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Lennox Reports Strong Second Quarter Results

On July 23, 2025, Lennox International Inc. (NYSE: LII), a leading provider of energy-efficient climate-control solutions, unveiled its second quarter financial results, showcasing substantial growth amid challenging market dynamics.

Financial Performance Overview

In the second quarter, Lennox generated an impressive revenue of $1.5 billion, reflecting a 3% increase compared to the same period last year. The company recorded a GAAP operating income of $354 million, which signifies an 11% growth, and a GAAP diluted earnings per share (EPS) of $7.82, marking a 14% increase. This robust financial performance prompted Lennox to raise its guidance for the entire fiscal year, now anticipating a revenue growth rate of 3% and adjusted EPS between $23.25 and $24.25.

"We successfully delivered revenue growth and expanded our margins across both segments by expertly managing external challenges," stated CEO Alok Maskara. "Our team's adaptability, along with strategic cost measures, helped us tackle inflation pressures while aligning our pricing with the significant value we provide."

Segment Results

The financial achievements stemmed from strong showings in both of Lennox's business segments:

Home Comfort Solutions

• - Revenue: $1.0 billion, up 3%.
• - Segment Profit: $255 million, representing an 12% increase.
• - Margin: Expanded by 200 basis points to 25.3%.

This segment's growth was driven by favorable product mix and proactive initiatives, successfully countering market fluctuations and inflationary pressures. Despite softening sales volumes, profitability was bolstered by effective pricing strategies.

Building Climate Solutions

• - Revenue: Grew by 5% to $492 million.
• - Segment Profit: Increased by 7% to $123 million, with a segment margin improvement of 60 basis points to 24.9%.

The Building Climate Solutions segment benefited from a favorable product mix and successful price management, propelling ongoing productivity and cost-control efforts in light of external inflationary forces. Notably, the backlog remains strong, showcasing a positive outlook for future growth initiatives, particularly in emergency replacement markets.

Cash Flow and Capital Allocation

Operational cash flow for the quarter totaled $87 million, down from $184 million in the previous year. Meanwhile, Lennox executed $210 million in share repurchases, reflecting its commitment to return value to shareholders.

Full Year 2025 Guidance

Lennox has revised its guidance for 2025, projecting:

• - Revenue: Expected to increase by approximately 3%.
• - Earnings per share: Forecasted within the range of $23.25 to $24.25.
• - Free Cash Flow: Maintaining its guidance between $650 million and $800 million.

Conference Call

Today, at 8:30 AM Central Time, Lennox will host a conference call for shareholders and investors to discuss these results further. Participants can join by calling 800-245-3047 (U.S.) or +1 203-518-9765 (international).

About Lennox

Lennox International Inc. is a trailblazer in energy-efficient climate-control solutions. The company remains dedicated to sustainability, offering innovative heating, cooling, air quality, and refrigeration systems designed to enhance comfort while minimizing carbon footprints for both residential and commercial customers. For further information, visit Lennox.com.

As Lennox continues to build on its positive momentum, its ability to adapt to market fluctuations and its commitment to customer-centric growth strategies positions it favorably for the upcoming financial periods.