HVAC and Water Systems Stocks Q3 Highlights: AAON (NASDAQ:AAON)

Stock Story

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how AAON and the rest of the hvac and water systems stocks fared in Q3.

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 0.8% 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.

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 print exceeded analysts’ expectations by 13.8%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ revenue and EPS estimates.

"Our third quarter results demonstrate the enduring demand for our products and reflect continued share gains, margin improvement and steady progress toward our operational goals, with notable sequential improvement in several key areas," said AAON President and CEO Matt Tobolski.

Unsurprisingly, the stock is down 11.7% since reporting and currently trades at $82.50.

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 and EBITDA estimates.

Northwest Pipe scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 14.8% since reporting. It currently trades at $63.95.

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.

Lennox delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.3% since the results and currently trades at $519.84.

Read our full analysis of Lennox’s results here.

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 number 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 11.2% since reporting and currently trades at $379.60.

Read our full, actionable report on Trane Technologies here, it’s free for active Edge members.

Advanced Drainage

Originally started as a farm water drainage company, Advanced Drainage Systems provides clean water management solutions to communities across America.

Advanced Drainage reported revenues of $850.4 million, up 8.7% year on year. This print topped analysts’ expectations by 6.6%. It was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA estimates.

Advanced Drainage had the weakest full-year guidance update among its peers. The stock is up 11% since reporting and currently trades at $149.54.

Read our full, actionable report on Advanced Drainage here, it’s free for active Edge members.

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Data Center Cooling Stocks Fall After Huang Says Next-Gen Chips Don't Need Water Chiller

Dow Jones Newswires

By Nicholas G. Miller

Shares of companies that provide cooling services to data centers fell after Nvidia Chief Executive Jensen Huang said at the CES trade show that the company's next-generation Rubin chips allow for warm water cooling.

Modine Manufacturing shares sank 15%. Johnson Controls dropped 7.4%. Trane Technologies fell 7.6%. Comfort Systems slid 5.4%.

Many of these companies have seen their revenues and backlogs surge on demand for their water chilling systems from data centers. But Huang said in his keynote address at the conference that the new Nvidia chips allow for 45 degree celsius warm water cooling, eliminating the need for water chillers.

That could diminish demand for water chilling architecture from the hyperscalers building data centers. Many companies that make chilling architecture have planned significant investments to ramp up their capacity.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

Risk Warnings and Disclaimers

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Building Belonging: Trane Technologies' Hidden Disability Sunflower Program

Acceswire

Trane Technologies

-0.32%

Learn how the Hidden Disabilities Sunflower Program empowers individuals with non-visible disabilities and creates a sense of belonging.

NORTHAMPTON, MA / ACCESS Newswire / January 6, 2026 / At Trane Technologies, belonging isn't just a word here - it's a way of life. We believe that every individual deserves the opportunity to thrive, which is why we're taking bold steps to build a workplace where everyone's unique experiences and needs are valued.

One of the most meaningful additions to our culture is the Hidden Disabilities Sunflower Program, a global initiative we proudly joined in 2025 that helps support our Opportunity for All sustainability commitment.

The Sunflower Program was designed to provide a quiet yet powerful way for people with non-visible disabilities, conditions or chronic illnesses to signal they may need extra patience or understanding. Displayed most often as a lanyard with sunflowers, this symbol lets our people navigate work with greater confidence, knowing that support and consideration are always within reach.

VIDEO: Creating a Culture of Belonging at Trane Technologies

Central to bringing programs like this to life is our VisAbility Business Resource Group (BRG), founded in 2018 to focus on inclusion and opportunity for our team members and their family members living with a disability. The VisAbility BRG strives to build a culture that is accessible and uplifting for employees who have a wide range of diverse abilities, whether visible or nonvisible. 

As Greg Young, Senior Category Manager, Procurement, and Co-Chair of the VisAbility BRG, explains, "This resource group is here to support our employees whether they have a disability or whether they're supporting family or friends with a disability, and make sure that they can be authentic and bring their whole selves to work without having to be exceedingly vocal, because disabilities, at the end of the day, are a very personal thing."

