Financial Performance - Revenue decreased by 5% year-over-year to $1.4 billion[8] - Segment profit increased by 2% year-over-year to $310 million[8] - Adjusted EPS increased by 4% year-over-year to $6.98[8] - Operating cash flow was $301 million, a decrease of $151 million year-over-year[8] Segment Results - Home Comfort Solutions revenue decreased by 12% to $913 million[18], and segment profit decreased to $203 million[18] - Building Climate Solutions revenue increased by 10% to $514 million[23], and segment profit increased to $134 million[23] Guidance and Outlook - Full year adjusted EPS guidance is $22.75 - $23.25[8] - 2025 Capital Expenditures are expected to be approximately $150 million[34] - Net Debt to Adjusted EBITDA ratio is 0.8x[8] Strategic Initiatives - The company is focused on ROI-focused investments for growth[32] - Share repurchases year-to-date totaled approximately $350 million[33] - The company acquired Duro Dyne and Supco for approximately $550 million[10]

Lennox International (LII) came out with quarterly earnings of $6.98 per share, beating the Zacks Consensus Estimate of $6.69 per share. This compares to earnings of $6.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.33%. A quarter ago, it was expected that this manufacturer of furnaces, air conditioners and other products would post earnings of $6.9 per share when it actually produced earnings of $7.82, delivering a sur ...

Core Viewpoint - Lennox International Inc. has lowered its adjusted earnings and revenue growth guidance for the full-year 2025 due to ongoing industry volume pressures and consumer confidence trends [1]. Financial Guidance - For fiscal 2025, the company now projects adjusted earnings in a range of $22.75 to $23.25 per share, reflecting a revenue decline of about 1 percent [1]. - Previously, the company had expected adjusted earnings in a range of $23.25 to $24.25 per share with a revenue growth of about 3 percent [2]. Analyst Expectations - Analysts polled expect the company to report earnings of $23.30 per share on a revenue growth of 0.54 percent, translating to approximately $5.37 billion for the year [3].

(All comparisons are year-over-year, unless otherwise noted) DALLAS, October 22, 2025 – Lennox (NYSE: LII), a leader in energy-efficient climate-control solutions, today reported third quarter financial results with $1.4 billion of revenue, $310 million of operating income, and $6.98 GAAP diluted earnings per share. Revenue declined 5% to $1.4 billion. Segment profit increased 2% to $310 million. Segment margin was up 150 basis points to 21.7%. Adjusted diluted earnings per share increased 4% to $6.98. "As ...

Core Insights - Lennox reported a revenue of $1.4 billion for Q3 2025, a decline of 5% year-over-year, while operating income increased by 2% to $310 million, resulting in a GAAP diluted earnings per share of $6.98, up 4% from the previous year [1][2][7]. Financial Performance - Revenue decreased by 5% to $1.4 billion, primarily due to unfavorable sales volumes [2][5]. - Operating income rose by 2% to $310 million, with an operating profit margin of 21.7%, an increase of 150 basis points [5][6]. - Net income was $246 million, or $6.98 per share, compared to $239 million, or $6.68 per share, in the prior-year quarter [7][10]. Segment Analysis - Home Comfort Solutions segment revenue fell by 12% to $913 million, with segment profit decreasing by 10% to $203 million, despite a margin increase of 30 basis points to 22.2% [9][10]. - Building Climate Solutions segment achieved a 10% revenue growth to $514 million, with segment profit increasing by 27% to $134 million, and margin improvement of 330 basis points to 26.1% [10][11]. Guidance and Outlook - The company updated its full-year guidance, expecting a revenue decline of approximately 1% and adjusted earnings per share in the range of $22.75 to $23.25 [3][11]. - The CEO highlighted that 2025 is a transitional year influenced by refrigerant transitions and macroeconomic challenges, but the company is positioned for success in 2026 and beyond [3][4]. Cash Flow and Capital Expenditures - Operating cash flow was $301 million, down from $452 million in the prior-year quarter, attributed to elevated finished goods inventory levels [8][10]. - Net capital expenditures were $35 million, compared to $40 million in the prior-year quarter, with $37 million of shares repurchased during the quarter [8][10].

