Core Insights - Baron Real Estate Fund delivered a strong performance in Q3 2025, appreciating 10.25% compared to the MSCI US REIT Index's 4.49% and the MSCI USA IMI Extended Real Estate Index's 5.65% [1] Company Analysis - AAON, Inc. (NASDAQ:AAON) has a market capitalization of $8.482 billion and is involved in the engineering, manufacturing, marketing, and distribution of air conditioning and heating equipment [2] - The stock of AAON, Inc. experienced a one-month return of -0.35% and a 52-week decline of 22.83%, closing at $103.90 per share on November 11, 2025 [2] - Baron Real Estate Fund began purchasing shares of AAON, Inc. after a 40% decline from its peak earlier in 2025, attributing the decline to an overreaction to the company's Investor Day guidance and temporary issues related to a new Enterprise Resource Planning implementation [3]

Core Points - Watts Water Technologies, Inc. has elected Suzanne L. Stefany to its Board of Directors, where she will also serve on the Governance and Sustainability Committee and the Compensation Committee [1] - Ms. Stefany has extensive experience in the investment banking sector, having served as a Senior Advisor and Partner at PJT Partners, and previously as a Managing Director and Global Industry Analyst at Wellington Management Company [2] - The CEO of Watts Water Technologies, Robert J. Pagano, Jr., highlighted Ms. Stefany's expertise in business strategy, M&A, capital allocation, and governance as valuable assets for the company [3] Company Overview - Watts Water Technologies is a global manufacturer based in the USA, providing a wide range of plumbing, heating, and water quality products [3] - The company focuses on innovative solutions to enhance the efficiency, safety, and quality of water across commercial, residential, and industrial applications [3]

FläktGroup 首席执行官 Trevor Young 表示： 加入三星将加速 FläktGroup 的全球市场扩张，并推动技术创新。我们两家公司之间的协同效应将成为开发面向未来的暖通空调解 决方案的一个重要转折点。 IT之家 11 月 10 日消息，三星电子韩国当地时间本月 6 日宣布，已完成对欧洲最大 HVAC（采暖、通风、空调）企业 FläktGroup 的收购。这笔 交易今年 5 月宣布时的价值为 15 亿欧元（IT之家注：现汇率约合 123.44 亿元人民币）。 收购完成后，FläktGroup 将作为三星的一家独立子公司运营，名称、现有管理团队、员工和设施均将得到保留。 通过此次收购，三星电子将战略性培育 HVAC 业务，使其成为 DX 事业部的新增长引擎。公司计划持续投资商用 HVAC 解决方案，并拓展至 AI 数据中心等高增长领域。 ...

Financial Data and Key Metrics Changes - Net sales increased by $57 million, or 17.4%, year-over-year to $384.2 million, driven by a 95.8% rise in Basics-branded sales [11][12] - Gross margin was 27.8%, down from 34.9% in the prior year, but up 120 basis points sequentially [11][12] - Diluted EPS was $0.37, down 41.3% from a year ago, but up 94.7% sequentially [13] Business Line Data and Key Metrics Changes - Basics branded backlog grew to $896.8 million, up 119.5% year-over-year and up 43.9% from the prior quarter [6] - AAON branded sales grew 28.1% sequentially, driven by over 20% production increases at both the Tulsa and Longview facilities [7] - AAON branded bookings were flat year-over-year but up 15% on a two-year stack, with national account wins up 96% in the third quarter [8] Market Data and Key Metrics Changes - Demand for airside and liquid cooling products remains strong, reflecting alignment with customer needs [6] - Backlog at the end of the quarter was up 77.1% year-over-year, indicating strong demand across the business [18] Company Strategy and Development Direction - The company is focused on ramping up production capacity at the new Memphis facility, which adds nearly 800,000 sq ft of manufacturing capacity [6] - The Basics brand is identified as the key growth driver, particularly in the data center market [18] - The company plans to implement the ERP system at the Tulsa facility in the second half of 2026, expecting minimal disruption based on learnings from Longview [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational recovery and capacity expansion, expecting sequential margin improvement through the fourth quarter and into early 2026 [5] - The company anticipates full-year sales growth in the mid-teens for 2025, with a gross margin of 28-28.5% [20] - Management highlighted the resilience of the business despite a soft commercial HVAC market, with strong bookings indicating continued demand [18] Other Important Information - Cash, cash equivalents, and restricted cash balances totaled $2.3 million, with debt at $360.1 million and a leverage ratio of 1.73 [15] - Capital expenditures for the first three quarters increased 22.1% to $138.9 million, with net borrowings of $205 million largely for working capital and capital expenditures [16] Q&A Session Summary Question: Drivers of Basics orders and growth outlook - Management noted strong traction and visibility in backlog growth, particularly in liquid cooling orders and airside solutions, with expectations for continued strong orders [27][30] Question: Gross margin expectations - Management indicated that gross margins for the Oklahoma segment could normalize to the mid-30s range as production ramps up and pricing dynamics improve [31][32] Question: Response to short report claims - Management reaffirmed the integrity of financial reporting, stating that revenue recognition follows GAAP standards and that demand for products remains strong [35][36] Question: CapEx guidance implications - Management clarified that the reduction in CapEx to $180 million does not impact the ramp-up of the Memphis facility, which is already well-equipped [42] Question: Operational efficiencies and future improvements - Management discussed operational inefficiencies impacting margins but expressed confidence in achieving a gross margin of at least 30% in the future [44] Question: Customer mix and demand profile - Management reported broad-based demand across various customer segments, including hyperscalers and colocation providers, indicating a diverse customer base [48][88]

