Financial Performance - Net sales for the first quarter of 2025 increased by 2% to $1,072.6 million compared to $1,047.1 million in the same period in 2024[91] - Operating income decreased by $11 million to $156 million in the first quarter of 2025, primarily due to higher material costs and lower sales volumes[95] - Gross profit margins decreased by 190 basis points to 30.6% in the first quarter of 2025, impacted by higher product costs and freight costs[93] - Home Comfort Solutions segment net sales increased by 7% to $721.4 million, with segment profit rising by $4.7 million to $116.8 million[100] - Building Climate Solutions segment net sales decreased by 6% to $351.2 million, with segment profit declining by 32% to $53.5 million[103] Cash Flow and Capital Expenditures - Net cash used in operating activities increased to $35.8 million in the first quarter of 2025 from $22.8 million in the same period in 2024[107] - Capital expenditures were $26 million for the first quarter of 2025, down from $30 million in the same period in 2024[108] Debt and Financing - Total debt as of March 31, 2025, was $1,149.4 million, comprising current and long-term debt[110] - The company established a commercial paper program on October 25, 2023, allowing for the issuance of up to $500.0 million in short-term, unsecured notes[111] - As of March 31, 2025, the company had an existing $1.1 billion unsecured revolving credit facility, with $1,098.3 million available for future borrowings[112] - In September 2023, the company issued $500.0 million of senior unsecured notes maturing in September 2028, with an interest rate of 5.50%[113] - The company's debt-to-total-capital ratio remained unchanged at 57% as of March 31, 2025, compared to December 31, 2024[116] - The company had no outstanding borrowings under its commercial paper program as of March 31, 2025[111] - The credit agreement includes a subfacility for swingline loans up to $65.0 million[112] - The company believes it is in compliance with all covenant requirements as of March 31, 2025[115] Tax and Shareholder Returns - The effective tax rate for the first quarter of 2025 was 18.9%, a decrease from 19.4% in the same period in 2024[99] - The company returned $41 million to shareholders through dividend payments in the first quarter of 2025[95] Liquidity and Financial Condition - As of March 31, 2025, the company had cash and cash equivalents of $217.2 million, sufficient to fund operations and obligations, including the maturity of $300.0 million senior unsecured notes on August 1, 2025[118] - The company has no off-balance sheet arrangements that may materially affect its financial condition or results of operations[119] - The company's senior credit ratings were Baa2 with a positive outlook from Moody's and BBB with a stable outlook from S&P as of March 31, 2025[117]

APRIL 23, 2025 FIRST QUARTER 2025 EARNINGS RELEASE INTEGRITY | RESPECT | EXCELLENCE FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES The statements in this presentation that are not historical statements, including statements regarding the 2025 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statemen ...

Core Insights - Lennox International (LII) reported revenue of $1.07 billion for the quarter ended March 2025, reflecting a 2.4% increase year-over-year and exceeding the Zacks Consensus Estimate of $1.03 billion by 4.19% [1] - The company's EPS was $3.37, down from $3.47 in the same quarter last year, but above the consensus estimate of $3.25, resulting in a surprise of 3.69% [1] Financial Performance - Net Sales for Building Climate Solutions were $351.20 million, below the average estimate of $381.90 million from 14 analysts [4] - Net Sales for Home Comfort Solutions reached $721.40 million, surpassing the average estimate of $636.12 million based on 14 analysts [4] - Segment Profit for Home Comfort Solutions was $116.80 million, exceeding the average estimate of $99.09 million from 14 analysts [4] - Segment Profit for Corporate and other was -$14.70 million, better than the average estimate of -$26.11 million from 14 analysts [4] - Segment Profit for Building Climate Solutions was $53.50 million, below the average estimate of $77.66 million from 14 analysts [4] Market Performance - Shares of Lennox have returned -4.9% over the past month, compared to a -6.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Lennox International (LII) reported quarterly earnings of $3.37 per share, exceeding the Zacks Consensus Estimate of $3.25 per share, but down from $3.47 per share a year ago [1] - The earnings surprise for this quarter was 3.69%, following a previous quarter where the company reported earnings of $5.60 per share against an expectation of $4.23, resulting in a surprise of 32.39% [2] - The company achieved revenues of $1.07 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.19% and showing an increase from $1.05 billion year-over-year [3] Market Outlook - Lennox shares have declined approximately 8.3% since the beginning of the year, while the S&P 500 has seen a decline of 10.1% [4] - The current consensus EPS estimate for the upcoming quarter is $7.07 on revenues of $1.49 billion, and for the current fiscal year, it is $22.82 on revenues of $5.42 billion [8] Industry Context - The Building Products - Air Conditioner and Heating industry, to which Lennox belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges ahead [9] - Another company in the same industry, Trane Technologies, is expected to report quarterly earnings of $2.19 per share, reflecting a year-over-year increase of 12.9% [10]

