As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialty equipment distributors industry, including Herc (NYSE: HRI) and its peers.
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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 1.2% below.
Luckily, specialty equipment distributors stocks have performed well with share prices up 13.9% on average since the latest earnings results.
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 $1.14 billion, up 32.3% year on year. This print exceeded analysts’ expectations by 5.3%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly.
"The first quarter of 2026 marked a defining milestone for Herc Rentals as we successfully completed the integration of our H&E acquisition — the largest in the history of our industry — and we are already capturing the strategic benefits we anticipated: 25% more specialty locations, a stronger and deeper sales network, expanded share in local and regional accounts, and greater density in top metropolitan markets, where construction activity is most resilient. Financial performance in the first quarter was in line with our expectations and seasonal trends. While we expect performance to build as we move through the second half of 2026, the value of this combination will be realized over our three-year synergy plan, and we are executing against that roadmap with confidence,” said Larry Silber, chief executive officer.
Herc scored the biggest analyst estimate beat and fastest revenue growth, but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 21.3% since reporting and currently trades at $151.21.
Is now the time to buy Herc? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $55.47 million, up 3.1% year on year, outperforming analysts’ expectations by 4.4%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 49.7% since reporting. It currently trades at $17.60.
Is now the time to buy Richardson Electronics? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $940.1 million, flat year on year, falling short of analysts’ expectations by 4.2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
SiteOne delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 18.4% since the results and currently trades at $116.63.
Read our full analysis of SiteOne’s results here.
Hudson Technologies (NASDAQ: HDSN)
Founded in 1991, Hudson Technologies (NASDAQ: HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Hudson Technologies reported revenues of $60.15 million, up 8.7% year on year. This print beat analysts’ expectations by 5.2%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Hudson Technologies scored the highest guidance raise among its peers. The stock is down 14% since reporting and currently trades at $5.63.
Read our full, actionable report on Hudson Technologies here, it’s free.
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 $461.6 million, up 9.3% year on year. This number topped analysts’ expectations by 1.1%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS and EBITDA estimates.
Custom Truck One Source delivered the highest full-year guidance raise among its peers. The stock is up 36% since reporting and currently trades at $11.94.
Read our full, actionable report on Custom Truck One Source here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
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