Q4 Earnings Highs And Lows: Lennox (NYSE:LII) Vs The Rest Of The HVAC and Water Systems Stocks

Let’s dig into the relative performance of Lennox (NYSE:LII) and its peers as we unravel the now-completed Q4 hvac and water systems earnings season.

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 slower Q4. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 3.3% on average since the latest earnings results.

Lennox (NYSE:LII)

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

Lennox reported revenues of $1.20 billion, down 11.2% year on year. This print fell short of analysts’ expectations by 5.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

"We are pleased with our performance in 2025 given industry headwinds. For the first time in its history, Lennox delivered annual margins over 20%, a particularly meaningful accomplishment driven by our cost reduction actions and mix benefits," said CEO, Alok Maskara.

Lennox delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 10.5% since reporting and currently trades at $551.00.

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

Best Q4: Northwest Pipe (NASDAQ:NWPX)

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

Northwest Pipe reported revenues of $125.6 million, up 5% year on year, outperforming analysts’ expectations by 3%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 10.5% since reporting. It currently trades at $81.77.

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

Weakest Q4: CSW (NYSE:CSW)

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

CSW reported revenues of $233 million, up 20.3% year on year, falling short of analysts’ expectations by 6%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

CSW 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 $278.27.

Read our full analysis of CSW’s results here.

Carrier Global (NYSE:CARR)

Founded by the inventor of air conditioning, Carrier Global (NYSE:CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Carrier Global reported revenues of $4.84 billion, down 6% year on year. This number came in 3% below analysts' expectations. Overall, it was a disappointing quarter as it also recorded a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

The stock is down 4.1% since reporting and currently trades at $60.96.

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

A. O. Smith (NYSE:AOS)

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

A. O. Smith reported revenues of $912.5 million, flat year on year. This print lagged analysts' expectations by 1.5%. It was a slower quarter as it also produced a miss of analysts’ revenue estimates and full-year revenue guidance slightly missing analysts’ expectations.

A. O. Smith pulled off the highest full-year guidance raise among its peers. The stock is up 5.5% since reporting and currently trades at $73.31.

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

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