154.34.
Read our full, actionable report on Sanmina here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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