Building Products

Asahi Eito Holdings announced after the close on October 9 that its consolidated ordinary loss for the cumulative third quarter of the fiscal year ending November 2026, covering December 2025 through August 2026, came to 92 million yen, narrowing from a loss of 184 million yen in the same period a year earlier. Based on the company's reported cumulative third-quarter results and its unchanged full-year plan, the consolidated ordinary loss for the fourth quarter, covering September through November, is calculated at 43 million yen, narrowing from a loss of 102 million yen in the same period a year earlier. In the most recent three-month period, the June-August quarter, the consolidated ordinary loss was 14 million yen, narrowing from a loss of 61 million yen a year earlier, while the operating margin on sales improved sharply to minus 1.1 percent from minus 4.7 percent in the same period a year earlier.

Huasu Holdings announced on October 9 that it signed an equity transfer agreement with Junfa Technology, planning to use its own funds of 23.7048 million yuan to acquire a 51% stake in Ningxia Junfeng New Energy Technology Co., Ltd. After the transaction is completed, Huasu Holdings will become the controlling shareholder of the target company and include it in its consolidated financial statements. This transaction does not involve related-party transactions and does not constitute a major asset restructuring. The counterparty has committed that the target company's cumulative net profit from 2027 to 2031 will be no less than 25.65 million yuan, with any shortfall to be compensated in cash or equity. Using March 31, 2026 as the valuation base date, the target company's net assets had a book value of 15.9591 million yuan, while the appraised value of all shareholders' equity was 46.5098 million yuan, representing an appraisal appreciation of 30.5507 million yuan and an appreciation rate of 191.43%. The target company mainly operates a low-concentration gas power generation and heating project at the No. 2 shaft of the Siguquan Coal Mine in Yanchi County, Ningxia. As of the base date, it had provided joint and several liability guarantees to Junfa Technology for its obligations to Chongqing Pushi New Energy Technology Co., Ltd., using all equipment assets and income from the first-phase gas direct-combustion heating project of Baofeng Siguquan Coal Mine, with a current book balance of 3.1055 million yuan. The target company's payables to Junfa Technology and its related parties amounted to 16.6268 million yuan, and the company plans to sign a repayment plan agreement to specify the repayment amount and schedule. Huasu Holdings' total operating revenue in 2025 was 755 million yuan, down 26.83% year-on-year, with net profit attributable to the parent company in loss for the second consecutive year, but the loss narrowed from 13.9324 million yuan in 2024 to 10.7074 million yuan. In the first half of 2026, operating revenue was 361 million yuan, down 12.20% year-on-year, with a net loss attributable to the parent company of 17.6605 million yuan, compared with a loss of 2.7091 million yuan in the same period last year.

Huasu Holdings announced that it plans to use its own funds of 23.7048 million yuan to acquire a 51% stake in Ningxia Junfeng New Energy Technology Co., Ltd. Upon completion of the transaction, the target company will become a controlled subsidiary of the company.

Sankyo Tateyama hit limit up. In its first-quarter earnings released the previous day, operating profit came to 2.64 billion yen, a sharp turnaround from the 1.16 billion yen loss in the same period a year earlier. Against the unchanged full-year forecast of 4 billion yen, which is 2.6 times the prior year's result, the progress rate has reached 66%, signaling expectations of a substantial earnings beat. The strong results were driven by higher sales linked to the aluminum ingot market, price revisions, foreign exchange effects in its international business, and increased volumes, particularly in the automotive sector.

