Stable Revenue Growth
Net sales of $7.8 billion were 0.8% ahead of last year, with the U.S. segment growing by 0.5% and Canada by 6.3%. This was achieved despite market headwinds and deflationary pressures.
HVAC Segment Strength
HVAC revenues grew by 10%, driven by investments in growth initiatives and servicing dual trade contractors.
Strong Capital Allocation
The company raised its dividend by 5% and returned $256 million to shareholders via share repurchases, reducing share count by approximately 1.3 million.
Resilient Gross Margins
Gross margin was 30.1%, a decrease of only 10 basis points despite deflationary pressures in commodity-related categories.
Positive Bidding Activity
Continued solid shipments, open order volumes, and bidding activity on large capital projects, particularly data centers, which are 100% funded and progressing well.