A Look Back at HVAC and Water Systems Stocks’ Q3 Earnings: A. O. Smith (NYSE:AOS) Vs The Rest Of The Pack

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Capital Southwest Corp.

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Capital Southwest Corporation 7.75% Notes due 2028

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the hvac and water systems industry, including A. O. Smith and its peers.

Many HVAC and water systems companies sell essential, non-discretionary infrastructure for buildings. Since the useful lives of these water heaters and vents are fairly standard, these companies have a portion of predictable replacement revenue. In the last decade, trends in energy efficiency and clean water are driving innovation that is leading to incremental demand. On the other hand, new installations for these companies are at the whim of residential and commercial construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 9 hvac and water systems stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was 0.7% below.

Thankfully, share prices of the companies have been resilient as they are up 8% on average since the latest earnings results.

A. O. Smith

Credited with the invention of the glass-lined water heater, A.O. Smith manufactures water heating and treatment products for various industries.

A. O. Smith reported revenues of $942.5 million, up 4.4% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations and full-year EPS guidance missing analysts’ expectations.

Steve Shafer, chief executive officer, stated, "In the third quarter, the A. O. Smith team achieved sales growth of 4%. The North America segment delivered 6% growth driven by the benefits of pricing actions implemented earlier this year to address increased costs in North America and continued demand resiliency for our commercial water heaters and boilers. This performance was partially offset by continued economic challenges in China, which experienced a 12% local currency sales decline in the quarter."

Interestingly, the stock is up 6.5% since reporting and currently trades at $73.10.

Read our full report on A. O. Smith here, it’s free.

Best Q3: Northwest Pipe

Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe is a manufacturer of pipeline systems for water infrastructure.

Northwest Pipe reported revenues of $151.1 million, up 16% year on year, outperforming analysts’ expectations by 14.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Northwest Pipe achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 25.1% since reporting. It currently trades at $69.66.

Weakest Q3: Lennox

Based in Texas and founded over a century ago, Lennox is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Lennox reported revenues of $1.43 billion, down 4.8% year on year, falling short of analysts’ expectations by 3.9%. It was a slower quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ organic revenue estimates.

Lennox delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7.2% since the results and currently trades at $509.69.

Read our full analysis of Lennox’s results here.

CSW (NASDAQ:CSW)

With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ:CSW) offers special chemicals, coatings, sealants, and lubricants for various industries.

CSW reported revenues of $277 million, up 21.5% year on year. This number came in 0.5% below analysts' expectations. More broadly, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

CSW achieved the fastest revenue growth among its peers. The stock is up 35.4% since reporting and currently trades at $330.31.

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

Trane Technologies

With low-pressure heating systems as its first product, Trane designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.

Trane Technologies reported revenues of $5.74 billion, up 5.5% year on year. This result lagged analysts' expectations by 0.9%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ revenue estimates.

The stock is down 8.8% since reporting and currently trades at $389.85.

Read our full, actionable report on Trane Technologies here, it’s free.

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Capital Southwest Corporation Announces Formation and Launch of First Out Senior Loan Joint Venture

GlobeNewswire

Capital Southwest Corp.

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Capital Southwest Corporation 7.75% Notes due 2028

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DALLAS, Jan. 22, 2026 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) , an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced that it has formed a joint venture with another private credit asset manager. The joint venture will be an off-balance sheet private fund that will invest primarily in first out senior secured debt opportunities in the lower middle market.

The joint venture will be owned equally by Capital Southwest and its joint venture partner, with each holding a 50% equity interest. All investment and operational decisions for the fund will be made by the joint venture’s board of managers, which will consist of equal representation from both joint venture partners. It is anticipated that the joint venture will enter into a senior secured credit facility, the borrowings from which will be used to fund investments.

“We believe the creation of this joint venture will enhance CSWC’s ability to compete for and win high‑quality lower middle market opportunities by providing more flexible capital solutions. It also will allow CSWC to allocate portions of larger transactions to the joint venture, enabling us to maintain portfolio granularity while broadening the range of platform companies we can pursue in the lower middle market. We are excited about the prospects for this new fund and believe it will allow Capital Southwest to be competitive on a broader range of investment opportunities,” said Michael Sarner, Chief Executive Officer of CSWC.