Core Insights - Carrier Global Corporation (CARR) is a leading provider of heating, ventilation, air conditioning, refrigeration, fire protection, security, and building automation technologies, with a market cap of $47.9 billion [1] Performance Overview - CARR shares have underperformed the broader market, declining 23.1% over the past year, while the S&P 500 Index has increased by 17.5% [2] - Year-to-date, CARR stock is down 16.7%, compared to a 15.6% rise in the S&P 500 [2] - Compared to the SPDR S&P Homebuilders ETF, which has declined about 12.2% over the past year, CARR's performance is notably weaker [3] Financial Results - In Q3, CARR reported revenue of $5.58 billion, exceeding analyst estimates of $5.56 billion [4] - The adjusted EPS of $0.67 surpassed analyst expectations by 17.7% [4] - For the current fiscal year ending in December, analysts project a 3.1% growth in EPS to $2.64 on a diluted basis [4] - CARR has consistently beaten consensus estimates in the last four quarters [4] Analyst Ratings - Among 24 analysts covering CARR, the consensus rating is a "Moderate Buy," consisting of 12 "Strong Buy" ratings, one "Moderate Buy," 10 "Holds," and one "Strong Sell" [5] - The consensus rating has become less bullish compared to the previous month, with 13 analysts previously suggesting a "Strong Buy" [6] - JPMorgan Chase & Co. maintained a "Neutral" rating on CARR and lowered the price target to $60, indicating a potential upside of 5.5% from current levels [6] - The mean price target of $74.65 suggests a 31.3% premium to CARR's current price, while the highest price target of $90 indicates an upside potential of 58.3% [6]

Core Insights - AAON, Inc. reported strong demand and significant growth in backlog, reaching a record $1.32 billion, up 103.8% year-over-year and 18.1% sequentially, driven by data center applications [2][19] - Net sales for Q3 2025 increased by 17.4% to $384.2 million, with BASX-branded sales rising 95.8% to $124.8 million, while AAON-branded sales decreased by 1.5% to $259.5 million [3][14] - Gross profit margin decreased to 27.8% from 34.9% year-over-year but improved sequentially from 26.6%, primarily due to operational inefficiencies related to ERP implementation [4][14] Financial Performance - Earnings per diluted share were $0.37, down 41.3% year-over-year but up 94.7% sequentially [5][14] - The company anticipates cash flow from operations to turn significantly positive in Q4 2025, with capital expenditure plans of $180 million for the year [17][14] Operational Highlights - Production throughput improved significantly at the Longview, Texas facility, reaching 90% of target in September and exceeding that level in October [6][8] - The BASX brand is expanding its presence in the data center market, with substantial increases in production of liquid cooling equipment [7][8] Segment Performance - AAON Oklahoma segment net sales increased by 4.3% year-over-year to $238.7 million, while gross profit margin was 31.5%, down from 36.8% [9][10] - AAON Coil Products segment net sales surged by 99.4% to $70.2 million, driven by BASX-branded liquid cooling product sales [11][12] - BASX segment net sales increased by 19.2% to $75.2 million, with a gross margin of 27.0% [15][16] Backlog and Market Position - Total backlog increased to $1.32 billion, with BASX-branded backlog growing by 119.5% year-over-year [19][14] - AAON-branded equipment backlog increased by 77.1% year-over-year but declined sequentially by 14.3% [19][14] 2025 Outlook - The company expects mid-teens sales growth for FY25, with gross profit margin projected between 28.0% and 28.5% [20][14]

