Lennox Q2 2025 Profit Rises 11% on Margin Gains Despite Volume Challenges

Lennox

UNITED STATES: Lennox International Inc. (NYSE: LII) saw its share price rise 4.05% in pre-market trading after announcing strong Q2 2025 earnings. Revenue grew modestly by 3% year-over-year to $1.5 billion, while segment profit jumped 11% to $354 million, expanding margins by 170 basis points to 23.6%. Adjusted EPS rose 14% to $7.82, reflecting effective pricing, cost control, and operational efficiency despite industry challenges like refrigerant transitions and inflation.

In its Home Comfort Solutions segment, which represents two-thirds of revenue, Lennox offset a 9% volume decline with 12% growth from pricing and mix, resulting in $1.009 billion in revenue and $255 million in profit. The Building Climate Solutions division posted 5% revenue growth to $492 million, aided by strong pricing despite a 3% dip in volumes. While operating cash flow fell to $87 million, the company improved its Net Debt/EBITDA ratio to 1.0x and maintained a solid balance sheet.

Strategically, Lennox is expanding into adjacent categories via partnerships with Samsung (mini-splits) and Ariston Group (water heaters), leveraging its existing dealer networks. It is also navigating the refrigerant shift to R454B and aligning with evolving environmental regulations. Raising its full-year EPS guidance to $23.25–$24.25 and expecting $650–$800 million in free cash flow, Lennox continues to demonstrate resilience and strong execution in a complex macroeconomic landscape.

Source: Lennox News Releases