Core Insights - Carrier Global Corporation reported a significant decline in financial performance for Q4 2025, with net sales of $4.8 billion, down 6% year-over-year, and organic sales down 9% [3][5]. - The company continues to experience strong growth in its commercial HVAC segment, with Q4 orders increasing nearly 50%, driven by data center wins [2][4]. - The overall operating profit for Q4 was $101 million, reflecting an 87% decline from the previous year, primarily due to weaker residential markets and distributor destocking [4][6]. Financial Performance - Q4 2025 net sales were $4,837 million, compared to $5,148 million in Q4 2024, marking a 6% decrease [3]. - Organic sales decreased by 9%, partially offset by a 3% positive impact from foreign currency translation [3]. - Adjusted operating profit for Q4 was $455 million, down 33% from $678 million in the prior year [6]. - The diluted earnings per share (EPS) from continuing operations was $0.03, compared to a loss of $0.05 in the previous year [5][6]. Segment Performance - Climate Solutions Americas (CSA) reported a 17% decline in net sales to $1,935 million, with organic sales also down 17% [7]. - Climate Solutions Europe (CSE) saw a 6% increase in net sales to $1,332 million, although organic sales were down 2% [9]. - Climate Solutions Asia Pacific, Middle East & Africa (CSAME) experienced a 9% decline in net sales to $798 million, with organic sales also down 9% [11]. - Climate Solutions Transportation (CST) reported a 13% increase in net sales to $772 million, with organic sales up 10% [12]. Cash Flow and Shareholder Returns - Net cash flows from operating activities for Q4 were $1,040 million, with free cash flow of $909 million [14]. - The company returned approximately $3.7 billion to shareholders, including $0.8 billion in dividends and $2.9 billion in share repurchases [5]. Full-Year Guidance for 2026 - Carrier expects continued double-digit growth in global commercial HVAC and aftermarket, with a projected sales range of approximately $22 billion for 2026 [15][16]. - The guidance includes a headwind of about $350 million in sales and a $0.03 impact on adjusted EPS due to the divestiture of Riello [15]. - Adjusted operating profit is expected to be around $3.4 billion, with adjusted EPS projected at $2.80 [15][16].

Tesla - Tesla reported earnings per share of $0.50 for the quarter, beating estimates but down 63% from the same period last year, marking the lowest fourth-quarter earnings since 2020 [1] - The company announced plans to more than double its annual capital spending to $20 billion by 2026, with significant investments in AI and robotics, including a $2 billion investment in Elon Musk's xAI [1][2] - Tesla will discontinue production of its S and X models to repurpose its Fremont plant for building Optimus robots, as these models account for less than 5% of overall vehicle sales [1][2] - The shift in Tesla's mission statement to focus on creating a world of abundance aligns with its push towards autonomy and robotics [1][2] Competition and Market Dynamics - Tesla's auto segment revenue declined by 11% in the fourth quarter due to increased competition in the EV market, particularly from GM and other automakers [2] - The discontinuation of the Model S and X was anticipated as these aging vehicles had not seen significant updates since their introduction [2] - Concerns were raised about Tesla's ability to deliver on its ambitious timelines for autonomous robots and robotaxis, with skepticism regarding the feasibility of mass production within the next two years [3][4][5] Meta and Microsoft - Meta's shares rose by approximately 9% after beating revenue expectations and announcing a significant increase in capital expenditures to $115-135 billion for 2026, nearly double its 2025 CapEx [8] - Microsoft shares fell by 12% following a slowdown in growth for its Azure Cloud computing unit, despite a nearly doubled future sales backlog driven by investments in OpenAI [8][10] - The contrasting market reactions to Meta and Microsoft's capital expenditure announcements highlight investor sentiment towards AI investments and the perceived return on investment [8][10] Investment Sentiment - Investors are increasingly scrutinizing capital expenditures, questioning the return on investment, especially in light of high spending figures exceeding $100 billion annually [10] - Meta's aggressive spending is seen as a bet on future ad revenue growth, while Microsoft faces concerns over its reliance on OpenAI for a significant portion of its backlog [10][11] - The evolving narrative around AI investments suggests that companies may experience fluctuating investor confidence based on their capital allocation strategies and growth prospects [11]

