HVACR OEMs Report Strong Q4 Results
Every surveyed manufacturer noted they’re well-positioned for the coming months
Six of seven major HVACR manufacturers reported year-over-year revenue increases for the fourth quarter of 2022 and, in statements aimed at investors, all seven companies said they’re well-positioned for the coming months.
Trane Technologies, Lennox International, Johnson Controls International, Modine Manufacturing Co., Emerson, and Aaon all listed growth for the quarter that ended December 31. Carrier Global Corp. reported a net dip of 1%, but also noted organic growth, or growth from within existing operations, of 5%.
Johnson Controls led the pack with sales for the quarter of $6.1 billion, a 4% increase compared to the fourth quarter of 2021.
“Johnson Controls delivered solid first-quarter results,” said George Oliver, chairman and CEO, in a press release. “Our momentum remains strong, and we are uniquely positioned to accelerate growth across our service-based businesses and expand our digital solutions. ... Our unique offerings enable us to lead the future of smart, healthy and sustainable buildings.”
Carrier said sales for the quarter totaled $5.1 billion. A company press release said the 5% organic growth was countered by a 4% headwind from currency translations and a 2% negative impact from acquisitions and divestitures. Carrier in 2022 sold its Chubb Fire & Security business and also bought Toshiba’s stake in Toshiba Carrier Corp, a residential and light commercial HVAC company that had been a joint venture.
Carrier chairman and CEO Dave Gitlin expressed confidence in his company’s strategy.
“We will continue to build on our momentum as we enter 2023 with solid backlog levels and a healthy balance sheet,” Gitlin said.
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Trane recorded revenues of $4.1 billion, a 14% increase. Volume growth, higher prices, and productivity “more than offset” inflation, the company said in a statement.
“While the macroenvironment remains dynamic, we continue to see high levels of demand for our sustainable products and services, with the tailwinds underpinning our end markets only growing stronger,” Trane chairman and CEO Dave Regnery.
Emerson listed net sales for the quarter of $3.4 billion, a 7% increase. Emerson is divesting its Climate Technologies business, in a deal expected to close at the end of March, but will retain a 45% stake in the new company.
Lennox recorded $1.09 billion in revenue for the quarter, an increase of 13%. The Lennox commercial segment led that growth, with a gain of 19%. Residential grew by 13% and refrigeration by 5%, the company said.
“We exit the year with positive margin momentum which positions us well for another record-profit year in 2023,” CEO Alok Maskara said.
Modine saw quarterly net sales of $560.0 million, a 12% increase; and Aaon Inc. reported net sales of $254.6 million, a whopping $86.8% increase.
“We reported record earnings in the third quarter and followed that up with another record in the fourth quarter,” said Gary Fields, Aaon’s president and CEO. “At the same time, we finished the year with a record backlog that has a much-improved margin profile, so we are entering 2023 with positive momentum.”
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