Lennox International(US:LII)2026-01-28 11:56Financial Performance - Q4 2025 revenue was $1.2 billion, a decline of 11% year-over-year, with operating income at $196 million, down 22%[2][3][8] - Adjusted diluted EPS decreased by 22% to $4.45, compared to $5.72 in the prior-year quarter[9] - For full year 2025, total revenue was $5.2 billion, down 3%, while operating income remained flat at $1 billion[14][15] - The company reported a net income of $806 million for full year 2025, or $22.79 per share, compared to $811 million, or $22.66 per share, in the prior-year[17] - Net income for the year ended December 31, 2025, was $805.8 million, slightly down from $811.1 million in 2024[31] - Earnings per share (diluted) for Q4 2025 was $4.07, down from $5.64 in Q4 2024, representing a decrease of 28.0%[31] - Adjusted net income for 2025 was $819.1 million, compared to $812.6 million in 2024[41] Segment Performance - Home Comfort Solutions segment revenue fell 21% to $700 million, with segment profit down 29% to $137 million[11] - Building Climate Solutions segment revenue grew by 8% to $495 million, with segment profit increasing by 11% to $115 million[12] - Home Comfort Solutions segment net sales decreased to $699.8 million in Q4 2025 from $887.4 million in Q4 2024, a decline of 21.2%[33] - Building Climate Solutions segment net sales increased to $495.2 million in Q4 2025 from $457.6 million in Q4 2024, an increase of 8.0%[33] Cash Flow and Liquidity - Operating cash flow for Q4 2025 was $406 million, an increase from $332 million in the prior-year quarter[10] - Net cash provided by operating activities decreased to $757.6 million in 2025 from $945.7 million in 2024[38] - Free cash flow for 2025 was $640.2 million, down from $784.6 million in 2024[42] - Total cash and cash equivalents at the end of the period dropped to $52.7 million from $415.1 million in 2024[38] - Cash and cash equivalents decreased significantly to $34.2 million in 2025 from $415.1 million in 2024, a decline of 91.8%[36] - Commercial paper borrowings increased significantly to $1,368.8 million in 2025 compared to $424.1 million in 2024[38] Assets and Liabilities - Total assets as of December 31, 2025, were $4,081.8 million, up from $3,620.0 million in 2024, reflecting a growth of 12.8%[36] - Total liabilities increased to $2,918.7 million as of December 31, 2025, compared to $2,657.9 million in 2024, an increase of 9.8%[36] Future Projections - Full year 2026 revenue is expected to increase by approximately 6% to 7%, with acquisitions contributing about 4%[22] - Adjusted EPS for 2026 is projected to be in the range of $23.50 to $25.00[23] - Capital expenditures for 2026 are projected to be approximately $250 million[23] Other Financial Metrics - Gross profit for the year ended December 31, 2025, was $1,734.8 million, down from $1,777.5 million in 2024, reflecting a gross margin of 33.4%[31] - Operating income for Q4 2025 was $195.8 million, compared to $250.2 million in Q4 2024, indicating a decline of 21.7%[33] - The company reported restructuring charges of $5.1 million for the three months ended December 2025[41] - The company incurred acquisition costs of $8.9 million in 2025[41] - Depreciation and amortization expenses rose to $112.5 million in 2025 from $95.1 million in 2024[38] - Interest paid increased to $46.5 million in 2025 from $45.2 million in 2024[38]