Core Insights - Johnson Controls has been recognized on Fortune's 2025 Change the World list for its innovative YORK YVAM Air-Cooled Magnetic Bearing Chiller, designed for hyperscale and AI-intensive data centers, showcasing advancements in sustainability and societal benefits [1][2] Group 1: Product Innovations - The YORK YVAM chiller reduces power consumption by 40% annually while maintaining the same cooling capacity as conventional solutions [6] - The chiller operates using zero on-site water, promoting water conservation and improved water usage effectiveness [6] - It functions quietly at 65 decibels at 10 meters, comparable to background music in a restaurant [6] Group 2: Industry Context - Data center cooling systems are crucial for maintaining safe operating temperatures for high-performance chips, accounting for over 30% of a facility's total energy consumption [2] - The increasing demand for energy-efficient cooling technologies is driven by the need to address rising power demands and reduce daily water usage, which can reach millions of gallons [2] Group 3: Company Recognition and History - This marks the third time Johnson Controls has been included in Fortune's Change the World list, previously recognized in 2023 for heat pump technology that reduces operating costs by over 50% and carbon emissions by 60% [3] - In 2022, the company was acknowledged for its OpenBlue smart building platform, which transforms buildings into dynamic assets [3] - Johnson Controls has a 140-year history of innovation, providing a comprehensive digital offering through OpenBlue [5]

Core Insights - Energy Services of America Corporation announced the acquisition of Rigney Digital Systems, a leader in HVAC control systems, enhancing its capabilities in building technology [1][2][3] Company Overview - Energy Services of America Corporation operates primarily in the mid-Atlantic and Central regions of the U.S., providing services across various industries including natural gas, petroleum, and power [4] - Nitro Construction, a subsidiary of Energy Services, has over 60 years of experience in industrial construction and maintenance services, emphasizing safety and craftsmanship [5] - Rigney Digital Systems, founded in 2000, specializes in HVAC control systems, focusing on optimizing building performance and energy efficiency [6] Acquisition Details - The acquisition allows Rigney Digital Systems to retain its brand identity and client relationships while benefiting from Nitro Construction's resources [2][3] - Douglas Reynolds, President and CEO of Energy Services, stated that the acquisition is a natural fit, enhancing service offerings for clients [3]

Core Viewpoint - Carrier Global Corporation has initiated field trials for battery-enabled HVAC systems aimed at enhancing grid resilience and integrating renewable energy sources [1][2]. Group 1: Company Initiatives - Carrier is testing its first battery-enabled HVAC systems in homes to validate their performance and contribution to grid stability [2][3]. - The company is collaborating with utilities and EPRI to explore the role of homes as flexible Distributed Energy Resources (DERs) in response to the aging U.S. power grid and increasing energy demands [2][3]. Group 2: Technology and Impact - The next-generation HVAC system combines efficient variable-speed heat pumps with battery storage to shift energy use from peak to off-peak periods, thereby enhancing grid flexibility and resilience [3][4]. - With approximately 30 million Carrier HVAC units installed in North American homes, representing over 100 GW of potential flexible demand, the company sees significant opportunities for utilities to manage electricity demand effectively [4][5]. Group 3: Future Outlook - The trials are positioned as a demonstration of Carrier's commitment to developing a more resilient and intelligent grid, showcasing that smart home energy solutions are currently being implemented [5].

Company Overview - Carrier has undergone significant transformation over the past few years, focusing on a balanced portfolio and exposure to enduring secular trends [2] - The company is positioned as a market leader in key verticals and geographies globally [2] Financial Performance - Earnings per share (EPS) has grown at a compound annual growth rate (CAGR) of 17% since 2022, with a more than 25% increase in the first half of the current year [3] - Sales in the first half of the year were up in the mid-teens percentage-wise, despite flat volume compared to the previous year [3] Market Challenges - The North American residential market is currently facing challenges, with a noted weakening in demand during June and July [3] - As a result, the company has revised its Q3 volume forecast to a decrease of 15% compared to the previous year, expecting significantly lower volume in Q3 [3]

