Ferguson Reports Strong Calendar 2025 Results and Issues 2026 GuidanceFeb 24, 2026 6:45 AM Eastern Standard Time# Ferguson Reports Strong Calendar 2025 Results and Issues 2026 GuidanceShare---Full calendar year highlights- Balance sheet remains strong with net debt to adjusted EBITDA of 1.1x.- Share repurchases of $0.9 billion during the year with an outstanding balance of approximately $0.6 billion remaining under the current share repurchase program at December 31, 2025.- Invested $276 million in eight ac ...

Group 1 - Comfort Systems USA, Inc. has scheduled its quarterly conference call and webcast for February 20, 2026, to discuss the fourth quarter and full year 2025 financial results, which will be released after market close on February 19, 2026 [1] - The conference call will be available in listen-only mode on the company's website, and participants can register to ask questions [1] - Comfort Systems USA operates 190 locations across 142 cities in the United States, providing mechanical and electrical contracting services [1] Group 2 - Trent T. McKenna will be appointed as President and Chief Operating Officer effective January 1, 2026, while Brian E. Lane continues as Chief Executive Officer [1] - The company announced a quarterly dividend of $0.60 per share, reflecting a $0.10 increase from the previous dividend, payable on November 24, 2025 [1] - For the third quarter of 2025, Comfort Systems USA reported a net income of $291.6 million, or $8.25 per diluted share, compared to $146.2 million, or $4.09 per diluted share, for the same quarter in 2024 [1]

Group 1 - NPK International Inc. will release its fourth quarter and full-year 2025 results on February 25, 2026, with a conference call scheduled for February 26, 2026, at 9:30 a.m. ET [1] - The company specializes in site access solutions, manufacturing, selling, and renting sustainable composite matting products, along with offering planning, logistics, and site restoration services [1] - NPK International serves critical infrastructure markets, including electrical transmission and distribution, oil and gas exploration, pipeline, renewable energy, petrochemical, and construction [1] Group 2 - NPK International announced the acquisition of Grassform Plant Hire Limited for an all-cash purchase price of £35.2 million ($46.4 million), with potential additional consideration based on performance improvements [1] - The acquisition was primarily funded using cash on hand, indicating a strong liquidity position for the company [1]

Core Insights - Otis Worldwide Corporation, based in Farmington, Connecticut, has a market cap of $35 billion and specializes in manufacturing, installing, and servicing building systems, including elevators and escalators [1] - Over the past year, Otis shares have underperformed the broader market, declining 6.3% compared to a 14.4% increase in the S&P 500 Index, although in 2026, Otis stock has risen 3.1% against the SPX's 1.4% increase year-to-date [1] Financial Performance - In Q4, Otis reported an adjusted EPS of $1.03, meeting Wall Street expectations, but its revenue of $3.8 billion fell short of forecasts of $3.9 billion [5] - For the full fiscal year, Otis anticipates revenue between $15 billion and $15.3 billion [5] - Analysts project a 6.9% growth in EPS for the current fiscal year, reaching $4.33 on a diluted basis [6] Market Comparison - Otis has underperformed relative to the Industrial Select Sector SPDR Fund (XLI), which has gained approximately 25.5% over the past year, and the ETF's 12.1% year-to-date returns exceed Otis's single-digit gains [2][4] - The consensus among 13 analysts covering Otis stock is a "Moderate Buy," with ratings including four "Strong Buy," one "Moderate Buy," seven "Holds," and one "Strong Sell" [6] Future Outlook - The company faces challenges with weak new equipment sales, particularly in China and the Americas, and slower service repair growth, with expectations for new equipment sales to stabilize or decline [4] - Otis is focusing on high-value service contracts to navigate the tough market conditions in China [4]

Core Insights - Pentair reported strong financial results for the fourth quarter and full year 2025, with a GAAP EPS of $3.93, up 5% from 2024, and an adjusted EPS of $4.92, up 14% from the previous year [1][2] - The company anticipates continued growth in 2026, projecting GAAP EPS guidance of approximately $4.94 to $5.09, representing a 26% to 30% increase [2][3] - Pentair celebrated its 50th consecutive year of dividend increases, announcing an 8% increase in its quarterly cash dividend to $0.27 per share [2][3] Financial Performance - Fourth quarter 2025 sales reached $1,021 million, a 5% increase year-over-year, while full year sales totaled $4.2 billion, up 2% from 2024 [1][2] - Operating income for the fourth quarter was $205 million, a 5% increase, with a return on sales (ROS) of 20.1%, remaining flat compared to the same quarter in 2024 [1][2] - Full year operating income increased by 7% to $858 million, with an ROS of 20.5%, an increase of 80 basis points from the prior year [1][2] Segment Performance - Flow sales increased by 9% in the fourth quarter and 3% for the full year, with reportable segment income up 22% in Q4 [2][3] - Water Solutions sales decreased by 10% in Q4 and 6% for the full year, with reportable segment income remaining flat [2][3] - Pool sales rose by 11% in Q4 and 9% for the full year, with reportable segment income also increasing by 11% [2][3] Cash Flow and Shareholder Returns - Full year net cash provided by operating activities was $815 million, an increase of $48 million compared to 2024, with free cash flow of $748 million, up $55 million [1][2] - The company repurchased 2.3 million shares for $225 million during 2025, with $1 billion available for future share repurchases [2][3] - Pentair's dividend increase marks a significant milestone, reflecting its commitment to returning value to shareholders [2][3]