Xiongsu Technology disclosed on the evening of October 8 that it intends to acquire no more than 80% of the equity of Shenzhen Xinyuan New Materials Co., Ltd. by cash, after which Xinyuan New Materials will become its controlling subsidiary. The announcement shows that the parties have confirmed the overall valuation of 100% equity of Xinyuan New Materials is tentatively capped at 800 million yuan, with the final valuation, pricing, and specific transaction plan subject to audit and appraisal reports and the formally signed acquisition agreement. The cooperation matters involved in the signed Equity Acquisition Intention Agreement do not constitute a related-party transaction, and preliminary estimates indicate it is not expected to constitute a major asset restructuring. Xinyuan New Materials is a technology enterprise centered on high-thermal-conductivity packaging and interconnect materials, focusing on the research, development, production, sales, and technical services of semiconductor heat-dissipation packaging materials represented by nano-metal products. Xiongsu Technology stated that if the transaction is formally completed, the company's main business will undergo a strategic transformation and upgrade from the research, development, production, and sales of plastic pipes to high-thermal-conductivity semiconductor packaging and interconnect materials, forming a dual-main-business layout.

Xiongsu Technology announced that the company plans to acquire no more than 80% equity in Shenzhen Xinyuan New Materials Co., Ltd. via cash. The overall valuation of 100% equity of the target company is tentatively set at no more than 800 million yuan, with cash consideration not exceeding 640 million yuan. Xinyuan New Materials' net profit in 2025 was approximately 50 million yuan, and net profit in the first half of 2026 was approximately 30 million yuan. The performance commitment period is from 2026 to 2028, with net profit in 2026 no less than 58 million yuan, and cumulative net profit over three years no less than 192 million yuan. This transaction is still in the planning stage and is subject to uncertainty.

Xiongsu Technology plans to acquire no more than 80% of Shenzhen Xinyuan New Materials Co., Ltd. in cash, with the target company's 100% equity tentatively valued at no more than 800 million yuan, corresponding to a transaction consideration of no more than 640 million yuan. After market close on October 8, Xiongsu Technology, which had risen 9.72% that day, disclosed this planned transaction. If formally completed, its main business will strategically transform from the research, production, and sales of plastic pipes to high-thermal-conductivity semiconductor packaging interconnect materials, forming a dual-main-business layout. Xinyuan New Materials was established in April 2022 with a registered capital of 5.45 million yuan. Its unaudited net profit for 2025 was approximately 50 million yuan, and its unaudited net profit for the first half of 2026 was approximately 30 million yuan. As of June 30, 2026, total assets were approximately 350 million yuan and net assets approximately 320 million yuan. The target company's controlling shareholder and actual controller is Hu Bo, who controls a total of 54.30% of the equity. The shareholder list also includes BYD Company Limited with an 8.50% stake and Beijing Xiaomi Intelligent Manufacturing Equity Investment Fund Partnership with an 8.26% stake. The performance commitment parties promise that Xinyuan New Materials' net profit for 2026 will be no less than 58 million yuan, the cumulative two-year total by the end of 2027 will be no less than 122 million yuan, and the cumulative three-year total by the end of 2028 will be no less than 192 million yuan. Xiongsu Technology cautioned that the transaction is still in the planning stage, and Xinyuan New Materials' articles of association grant certain shareholders a veto right over control changes, so there is uncertainty as to whether it can ultimately be completed.

Xiongsu Technology announced on the evening of October 8 that it intends to acquire no more than 80% equity in Shenzhen Xinyuan New Materials Co., Ltd. by cash. After the acquisition, Xinyuan New Materials will become its controlling subsidiary. The parties confirmed that the overall valuation of 100% equity of the target company is tentatively set at no more than 800 million yuan, with the final valuation and pricing subject to audit, appraisal reports, and the formally signed acquisition agreement. This transaction does not constitute a related-party transaction, and preliminary estimates indicate it is not expected to constitute a major asset restructuring. Xinyuan New Materials focuses on high-thermal-conductivity packaging interconnect materials, specializing in the research, development, production, sales, and technical services of nano-metal products and other heat-dissipation packaging materials for semiconductors. It achieved a net profit of approximately 50 million yuan in 2025 and approximately 30 million yuan in the first half of 2026. The performance commitment period is from 2026 to 2028, with net profit in 2026 of no less than 58 million yuan and a cumulative three-year total of no less than 192 million yuan. Xiongsu Technology stated that if the transaction is formally completed, the company's main business will undergo a strategic transformation from the research, development, production, and sales of plastic pipes to high-thermal-conductivity semiconductor packaging interconnect materials, achieving a dual-main-business layout and cultivating new profit growth points. As of the close on October 8, Xiongsu Technology's share price was 15.58 yuan per share, with a total market value of 5.58 billion yuan.