Financial Data and Key Metrics Changes - Orders increased nearly 40%, building on a strong 16% growth from the previous year [5][21] - Revenue grew by 6%, with adjusted EBIT margins expanding by 190 basis points to 12.4% [5][20] - Adjusted EPS rose nearly 40%, exceeding guidance [5][21] - Record backlog increased by 20% to $18 billion, indicating strong demand visibility [20][24] Business Line Data and Key Metrics Changes - Organic revenue growth was led by service, which grew 9% year-over-year [23] - In the Americas, sales were up 6% organically, with solid double-digit growth in service [23] - EMEA grew 4%, driven by high single-digit growth in service [23] - APAC delivered 8% growth, led by strong system performance and steady demand in service [23] Market Data and Key Metrics Changes - The Americas segment saw a 56% growth, primarily from large-scale data center projects [21] - EMEA experienced an 8% growth, with balanced high single-digit growth in both service and system [21] - APAC orders increased by 10%, driven by double-digit growth in systems and high single-digit growth in service [21] Company Strategy and Development Direction - The company is focusing on energy efficiency and decarbonization, particularly in data centers and advanced manufacturing [7][11] - A proprietary business system is being deployed to enhance operational efficiency and align goals across the organization [6][13] - The strategy emphasizes innovation in technology and service-based solutions to meet customer needs [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to the year and raised full-year guidance due to positive momentum [5][26] - The operating environment remains challenging, but the company is well-positioned to deliver on its commitments [20][25] - Management highlighted the importance of operational discipline and the ability to respond to customer needs quickly [74][107] Other Important Information - The company is investing in R&D to support future growth while maintaining cost control [92][93] - There is a focus on improving gross margins and reducing SG&A costs through operational efficiencies [89][90] Q&A Session Summary Question: Order strength and duration - Management confirmed record orders and highlighted strong demand not only from data centers but also from life sciences [28][30] Question: Backlog and organic growth - Management indicated that while backlog is strong, not all orders are shippable within the next nine months, affecting organic growth projections [32][33] Question: Market evolution and order growth - Management noted broad-based growth across different applications in the data center market and emphasized the importance of thermal management for life sciences [36][38] Question: North America margin trends - Management acknowledged a slight headwind in North America margins but expressed confidence in future improvements [50][51] Question: Data center lead times - Management reported good progress on lead times and emphasized the importance of reliable delivery for competitive advantage [72][74] Question: BMS growth and opportunities - Management characterized BMS growth as solid and highlighted the alignment with mission-critical solutions [78] Question: New product development and market readiness - Management discussed ongoing collaboration with customers to innovate and prepare for future market needs [81][82] Question: Portfolio review and strategic moves - Management confirmed ongoing strategic review of the portfolio to enhance shareholder value [85][87]

Core Insights - Vertiv Holdings Co (NYSE:VRT) is recognized as one of the 12 Best HVAC Stocks to Buy Now, highlighting its strong market position in the HVAC sector [1] - The company's liquid-cooling solutions are essential for modern AI infrastructure, preventing overheating of high-performance AI chips [2] - Vertiv's partnership with Nvidia provides it with early insights into new AI chip designs, allowing it to align its cooling technology effectively [3] Financial Performance - In Q3 2025, Vertiv reported a 60% year-over-year increase in organic orders, prompting management to raise full-year guidance for net sales and other key metrics [5] - The company anticipates accelerated AI infrastructure deployment in the EMEA region in 2026, supported by its relationship with Nvidia [5] Industry Position - Vertiv is a pre-certified vendor for AI infrastructure, making it a preferred choice for technology companies seeking reliable solutions [4] - The company's offerings support a wide range of environments, including data centers and communication networks, indicating its broad market applicability [6]

Core Insights - Ferguson Enterprises Inc. (NYSE:FERG) is recognized as one of the 12 Best HVAC Stocks to Buy Now [1] - Barclays analyst Matthew Bouley raised the price target for Ferguson to $278 from $267, maintaining an Overweight rating ahead of Q4 earnings [2] - Builders are experiencing margin pressure due to fluctuating demand and high inventory levels, with government policy adding uncertainty to the sector [3] Company Performance - Ferguson reported third-quarter 2025 sales of $8.2 billion, a 5% increase year-over-year, with organic growth contributing 4% and acquisitions 1% [4] - Operating profit rose 14% year-over-year to $808 million, and diluted earnings per share increased nearly 16% to $2.84 [5] - The company declared a 7% increase in its quarterly dividend to $0.89 per share and acquired Moore Supply Company, enhancing its HVAC equipment and supplies business [5] Market Conditions - Residential revenue decreased by 1%, while non-residential revenue grew by 12% [5] - U.S. Waterworks revenue increased by 14%, but HVAC revenue declined by 6%, attributed to industry transitions and ongoing weakness in residential construction [5] - Ferguson operates as a value-added distributor, supplying specialized products and services to professional customers in both residential and non-residential construction markets in North America [6]

