Core Viewpoint - Volkswagen is advancing plans to reduce its stake in Everllence, its unit that manufactures marine engines and heat pumps, with indicative offers received from private equity firms, valuing the unit at approximately €5bn to €6bn ($5.9bn to $7.1bn) [1][2] Group 1: Volkswagen's Strategic Moves - Volkswagen is looking to sell a controlling stake in Everllence while retaining a significant minority shareholding [2] - The sale of Everllence is part of Volkswagen's broader strategy to reshape its business amid declining demand and increased competition from Chinese manufacturers [2][6] Group 2: Financial Performance and Market Context - Volkswagen reported a net cash flow of €6bn from its automotive division in 2025, indicating stronger cash generation than expected [3] - The European automotive industry is facing challenges from competition with China and a slower-than-expected transition to electric vehicles [4] Group 3: Industry Trends and Comparisons - The auction of Everllence coincides with Continental's sale of its ContiTech division, highlighting a trend among European industrial groups to streamline operations amid rising costs and regulatory pressures [6] - Private equity firms are increasingly interested in acquiring non-core assets from large industrial groups, seeing opportunities for performance improvement through further investment [6]

Greg Jackson, who co-founded Octopus Energy in 2015, is thought to have stake in the company worth hundreds of millions of pounds - Hollie Adams/Reuters The entrepreneur behind Britain’s biggest energy supplier is sitting on a fortune worth £300m following the blockbuster sale of its technology arm. Greg Jackson, who co-founded Octopus Energy in 2015, secured the fortune after he confirmed late on Monday that the company’s Kraken software arm had been spun off as an independent business valued at $8.7bn ...

Core Insights - Carrier Global (CARR) is set to report its third-quarter 2025 results on October 28, with expectations of adjusted EPS around $0.80 and sales near $6 billion, indicating mid-single-digit organic growth year-over-year [2][9] - The Zacks Consensus Estimate for third-quarter earnings is currently at 55 cents per share, reflecting a 14% decrease over the past 30 days and a year-over-year decline of 33.73% [2][3] - Revenue estimates stand at $5.53 billion, suggesting a 7.62% year-over-year decline [3] Performance Influencers - Strong demand in the Heating, Ventilating, and Air Conditioning (HVAC) sector and aftermarket services is anticipated to drive revenue growth in Q3 [4] - The integration of Viessmann Climate Solutions is expected to enhance heat pump volumes and expand sustainable energy solutions [5] - Aftermarket services have been experiencing double-digit growth, likely continuing in the upcoming quarter [5] - Currency movements are projected to provide a $200 million year-over-year benefit from foreign currency translation, alongside another $200 million from tariff-related pricing adjustments [6] Challenges - Declining residential sales in the Americas due to weaker consumer demand and high inventory levels, as well as ongoing softness in residential sales in China, are expected to challenge performance [7] - Unfavorable product and regional mix in Europe, along with tariff-related margin pressures, may further impact quarterly results [7] Earnings Outlook - The current Earnings ESP for Carrier Global is +1.72%, but it holds a Zacks Rank of 5 (Strong Sell), indicating lower odds of an earnings beat [8]

Boston's public housing agency is installing window heat pumps that can cut heating costs and emissions https://t.co/eAKvYxotty ...