Apogee Enterprises raised its fiscal 2027 guidance to net sales of $1.46 billion to $1.5 billion and adjusted diluted EPS of $3 to $3.40, citing stronger-than-expected first-half performance, contributions from its Kalwall and Groglass acquisitions, and current market conditions. The company reported second-quarter net sales up 9.2% to $391.1 million and adjusted diluted EPS up more than 19% to $1.17, helped by favorable price, productivity improvements, Fortify Phase 2 cost savings and the accretive impact of Kalwall, partly offset by higher material and manufacturing costs and lower volume. For the newly added Groglass business, management anticipates approximately $30 million in revenue and a 25% adjusted EBITDA margin in the first 12 months, while Kalwall remains on track to deliver first-12-month targets of approximately $85 million in revenue and a 15% adjusted EBITDA margin. Services backlog ended the quarter at $833 million, up 5% year over year and 13% sequentially, and Glass net sales rose more than 21% to $87.4 million, including a $16.4 million contribution from Kalwall, with adjusted EBITDA margin at 14.9%, improved sequentially from 8.7% in the first quarter. Management said it expects net sales and adjusted diluted EPS to be relatively balanced across the third and fourth quarters, and reported a consolidated leverage ratio of 1.7x with no near-term debt maturities.

Arrow Syndicate Public Company Limited, or ARROW, is confident that its 2026 operating results will grow about 5% as targeted, even though the property market remains sluggish in the second half. Chief Executive Officer Panupong Wijittongrueang told the Stock Vision news team that third-quarter 2026 results will be close to projections, while the fourth quarter of 2026 is likely to grow compared with the same period last year, supported by strong performance in the first and second quarters of 2026. The company is in the process of bidding on new projects with a combined value of about 100 million baht, spread across several small to mid-sized projects ranging from about 3 million baht and 5 million baht up to 10 million baht per project. If it wins the work, it can begin delivering products immediately, helping support sales late in 2026 and continuing into the first quarter of 2027. At present, the company has an order backlog worth about 500 to 600 million baht. Data Center work is a key factor helping sustain revenue and offset the slowdown in the high-rise property market. The company expects demand for Data Center construction and expansion in Thailand to keep growing for at least two to three years, driven by the digital economy and artificial intelligence technology. At the same time, the company is monitoring public-sector infrastructure investment projects, especially airport expansion projects, to prepare for bidding and extend its backlog in the next phase. Its revenue structure is split into about 60% from sales through dealers and about 40% through contractors. Its standout products, or Hero Products, this year include the waterproof electrical conduit group and RTRC underground conduit, or Reinforced Thermosetting Resin Conduit. As for its growth target in 2027, the company is in the process of preparing its budget before presenting it to the board of directors' meeting.

Trane, a brand of Trane Technologies, announced a new multi-year agreement with Kroenke Sports & Entertainment under which Trane will serve as a Climate Innovation partner and KSE's official HVAC and thermal management partner. The deal marks KSE's first cross-property agreement with a technology provider, building on prior work together at venues including SoFi Stadium, YouTube Theater, Hollywood Park in Los Angeles and Ball Arena in Denver. Under the partnership, Trane's energy-efficient climate systems will help KSE modernize infrastructure through ultra-low-emission heating and cooling paired with intelligent digital services aimed at reducing energy use and emissions in real time. Holly Paeper, President of Commercial HVAC Americas at Trane Technologies, said the agreement reflects joint innovation on building performance and sustainability in complex environments, while Mike Neary, Executive Vice President of Business Operations and Real Estate at KSE, called it a first-of-its-kind cross-property agreement. The partnership supports Trane Technologies' Gigaton Challenge to reduce one billion metric tons of customer carbon emissions by 2030; in 2025 the company reported a 59% reduction in operational greenhouse gas emissions since 2019 and 44% recycled content across its primary product materials.

