Lennox International(US:LII)2025-10-22 10:51Revenue Performance - Revenue for Q3 2025 was $1.4 billion, a decline of 5% year-over-year[2] - Home Comfort Solutions segment revenue decreased by 12% to $913 million, with segment profit down 10% to $203 million[10] - Building Climate Solutions segment revenue grew by 10% to $514 million, with segment profit increasing by 27% to $134 million[11] - Full-year 2025 guidance was updated to reflect an expected revenue decline of approximately 1% and adjusted earnings per share in the range of $22.75 to $23.25[3] Profitability - Operating income increased by 2% to $310 million, with an operating profit margin of 21.7%, up 150 basis points[6] - Adjusted diluted earnings per share rose by 4% to $6.98, compared to $6.68 in the prior-year quarter[8] - Segment profit margins for Home Comfort Solutions improved by 30 basis points despite lower sales volumes[10] - Segment profit margins for Building Climate Solutions expanded by 330 basis points, supported by cost control initiatives and pricing strategies[4] Cash Flow and Liquidity - Operating cash flow for the quarter was $301 million, down from $452 million in the prior-year quarter[9] - Free cash flow for the nine months ended September 30, 2025, was $263.2 million, compared to $511.8 million in 2024, indicating a decline of 48.5%[33] - Cash and cash equivalents at the end of the period dropped to $52.9 million from $243.1 million, a decrease of 78.2%[29] - The company reported a net cash provided by operating activities of $351.7 million for the nine months ended September 30, 2025, down from $613.3 million in 2024, a decrease of 42.7%[29] Assets and Liabilities - As of September 30, 2025, total assets increased to $3,524.6 million from $3,471.8 million as of December 31, 2024, reflecting a growth of 1.5%[27] - Total current liabilities decreased to $1,129.8 million in 2025 from $1,313.3 million in 2024, a reduction of 13.9%[27] - Total stockholders' equity increased to $1,070.1 million in 2025 from $850.2 million in 2024, marking a growth of 25.9%[27] - Inventories rose to $991.5 million in 2025, up from $704.8 million in 2024, reflecting an increase of 40.7%[27] Debt and Interest - The company incurred interest payments of $39.7 million for the nine months ended September 30, 2025, compared to $44.7 million in 2024, a decrease of 11.2%[29] - The company’s long-term debt slightly increased to $838.2 million in 2025 from $833.1 million in 2024, a marginal rise of 0.6%[27] Strategic Initiatives - The recent acquisition of DuroDyne and Supco is expected to enhance the parts and accessories portfolio[3]