U.S. shipments of heat pumps rose 7.6% in July, bucking broader slump

Sep. 09, 2022 11:41 AM ETLII, JCI, WSO, TT, CARRBy: Rob Williams, SA NY22 Comments

Heat pumps outside the house

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U.S. shipments of air-source heat pumps rose 7.6% from a year earlier to more than 362,000 in July, defying a slowdown for other kinds of air-conditioning and heating equipment. Shipments of air conditioners slumped 13% to about 538,000 units during the same period, according to data from the Air-Conditioning, Heating & Refrigeration Institute (AHRI).

The drop in air-conditioner shipments drove a combined decline of 5.5% to about 900,000 units, the trade association reported Friday. AHRI’s data are an indicator of economic conditions and trends for manufacturers of air conditioning and heating equipment.

Shipments of heat pumps, which are all-in-one devices to heat and cool a home, have been forecast to grow as the new tax-and-climate law takes effect. The Inflation Reduction Act of 2022, which President Biden signed into law last month, offers billions of dollars in rebates and federal tax credits to encourage the purchase of energy-efficient equipment.

Shipments of residential gas-storage water heaters plunged 35% to about 265,000 units in July, while electric-storage water heater shipments dropped 27% to about 303,000 units, according to the data.

% YTD Change in Stock Price (Sept. 8 close)
Johnson Controls International (JCI) -28%
Carrier Global Corp. (CARR) -20%
Trane Technologies Plc. (TT) -16%
Watsco Inc. (WSO) -6.2%
Lennox International Inc. (LII) -18%

Seeking Alpha contributor BOOX Research rates Carrier (CARR) a Buy on demand for air conditioning. Contributor Prasanna Rajagopal has a Hold rating on Lennox (LII) on risks such as an uncertain economic outlook.

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