Core Insights - Artificial intelligence is driving significant growth in data center construction, with cooling becoming a critical challenge that impacts expansion speed [1] - Modine Manufacturing (MOD) is strategically positioned to capitalize on this trend, with record orders and plans for aggressive capacity expansion that could reshape its earnings over the next five years [2] Data Center Growth - Modine's data center sales increased by 31% sequentially in fiscal Q3 2026, with expectations for revenues exceeding $400 million in the fourth quarter [3] - The company has a record order book, with a five-year visibility on engagements increasingly structured around long-term supply agreements [4] Cooling Capacity Demand - For hyperscalers, securing cooling capacity is now as crucial as securing power, with production slots and delivery timelines gaining importance alongside technology performance [5] - Management projects annual growth of 50-70% in the data center business over the next two fiscal years, with capacity to support this growth expected by the end of fiscal 2027 [6] Expansion of Product Offerings - Modine is expanding its Climate Solutions portfolio beyond core cooling, having acquired several companies to enhance capabilities in heating, ventilation, and air handling [7][8] - The company is targeting the commissioning of eight chiller lines by fiscal year-end, with a long-term goal of approximately 20 lines by early fiscal 2028, representing a 125% cumulative capacity expansion [9][10] Competitive Landscape - Modine operates in a competitive environment alongside established players like Vertiv and Johnson Controls, both of which have strong positions in AI-driven data center cooling [12] - Vertiv benefits from deep relationships with hyperscalers and offers integrated thermal management solutions, while Johnson Controls provides a broad range of HVAC and building solutions [13][14] Future Outlook - Modine's aggressive scaling aims to capture the growing demand for AI-driven data center cooling, supported by multi-year visibility and expanding capacity [15] - The long-term expected EPS growth rate for Modine is projected at 34% [15]

Core Viewpoint - The company is focused on accelerating growth through new product development, aftermarket services, and systems-related growth, with a positive outlook for performance improvement in the upcoming years [1]. Group 1: Growth Strategy - The company has identified three of the four elements in its growth algorithm—products, aftermarket, and systems—which are expected to contribute around 4 to 5 points of growth [2]. - The aftermarket segment is performing well, and the company is successfully introducing new products and gaining market share, particularly in data centers [2]. - The systems segment represents a new opportunity, with initiatives like CDUs for QuantumLeap offerings in data centers and energy system-level offerings in HEMS in Europe [3].

Summary of Trane Technologies Conference Call Company Overview - **Company**: Trane Technologies (NYSE: TT) - **Date**: February 18, 2026 - **Speakers**: Dave Regnery (Chairman and CEO), Chris Kuehn (EVP and CFO) Key Points Innovation and Investment Strategy - Trane Technologies emphasizes consistent investment in innovation as a core philosophy, maintaining a leverage model of 25% to ensure funds for self-investment [5][13] - The company has a detailed gate process for investments to minimize errors and ensure successful product launches [7][8] - Current investments focus on AI applications to enhance building intelligence and resilience, including a virtual engineer tool named ARIA to assist technicians [8][9] Financial Performance and Growth Projections - Expected flattish growth in Q1 2026, with commercial HVAC in the Americas projected to grow by 7%-8% [15][16] - Anticipated 30% growth in commercial HVAC in the second half of 2025, driven by backlog alignment with customer delivery dates [16][17] - Residential sector expected to decline by 20% in Q1 2026 due to tough comparisons from the previous year [17][18] - Mid-single-digit growth expected in EMEA, while Asia is projected to remain flattish [18][62] Market Dynamics and Vertical Performance - Trane is experiencing growth across 12-14 verticals, with a strong focus on core markets rather than solely on data centers [21][24] - The company has seen significant order growth in commercial HVAC, particularly in data centers, but acknowledges that such high growth rates (e.g., 120%) may not be sustainable [27][29] - Strong performance in Europe, with a 40% increase in backlog for commercial HVAC, despite overall market challenges [30][31] Pricing and Cost Management - The company aims for a 1.5% price increase in 2026, with residential pricing expected to rise by up to 5% effective April 1 [54][57] - Trane has a strong track record in managing cost inputs and pricing effectively to maintain margins [52][60] Regional Insights - Asia represents about 6% of enterprise revenue, with China expected to decline while the rest of Asia shows growth [62][63] - The company has shifted focus in China to target end users rather than mechanical contractors to improve cash flow and project reliability [63][64] Acquisitions and Strategic Initiatives - Trane has completed 25 acquisitions in the past five years, focusing on enhancing its business operating system and integrating new technologies [86][97] - The acquisition of BrainBox aims to enhance digital offerings for smarter buildings, while the Stellar acquisition focuses on modular chiller design to simplify job site operations [98][105][109] Future Outlook - Trane Technologies remains optimistic about long-term growth, viewing the residential business as a GDP-plus opportunity despite recent challenges [71] - The transport business is expected to recover in the back half of 2026, with ongoing investments in AI to enhance operational efficiency [80][81] Conclusion - Trane Technologies is committed to innovation and strategic investments to drive long-term growth, with a focus on maintaining strong market positions across various verticals while navigating current market challenges.

