Core Insights - Lennox reported a decline in revenue and adjusted earnings per share for Q4 2025, with revenue at $1.2 billion, down 11%, and adjusted diluted EPS at $4.45, down 22% year-over-year [1][2] - The company achieved annual margins over 20% for the first time, attributed to cost reduction actions and favorable product mix [1] - For full year 2026, Lennox anticipates revenue growth of approximately 6% to 7%, with adjusted EPS expected to be in the range of $23.50 to $25.00 [2] Q4 2025 Financial Highlights - Revenue was $1.2 billion, down 11% due to unfavorable sales volumes [1] - GAAP operating income was $196 million, down 22%, with an operating profit margin of 16.4%, down 220 basis points [1] - Segment profit decreased 16% to $212 million, with a segment profit margin of 17.7%, down 110 basis points [1] Full Year 2025 Financial Highlights - Total revenue for 2025 was $5.2 billion, down 3% [2] - GAAP diluted EPS was $22.79, compared to $22.66 in the prior year, showing a slight increase [2] - Operating income remained flat at $1 billion, with a profit margin of 20.0%, up 50 basis points [2] Segment Performance - Home Comfort Solutions segment revenue was $700 million, down 21%, with segment profit down 29% to $137 million [1] - Building Climate Solutions segment revenue grew 8% to $495 million, with segment profit up 11% to $115 million [1] - Corporate expenses were $40 million, down from the prior year [1] Cash Flow and Capital Expenditures - Operating cash flow was $406 million, up from $332 million in the prior year [1] - Net capital expenditures were $29 million, down from $60 million in the prior year [1] - Share repurchases totaled $150 million in Q4 2025 [1] 2026 Guidance - Revenue is expected to increase by approximately 6% to 7%, with growth from completed acquisitions contributing about 4% [2] - Adjusted earnings per share is projected to be between $23.50 and $25.00 [2] - Capital expenditures are estimated at approximately $250 million, with free cash flow expected to be between $750 million and $850 million [2]