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Mar 31
Lennox Q1 2025 Earnings Report
Lennox reported modest revenue growth in Q1 2025 despite profit pressures from tariffs and product transitions.
Key Takeaways
Lennox delivered $1.1 billion in revenue and maintained solid earnings, but experienced a decline in segment profit and net income due to product cost inflation and transition inefficiencies.
Revenue rose 2% year-over-year to $1.1 billion, driven by pricing and product mix.
Net income decreased to $120.3 million from $124.3 million a year earlier.
Home Comfort Solutions segment saw 7% revenue growth, while Building Climate Solutions declined by 6%.
Adjusted and GAAP EPS were both $3.37, down from $3.47 last year.
Lennox
Lennox
Lennox Revenue by Segment
Revenue by Segment
Home Comfort Solutions Revenue
CapyFin.comBuilding Climate Solutions Revenue
CapyFin.com Forward Guidance
Lennox maintained its revenue growth outlook and narrowed its EPS guidance for full-year 2025, expecting pricing gains to mitigate volume and cost pressures.
Positive Outlook
- Full-year revenue growth guidance maintained at 2%
- Adjusted EPS guidance range narrowed to $22.25–$23.50
- Pricing expected to offset volume declines and tariffs
- Stable demand for replacement-driven products
- Healthy order rates and growing low GWP product adoption
Challenges Ahead
- Tariff and commodity cost pressures continue
- Factory ramp-up inefficiencies affecting margins
- Flat sales volumes in key segments
- Higher investment in distribution and sales impact profit
- Operating cash flow declined year-over-year
Revenue & Expenses
Visualization of income flow from segment revenue to net income