Core Insights - Carrier Global Corporation will participate in the 13th Annual Morgan Stanley Laguna Conference on September 10, 2025, with Chairman & CEO David Gitlin and Senior VP & CFO Patrick Goris speaking [1] Company Overview - Carrier Global Corporation is a global leader in intelligent climate and energy solutions, focusing on innovations that enhance comfort, safety, and sustainability [2] - The company has a history of advancements in climate solutions, including temperature control, air quality, and transportation, aimed at improving lives and ensuring the safe transport of essential goods [2] - Since its inception in 1902, Carrier has been committed to enhancing the quality of life and the environment through its inclusive workforce and customer-centric approach [2]

Financial Performance - Q2 2025 net sales were $311.6 million, a decrease of 0.6% year-over-year[6, 22] - Gross profit margin was 26.6%, a decrease of 950 bps year-over-year[6] - Non-GAAP adjusted EBITDA was $46.6 million, with a margin of 14.9%, a decrease of 43.1% year-over-year[6, 22] - Non-GAAP adjusted diluted EPS was $0.22, a decrease of 64.5% year-over-year[6, 22] Segment Performance - AAON Oklahoma net sales declined by 18.0% to $185.1 million, with a gross margin of 27.5%[23, 29] - AAON Coil Products net sales increased by 86.4% to $58.5 million, with a gross margin of 22.0%[23, 32, 33] - BASX net sales increased by 20.4% to $68.0 million, with a gross margin of 27.9%[23, 36, 37] Backlog and Orders - Adjusted backlog was $1.12 billion[6] - AAON-branded backlog increased by 93.4% year-over-year and 22.4% quarter-over-quarter[14] - BASX-branded backlog increased by 58.0% year-over-year to $623.4 million[43] Balance Sheet - The company closed on a new $500.0 million credit facility in Q2[42] - The company repurchased $30.0 million of shares[42] - Expect capital expenditures of approximately $220.0 million in 2025[42] Revised Outlook - The company revised its 2025 sales growth outlook to low-teens[45] - The company revised its 2025 gross margin outlook to 28%-29%[45] - The company revised its 2025 adjusted SG&A as a percentage of sales outlook to 16.5%-17.0%[45]

Core Viewpoint - Lennox International (LII) has shown a recent downtrend, losing 8.3% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be regaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near or above the opening price, reflecting buying interest [4][5]. - The effectiveness of the hammer pattern is enhanced when used alongside other bullish indicators, as its strength is dependent on its placement on the chart [6]. Fundamental Analysis - There has been a notable upward trend in earnings estimate revisions for LII, which is a bullish indicator correlated with stock price movements [7]. - The consensus EPS estimate for LII has increased by 5.2% over the last 30 days, indicating strong agreement among analysts regarding the company's potential for better earnings [8]. - LII holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Financial Data and Key Metrics Changes - The company reported a 16% year-over-year growth in adjusted EPS, reaching $1.65 for Q2 2025 [11] - Total revenues increased by 10% year-over-year, driven primarily by acquisitions and higher project sales [11] - Adjusted EBITDA rose approximately 16% year-over-year, with a margin expansion of 120 basis points [8][11] Segment Data and Key Metrics Changes - In the HVAC segment, revenues grew by 5.7% year-over-year, with 4.9% attributed to inorganic growth [11] - Detection and Measurement segment revenues increased by 21% year-over-year, with organic growth of 5.5% [13] - Segment backlog for HVAC was $540 million, up 19.5% from Q1, while Detection and Measurement backlog was $365 million, up 6% sequentially [12][14] Market Data and Key Metrics Changes - The company anticipates a growth in adjusted EBITDA of 18% at the midpoint of the updated guidance for the full year [7] - Market conditions are supportive of the increased full-year outlook, particularly in the HVAC segment, which has a healthy backlog [17] Company Strategy and Development Direction - The company is focused on organic and inorganic value creation initiatives, supported by a robust M&A pipeline [7] - New product introductions, such as the Olympus Vmax cooling solution, are expected to significantly increase the addressable market in data center cooling solutions [9] - The company is making progress on capacity expansions and new product introductions, particularly in engineered air movement businesses [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated guidance, citing solid momentum in end markets and key initiatives [18] - The company remains optimistic about data center opportunities in 2025 and 2026, with expectations for continued growth [17] - Management noted that project businesses are seeing healthy front log activity, with many new bookings slated for delivery in 2026 and beyond [17] Other Important Information - The company ended Q2 with cash of $137 million and total debt of approximately $1 billion, with a leverage ratio of about 1.7 times [14] - Adjusted free cash flow for Q2 was approximately $37 million [15] Q&A Session Summary Question: What kind of growth is your team seeing in the data center space? - Management indicated that data center revenue is expected to grow from around $150 million to $200 million in 2025, representing about 9% of company revenue, with further growth anticipated in 2026 [24][25] Question: What would the run rate revenue capacity lift be for U.S. manufacturing? - Management stated that they aim for a run rate of $140 million by the end of Q4 2025, with expectations to reach around $300 million with new facilities by 2027 [30] Question: What are the expectations for project contributions in the D and M segment for the back half of the year? - Management expects project contributions to grow in the high teens organically during the second half of the year [32] Question: Can you clarify the strength of HVAC margins in Q2? - Management noted that HVAC margins were 25.4%, with half of the increase attributed to favorable project execution and the other half to higher volumes and a more accretive mix [40] Question: How is the integration of recent acquisitions going? - Management reported very positive integration experiences with KTS and Sigma and Omega, highlighting synergies and growth opportunities [113][116]