Group 1 - The company achieved its $500,000,000 inventory reduction goal, resulting in a debt-free balance sheet for the entirety of 2025 [1] - Strategic focus has shifted from managing supply chain and regulatory hurdles to driving sales growth and market share through modernized technology platforms [1] - Operating efficiency improved as SG&A expenses dropped 2%, reflecting proactive rightsizing by business unit leaders to match the current market environment [1] Group 2 - The unit volume decline was attributed to a difficult 20% growth comparison from the prior year, a weaker consumer environment, and contractor hesitancy during the technology shift [2] - Performance was driven by double-digit pricing gains on new A2L products, which offset a 17% decline in unit volumes for the full year [2] - Management characterized 2025 as a year of 'chaos' and significant regulatory disruption due to the industry-wide transition to A2L refrigerants [2] - Management expects a 'simpler operating environment' in 2026 as the A2L transition matures and the industry reaches a level of normalization [2] - The company is targeting a long-term gross margin of 30% through pricing optimization tools and the new 'VCR' initiative focused on the $2,000,000,000 nonequipment parts and supplies market [2] - Inventory strategy aims to reach five annual turns, up from the current low-threes, to unlock incremental free cash flow for reinvestment and acquisitions [2] - A 10% dividend increase reflects management's confidence in cash flow, which is currently estimated at approximately $16.00 to $18.00 per share [2] - Future growth will be supported by the 'OnCallAir' digital platform and new AI-driven tools designed to enhance customer experience and operating efficiency [2]

Trane Technologies FY Conference Summary Company Overview - **Company**: Trane Technologies (NYSE: TT) - **Date of Conference**: February 17, 2026 - **Speakers**: Dave Regnery (Chair and CEO), Chris Kuehn (CFO) Key Points Industry and Market Performance - **Commercial HVAC Orders**: Orders increased by over 22% in Q4 2025, with broad-based growth across multiple verticals including data centers, higher education, healthcare, and industrial sectors [2][3] - **Strong Pipeline**: The company reported a robust pipeline, indicating strong future growth potential, particularly in the commercial HVAC business [3] - **Geographic Strength**: Growth was noted not only in North America but also in Europe, highlighting a positive trend in international markets [3] Vertical Insights - **Higher Education and Industrial Sectors**: Despite concerns regarding stimulus money and demographic pressures, the higher education sector showed resilience with order growth in 12 of 14 tracked verticals. The industrial sector is also expected to benefit from mega projects and reshoring efforts [5][9] - **K-12 Education**: A slight contraction was observed, but the overall outlook remains positive with a strong pipeline [5][8] Market Share and Competitive Position - **Market Share Confidence**: The company expressed confidence in maintaining and potentially increasing market share through continuous investment in innovation and a direct sales approach [10][12] - **System-Level Approach**: Trane Technologies emphasizes a systems approach to product development, which differentiates it from competitors who may focus on individual components [14][20] Data Center Thermal Management - **Technological Leadership**: Trane is actively engaging with key influencers in the data center space to develop future thermal management systems, ensuring that chillers remain integral to these systems [17][18] - **Liquid Cooling Solutions**: The acquisition of LiquidStack enhances Trane's position in the cooling market, particularly in the CDU space [29] Residential Market Outlook - **Production Adjustments**: The company intentionally reduced production days in the residential business to align inventory levels, anticipating a challenging Q1 2026 compared to a strong Q1 2025 [35][36] - **Price Strategy**: A price increase of up to 5% was announced, effective April 1, to offset inflation and maintain margins [39][41] European Market Strategy - **Investment in Direct Sales**: Trane has made intentional investments in its European operations, focusing on direct sales and acquisitions to strengthen its market position [42][43] Financial Performance and Guidance - **Revenue Growth**: Trane Technologies reported a compound annual growth rate of double digits, with revenue increasing from $12.5 billion five years ago to $21.3 billion [64] - **Future Opportunities**: The company sees more opportunities ahead than in the past, indicating a positive outlook for growth [65] Innovation and Technology - **Service Technician Training**: An advanced service technician training center was opened to enhance service capabilities across various product lines [22][23] - **AI Integration**: The company is leveraging AI technologies to improve service efficiency and technician knowledge [31][32] Conclusion - Trane Technologies is positioned for continued growth through strategic investments, a strong focus on innovation, and a commitment to understanding customer needs across various sectors. The company remains optimistic about its market share and future opportunities in both traditional and emerging markets.