About Capital Southwest

Capital Southwest Corporation is a Dallas, Texas-based, internally managed business development company with approximately $1.9 billion in investments at fair value as of September 30, 2025. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

Forward-Looking Statements

This press release contains historical information and certain forward-looking statements with respect to the business and investments of the Company, including, but not limited to, statements about the Company’s future performance and ability to compete for investment opportunities. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which the Company invests; changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on the Company’s business and its portfolio companies; regulatory changes; tax treatment; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on the Company’s portfolio companies and the Company’s financial condition; an economic downturn and its impact on the ability of the Company’s portfolio companies to operate and the investment opportunities available to the Company; the impact of supply chain constraints on the Company’s portfolio companies; and the elevated levels of inflation and its impact on the Company’s portfolio companies and the industries in which it invests.

Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2025 and any subsequent filings with the SEC, including the "Risk Factors" sections therein, for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

Investor Relations Contact:

Michael S. Sarner, President and Chief Executive Officer

214-884-3829

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NWPX Infra Files 8K - Director, Officer or Compensation Filing >NWPX

Dow Jones Newswires

Northwest Pipe Co.

-0.82%

NWPX Infrastructure Inc. (NWPX) filed a Form 8K - Director, Officer or Compensation Filing - with the U.S Securities and Exchange Commission on January 22, 2026.

On January 15, 2026, Miles Brittain, Executive Vice President of NWPX Infrastructure, Inc. (the "Company") informed the Company that he will retire on April 3, 2026. Mike Wray has been named Executive Vice President, effective January 19, 2026, allowing for his immediate assumption of duties required of that role as well as to assist with various transition priorities up to Mr. Brittain's retirement date.

Mr. Wray, 52, served as Senior Vice President and General Manager of Precast Infrastructure and Engineered Systems from November 2021 to January 2026 and as Vice President and General Manager of Geneva from February 2020 to October 2021. Prior to that, Mr. Wray had extensive operational experience within Water Transmission Systems, most recently as its Senior Director of Operations from September 2018 to January 2020. Prior to joining the Company in 2007, Mr. Wray spent two years with Continental Pipe Company and nine years with Megadiamond, now owned by Element Six, a De Beers company.

Mr. Wray has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S‑K, and Mr. Wray has no familial relationships with executives or directors of the Company. There are no arrangements or understandings between Mr. Wray and any other person pursuant to which he was selected as an officer.

On January 15, 2026, the Company's Board of Directors increased Mr. Wray's annual base salary effective January 19, 2026 to $450,000 and approved a Change in Control Agreement with Mr. Wray replacing his prior change in control agreement that was entered into in December 2021. The new Change in Control Agreement extends the expiration date for the Change in Control Agreement to July 31, 2026 and increases his multiple for certain payouts upon a change in control (as defined in the Change in Control Agreement) from one to two. Other than such changes, the terms of the new Change in Control Agreement are the same as the prior change in control agreement.

The foregoing description of the Change in Control Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the agreement, which is filed herewith as Exhibit 10.1 and incorporated herein by reference.

The full text of this SEC filing can be retrieved at: https://www.sec.gov/Archives/edgar/data/1001385/000143774926001761/nwpx20260115_8k.htm

Any exhibits and associated documents for this SEC filing can be retrieved at: https://www.sec.gov/Archives/edgar/data/1001385/000143774926001761/0001437749-26-001761-index.htm

Public companies must file a Form 8-K, or current report, with the SEC generally within four days of any event that could materially affect a company's financial position or the value of its shares.

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HVAC and Water Systems Stocks Q3 Recap: Benchmarking Zurn Elkay (NYSE:ZWS)

Stock Story

Zurn Elkay Water Solutions

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Looking back on hvac and water systems stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Zurn Elkay and its peers.

The 9 hvac and water systems stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was 0.7% below.

Thankfully, share prices of the companies have been resilient as they are up 8% on average since the latest earnings results.

