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Sep 30, 2025
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.
Revenue by Segment
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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