Q4 Earnings Highs And Lows: Zurn Elkay (NYSE:ZWS) Vs The Rest Of The HVAC and Water Systems Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at hvac and water systems stocks, starting with Zurn Elkay (NYSE:ZWS).

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 were in line with analysts’ consensus estimates.

While some hvac and water systems stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.

Zurn Elkay (NYSE:ZWS)

Claiming to have saved more than 30 billion gallons of water, Zurn Elkay (NYSE:ZWS) provides water management solutions to various industries.

Zurn Elkay reported revenues of $407.2 million, up 9.8% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

Todd A. Adams, Chairman and Chief Executive Officer, commented, “We finished 2025 with record annual sales, adjusted EBITDA(1) and free cash flow(1) while repurchasing $160 million of our common stock and increasing our quarterly dividend 22% year over year. We leveraged the Zurn Elkay Business System to drive 8% year-over-year core sales(1) growth and full year adjusted EBITDA(1) of $442 million with margins expanding 120 basis points year over year to 26.1%. Our record free cash flow(1) of $317 million led to net debt leverage(1) of 0.4x at December 31, 2025. We exit 2025 with a balance sheet, outlook and management capacity that gives us the ability to deploy capital to continue to deliver shareholder value.”

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $47.31.

Is now the time to buy Zurn Elkay? 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 3%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $74.18.

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

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, falling short of analysts’ expectations by 6%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

CSW delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11.1% since the results and currently trades at $266.55.

Read our full analysis of CSW’s results here.

Lennox (NYSE:LII)

Based in Texas and founded over a century ago, Lennox (NYSE:LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Lennox reported revenues of $1.20 billion, down 11.2% year on year. This number lagged analysts' expectations by 5.7%. It was a disappointing quarter as it also logged a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Lennox had the slowest revenue growth among its peers. The stock is up 3.3% since reporting and currently trades at $515.48.

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

Trane Technologies (NYSE:TT)

With low-pressure heating systems as its first product, Trane (NYSE:TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.

Trane Technologies reported revenues of $5.14 billion, up 5.5% year on year. This result surpassed analysts’ expectations by 0.8%. More broadly, it was a slower quarter as it recorded a miss of analysts’ EBITDA estimates and a miss of analysts’ adjusted operating income estimates.

The stock is up 8.4% since reporting and currently trades at $427.35.

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

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