Zurn Elkay

Claiming to have saved more than 30 billion gallons of water, Zurn Elkay provides water management solutions to various industries.

Zurn Elkay reported revenues of $455.4 million, up 11.1% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

Todd A. Adams, Chairman and Chief Executive Officer, commented, “We delivered a solid quarter as our sales and adjusted EBITDA(1) both exceeded the guidance we provided 90 days ago and will again raise our expectations for the full year. Third quarter core sales(1) growth was 11% compared to the prior year and adjusted EBITDA margin(1) was 26.8%, an increase of 120 basis points over the prior year third quarter. Free cash flow(1) in the quarter was $94 million which reduced our leverage to a record low of 0.6x. Our exceptional cash generation and strong balance sheet have us well positioned and provides optionality to execute our balanced capital allocation approach including cultivating the right M&A opportunities and continued return of capital to shareholders. We have increased our annual dividend 22% to $0.44 per share and also increased the share repurchase authorization to $500 million.”

Interestingly, the stock is up 2.6% since reporting and currently trades at $47.27.

Best Q3: Northwest Pipe

Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe is a manufacturer of pipeline systems for water infrastructure.

Northwest Pipe scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 24.6% since reporting. It currently trades at $69.37.

Weakest Q3: Lennox

Based in Texas and founded over a century ago, Lennox is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Lennox delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.2% since the results and currently trades at $525.87.

Read our full analysis of Lennox’s results here.

A. O. Smith

Credited with the invention of the glass-lined water heater, A.O. Smith manufactures water heating and treatment products for various industries.

A. O. Smith reported revenues of $942.5 million, up 4.4% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it produced full-year revenue guidance missing analysts’ expectations and full-year EPS guidance missing analysts’ expectations.

The stock is up 5.3% since reporting and currently trades at $72.25.

Read our full, actionable report on A. O. Smith here, it’s free.

Trane Technologies

Trane Technologies reported revenues of $5.74 billion, up 5.5% year on year. This print missed analysts’ expectations by 0.9%. Taking a step back, it was a satisfactory quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ revenue estimates.

The stock is down 8.9% since reporting and currently trades at $389.40.

Read our full, actionable report on Trane Technologies here, it’s free.

Risk Warnings and Disclaimers

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A Look Back at HVAC and Water Systems Stocks’ Q3 Earnings: Trane Technologies (NYSE:TT) Vs The Rest Of The Pack

Stock Story

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the hvac and water systems industry, including Trane Technologies and its peers.

The 9 HVAC and water systems stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was 0.8% below.

Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.

Trane Technologies

Trane Technologies reported revenues of $5.74 billion, up 5.5% year on year. This print fell short of analysts’ expectations by 0.9%, but it was still a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ revenue estimates.

Unsurprisingly, the stock is down 9.7% since reporting and currently trades at $385.86.

Best Q3: Northwest Pipe

Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe is a manufacturer of pipeline systems for water infrastructure.

Northwest Pipe pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 25.3% since reporting. It currently trades at $69.75.

Weakest Q3: Lennox

Based in Texas and founded over a century ago, Lennox is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Lennox delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3% since the results and currently trades at $532.75.

Read our full analysis of Lennox’s results here.

AAON

Backed by two million square feet of lab testing space, AAON makes heating, ventilation, and air conditioning equipment for different types of buildings.

AAON reported revenues of $384.2 million, up 17.4% year on year. This result topped analysts’ expectations by 13.8%. It was an exceptional quarter as it also produced a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 9.4% since reporting and currently trades at $84.71.

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

Carrier Global

Founded by the inventor of air conditioning, Carrier Global manufactures heating, ventilation, air conditioning, and refrigeration products.

Carrier Global reported revenues of $5.58 billion, down 6.8% year on year. This print met analysts’ expectations. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Carrier Global achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 4.8% since reporting and currently trades at $55.50.

Read our full, actionable report on Carrier Global here, it’s free.