Group 1 - Carrier Global Corporation's Chairman & CEO David Gitlin will participate in a fireside chat at the Barclays 43 Annual Industrial Select Conference on February 19, 2026, at 8:05 a.m. ET [1] - Later on the same day, CFO Patrick Goris will join Gitlin for a fireside chat at the Citi 2026 Global Industrial Tech & Mobility Conference at 1:00 p.m. ET [1] - Both events will be broadcast live on the company's investor relations website, with a replay available afterward [2] Group 2 - Carrier Global Corporation is a global leader in intelligent climate and energy solutions, focusing on innovations that enhance comfort, safety, and sustainability [3] - 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 [3] - Carrier has been a pioneer in the air conditioning industry since its invention in 1902, emphasizing a customer-centric approach through its inclusive workforce [3]

Core Viewpoint - Carrier Global's stock has declined approximately 2% over the past 12 months, indicating that despite a booming AI business, the company has struggled due to weak housing markets affecting its earnings [1]. Company Summary - Carrier Global, a manufacturer of air-conditioning systems, has not been able to leverage its strong AI business to offset challenges posed by a downturn in the housing market [1].

Financial Data and Key Metrics Changes - For Q4 2025, reported sales were $4.8 billion, adjusted operating profit was $455 million, and adjusted EPS was $0.34, reflecting a year-over-year decline largely due to lower volumes in higher-margin CSA residential and light commercial businesses [16][17] - Total company organic sales were down about 1% for the full year, with a 9% decline in organic growth in Q4, partially offset by a 3% tailwind from foreign currency translation [16][18] - Free cash flow for Q4 was approximately $900 million, with full-year free cash flow at about $2.1 billion, aligning with expectations [17] Business Line Data and Key Metrics Changes - CSA segment had a challenging quarter with organic sales down 17%, while commercial sales were up 12%, but this was offset by a nearly 40% decline in residential sales [18] - The CSE segment saw organic sales down 2%, with commercial up mid-single digits, but residential and light commercial faced mid-single-digit declines [20] - The transportation segment experienced a strong quarter with 10% organic sales growth, driven by exceptional growth in container business [22] Market Data and Key Metrics Changes - In China, overall sales were down about 20%, with residential and light commercial down approximately 30%, while commercial in China was down mid-single digits [21] - The residential heating market in Germany, the largest market, continues to be challenging, with expectations of mid- to high-single-digit declines in the overall industry [20][46] Company Strategy and Development Direction - The company is focused on investing in high-return opportunities, maintaining a strong balance sheet, and returning cash to shareholders, with $3.7 billion distributed through buybacks and dividends [5] - The company aims for double-digit growth in commercial HVAC and aftermarket globally, while expecting continued softness in shorter cycle businesses [23] - Strategic initiatives include expanding data center investments, with fourth quarter CSA data center orders up more than 5x, and a focus on technology differentiation [6][7] Management's Comments on Operating Environment and Future Outlook - Management noted that the short cycle residential and light commercial market softened more than expected in the second half of 2025, but they are positioned for stronger incrementals when these markets recover [4][15] - The outlook for 2026 includes expectations of flat to low mid-single-digit organic growth, with a focus on controlling costs and productivity [23][25] - Management expressed confidence in the company's ability to outgrow markets and deliver best-in-class solutions for customers [15] Other Important Information - The company expects to repurchase about $1.5 billion in shares and anticipates adjusted EPS of approximately $2.80, reflecting high single-digit growth versus 2025 [25][26] - The company has implemented cost actions expected to deliver over $100 million in savings in 2026 [5] Q&A Session Summary Question: Can you discuss the CSA margins and drivers? - Management expects CSA margins in Q1 to be close to about 15%, with a slight improvement from Q4 due to lower sales and a favorable tax rate [32] Question: What is the full-year guidance for the CSA residential business? - Management anticipates industry units to be down 10%-15%, with their sales expected to be down high single digits year-over-year, including a low single-digit benefit from pricing [41][43] Question: How are channel inventories in CSA residential? - Management reported that channel inventories are down about 32% year-over-year, aligning with targeted levels [52] Question: What are the expectations for the residential market in China? - Management expects RLC softness to continue in China, with residential sales down about 20% and overall sales in China down about 30% [87] Question: How is the company preparing for the cooling season? - Management emphasized operational agility and readiness to support demand if it picks up, given low inventory levels in the channel [95]

Core Viewpoint - Carrier Global Corp. has provided its adjusted earnings and sales guidance for the full year 2026, projecting adjusted earnings of approximately $2.80 per share with sales and organic sales growth expected to be flat to low-single-digits [1] Financial Projections - For fiscal 2026, analysts expect the company to report earnings of $2.88 per share with revenue growth of 2.89 percent, translating to approximately $22.61 billion in revenue [2] - The company's full-year guidance includes the anticipated divestiture of Riello, expected to conclude by the end of Q1 2026, which will result in a year-over-year sales headwind of about $350 million and a reduction of approximately $0.03 in adjusted earnings per share [2] Market Performance - In pre-market trading on Thursday, Carrier Global Corp. shares are priced at $60.80, reflecting a decrease of $2.86 or 4.49 percent [3]

FISCAL Q1 2026 Earnings Conference Call February 4, 2026 FORWARD-LOOKING AND CAUTIONARY STATEMENTS/NON-GAAP FINANCIAL INFORMATION Johnson Controls International plc cautionary statement regarding forward-looking statements Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the me ...