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Jun 30, 2025
Lennox Q2 2025 Earnings Report
Lennox reported its second quarter 2025 financial results, with revenue increasing by 3% and both GAAP and adjusted diluted EPS rising to $7.82. The company also saw an 11% increase in operating income and segment profit, leading to an upward revision of its full-year guidance.
Key Takeaways
Lennox delivered strong second-quarter results, with revenue growing 3% to $1.5 billion and operating income increasing 11% to $354 million. Both GAAP and adjusted diluted EPS rose to $7.82, a 14% increase for adjusted EPS. The company's Home Comfort Solutions and Building Climate Solutions segments both contributed to margin expansion, driven by favorable mix and price benefits. This performance led Lennox to raise its full-year guidance for revenue growth and adjusted earnings per share.
Revenue increased by 3% year-over-year, reaching $1.5 billion in Q2 2025.
GAAP diluted EPS and Adjusted diluted EPS both stood at $7.82, with Adjusted diluted EPS up 14% from the prior year.
Operating income grew 11% to $354 million, with segment profit also up 11% to $354 million.
Full-year 2025 guidance was raised, with expected revenue growth of 3% and adjusted EPS in the range of $23.25 to $24.25.
Revenue by Segment
Forward Guidance
Lennox has raised its full-year 2025 guidance, now expecting revenue growth of approximately 3% and adjusted earnings per share in the range of $23.25 to $24.25. The company anticipates pricing to continue offsetting inflationary pressures.
Positive Outlook
- Full-year 2025 revenue growth is now anticipated to be approximately 3%.
- Adjusted earnings per share guidance for full-year 2025 has been increased to a range of $23.25 to $24.25.
- The company continues to expect pricing to effectively offset inflationary pressures.
- Capital expenditures are projected to remain approximately $150 million, indicating continued investment.
- Free Cash Flow guidance range remains strong at $650 million to $800 million.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- The company noted navigating 'turbulent external conditions' and 'complex and evolving external environment' in the past quarter, which could imply ongoing challenges.
Revenue & Expenses
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Avg. Return Before/After Earnings
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