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Winners And Losers Of Q3: Carrier Global (NYSE:CARR) Vs The Rest Of The HVAC and Water Systems Stocks

Stock Story

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 hvac and water systems stocks fared in Q3, starting with Carrier Global .

The 9 hvac and water systems stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was 0.8% below.

In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results.

Carrier Global

Founded by the inventor of air conditioning, Carrier Global manufactures heating, ventilation, air conditioning, and refrigeration products.

Carrier Global reported revenues of $5.58 billion, down 6.8% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.

"Our team drove continued double-digit aftermarket growth and strong performance in Commercial HVAC1, which grew 30% in the Americas, both of which were more than offset by expected weakness in Residential in the Americas," said Chairman & CEO David Gitlin.

Carrier Global achieved the highest full-year guidance raise but had the slowest revenue growth of the whole group. 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 3.4% since reporting and currently trades at $56.33.

Best Q3: Northwest Pipe

Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe is a manufacturer of pipeline systems for water infrastructure.

Northwest Pipe pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 16.7% since reporting. It currently trades at $64.98.

Weakest Q3: Lennox

Based in Texas and founded over a century ago, Lennox is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Lennox delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3.4% since the results and currently trades at $530.15.

Read our full analysis of Lennox’s results here.

CSW (NASDAQ:CSW)

With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ:CSW) offers special chemicals, coatings, sealants, and lubricants for various industries.

CSW reported revenues of $277 million, up 21.5% year on year. This result missed analysts’ expectations by 0.5%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

CSW delivered the fastest revenue growth among its peers. The stock is up 30.9% since reporting and currently trades at $319.35.

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

Trane Technologies

Trane Technologies reported revenues of $5.74 billion, up 5.5% year on year. This print lagged analysts' expectations by 0.9%. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ revenue estimates.

The stock is down 10.7% since reporting and currently trades at $381.75.

Read our full, actionable report on Trane Technologies here, it’s free.

Risk Warnings and Disclaimers

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Firing on All Cylinders: Northwest Pipe (NASDAQ:NWPX) Q3 Earnings Lead the Way

Stock Story

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the hvac and water systems industry, including Northwest Pipe and its peers.

The 9 hvac and water systems stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was 0.8% below.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

Best Q3: Northwest Pipe

Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe is a manufacturer of pipeline systems for water infrastructure.

Northwest Pipe reported revenues of $151.1 million, up 16% year on year. This print exceeded analysts’ expectations by 14.4%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

"We delivered our strongest quarter in Company history, achieving consolidated revenue of $151.1 million, up 13.4% compared to the previous quarter, and a gross margin of 21.3%, reflecting 230 basis points of sequential quarter margin expansion," said Scott Montross, President and Chief Executive Officer of NWPX Infrastructure, Inc.

Northwest Pipe pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 13.2% since reporting and currently trades at $63.05.

AAON

Backed by two million square feet of lab testing space, AAON makes heating, ventilation, and air conditioning equipment for different types of buildings.

AAON reported revenues of $384.2 million, up 17.4% year on year, outperforming analysts’ expectations by 13.8%. The business had an exceptional quarter with an impressive beat of analysts’ revenue and EPS estimates.

The market seems unhappy with the results as the stock is down 14.8% since reporting. It currently trades at $79.67.

Weakest Q3: Lennox

Based in Texas and founded over a century ago, Lennox is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Lennox delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.6% since the results and currently trades at $518.48.

Read our full analysis of Lennox’s results here.

Trane Technologies

Trane Technologies reported revenues of $5.74 billion, up 5.5% year on year. This print lagged analysts' expectations by 0.9%. Zooming out, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ revenue estimates.

The stock is down 11.7% since reporting and currently trades at $377.42.

Read our full, actionable report on Trane Technologies here, it’s free.

Carrier Global

Founded by the inventor of air conditioning, Carrier Global manufactures heating, ventilation, air conditioning, and refrigeration products.

Carrier Global reported revenues of $5.58 billion, down 6.8% year on year. This number met analysts’ expectations. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Carrier Global delivered the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 7% since reporting and currently trades at $54.23.

Read our full, actionable report on Carrier Global here, it’s free.

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