Core Insights - The company reported a 6% growth in sales, a 100 basis point expansion in segment margins, and a 17% increase in adjusted EPS, achieving a free cash flow conversion of 102% [1][22][23] - The backlog reached a record $15 billion, reflecting sustained demand for the company's solutions [1][24][27] - The proprietary business system is evolving as a growth engine, combining 80/20 and Lean principles with digital and AI approaches to enhance customer focus and operational efficiency [2][5][6] Financial Performance - Fiscal 2025 was marked by strong execution, with organic revenue growth of 4% and adjusted EPS of $1.26, a 14% year-over-year increase [22][23] - The company ended the quarter with $400 million in available cash and a net debt ratio of 2.4 times, within the long-term target range [23] - Adjusted free cash flow improved by approximately $700 million to $2.5 billion for the year [23] Segment Performance - Orders grew 6% in the quarter, with notable growth in The Americas (9%) and EMEA (3%), while APAC saw a slight decline of 1% [24][25] - The Americas experienced a 3% organic sales increase, while EMEA delivered 9% organic growth [25][27] - The backlog grew 13%, with system backlog increasing by 14% and service backlog by 9% [27] Strategic Initiatives - The company is updating its long-term growth algorithm to reflect improved mid-single-digit top-line growth and double-digit adjusted EPS growth [2][28] - The focus remains on investing in organic growth, returning capital to shareholders, and pursuing selective acquisitions [29] - The proprietary business system aims to identify and remove barriers to growth, with over 700 colleagues engaged in priority areas [6][9] Market Position and Innovations - The company is strengthening its leadership in advanced thermal management, particularly for data centers, with new product launches like the coolant distribution unit [13][14][15] - The transition to liquid cooling technologies is expected to enhance the company's competitive advantage in the data center vertical [14][15][56] - A significant project in Zurich will provide green heat to the city, showcasing the company's commitment to sustainable solutions [16][17][18] Future Outlook - The company anticipates organic sales growth of approximately 3% for the first quarter and mid-single-digit growth for the full year [30][31] - Adjusted EPS is expected to be approximately $4.55 per share, reflecting over 20% growth [30] - The guidance for fiscal 2026 includes a target of 50% operating leverage and approximately 100% free cash flow conversion [30][31]