Apogee Enterprises reported second-quarter net sales rose 9.2% to $391.1 million and raised its fiscal 2027 adjusted diluted EPS guidance to $3.00-$3.40 from $2.70-$3.25. Diluted EPS for the quarter ended August 29, 2026, was $1.07, while adjusted diluted EPS rose 19.4% to $1.17, and operating income increased 24.5% to $33.5 million as operating margin widened 110 basis points to 8.6%. The company said the sales gain was driven by a $16.4 million contribution from the Kalwall acquisition, price, and favorable mix, partially offset by lower volume, and it also advanced strategic priorities through the acquisitions of Kalwall and Groglass. Apogee now expects fiscal 2027 net sales of $1.46 billion to $1.50 billion, up from its previous range of $1.38 billion to $1.43 billion, assuming interest expense of approximately $15 million, an adjusted effective tax rate of approximately 26%, and capital expenditures between $35 million and $40 million. Executive Chair and Chief Executive Officer Don Nolan said the results exceeded expectations on strong execution and that early performance at Kalwall has been encouraging.

Trane Technologies is positioned to potentially extend its earnings-beat streak when it reports next, with a positive Zacks Earnings ESP of +0.43% and a Zacks Rank #3 (Hold). The manufacturer has beaten estimates in each of its last two reports, with an average surprise of 2.44%. In the most recent quarter, Trane Technologies posted earnings of $4.31 per share against the Zacks Consensus Estimate of $4.27 per share, a surprise of 0.94%. The prior quarter delivered a surprise of 3.95%, as earnings came in at $2.63 per share versus an expected $2.53 per share. Zacks research shows that stocks combining a positive Earnings ESP with a Zacks Rank #3 or better produce a positive surprise nearly 70% of the time.

Allegion plc is leaning on strength in its Allegion Americas segment, where organic revenues rose 8.9% year over year in the second quarter of 2026, while the company's Allegion International segment saw organic revenues fall 1.2% over the same period on weak demand in European markets including Germany and disruptions from enterprise resource planning implementation. The company expects the Allegion Americas segment's organic revenues to increase in the mid-single-digits year over year in 2026, helped by stable demand in education, healthcare, government, hospitality and retail and by growing adoption of wireless locks and mobile-enabled smart locks. Acquisitions added 5.1% to company sales in the second quarter of 2026, with Allegion acquiring DCI Hollow Metal in March 2026 and Brisant and UAP Group Limited in August 2025. On shareholder returns, Allegion paid $94 million in dividends in the first six months of 2026, up 7.1% year over year, repurchased $160.6 million of shares in the same period, authorized a $500 million buyback in April 2026 and announced an 8% increase in its quarterly dividend rate in February 2026 to 55 cents per share. Costs are rising, with cost of goods sold up 12.8% year over year in the first six months of 2026 and reaching 55.5% of total revenues, while selling and administrative expenses rose 10.4%.

Trane Technologies announced the successful laboratory demonstration of the industry's first 800-volt direct current cooling architecture, designed for next-generation AI factories and gigawatt-scale data centers. Working with Eaton Corporation and Danfoss, the company modified an existing high-efficiency chiller to run on an 800 VDC feed and validated the potential for up to 2% improvement in system efficiency over conventional AC counterparts while delivering over 1,000 tons, or 3.5 MW, of cooling capacity. The proof-of-concept shows that accepting direct 800 VDC input reduces the power conversion losses that occur in traditional AC-powered cooling systems, which rely on multiple stages of conversion for compressor drives, pumps and fans. Trane said that in a typical 200 MW data center, the efficiency gain could unlock up to 1.8 MW of additional compute capacity, enough to support up to fifteen 120 kW racks or up to three 600 kW racks. Mauro J. Atalla, Senior Vice President, Chief Technology and Sustainability Officer at Trane Technologies, said the demonstration marks an important step in rethinking how cooling infrastructure can integrate with emerging DC power architectures and help operators maximize compute capacity per megawatt.

