Lennox International Inc. (LII)
Description
Lennox International designs, manufactures and sells heating, ventilation, air conditioning and refrigeration products for residential and commercial markets.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Q1 2025
- Debt
- $11.494 billion
- Debt History
- Increased by approximately 0.16% since December 2024
- Debt Trend
- Increasing
Profit Information
- Profit
- $1.203 billion
- Profit History
- Decreased by approximately 3.3% compared to Q1 2024
- Profit Trend
- Decreasing
Detailed Report
Lennox International Inc. Q1 2025 Financial Report
Report Date: 2025-04-30
Period Covered: Three months ended March 31, 2025 (Q1 2025)
Profit and Debt Analysis
- Net Sales: $10.726 billion (↑ 2.4% vs. $10.471 billion in Q1 2024)
- Gross Profit: $3.285 billion (30.6% margin, ↓ 190 bps)
- Operating Income: $1.556 billion (↓ 6.8% vs. $1.668 billion)
- Net Income: $1.203 billion (↓ 3.3% vs. $1.243 billion)
- Total Debt: $11.494 billion (↑ 0.16% vs. $11.476 billion at Dec 2024)
- Cash & Equivalents: $2.172 billion
Reasons for Profit Decline
- Material and tariff cost inflation (270 bps headwind).
- Factory inefficiencies ramping new capacity.
- Volume decline in Building Climate Solutions (−5.7%).
- Partially offset by favorable pricing/mix (+190 bps margin benefit).
Pros
- Ongoing pricing actions to offset input cost increases.
- Strong liquidity ($2.2 billion cash, $10.98 billion available under credit facility).
- Investment-grade credit ratings support funding flexibility.
- Active dividend and share-repurchase programs return capital to shareholders.
Cons
- Margin pressure from commodity, freight and inflation.
- Seasonal and macroeconomic volatility may impact volumes.
- Elevated inventory ties up working capital.
- Upcoming $3 billion debt maturity in August 2025 increases refinancing risk.
Statistics Breakdown
Segment performance for Q1 2025 vs. Q1 2024 (in millions):
Home Comfort Solutions:
- Net Sales: $7,214 (↑ 6.9%)
- Segment Profit: $1,168 (↑ 4.2%)
Building Climate Solutions:
- Net Sales: $3,512 (↓ 5.7%)
- Segment Profit: $535 (↓ 31.6%)
Corporate & Other:
- Net Segment Loss: $147 (improved vs. $235 loss)
Total Company:
- Net Sales: $10,726
- Segment Profit: $1,556
Company Direction Insights
Lennox remains on a solid trajectory with disciplined pricing strategies and robust cash flow generation. Financial health indicators—strong liquidity, modest leverage (Debt/Capital ≈ 58%), and investment-grade ratings (Moody’s Baa2, S&P BBB)—provide resilience. Near-term challenges include sustained commodity cost volatility, potential volume pressure from economic softness, and working capital management. Opportunities lie in efficiency gains from new manufacturing capacity, product innovation in energy-efficient HVACR solutions, and expansion into emerging markets.