HVAC’s Q1: M&A, Trump, and bankruptcy

From a new administration taking office to the first bankruptcy filing by a large-scale home services platform, a lot’s happened over the past three months. Below are a few headlines from around the industry, by month:

January

• On January 6, Rheem’s parent company, Paloma, announced that it will acquire Fujitsu’s HVAC business, Fujitsu General, for $1.6 billion. 
• A couple weeks later, North Carolina became the 12th state to launch its federal HVAC consumer rebates program. 
• However, on January 20, the night of his inauguration, President Trump signed an executive order requiring the Department of Energy to “immediately pause the disbursement of funds” under the Inflation Reduction Act. 

February

• To kick off the month, on February 1, Trump signed an order imposing a 25 percent tariff on imports from Canada and Mexico starting in March — though HVAC products have since been exempt. 
• AHRI published its December HVAC shipment figures, officially cementing 2024 as a rebound year compared to 2023, as total shipments grew 12 percent year-over-year. 
• The Department of Energy announced it’s postponing the implementation of several Biden-era efficiency mandates, including for central air conditioners, while several states paused their federal rebate programs in response to Trump’s January order. 

March

• The EPA announced what it’s calling the “biggest deregulatory action in U.S. history,” stating it’s reconsidering several existing rules, including one related to the HVAC industry’s refrigerant transition. 
• HVAC platform Air Pros filed for Chapter 11 bankruptcy protection, as part of a year-long restructuring effort, noting that it’s selling all of its businesses via six separate purchase agreements. 

What else happened: Google rolled out ‘Energy Skilled’ badges on contractors’ Business Profiles; investors expressed confidence about M&A activity accelerating this year; and ChatGPT’s parent company entered the home services space.