Cooke & Bieler's Mid Cap Value Equity Strategy initiated a new position in Armstrong World Industries during the second quarter of 2026, according to the firm's quarterly investor letter. Armstrong World Industries is the leading North American manufacturer of non-residential ceiling systems, and after divesting or spinning off its flooring, cabinet, and European ceilings segments over the past decade, it is now a pure play on an attractive niche within the building products industry. The company operates in two segments, Mineral Fiber and Architectural Specialties, and within Mineral Fiber it holds over 55% market share of the North American acoustical ceiling tile industry, where Cooke & Bieler describes pricing power, mix trends, and margins as among the most favorable and consistent in building products. While the volume environment has been challenging, the firm expects a return to unit growth in 2026, and it said it reinitiated the position because valuation became more attractive despite persistently strong fundamental performance, after having previously eliminated the holding as it approached the firm's estimate of fair value. Armstrong World Industries closed at $164.75 on September 28, 2026, giving it a $6.96 billion market capitalization, with a roughly 13.79% year-to-date pullback and a 52-week range of $150.28 to $206.08. The Cooke & Bieler Mid Cap Value Strategy returned 8.05% in the quarter, lagging the Russell Midcap Value Index's 13.4%, as an underweight in Information Technology drove nearly all of the portfolio's shortfall.

Trane Technologies announced the expansion of its data center thermal management portfolio with two new 250-megawatt high-density AI factory reference designs built on the NVIDIA DSX AI Factory platform. The designs build on the company's industry-first thermal management reference design for gigawatt-scale AI factories and incorporate technologies from recently acquired LiquidStack and Stellar Energy. Reference Design #506, a 250-megawatt high-efficiency air-cooled architecture, pairs direct-to-chip liquid cooling with Trane Ascend ACR air-cooled chillers and delivers up to a 25% cooling efficiency improvement while reallocating up to 22 MW of power to compute, improving annualized partial PUE from 1.201 to 1.083 with zero water consumption. Reference Design #507, a 250-megawatt modular cooling infrastructure, is Trane's first reference design to feature Stellar Energy modular cooling plants, combining Trane CenTraVac water-cooled chillers with low-GWP refrigerant and stacked dry fluid coolers to achieve zero Water Usage Effectiveness, up to a 16% chiller power improvement and 8 MW of electrical capacity reallocated to AI workloads. The LiquidStack GigaModular Coolant Distribution Unit integrated across both designs has qualified as an NVIDIA DSX Ready CDU, offering scalable capacity up to 14 MW at a 4°C approach and up to 20% lower capital expenditure than conventional row-based CDU installations.

Johnson Controls announced it has joined the Sustainable Tropical Data Centre Testbed 2.0, hosted at the College of Design and Engineering at the National University of Singapore, contributing thermal management, smart controls, engineering expertise and operational experience to the programme. The testbed, located on Jurong Island, will evaluate next-generation AI and data centre technologies in a live tropical environment, part of a broader initiative with JTC Corporation and industry partners to transform Jurong Island into a living testbed for low-carbon, AI-ready infrastructure. The announcement comes as Singapore expands its low-carbon digital infrastructure, including the recent allocation of an additional 200 MW of data centre capacity. Johnson Controls said its integrated thermal approach can reduce non-IT energy consumption by up to 50% compared with conventional cooling methods in a modeled design, and that in a 1-gigawatt data centre blueprint its absorption chiller reference design demonstrated the potential to convert the 57% of energy typically lost as waste heat from on-site power generation into productive cooling, enabling up to 97 MW of additional AI computing capacity from existing power infrastructure while reducing cooling-related electrical demand by up to 44%. Austin Domenici, president of Data Centre Solutions at Johnson Controls, said success with growing AI workloads will depend not only on computing power but on how efficiently the resources behind it are managed, and Ali Badreddine, vice president and general manager for Southeast Asia Business and Asia Pacific Data Centre Solutions, said STDCT 2.0 brings research, talent and industry collaboration together to help advance AI-ready infrastructure across Singapore and the broader Asia Pacific region. Professor Lee Poh Seng, programme director of the testbed and head of the Department of Mechanical Engineering at NUS CDE, said the programme is designed to move beyond individual technologies and evaluate how systems can be integrated and optimised as one infrastructure platform under real tropical operating conditions. The announcement comes ahead of Data Centre World Asia 2026, taking place 29–30 September at Marina Bay Sands Expo and Convention Centre in Singapore, where Johnson Controls will be at Booth V20.

