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 Northwest Pipe (NASDAQ: NWPX) 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 were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.8% since the latest earnings results.

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. This print exceeded analysts’ expectations by 2.8%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and revenue estimates.

"We delivered an exceptional fourth quarter with WTS revenue of $84.0 million and a healthy gross margin of 21.2%," said Scott Montross, President and Chief Executive Officer of NWPX Infrastructure.

Interestingly, the stock is up 6.2% since reporting and currently trades at $78.58.

We think Northwest Pipe is a good business, but is it a buy today? Read our full report here, it’s free.

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, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income and revenue estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 3.5% since reporting. It currently trades at $45.41.

Is now the time to buy Zurn Elkay? 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 and adjusted operating income estimates.

CSW delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11% since the results and currently trades at $267.03.

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 print came in 5.7% below analysts' expectations. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ revenue and adjusted operating income estimates.

Lennox had the slowest revenue growth among its peers. The stock is down 9.6% since reporting and currently trades at $450.75.

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

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 beat analysts’ expectations by 13.4%. However, it was a slower quarter as it logged a significant miss of analysts’ EBITDA and EPS estimates.

AAON achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 16.8% since reporting and currently trades at $84.18.

Read our full, actionable report on AAON 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.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.