Core Insights - Trane Technologies reported revenue of $5.75 billion for the quarter ended June 2025, reflecting an 8.3% increase year-over-year, with EPS at $3.88 compared to $3.30 in the same quarter last year [1] - The revenue slightly missed the Zacks Consensus Estimate of $5.76 billion by 0.27%, while the EPS exceeded the consensus estimate of $3.76 by 3.19% [1] Financial Performance - Total bookings for the quarter were $5.63 billion, slightly below the average estimate of $5.65 billion [4] - Revenue from the Americas was $4.69 billion, compared to the average estimate of $4.72 billion, marking a year-over-year increase of 9.4% [4] - Revenue from EMEA was $707.9 million, exceeding the estimated $677.48 million, with a year-over-year change of 9.7% [4] - Revenue from Asia Pacific was $346.2 million, below the average estimate of $355.27 million, representing a year-over-year decline of 6.7% [4] Market Performance - Trane Technologies' shares have returned 8.5% over the past month, outperforming the Zacks S&P 500 composite's 3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Performance - The company reported record enterprise bookings of $5.6 billion, a 5% increase, with organic bookings up by 4%[10] - Organic revenue increased by 7%, and adjusted EPS rose by 18%[10] - The company is raising its full-year 2025 guidance, expecting organic revenue growth of approximately 8% and adjusted EPS of around $13.05[9] - Q2 2025 net revenue reached $5.746 billion, a 7% organic increase compared to $5.307 billion in Q2 2024[16] Segment Results - Americas segment saw a revenue increase of 9% with adjusted operating income margin up 120 basis points[18] - EMEA segment revenue increased by 3%, but adjusted operating income margin decreased by 200 basis points due to shipment timing and investments[18] - Asia Pacific segment revenue decreased by 8%, with adjusted operating income margin down 220 basis points due to lower volumes and inflation[18] Market Dynamics - Americas Commercial HVAC bookings experienced all-time highs, increasing by over 20%, with a two-year stack increase of over 40%[14] - Residential HVAC revenues were down MSD (mid-single digits), but year-to-date revenues were up 3%[14] - The company expects a ~$150 million revenue impact in the second half of the year due to industry-wide R454B cylinder shortages and channel inventory normalization in residential HVAC[20] Capital Allocation - The company has deployed approximately $1.5 billion in capital year-to-date, including ~$420 million in dividends and ~$900 million in share repurchases[28, 29] - The company anticipates deploying between $2.5 billion and $3.0 billion in capital throughout 2025[27, 28]