Core Insights - Lennox reported a revenue of $1.1 billion for Q1 2025, reflecting a 2% year-over-year growth, while operating income decreased by 7% to $156 million [1][2][5] - The company emphasized the resilience of its replacement-driven business model and its North American-focused strategy amidst current market uncertainties [3][4] Financial Performance - Revenue increased by 2% to $1.1 billion, driven by favorable pricing and product mix [2][5] - Operating income was $156 million, down 7%, with a segment margin of 14.5%, a decrease of 140 basis points [6][7] - Net income for the quarter was $120 million, or $3.37 per share, compared to $124 million, or $3.47 per share, in the prior-year quarter [8][9] Segment Analysis - Home Comfort Solutions segment revenue grew by 7% to $721 million, with segment profit increasing by 4% to $117 million, despite a slight margin decline [10] - Building Climate Solutions segment revenue decreased by 6% to $351 million, with segment profit down 32% to $54 million, impacted by sales volume and cost inefficiencies [11] Guidance and Outlook - For the full year 2025, adjusted earnings per share is expected to be in the range of $22.25 to $23.50, with revenue anticipated to increase by approximately 2% [13][16] - The company aims to leverage pricing gains to offset tariff impacts and maintain profit margins despite potential volume declines [13][16] Cash Flow and Capital Expenditures - Operating cash flow used was $36 million, compared to $23 million in the prior-year quarter, with net capital expenditures of $25 million [9][14] - The company repurchased $85 million in shares during the quarter [9]

The essential investments will expand customer service and training capabilities and enhance distribution infrastructure. DALLAS, April 17, 2025 /PRNewswire/ -- Lennox (NYSE: LII), a leader in the HVAC industry, is making significant investments in its distribution network and customer service and training capabilities in the Dallas—Fort Worth area. This initiative includes expanding training facilities and distribution infrastructure, reinforcing its commitment to customers and growth acceleration. Len ...

Lennox International (LII) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April ...

Core Viewpoint - Lennox is set to report its first quarter 2025 financial results on April 23, 2025, before market opening, highlighting its ongoing commitment to transparency and investor engagement [1]. Financial Reporting - The earnings conference call will take place at 8:30 a.m. Central Time on the same day, featuring CEO Alok Maskara and CFO Michael Quenzer discussing the financial results and future outlook [1]. - Participants can join the call by dialing 800-343-4136 (U.S.) or +1 203-518-9843 (international) and must use conference ID LIIQ125 [2]. Conference Call Access - A replay of the conference call will be available until April 30, 2025, through toll-free numbers for U.S. and international callers [3]. - The conference call will also be archived on the company's investor relations website, ensuring accessibility for stakeholders [3]. Company Overview - Lennox is recognized as a leader in energy-efficient climate control solutions, focusing on sustainability and innovation in cooling, heating, indoor air quality, and refrigeration systems [4]. - The company aims to create comfortable and healthier environments for both residential and commercial customers while reducing their carbon footprint [4].

Core Viewpoint - Lennox has appointed Sarah Martin as the new executive vice president and president of Home Comfort Solutions, succeeding Gary Bedard, who will retire after 26 years with the company [1][6]. Group 1: Leadership Transition - Sarah Martin brings over 25 years of global leadership experience in manufacturing and technology, including 13 years at Honeywell International Inc. [2] - Martin's previous roles at Honeywell include president of Honeywell Sensing Solutions and leadership positions in Sensing & Safety Technologies and Advanced Sensing Technologies [2]. - Gary Bedard joined Lennox in 1998 and has significantly contributed to the growth of the Home Comfort Solutions segment [5]. Group 2: Strategic Focus - The CEO of Lennox, Alok Maskara, emphasized Martin's expertise in leading large-scale businesses and driving profitability, which will be crucial for the company's growth in North America [3]. - Martin expressed her commitment to enhancing customer experience and driving sustained results in the HVAC industry [4]. Group 3: Legacy and Contributions - Bedard's leadership has been instrumental in guiding the Home Comfort Solutions segment through significant growth, leaving a lasting legacy for the company [6]. - The company acknowledges Bedard's contributions and wishes him well in his retirement [6].

Core Insights - Lennox Residential HVAC has launched the SL22KLV Cold Climate Heat Pump, which is designed to provide precise comfort and reduce environmental impact with low global warming potential refrigerant [1][6] - The SL22KLV operates efficiently in temperatures as low as -20°F, offering performance that is 150% higher in efficiency at colder temperatures compared to standard heat pumps [1][2] Product Features - The SL22KLV boasts efficiency ratings of up to 21.10 SEER2, 13.2 EER2, and 10.50 HSPF2, contributing to energy savings and year-round comfort [3] - It includes a variable-speed compressor with electronic refrigerant injection technology, which adjusts energy usage based on outdoor temperatures, thereby lowering energy costs [3] - The heat pump features a precision-balanced, direct-drive fan and a sound-dampening system for ultra-quiet operation [3] Technological Integration - The SL22KLV can be paired with the Lennox S40 Smart Thermostat, creating a digital in-home comfort system that optimizes performance and assists with maintenance [4] - Built-in sensors in the system enhance performance and facilitate troubleshooting [4] Company Background - Lennox has been a leader in innovative heating and cooling systems for 130 years and was the first to complete the first phase of the U.S. Department of Energy's Residential Cold Climate Heat Pump Technology Challenge in 2022 [5] - The SL22KLV is an enhancement of the unit developed for the 2022 DOE CCHP Technology Challenge, showcasing the latest technology in efficiency [5] Environmental Commitment - The SL22KLV uses the low global warming potential R-454B refrigerant, aligning with updated EPA refrigerant regulations and reducing environmental impact [6] - The product is eligible for the Energy Efficient Home Improvement Credit, providing potential tax benefits for homeowners [6] Availability - The SL22KLV Cold Climate Heat Pump is now available for order through local Lennox dealers [7]