Summary of Lennox International (LII) FY Conference Call - May 06, 2025 Company Overview - **Company**: Lennox International (LII) - **Event**: Oppenheimer's 20th Annual Industrial Growth Conference - **Speakers**: CEO Alok Mascarra, CFO Michael Krenser Key Industry Insights - **Transformation Focus**: 2025 is viewed as a transition year from recovery to growth, emphasizing four key pillars: digital customer experience, Samsung joint venture, increasing parts attachment rate, and growing emergency replacement in the commercial business [2][3][4] - **Market Share**: Currently, Lennox holds a low single-digit market share in the ductless product category, which is now 10% of the market [5][6] - **Emergency Replacement**: Successful pilots have led to broader rollouts, with expectations of significant revenue growth in the coming years [6][9] - **Digital Customer Experience**: Achieved record market share in residential by improving fulfillment rates and digital experiences, with further investments planned [6][7][8] Financial Performance and Projections - **2025 Volume Decline**: Projected mid-single-digit volume decline for 2025 due to economic slowdown, but long-term growth of 4% to 6% CAGR in residential unit growth is expected [29][30][31] - **Pricing Strategy**: Price increases have been implemented to counteract tariff impacts, with retention rates being high for the first increase [46][58] - **Growth Drivers for 2026**: Anticipated growth from no pre-buy headwinds, improved efficiencies, and a full year of new product offerings [69][70][72] Strategic Initiatives - **Samsung Joint Venture**: Seen as a significant opportunity for market share gain, especially against competitors from China [78][79] - **Distribution Network Investments**: Focus on enhancing distribution infrastructure with shorter payback periods compared to manufacturing investments [92][93] - **M&A Strategy**: Interest in acquiring services and technology-related companies, although the current market is described as "frozen" due to valuation disagreements [94][95][97] Additional Considerations - **Succession Planning**: New leadership in Home Comfort Solutions with Sarah Martin, who brings experience from Honeywell [23][24] - **Supply Chain Dynamics**: Ongoing adjustments to supply chains in response to tariffs and market conditions, with a focus on maintaining flexibility [52][56] - **Market Trends**: Increasing demand for air conditioning due to climate changes and population shifts towards warmer regions [33][34] Conclusion - **Outlook**: Despite short-term challenges, Lennox International remains optimistic about long-term growth driven by strategic initiatives, market demand, and operational improvements [72][75][76]

Financial Data and Key Metrics Changes - Lennox achieved record revenue exceeding $5 billion for the first time, with adjusted segment profit surpassing $1 billion [5][6] - Adjusted earnings per share reached $5.60 for Q4 and $22.58 for the full year, with core revenue growing 22% in Q4 and 13% for the full year [6][7] - Adjusted segment margin expanded by 250 basis points in Q4 and 150 basis points for the full year, reaching 19.4% [6][15] Business Line Data and Key Metrics Changes - Home Comfort Solutions segment reported 25% revenue growth and 67% segment profit growth, with sales volume increasing by 21% [12][13] - Building Climate Solutions segment experienced 17% revenue growth, with organic sales volume increasing by 14% [14][15] Market Data and Key Metrics Changes - The company noted a significant impact from the pre-purchase of R-410A equipment, estimated to have positively affected revenue by $125 million [12][30] - The transition to low GWP refrigerants is expected to contribute to future revenue growth, with a projected 4% increase from new product introductions [18][19] Company Strategy and Development Direction - The company is transitioning from a recovery and investment phase to a growth acceleration phase, focusing on disciplined investments while prioritizing growth [21][24] - Strategic investments in digital customer experience and expanded product offerings are aimed at capitalizing on growing demand for energy-efficient solutions [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth, anticipating revenue targets of $5.4 billion to $6 billion by 2026, despite headwinds from the 2024 pre-buy [25][26] - The company is closely monitoring market uncertainties, including interest rates and consumer confidence, which could impact future performance [56][57] Other Important Information - The company reported a free cash flow conversion rate of 97%, with capital expenditures expected to exceed depreciation by approximately $65 million [17][19] - The integration of the AES acquisition is ahead of schedule, contributing positively to the company's strategic M&A pipeline [9][10] Q&A Session Summary Question: Comments on the pre-buy impact and its implications for Q1 - Management acknowledged a $125 million pre-buy impact, which will create a headwind for Q1 revenue [30][31] Question: Flat volume outlook for the Home Comfort Solutions segment - Management cited market uncertainties, including low existing home sales and high mortgage rates, as reasons for a conservative volume outlook [32][34] Question: Guidance on incremental margins and inflation assumptions - Management indicated that inflation is expected to increase costs by approximately 3%, while maintaining a cautious approach to revenue guidance [39][41] Question: Revenue outlook for the Building Climate Solutions segment - Management expressed confidence in the health of the markets served, with expectations for mid-single-digit volume growth [46][48] Question: Insights on the new commercial facility in Mexico - Management indicated that the new facility is expected to contribute to volume growth, particularly in the second half of the year [82][84] Question: Inflationary pressures and their impact on costs - Management noted higher inflation in SG&A costs, particularly in healthcare and wages, while remaining vigilant about potential tariff impacts [91][92] Question: New construction versus replacement demand within Home Comfort Solutions - Management expects new construction to remain flattish, driven primarily by interest rates [108][109] Question: Margin dynamics by segment - Management indicated that margins are expected to be flat overall, with BCS seeing potential expansion in the second half of the year [110][111]