Panelmatic Solutions Public Company Limited, or PANEL, is pushing forward with a new growth phase built on a new factory and machinery that expand production capacity by 2 to 4 times, extending its furniture line to target the Interior, Care and Luxury markets under the Jump+ project, a three-year business plan running from 2026 to 2028. The new factory sits on roughly 6 rai of land, with investment of about 140 million baht for the plant and new machinery, funded by proceeds raised through its IPO. The company targets revenue of no less than 300 million baht in 2027 and no less than 400 million baht in 2028. It also aims to lift its gross profit margin from the current level of about 34% to 36% in 2027, and has set a net profit margin target of roughly 11% to 12% for 2027 before rising to 15% in 2028. First-half results slowed in line with the overall industry, but the company has never posted a loss and holds a backlog for partition wall work at Impact Challenger Hall with a contract value of more than 20 million baht, about 90% of which is expected to be recognised as revenue in 2026. It is also in the process of bidding for work in the Data Center and AI Data Center segments. On branch expansion, the strategy aims to address the weakness of concentration in the central region, in order to reach local contractors and generate higher margins.

Sanxia New Material announced on the evening of September 28 that it plans to acquire no less than 53.14% of Zhuhai Saiwei Electronic Materials Co., Ltd. through a combination of share issuance and cash payment. Trading in the company's shares will be suspended from the market open on September 29, with the suspension expected to last no more than 10 trading days. The counterparties include the target company's actual controller Dai Xiaobing, director Xue Yao, senior executive Lü Haixia, as well as employee shareholding platforms Zhuhai Yili Investment Partnership and Zhuhai Hengwei Investment Partnership. There is no related-party relationship between the listed company, its controlling shareholder, and the counterparties. Zhuhai Saiwei was established on June 18, 2007, with registered capital of 69.270833 million yuan, and is mainly engaged in the research, development, and production of electronic specialty materials such as lithium-ion battery electrolytes and new membrane materials. The transaction is expected to constitute a major asset restructuring, is not expected to constitute a reverse merger, and will not result in a change of the company's controlling shareholder or actual controller. The target company's valuation, transaction amount, and the ratio of share issuance to cash payment have not yet been determined. On the same day, the company disclosed an announcement on abnormal stock trading fluctuations. Its closing price deviation exceeded 20% cumulatively over three consecutive trading days on September 23, September 24, and September 28. It also disclosed that its indirect controlling shareholder, Yichang State-owned Capital Investment Holding Group Co., Ltd., intends to transfer 85% equity in the controlling shareholder Dangyang City Investment Co., Ltd. to Yichang Three Gorges Bonded Supply Chain Co., Ltd., a lower-level subsidiary of Yichang High-tech Industrial Investment Holding Group Co., Ltd., through a non-public agreement.

