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The Company We are a global leader in energy-efficient climate-control solutions. We design, manufacture and market a broad range of products for the heating, ventilation, air conditioning and refrigeration ( HVACR ) markets.
Margins and capital returns are both well above average: 20.05% operating margin, ROIC at 31.52%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue declined 2.7% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 18% versus the prior year, cash generation momentum has weakened. ROIC dropped from 40.09% to 31.52%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$5.26B
▼ -2.7% YoY
Net Income (TTM)
$793M
▼ -0.7% YoY
Op. Margin
19.72%
▲ +0.6pp YoY
ROIC
30.14%
▼ -8.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$661M
▼ -18.3% YoY
Op. Cash Flow (TTM)
$810M
▼ -19.9% YoY
Net Debt
$1.97B
Cash & Equiv.
$50M
5Y CAGR: +7.4%
5Y CAGR: +3.7%
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