Our company's goal with the Sunflower Program is to further our culture of inclusion. "We chose to partner with Hidden Disabilities Program because we felt like it was the next step in our disability inclusion journey, and that we could provide the option if somebody felt comfortable to disclose," shares Emily Schwabacher, HR Solutions Relationship Manager and Co-Chair of the VisAbility BRG.

You'll see this inclusion in action when you meet colleagues like Pablo, Beth and Cara - whose experiences show the spirit of support and community here:

Pablo brings creativity, clarity and courage to his career

Pablo's career at Trane Technologies is a testament to what happens when you can bring your whole self to work. As a Creative Director and storyteller, Pablo found strength in his ADHD diagnosis, using it to fuel his creativity and connect with others. His openness has inspired dialogue and understanding, proving that here, differences are celebrated.

Read Pablo's story

Beth finds inspiration and strength in supporting others

A champion for growth and inclusion, Beth's journey spans more than 25 years with our company. She's experienced the impact of hidden disabilities personally and as a parent - and she's dedicated to uplifting others through mentorship and advocacy. Beth's story is a reminder that encouragement and support are available at every career stage.

Read Beth's story

Cara leads with empathy and inclusion

Cara leads with heart and empathy, drawing on her personal experience with ADHD and Lupus to support managers and employees alike. She's seen firsthand how the Sunflower Program and an open, resourceful culture can make a workplace truly inclusive. Cara is helping shape a future where everyone feels safe to show up fully and authentically.

Read Cara's story

Our people are our greatest differentiator

We believe team members' diverse experiences and perspectives strengthen our ability to develop solutions for global climate challenges. At Trane Technologies, you're not just joining a company-you're joining a community that's passionate about making an impact on our planet. Learn more about our different teams and how they're making a difference.

Through initiatives like the Hidden Disabilities Sunflower program and our Opportunity for All commitment, we're building a future that's accessible, supportive and full of possibility.

If you're looking for a place where you'll belong, grow and have the chance to make a difference, there's a place here for you.

Explore careers that make an impact at Trane Technologies.

View additional multimedia and more ESG storytelling from Trane Technologies on 3blmedia.com.

Contact Info:

Spokesperson: Trane Technologies

Website: https://www.3blmedia.com/profiles/trane-technologies

Email: info@3blmedia.com

SOURCE: Trane Technologies

View the original press release on ACCESS Newswire

Risk Warnings and Disclaimers

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Reflecting On HVAC and Water Systems Stocks’ Q3 Earnings: Lennox (NYSE:LII)

Stock Story

Zurn Elkay Water Solutions

+0.06%

Let’s dig into the relative performance of Lennox and its peers as we unravel the now-completed Q3 hvac and water systems earnings season.

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. On average, they are relatively unchanged since the latest earnings results.

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. This print fell short of analysts’ expectations by 3.9%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue estimates.

"As anticipated, 2025 is proving to be a transitional year, shaped by the impact of the refrigerant transition and difficult macroeconomic conditions. During these uncertain times, the Lennox team continues to respond with agility and discipline, delivering margin expansion in both segments," said CEO, Alok Maskara.

Lennox delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 8.6% since reporting and currently trades at $501.56.

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 13.2% since reporting. It currently trades at $63.02.

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, in line with analysts’ expectations. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and full-year EPS guidance missing analysts’ expectations.

The stock is flat since the results and currently trades at $68.24.

Read our full analysis of A. O. Smith’s results here.

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 number topped analysts’ expectations by 3%. It was a very strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

The stock is up 1.7% since reporting and currently trades at $46.84.

Read our full, actionable report on Zurn Elkay here, it’s free for active Edge members.

Advanced Drainage

Originally started as a farm water drainage company, Advanced Drainage Systems provides clean water management solutions to communities across America.

Advanced Drainage reported revenues of $850.4 million, up 8.7% year on year. This print beat analysts’ expectations by 6.6%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Advanced Drainage had the weakest full-year guidance update among its peers. The stock is up 11% since reporting and currently trades at $149.53.

Read our full, actionable report on Advanced Drainage here, it’s free for active Edge members.

