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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
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