Sanxia New Materials announced on the evening of September 28 that it plans to acquire no less than 53.14% of Zhuhai Saiwei Electronic Materials Co., Ltd. from counterparties including Dai Xiaobing, Yili Investment, Hengwei Investment, Xue Yao, and Lü Haixia, through a combination of share issuance and cash payment. The company said the transaction is still in the planning stage and is expected to constitute a major asset restructuring, but will not constitute a restructuring and listing, nor will it lead to a change in the controlling shareholder or actual controller. The target company, Zhuhai Saiwei, is mainly engaged in the research, development, and production of electronic specialty materials such as lithium-ion battery electrolytes and new membrane materials, with a registered capital of 69.270833 million yuan. Upon application to the exchange, trading in Sanxia New Materials shares will be suspended from the market open on September 29, 2026, with the suspension expected to last no more than 10 trading days. On the same day, the company also announced that the equity structure of its controlling shareholder, Dangyang Urban Investment, has changed. Yichang State-owned Capital Investment Holding Group Co., Ltd. transferred its 85% equity stake in Dangyang Urban Investment to Yichang Three Gorges Bonded Supply Chain Co., Ltd. for consideration. After the transfer, Dangyang Urban Investment remains the controlling shareholder, and the actual controller remains the State-owned Assets Supervision and Administration Commission of the Yichang Municipal People's Government.

Griffon closed the most recent trading day at $98.39, up 1.92% and outpacing the S&P 500's 0.51% gain, while the Dow rose 0.93% and the Nasdaq added 0.48%. The garage door and building products maker is expected to report earnings per share of $1.6 for its upcoming quarter, a 3.9% increase from the same quarter last year, alongside revenue of $480.94 million, which would mark a 27.37% decline from a year earlier. For the full year, the Zacks Consensus Estimates project earnings of $5.41 per share and revenue of $1.84 billion, changes of -4.25% and -27.05% respectively from the preceding year. Over the last 30 days the consensus EPS estimate has remained unchanged, and Griffon currently holds a Zacks Rank of #2 (Buy). The stock trades at a forward P/E of 17.83, a premium to its industry's average of 13.25, while the Diversified Operations industry carries a Zacks Industry Rank of 45, placing it within the top 19% of more than 250 industries.

CSW reported record second-quarter revenue of $350.7 million, up 33% year on year and 2.4% above analysts' consensus estimates, as the HVAC and water systems group as a whole beat revenue expectations by 4.7%. The company's Contractor Solutions Segment delivered organic revenue growth of 6%, while acquisitions also contributed to the top line. Earnings per diluted share rose 25% to $3.04 from $2.43, and adjusted EPS hit a record $3.84, up 35% from $2.85. Net income attributable to CSW rose 22% to $50 million from $41 million, adjusted EBITDA climbed 48% to a record $102 million, and cash flows from operations reached a record $76 million, up 25%. Among the nine HVAC and water systems stocks tracked, AAON posted the strongest quarter with revenue of $627 million, up 101% year on year and 24.6% above estimates, while Lennox reported the weakest performance, with revenue of $1.55 billion, up 3% but 1% short of expectations, and full-year EPS guidance missing significantly. Despite the strong results across the group, share prices have fallen an average of 11.1% since the latest earnings reports, with CSW up 8% since reporting and trading at $294.55.

Madison Air Solutions Corporation said on August 25 that it would sell roughly $2.25 billion of new stock to a group of investors that includes its own chairman, part of the funding for a $5 billion acquisition in Germany. The company is issuing 90,108,130 shares of Class A common stock at $24.97 apiece, with proceeds earmarked to help fund the purchase of German air-handling maker ebm-papst, a deal that still needs regulatory approval and is targeted to close around year-end. Chairman Larry Gies is putting in $300 million of his own money toward the private placement, and an affiliated entity, Madison Solutions, is adding another $320 million, with both committing to hold the shares for a year. Even with the fresh equity, Madison Air still plans to fund the deal with roughly $2.8 billion of additional debt and cash, pushing pro forma net leverage to about 3.7 times from the 2.8 times reported at the end of the second quarter, against management's target of getting back under 2.5 times within two years. The company reported second-quarter net sales up 21% to $991.3 million, adjusted EBITDA up 18% to $265.8 million, net income up 129% to $70.5 million and backlog up 133% to $2,868.4 million, and it raised full-year guidance to $3,825 million to $3,925 million in net sales and $1,020 million to $1,065 million in adjusted EBITDA.