Risk Warnings and Disclaimers

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HVAC and Water Systems Stocks Q3 Recap: Benchmarking Advanced Drainage (NYSE:WMS)

Stock Story

Let’s dig into the relative performance of Advanced Drainage and its peers as we unravel the now-completed Q3 hvac and water systems earnings season.

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 1.2% on average since the latest earnings results.

Advanced Drainage

Originally started as a farm water drainage company, Advanced Drainage Systems provides clean water management solutions to communities across America.

Advanced Drainage reported revenues of $850.4 million, up 8.7% year on year. This print exceeded analysts’ expectations by 6.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Scott Barbour, President and Chief Executive Officer of ADS commented, "We delivered strong results in the second quarter, a testament to the key sales strategies we have executed to drive growth in core markets. Revenue from both Infiltrator and Allied products increased double digits compared to the prior year. This growth, in conjunction with favorable price/cost, end market and product mix resulted in a highly-resilient Adjusted EBITDA margin of 33.8%."

Advanced Drainage delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 10.4% since reporting and currently trades at $148.71.

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 13.4% since reporting. It currently trades at $63.16.

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 9.5% since the results and currently trades at $496.58.

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 logged full-year revenue guidance missing analysts’ expectations and full-year EPS guidance missing analysts’ expectations.

The stock is flat since reporting and currently trades at $68.07.

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

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 result met analysts’ expectations. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive 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 8% since reporting and currently trades at $53.64.

Read our full, actionable report on Carrier Global here, it’s free for active Edge members.

Risk Warnings and Disclaimers

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2 Reasons to Like WMS and 1 to Stay Skeptical

Stock Story

Advanced Drainage

+5.63%

Advanced Drainage’s 26.2% return over the past six months has outpaced the S&P 500 by 13.3%, and its stock price has climbed to $148.94 per share. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

Following the strength, is WMS a buy right now? Or is the market overestimating its value? Find out in our full research report, it’s free for active Edge members.

Why Does Advanced Drainage Spark Debate?

Originally started as a farm water drainage company, Advanced Drainage Systems provides clean water management solutions to communities across America.

Two Things to Like:

1. Operating Margin Reveals a Well-Run Organization

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.

Advanced Drainage has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 21.5%. This result isn’t surprising as its high gross margin gives it a favorable starting point.

Advanced Drainage Trailing 12-Month Operating Margin (GAAP)

2. Increasing Free Cash Flow Margin Juices Financials

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, Advanced Drainage’s margin expanded by 11.3 percentage points over the last five years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Advanced Drainage’s free cash flow margin for the trailing 12 months was 17.7%.

Advanced Drainage Trailing 12-Month Free Cash Flow Margin

One Reason to be Careful:

Lackluster Revenue Growth

Long-term growth is the most important, but within industrials, a stretched historical view may miss new industry trends or demand cycles. Advanced Drainage’s recent performance shows its demand has slowed as its annualized revenue growth of 2.7% over the last two years was below its five-year trend.

Advanced Drainage Year-On-Year Revenue Growth

Final Judgment

Advanced Drainage’s positive characteristics outweigh the negatives, and with its shares topping the market in recent months, the stock trades at 24.3× forward P/E (or $148.94 per share). Is now a good time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Risk Warnings and Disclaimers

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Trane Technologies' Top Five Stories of 2025

Acceswire

Trane Technologies

-0.32%

NORTHAMPTON, MA / ACCESS Newswire / December 23, 2025 / Discover how Trane Technologies is leading by example with sustainable growth practices, continuing to innovate by embracing circularity and artificial intelligence as well as how our people and solutions are making a difference.

As 2025 comes to a close, Trane Technologies is looking back at the top five stories that shaped our year-stories of people stepping up, trying new things and choosing sustainability even when the path wasn't simple. Whether it's designing smarter systems, empowering teams or strengthening communities, each of these narratives reflects our belief that that sustainable progress is best built together.

1. Leading by Example: Sustainable Practices Driving Growth in La Crosse

More than 100 years after Trane® began in La Crosse, Wisconsin, our team continues to carry forward a legacy of engineering innovation grounded in community. Our work to expand chiller capacity, transition to 100% renewable electricity, achieve zero waste to landfill and pioneer water-saving, low-carbon technology exemplifies our belief that sustainability truly is a people-powered effort.