Lennox International Reports $278M Net Income and $1.501B Revenue in Q2 2025

Lennox International Inc. reported a net income of $278 million for the second quarter of 2025, reflecting an increase from $246 million in the same period of 2024. The company's revenue for the quarter reached $1.501 billion, a 3% increase compared to $1.451 billion in the prior year. This growth was primarily driven by a favorable mix and pricing strategy, which contributed to an 11% increase in average selling prices, although this was partially offset by an 8% decline in sales volumes. The operating income for the quarter rose to $354 million, up from $320 million in the previous year, indicating a 10.6% increase.

In the first half of 2025, Lennox reported total revenues of $2.574 billion, a 3% increase from $2.498 billion in the first half of 2024. The Home Comfort Solutions segment saw a 4% increase in net sales, totaling $1.731 billion, while the Building Climate Solutions segment remained relatively flat at $842.8 million. The overall segment profit for the first half of 2025 was $510 million, compared to $487 million in the same period of 2024, marking a 4.7% increase.

Strategically, Lennox has been active in share repurchase initiatives, having repurchased $295.4 million worth of common stock in the first half of 2025. The company also returned $82 million to shareholders through dividends during the same period. As of June 30, 2025, Lennox had $1.197 billion remaining under its share repurchase authorization, which totals $5 billion. The company continues to evaluate its capital structure and leverage, maintaining a debt-to-total-capital ratio of 57%.

Operationally, Lennox has focused on enhancing its manufacturing capabilities, particularly in its Commercial factory in Mexico, which was expanded in 2024. The company reported a decrease in cash provided by operating activities, totaling $51 million for the first half of 2025, down from $161 million in the same period of 2024, primarily due to less favorable changes in working capital. The company’s cash and cash equivalents stood at $49.2 million as of June 30, 2025, with sufficient liquidity to meet its operational needs and obligations.

Looking ahead, Lennox anticipates that pricing gains will continue to offset the impact of tariffs and potential volume declines. The company is also assessing the implications of recent changes in federal tax law, which may affect its financial position and operations. Overall, Lennox International Inc. remains focused on strategic growth and operational efficiency as it navigates market challenges.