The major HVAC manufacturers saw higher sales and revenues in the third quarter thanks to continued strong demand and the effects of several price hikes. Margins were another matter. Increased expenses for materials and parts, along with higher labor costs, all had an impact. The questions going forward are how long will costs remain elevated due to supply chain issues and will demand remain high?
For example, Lennox International reported record third-quarter revenue of $1.06 billion, but the company took hits of approximately $75 million to revenue and $25 million to operating profit from supply chain issues. This was despite four price increases this year. Trane Technologies also reported record revenue in the third quarter, but margins declined by more than 50 basis points.