HVAC and Water Systems Stocks Beat Q1 Revenue Estimates by 6.9%; AAON Leads With 44% Rally

The nine HVAC and water systems stocks tracked by StockStory outpaced analysts’ Q1 revenue forecasts by an aggregate 6.9%, buoyed by strong replacement demand and energy-efficiency trends. Carrier Global (CARR) posted a 6.8% beat with $5.34 billion in revenue, but weak full-year guidance tempered enthusiasm; shares still rose 4.3%. AAON (AAON) was the standout, surging 54.3% to $496.9 million and exceeding estimates by 29.5%, triggering a 44% stock gain. Conversely, A.O. Smith (AOS) disappointed, with revenue falling 1.9% to $945.6 million and missing estimates by 3.5%, while lowering its EPS outlook; the stock dropped 10.6%. Northwest Pipe (NWPX) and Zurn Elkay (ZWS) also reported beats, with shares up 36% and flat, respectively. The sector faces cyclical construction headwinds but benefits from non-discretionary replacement revenue.