Lennox International Reports Mixed Q3 Results, Announces Acquisition of Duro Dyne and Supco

Lennox International Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a mixed performance amid challenging market conditions. For the three months ended September 30, 2025, the company recorded net sales of $1.427 billion, a decrease of 5% compared to $1.498 billion in the same period of 2024. Despite the decline in sales, operating income increased to $310.2 million from $303.3 million year-over-year, driven by favorable pricing and product mix, which offset some of the impacts from lower sales volumes and rising costs. Net income for the quarter was $245.8 million, translating to diluted earnings per share of $6.98, up from $6.68 in the prior year.

In the nine-month period ending September 30, 2025, Lennox reported net sales of $4.000 billion, slightly up from $3.996 billion in the same period of 2024. The company’s gross profit also saw a marginal increase to $1.320 billion, compared to $1.317 billion a year earlier. The increase in gross profit margin to 33.0% from 32.9% was attributed to a favorable mix and pricing, although this was partially offset by higher product costs and increased freight expenses. The company’s net income for the nine months was $643.7 million, compared to $609.2 million in 2024.

Operationally, Lennox faced challenges in its Home Comfort Solutions segment, where net sales fell by 12% to $912.9 million, primarily due to a 23% decrease in sales volumes. Conversely, the Building Climate Solutions segment experienced a 10% increase in sales to $513.9 million, benefiting from improved pricing and mix. The company’s total assets increased to $3.525 billion as of September 30, 2025, up from $3.472 billion at the end of 2024, with significant growth in inventories, which rose to $991.5 million from $704.8 million.

Strategically, Lennox announced the acquisition of Duro Dyne and Supco for approximately $546.3 million, which is expected to enhance its product offerings in the HVAC parts and supplies market. The acquisition will be reflected in the company’s financial results starting in the fourth quarter of 2025. Additionally, Lennox has been active in managing its capital structure, repurchasing $332 million of its common stock and paying $127 million in dividends to shareholders during the first nine months of 2025. The company’s outlook remains cautious, with management noting that market conditions and inflationary pressures will continue to influence performance in the near term.