Core Insights - Trane Technologies reported strong financial results for Q4 and full-year 2025, with significant growth in earnings per share and revenues, alongside a record backlog [1][2][3] Financial Performance - Q4 2025 GAAP continuing EPS was $2.74, with adjusted continuing EPS at $2.86, reflecting a 10% increase year-over-year [1] - Full-year 2025 GAAP continuing EPS reached $13.14, while adjusted continuing EPS was $13.06, marking a 16% increase compared to 2024 [2] - Total revenues for Q4 2025 were $5.1 billion, up 6% from Q4 2024, with organic revenues increasing by 4% [1][2] - For the full year, reported revenues were $21.3 billion, a 7% increase, with organic revenues up 6% [2][3] Bookings and Backlog - The company achieved a record backlog of $7.8 billion, up 15% from year-end 2024, with significant contributions from the Americas Commercial HVAC segment, which saw a 25% increase [1][2] - Organic bookings for Q4 2025 were up 22%, driven by a 35% increase in the Americas Commercial HVAC segment [1][2] Segment Performance - In the Americas segment, bookings increased by 27% year-over-year, with net revenues up 6% [2][3] - The EMEA segment reported a 12% increase in revenues, with bookings up 19% [2][3] - The Asia Pacific segment experienced a 5% decline in revenues, but bookings were up 2% [2][3] Cash Flow and Balance Sheet - The company reported strong free cash flow conversion of 98% for the year, with free cash flow amounting to $2.9 billion [2][3] - Cash from continuing operating activities for 2025 was $3.2 billion, an increase from $3.18 billion in 2024 [2][3] Future Outlook - For full-year 2026, Trane Technologies expects GAAP and adjusted continuing EPS to be in the range of $14.65 to $14.85, with reported revenue growth projected at approximately 8.5% to 9.5% [2][3]

Core Viewpoint - Limbach Holdings, Inc. has appointed Nick Angerosa as Executive Vice President, National Customer Solutions, and Jay Sharp as Executive Vice President, Sales, effective January 13, 2026, to support its long-term growth strategy and enhance its position as a trusted building solutions provider [1][2]. Leadership Appointments - The appointment of Angerosa formalizes Limbach's focus on national account opportunities, aiming to improve consistency and increase lifetime customer value by integrating service and product offerings [2][3]. - Sharp will oversee Limbach's overall sales strategy and ensure alignment of selling resources with markets that offer higher returns, driving long-term business growth [4][5]. Company Strategy - Limbach aims to expand its data center and industrial and manufacturing verticals, transitioning towards proactive, consultative partnerships to serve both national and local customers [2]. - The company emphasizes deploying talent and capital where it generates the greatest risk-adjusted returns, reinforcing its commitment to delivering durable value for customers [2]. Company Overview - Limbach is a building systems solutions firm that partners with building owners and facilities managers, focusing on mission-critical mechanical, electrical, and plumbing infrastructure [6]. - The company operates primarily in six vertical markets: healthcare, industrial and manufacturing, data centers, life science, higher education, and cultural and entertainment, with approximately 1,700 team members across 21 offices in the eastern United States [6].

Core Insights - The Wasatch Micro-Cap Fund reported a return of 9.52% in Q3 2025, underperforming the benchmark Russell Microcap® Growth Index, which returned 19.93% [1] Company Performance - Limbach Holdings, Inc. (NASDAQ:LMB) had a one-month return of 19.88% but experienced a 10.91% decline over the past 52 weeks, closing at $79.03 per share with a market capitalization of $918.809 million on December 17, 2025 [2] - Limbach Holdings was a leading detractor from the fund's performance due to poor communication regarding earnings guidance from a recent acquisition and organic growth outlook [3] Strategic Shifts - Limbach Holdings is shifting its business model from working with general contractors to establishing direct relationships with building owners, which is expected to be more profitable and stable [3] Market Sentiment - The market's negative reaction to Limbach's guidance was viewed as overstated, and the fund maintains a positive long-term outlook on the stock, having increased its position [3] - Limbach Holdings was held by 23 hedge fund portfolios at the end of Q3, an increase from 19 in the previous quarter, indicating growing interest despite its challenges [4]

Core Viewpoint - Limbach Holdings, Inc. (LMB) is transitioning from a low-margin contractor model to a higher-margin building systems partner model, indicating a positive shift in its business strategy [1]. Company Summary - Limbach Holdings is focusing on enhancing its profit margins by moving away from low-margin contracting activities [1]. - The company is positioning itself as a building systems partner, which is expected to yield better financial performance [1]. Industry Context - The shift in business model reflects broader trends in the construction and building systems industry, where companies are increasingly seeking higher-margin opportunities [1].

Core Points - Ferguson Enterprises Inc. will release its financial results for the quarter ended October 31, 2025, on December 9, 2025 [1][5] - The results will be available on Ferguson's corporate website at 6:45 a.m. ET/11:45 a.m. GMT [1][5] - A conference call and webcast for analysts and investors will take place on the same day at 8:30 a.m. ET/1:30 p.m. GMT [2][5] Company Overview - Ferguson is the largest value-added distributor in the North American construction market, which is valued at $340 billion [3] - The company reported sales of $30.8 billion for FY'25 and employs approximately 35,000 associates across over 1,700 locations [3]