As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the electrical systems industry, including Garrett Motion (NASDAQ: GTX) and its peers.

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 14 electrical systems stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.6% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7% since the latest earnings results.

Garrett Motion (NASDAQ: GTX)

A key player in the transition to cleaner vehicles, Garrett Motion (NYSE: GTX) designs and manufactures turbochargers, air compressors, and electric motor technologies for vehicle manufacturers and industrial applications.

Garrett Motion reported revenues of $976 million, up 6.9% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a very strong quarter for the company with full-year EBITDA guidance beating analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

“Garrett delivered a strong second quarter, highlighting the power of our differentiated technology portfolio and continued share-of-demand gains,” said Olivier Rabiller, President and CEO of Garrett.

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 12.1% since reporting and currently trades at $26.30.

Is now the time to buy Garrett Motion? Access our full analysis of the earnings results here, it’s free.

Best Q2: Atkore (NYSE: ATKR)

Protecting the things that power our world, Atkore (NYSE: ATKR) designs and manufactures electrical safety products.

Atkore reported revenues of $794.8 million, up 8.1% year on year, outperforming analysts’ expectations by 4.7%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA and EPS estimates.

The market seems happy with the results as the stock is up 30.3% since reporting. It currently trades at $95.07.

Is now the time to buy Atkore? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Powell (NASDAQ: POWL)

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Powell reported revenues of $311.7 million, up 8.9% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 13.1% since the results and currently trades at $191.00.

Read our full analysis of Powell’s results here.

Verra Mobility (NASDAQ: VRRM)

Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NASDAQ: VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.

Verra Mobility reported revenues of $263.6 million, up 11.7% year on year. This result surpassed analysts’ expectations by 3.8%. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations significantly.

Verra Mobility had the weakest full-year guidance update of the whole group. The stock is down 46.2% since reporting and currently trades at $3.02.

Read our full, actionable report on Verra Mobility here, it’s free.

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 $3.46 billion, up 69.7% year on year. This number beat analysts’ expectations by 1.8%. Overall, it was a very strong quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.

Sanmina delivered the fastest revenue growth but had the weakest guidance update in the group. The stock is up 6.4% since reporting and currently trades at $222.34.

Read our full, actionable report on Sanmina 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 Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.