Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at CSW (NYSE: CSW) and the best and worst performers in the hvac and water systems industry.

Many HVAC and water systems companies sell essential, non-discretionary infrastructure for buildings. Since the useful lives of these water heaters and vents are fairly standard, these companies have a portion of predictable replacement revenue. In the last decade, trends in energy efficiency and clean water are driving innovation that is leading to incremental demand. On the other hand, new installations for these companies are at the whim of residential and commercial construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 9 hvac and water systems stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 0.6%.

In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results.

Weakest Q4: CSW (NYSE: CSW)

With over two centuries of combined operations manufacturing and supplying, CSW (NYSE: CSW) offers special chemicals, coatings, sealants, and lubricants for various industries.

CSW reported revenues of $233 million, up 20.3% year on year. This print fell short of analysts’ expectations by 6%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and adjusted operating income estimates.

CSW delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 3.2% since reporting and currently trades at $290.48.

Is now the time to buy CSW? Access our full analysis of the earnings results here, it’s free.

Best Q4: Northwest Pipe (NASDAQ: NWPX)

Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe (NASDAQ: NWPX) is a manufacturer of pipeline systems for water infrastructure.

Northwest Pipe reported revenues of $125.6 million, up 5% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.

The market seems happy with the results as the stock is up 10% since reporting. It currently trades at $81.42.

Is now the time to buy Northwest Pipe? Access our full analysis of the earnings results here, it’s free.

Carrier Global (NYSE: CARR)

Founded by the inventor of air conditioning, Carrier Global (NYSE: CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Carrier Global reported revenues of $4.84 billion, down 6% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

As expected, the stock is down 4.2% since the results and currently trades at $60.85.

Read our full analysis of Carrier Global’s results here.

AAON (NASDAQ: AAON)

Backed by two million square feet of lab testing space, AAON (NASDAQ: AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings.

AAON reported revenues of $424.2 million, up 42.5% year on year. This number topped analysts’ expectations by 13.4%. More broadly, it was a softer quarter as it produced a significant miss of analysts’ adjusted operating income estimates.

AAON scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 5.6% since reporting and currently trades at $95.50.

Read our full, actionable report on AAON here, it’s free.

A. O. Smith (NYSE: AOS)

Credited with the invention of the glass-lined water heater, A.O. Smith (NYSE: AOS) manufactures water heating and treatment products for various industries.

A. O. Smith reported revenues of $912.5 million, flat year on year. This result lagged analysts' expectations by 1.5%. Overall, it was a slower quarter as it also produced a miss of analysts’ revenue estimates and full-year revenue guidance slightly missing analysts’ expectations.

A. O. Smith achieved the highest full-year guidance raise among its peers. The stock is down 6.7% since reporting and currently trades at $64.82.

Read our full, actionable report on A. O. Smith here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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