Comfort Systems USA, Inc. (NYSE:FIX) is included among the 12 Best HVAC Stocks to Buy Now. UBS Sees Strong Backlog Supporting Comfort Systems USA’s (FIX) Long-Term Outlook On February 2, UBS raised its price recommendation on Comfort Systems USA, Inc. (NYSE:FIX) to $1,310 from $1,140. The firm also reiterated its Buy rating on the stock. The firm expects a strong fourth-quarter performance, supported by management’s confident tone and an anticipated backlog in the $10.5B–$10.7B range. While UBS does not ...

Core Insights - Trane Technologies plc (NYSE:TT) is recognized as one of the 12 Best HVAC Stocks to Buy Now [1] - Oppenheimer analyst Noah Kaye raised the price target for Trane Technologies to $468 from $460, maintaining an Outperform rating following a strong fourth-quarter performance [2] Financial Performance - Trane reported fourth-quarter results that exceeded Wall Street expectations, with revenue increasing 6% year over year to $5.15 billion, surpassing the consensus estimate of $5.09 billion [3] - Adjusted earnings from continuing operations were $2.86 per share, above the expected $2.81, while net income rose to $624 million, or $2.74 per share, compared to $607 million, or $2.67 per share, a year earlier [3] Bookings and Demand - Total bookings for Trane climbed 24% to $5.76 billion, with organic bookings up 22%, and backlog reached a record $7.8 billion, up 15% from the end of 2024 [4] - In the Americas segment, bookings totaled $4.65 billion, up 27%, with organic bookings increasing 26%, driven by strong demand in commercial HVAC [5] - The applied book-to-bill ratio reached 200%, indicating continued strength in demand, particularly in commercial HVAC where applied equipment bookings surged over 120% [5] Company Overview - Trane Technologies operates as a global climate innovator, providing climate solutions through brands like Trane and Thermo King across various markets [6]

Core Insights - Truist raised its price target for Parker-Hannifin Corporation to $1,139 from $1,097, maintaining a Buy rating, highlighting the company's strong margin performance and earnings beat in the second quarter [1][7] Financial Performance - For the quarter ending December 31, Parker reported revenue of $5.17 billion, an increase from $4.74 billion in the same period last year, with aerospace systems sales rising 14.5% to $1.71 billion [4] Profit Outlook - Parker raised its full-year profit outlook, now expecting adjusted profit for 2026 to be between $30.40 and $31.00 per share, up from a previous range of $29.60 to $30.40 per share, driven by strong aerospace demand and gradual recovery in industrial markets [2][3] Strategic Acquisitions - The company's $9.25 billion acquisition of Filtration Group enhances its exposure to the aftermarket, which is expected to generate recurring, higher-margin revenue through replacement parts and ongoing maintenance [2] Market Position - Parker-Hannifin focuses on motion and control technologies, designing and manufacturing engineered systems while providing aftermarket support across various industrial and aerospace applications [4]

Group 1 - Graham Corporation (NYSE:GHM) is recognized as one of the 12 Best HVAC Stocks to Buy Now [1] - Northland downgraded Graham Corporation to Market Perform from Outperform and raised its price target to $80 from $71, indicating the stock is nearing full value [2] - The company announced the acquisition of FlackTek Manufacturing, LLC and FlackTek Sales, LLC for $35 million, with 85% paid in cash and 15% in equity [3] Group 2 - The acquisition of FlackTek is expected to enhance Graham's capabilities in addressing complex customer needs across various sectors [4] - Graham Corporation specializes in mission-critical fluid, power, heat transfer, and vacuum technologies, serving industries such as Defense, Energy & Process, and Space [5] - The deal includes potential performance-based cash earnouts of up to $25 million over four years, tied to adjusted EBITDA targets [3]

The AdvisorShares HVAC and Industrials ETF (Ticker: HVAC) has outperformed the S&P 500 Index since inception as demand for HVAC infrastructure expands across data centers, commercial construction and residential markets. BETHESDA, Md., Feb. 4, 2026 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today marks the one-year anniversary of the AdvisorShares HVAC and Industrials ETF (Ticker: HVAC). HVAC launched on February 3, 2025, as the first and only ETF dedi ...