Financial Data and Key Metrics Changes - Fiscal 2025 saw a 6% increase in sales, with segment margins expanding by 100 basis points and adjusted EPS rising by 17% [8][24] - Free cash flow conversion reached 102%, reflecting disciplined execution and financial strength [8][24] - The company ended the quarter with approximately $400 million in available cash and net debt declined to 2.4 times compared to the prior year [24] Business Line Data and Key Metrics Changes - Organic revenue grew 4% in Q4, with segment margin expanding by 20 basis points to 18.8% [23] - Orders grew 6% in the quarter, with a notable 9% growth in the Americas, driven by data center strength [24] - EMEA orders increased by 3%, while APAC saw a small decline of 1% due to lower systems volumes [24] Market Data and Key Metrics Changes - The backlog expanded by 13% to a record $15 billion, with system backlog growing by 14% and service backlog by 9% [24] - In the Americas, sales were up 3% organically, while EMEA delivered 9% organic growth [25] - APAC sales declined 3% organically, primarily due to lower volumes in China [25] Company Strategy and Development Direction - The company is updating its long-term growth algorithm to reflect improved mid-single-digit top-line growth and double-digit adjusted EPS growth [8][27] - A proprietary business system is being implemented to enhance operational efficiency and customer-centricity [9][10] - The focus on technology innovation and sustainability is expected to drive future growth, particularly in advanced thermal management for data centers [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate evolving market conditions and achieve long-term growth commitments [30] - The guidance for fiscal 2026 includes expectations for mid-single-digit organic revenue growth and approximately 100% free cash flow conversion [29][30] - The company is focused on leveraging strengths in HVAC controls and digital solutions to capture significant opportunities [21][27] Other Important Information - The company is pursuing selective acquisitions to strengthen its portfolio while maintaining a strong balance sheet [28] - Recent leadership changes aim to enhance operational capabilities and align talent with strategic priorities [11] Q&A Session Summary Question: Can you walk through the 50% operating leverage target for 2026? - Management indicated that EMEA and APAC will be the main drivers of margin improvement, with overall operating leverage expected to be in the 50s or above [33] Question: What are the opportunities for cost and portfolio improvements? - Management highlighted ongoing efforts to reduce G&A costs and improve productivity through the proprietary business system, with a vibrant acquisition pipeline [34][38] Question: Can you provide details on the $250 million benefits related to operating leverage? - Management confirmed that the operating leverage is expected to improve over time, driven by productivity and responsible cost reductions [40][41] Question: What is the outlook for orders in the first quarter? - Management noted that the health of the pipeline continues to improve, with opportunities for growth in orders despite tough comparisons [51] Question: How does the company view the content opportunity in data centers? - Management emphasized that the demand for cooling solutions is increasing due to higher power requirements from newer chips, positioning the company well in the market [66] Question: Can you elaborate on the investments in technology for the aftermarket? - Management stated that technology investments are aimed at both gaining market share and improving margin profiles by lowering service costs [69]

Financial Data and Key Metrics Changes - Fiscal 2025 saw a 6% increase in sales, with segment margins expanding by 100 basis points and adjusted EPS rising by 17% [8][24] - Free cash flow conversion reached 102%, reflecting disciplined execution and financial strength [8][24] - The company ended the quarter with approximately $400 million in available cash and net debt declined to 2.4 times compared to the prior year [24] Business Line Data and Key Metrics Changes - Organic revenue grew 4% in Q4, with segment margin expanding 20 basis points to 18.8% [23] - Orders grew 6% in the quarter, with 9% growth in the Americas, supported by strength in data centers [24] - EMEA orders increased 3%, while APAC orders saw a small decline of 1% [24] Market Data and Key Metrics Changes - In the Americas, sales were up 3% organically, while EMEA delivered 9% organic growth [25] - APAC sales declined 3% organically, primarily due to lower volumes in China [25] - The backlog grew 13% to a record $15 billion, with system backlog growing 14% and service backlog growing 9% [26] Company Strategy and Development Direction - The company is updating its long-term growth algorithm to reflect improved mid-single-digit top-line growth and double-digit adjusted EPS growth [8][27] - The proprietary business system is being developed as a growth engine, focusing on customer-centric and continuous improvement [7][9] - The company aims to leverage strengths in HVAC controls and digital solutions to capture significant opportunities in decarbonization and mission-critical systems [21][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate evolving market conditions and maintain strong operational discipline [30] - The guidance for fiscal 2026 includes expectations for mid-single-digit organic revenue growth and approximately 100% free cash flow conversion [29][30] - Management highlighted the importance of technological innovation and sustainability in driving future growth [15][21] Other Important Information - The company is focused on strengthening leadership capabilities and aligning talent with strategic priorities [10] - Recent initiatives include a major announcement to provide green heat to Zurich through a waste incineration project, showcasing leadership in decarbonization [18][19] Q&A Session Summary Question: Can you walk through the 50% operating leverage target for 2026? - Management indicated that EMEA and APAC will be the main drivers of margin improvement, with overall operating leverage expected to be in the 50s or above [33] Question: Can you rank the opportunities going forward, including cost and portfolio opportunities? - Management emphasized ongoing efforts to reduce G&A costs and improve productivity, with a vibrant acquisition pipeline being pursued [34][38] Question: What are the drivers behind the decline in amortization? - The decline is attributed to impairments and portfolio actions, with further reductions possible through contemplated divestitures [49][50] Question: What is the outlook for orders in the first quarter? - Management expressed confidence in the health of the pipeline and the potential for order growth despite tough comparisons [51][52] Question: Can you elaborate on the margin improvement opportunities in EMEA and APAC? - Management noted that improvements will come from a combination of pricing discipline and ongoing deployment of the business system [62] Question: How does the transition from air cooling to liquid cooling affect content opportunities? - Management stated that the need for more cooling due to newer chips will increase the demand for chillers, maintaining strong opportunities in both air and liquid cooling solutions [66][67] Question: What is the strategic investment in Excelsius and its complementarity with the CDU? - The CDU launch is aimed at capturing significant market opportunities, while Excelsius anticipates future cooling needs for upcoming chip launches [94][95] Question: How is the company addressing accountability and KPIs? - Management is in the process of establishing enterprise KPIs to enhance accountability, with some tweaks to compensation structures being considered [84][85]