Core Insights - Lennox International, Inc. has completed the acquisition of the HVAC Division of NSI Industries for approximately $550 million, which includes the Duro Dyne and Supco brands, enhancing its HVAC portfolio [1][3] - NSI Industries will focus on its core electrical manufacturing business, pivoting away from HVAC [2][4] - The acquisition is seen as a strategic fit, allowing Lennox to expand its manufacturing and distribution capabilities in the HVAC sector [4][5] Company Developments - The acquisition strengthens Lennox's presence in the HVAC components sector, particularly in the North American market [3][4] - NSI's HVAC President expressed enthusiasm about joining Lennox, emphasizing a commitment to operational excellence and product innovation [4] - Sentinel Capital Partners, the seller, aims to maximize long-term value through strategic repositioning of assets [5] Industry Trends - The HVAC industry is experiencing consolidation as companies seek to achieve scale to meet the demand for energy-efficient systems and enhance supply chain resilience [6]

Core Insights - Sentinel Capital Partners announced the sale of NSI Industries' HVAC division to Lennox International for approximately $550 million in cash, marking a strategic divestiture that allows NSI to refocus on its core electrical products business [1][2]. Company Focus - Following the divestiture, NSI will concentrate on manufacturing branded electrical products under well-known names such as Bridgeport, Polaris, and Tork, with a focus on insulated connectors, fittings, and other high-value components that have steady, replacement-driven demand [2][6]. Strategic Fit - The sale is seen as a strategic fit between NSI's HVAC division and Lennox, with NSI returning to its roots as an electrical products company serving distributors across the nation, leveraging its strong brand reputation and operational excellence [3][6]. Market Position - NSI Industries is recognized as a leading manufacturer and supplier of branded electrical components in the U.S. and Canada, offering over 10,000 products and maintaining a strong presence in the market [6]. Private Equity Expertise - Sentinel Capital Partners has a history of investing in electrical manufacturing and distribution, with prior investments in companies like ECM Industries and Power Products, showcasing its expertise in the industrial sector [3][4].

Core Insights - Lennox has completed the acquisition of the HVAC Division of NSI Industries, which includes the Duro Dyne and Supco brands, to enhance its HVAC parts and supplies portfolio [1][3][4] Company Strategy - The acquisition aims to strengthen Lennox's support for both residential and commercial customers by expanding its parts and supplies offerings in response to customer demand for comprehensive solutions [2][3] - The integration of Duro Dyne and Supco is expected to enhance Lennox's distribution capabilities and broaden its product portfolio, positioning the company to deliver greater value throughout the customer journey, from equipment and installation to service and preventative maintenance [4] Market Position - Lennox is recognized as a leader in energy-efficient climate control solutions, committed to sustainability and creating healthier environments for its customers [4] - The company offers a wide range of products, including cooling, heating, indoor air quality, and refrigeration systems, along with HVAC parts and services that support the full lifecycle of customer needs [4]

Core Points - HomeServe South Jersey partnered with Lennox for the annual Feel the Love program, providing a new HVAC system to a senior citizen in need [1][4][5] - The initiative aims to support deserving individuals by offering free HVAC systems, enhancing their comfort and safety [12] Company Overview - HomeServe South Jersey, formerly known as South Jersey Energy Service Plus, has rebranded after over 20 years of operation, aligning with the national HomeServe brand [6][7] - The company is committed to delivering high-quality customer care and maintaining a strong community presence [7] Community Impact - The Feel the Love program highlights HomeServe's dedication to community service, with technicians identifying individuals in need and facilitating support [3][4] - The program not only provides essential home repairs but also fosters a sense of community and support among local residents [8] Partnership Details - Lennox, the organizer of the Feel the Love campaign, donated the HVAC equipment, while HomeServe South Jersey provided the installation labor [4][12] - This collaboration reflects a broader commitment to community welfare and support through charitable initiatives [12][13]

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