Lennox International, Inc. · NYSE:LII
Lennox International — Q2 2025 Earnings Presentation
15 slides from Lennox International's earnings presentation, Jul 23, 2025
Slide 1: Second Quarter 2025 Earnings Release
INTEGRITY | RESPECT | EXCELLENCE SECOND QUARTER 2025 EARNINGS RELEASE JULY 23, 2025
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES The statements in this presentation that are not historical statements, including statements regarding the 2025 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forwa
Slide 3: Q2 2025 Financial Highlights
Q2 2025 FINANCIAL HIGHLIGHTS Quarterly gains drive higher full year outlook REVENUE SEGMENT SEGMENT PROFIT * PROFIT MARGIN * $1.5B $354 23.6% Updating Guidance +3% YoY +11% YoY +170 bps YoY Full Year Adjusted ADJUSTED EPS OPERATING Net Debt/ * Earnings Per Share* CASH FLOW Adj. EBITDA * $23.25 - $24
Slide 4: JVs Expand Product Portfolio for Customers
JVS EXPAND PRODUCT PORTFOLIO FOR CUSTOMERS PRODUCT % OF HVAC DEALERS PARTNER BENEFITS CATEGORY WHO SELL Mini Splits • Partner for ductless HVAC • Well recognized global consumer brand ~75% • Leading Mini-Split and VRF products • World-class R&D capability and capacity Announced May 28, 2024 Water He
Slide 5: Q2 2025 Lennox Results
Q2 2025 LENNOX RESULTS REVENUE SEGMENT PROFIT* (US$ MILLIONS) (US$ MILLIONS) +$36M or +11% +3% +11% 0% $1,501 $1,451 +$114 Adjusted ($16) $354 EPS* +14% to $7.82 $319 ($21) (8%) ($42) ROS 21.9% ROS 23.6% Successfully navigating complex inflationary environment and new Low GWP transition 2024 Volume
Slide 6: Q2 2025 Home Comfort Solutions
Q2 2025 HOME COMFORT SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $982 $1,009 $255 $229 Volume: R410A destocking and RNC softness ROS ROS 23.3% 25.3% Mix: New R454B product introduction Product Cost: Materials and tariff inflationary impact 2024 2025 2024 2025 +3% +$27 Other Cost:
Slide 7: Q2 2025 Building Climate Solutions
Q2 2025 BUILDING CLIMATE SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $492 $469 $123 $114 Volume: Challenging end markets, but ROS ROS emergency replacement growth 24.3% 24.9% Product Cost: Inflationary pressure partially offset with factory gains 2024 2025 2024 2025 Other: Distrib
Slide 8: Cash Flow and Capital Deployment
CASH FLOW AND CAPITAL DEPLOYMENT 97% 96% 94% 500 100% 81% 81% CASH CONVERSION 400 80% Full Year 2025 conversion ~90% Regulatory driven temporary inventory plus 300 60% 184 • emergency replacement & Samsung 200 40% OPERATING CASH FLOW 100 87 20% (US$ MILLIONS) 0 0% • Continued productivity in account
Slide 9: 2025 Financial Guidance
2025 FINANCIAL GUIDANCE REVENUE OTHER GUIDANCE ITEMS Prior Guide Prebuy Volume Mix/Price Total Inflation ~6% ~9% Home Comfort (MSD) (LSD) + LDD + ~3% Solutions COST Investments ~$25M ~$25M ∆ YoY Building Climate Productivity/ (LSD) (MSD) + HSD + ~2% ~($75M) ~($75M) Solutions Cost Actions Interest ~$
Slide 10: 2H Lennox Positioning & Market Outlook
2H LENNOX POSITIONING & MARKET OUTLOOK Lennox Growth Positioning Market Outlook Regulatory transition • R454B canister shortage impacts dealer confidence Home • Uncertain repair vs replace trends Comfort Improving fulfillment rate • Inflation and lack of 25C tax credits may lower mix Solutions • Cha
Slide 11: Attractive Investment Opportunity
ATTRACTIVE INVESTMENT OPPORTUNITY Execution Consistency and Disciplined Capital Deployment Advanced Technology Resilient Margin Solutions with Business Focused on Direct-to-Dealer Network Sustainable HVACR Talent & Culture Driven by Growth End Core Values, Guiding Markets with Strong Behaviors and P
Slide 12: Thank You!
INTEGRITY | RESPECT | EXCELLENCE THANK YOU!
Slide 13: Revenue and Segment Profit
REVENUE AND SEGMENT PROFIT Change Year-over-Year Net Sales Q2 2025 Q2 2024 Volume Mix/Price Other Total Home Comfort Solutions $ 1,009 $ 982 (9%) 12% - 3% Building Climate Solutions 492 469 (3%) 8% - 5% Net sales, a GAAP measure $ 1,501 $ 1,451 (8%) 11% - 3% Product Segment Profit (1) Q2 2025 Q2 202
Slide 14: Net Debt to Adjusted EBITDA
NET DEBT TO ADJUSTED EBITDA For the Twelve Months Ended June 30, (Unaudited) 2025 2024 Income before taxes, a GAAP Measure $ 1,026.0 $ 809.9 Items in losses (gains) and other expenses, net before taxes - 8.3 Restructuring charges, before tax - 3.1 Interest expense, net 28.9 46.8 Pension settlements,
Slide 15: Free Cash Flow & FCF Conversion
FREE CASH FLOW & FCF CONVERSION For the Three Months Ended June 30, For the Twelve Months Ended (Unaudited) (Unaudited) 2025 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 Net Cash provided by operating activities, a GAAP measure $ 86.8 $ 184.0 $ 780.7 $ 919.6 $ 945.7 $ 932.7 $ 835.5 Purchases of prop