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Sep 30
Lennox Q3 2025 Earnings Report
Lennox reported stable earnings despite a decline in revenue, driven by pricing, cost controls, and segment margin expansion.
Key Takeaways
Lennox saw a 5% drop in Q3 revenue but maintained strong profitability with increased EPS and higher margins across segments.
Revenue declined 5% YoY to $1.4268 billion, mainly due to lower volumes in Home Comfort Solutions.
EPS rose to $6.98, supported by strong pricing and cost management.
Building Climate Solutions delivered 10% revenue growth and margin expansion.
Free cash flow was solid at $265.3 million despite elevated inventory levels.
Lennox
Lennox
Lennox Revenue by Segment
Revenue by Segment
Home Comfort Solutions Revenue
CapyFin.comBuilding Climate Solutions Revenue
CapyFin.com Forward Guidance
Lennox updated its FY25 guidance, expecting a slight revenue decline but maintaining strong adjusted EPS projections.
Positive Outlook
- Pricing expected to offset inflationary pressures.
- Adjusted EPS guidance of $22.75–$23.25 maintained.
- Parts portfolio strengthened by acquisitions of DuroDyne and Supco.
- Building Climate Solutions expected to remain resilient.
- Margin expansion initiatives continuing into 2026.
Challenges Ahead
- Full-year revenue expected to decline ~1%.
- Macroeconomic uncertainty impacting demand.
- Consumer confidence trends remain weak.
- Elevated inventory levels affecting cash flow.
- Regulatory transitions pressuring replacement demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income