The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how A. O. Smith (NYSE: AOS) and the rest of the hvac and water systems stocks fared in Q4.

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 beat analysts’ consensus estimates by 0.6%.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

A. O. Smith (NYSE: AOS)

Credited with the invention of the glass-lined water heater, A.O. Smith (NYSE: AOS) manufactures water heating and treatment products for various industries.

A. O. Smith reported revenues of $912.5 million, flat year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a slower quarter for the company with full-year revenue guidance slightly missing analysts’ expectations.

A. O. Smith achieved the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 12.9% since reporting and currently trades at $65.53.

Read our full report on A. O. Smith 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 2.8%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.

The market seems happy with the results as the stock is up 12.9% since reporting. It currently trades at $83.59.

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 and adjusted operating income estimates.

CSW delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.4% since the results and currently trades at $295.80.

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 result lagged analysts' expectations by 5.7%. It was a disappointing quarter as it also recorded a significant miss of analysts’ revenue and adjusted operating income estimates.

Lennox had the slowest revenue growth among its peers. The stock is down 1% since reporting and currently trades at $493.75.

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 print surpassed analysts’ expectations by 13.4%. However, it was a softer quarter as it recorded a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

AAON scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 3.8% since reporting and currently trades at $97.35.

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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.