Financial Data and Key Metrics Changes - Fiscal 2025 saw a sales growth of 6%, with segment margins expanding by 100 basis points and adjusted EPS increasing by 17% [6][20] - Free cash flow conversion reached 102%, reflecting disciplined execution and financial strength [6][21] - The company ended the quarter with approximately $400 million in available cash, and net debt declined to 2.4 times compared to the prior year [21] Business Line Data and Key Metrics Changes - Organic revenue grew 4% in the fourth quarter, with segment margin expanding by 20 basis points to 18.8% [20] - Orders grew 6% in the quarter, with a notable 9% growth in the Americas, supported by strength in data centers [21] - In EMEA, orders increased by 3%, while APAC saw a small decline of 1% due to decreasing systems [22] Market Data and Key Metrics Changes - The backlog expanded by 13% to a record $15 billion, with system backlog growing by 14% and service backlog by 9% [21][24] - In the Americas, sales were up 3% organically, while EMEA delivered 9% organic growth [22] - APAC experienced a 3% organic sales decline, primarily due to lower volumes in China [22] Company Strategy and Development Direction - The company is updating its long-term growth algorithm to reflect improved mid-single-digit top-line growth and double-digit adjusted EPS growth [6][24] - The proprietary business system is being developed as a growth engine, focusing on customer-centric and continuous improvement [5][8] - The company aims to leverage strengths in HVAC controls and digital solutions to capture significant opportunities in decarbonization and mission-critical systems [19][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate evolving market conditions and achieve long-term growth commitments [26] - The guidance for fiscal 2026 includes expectations for mid-single-digit organic revenue growth and approximately 100% free cash flow conversion [25][26] - Management highlighted the importance of operational efficiencies and a record backlog in supporting future growth [25][26] Other Important Information - The company is focusing on investments in organic growth, returning capital to shareholders, and pursuing selective acquisitions [24] - Recent leadership changes include the appointment of a new leader for the Americas segment to sharpen customer focus [10] Q&A Session Summary Question: Can you walk through the 50% operating leverage target for 2026? - Management indicated that EMEA and APAC will be the main drivers of margin improvement, with a comfortable outlook for operating leverage in the 50s or above [28][29] Question: What are the opportunities for cost and portfolio improvements? - Management emphasized ongoing efforts to reduce G&A costs and improve productivity through the proprietary business system, with a vibrant acquisition pipeline [31][32] Question: Can you provide more detail on the $250 million benefits from operating leverage? - Management confirmed that the operating leverage will continue to improve over time, driven by productivity and responsible cost reductions [32][34] Question: What is the outlook for orders in the first quarter? - Management noted that the health of the pipeline continues to improve, with expectations for order growth despite tough comparisons [36] Question: How will the company achieve 100% cash flow conversion? - Management highlighted strong improvements in receivable management and inventory management as key drivers for free cash flow conversion [38][39] Question: What are the targeted actions for margin improvement in EMEA and APAC? - Management stated that margin improvement will come from a combination of pricing discipline, operational efficiency, and ongoing deployment of the business system [40] Question: How does the company view the content opportunity in data centers? - Management expressed confidence in the continued demand for both air and liquid cooling solutions, emphasizing the strength of their chiller offerings [41] Question: What is the impact of technology investments on aftermarket services? - Management indicated that technology investments are driving both share gain and margin improvement by lowering costs to serve [43] Question: Can you discuss the order growth from specific verticals? - Management noted strong growth in data centers, pharmaceuticals, and advanced manufacturing as key verticals driving backlog growth [45]