Lennox International, Inc. · NYSE:LII
Lennox International — Q3 2025 Earnings Presentation
15 slides from Lennox International's earnings presentation, Oct 22, 2025
Slide 1: Third Quarter 2025 Earnings Release
INTEGRITY | RESPECT | EXCELLENCE THIRD QUARTER 2025 EARNINGS RELEASE OCT 22, 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: Q3 2025 Financial Highlights
Q3 2025 FINANCIAL HIGHLIGHTS Maintaining resilient margins and high service levels during industry headwinds REVENUE SEGMENT SEGMENT PROFIT * PROFIT MARGIN * $1.4B $310 21.7% Updating Guidance (5%) YoY +2% YoY +150 bps YoY Full Year Adjusted ADJUSTED EPS OPERATING Net Debt/ * Earnings Per Share* CAS
Slide 4: Attachment Rate Growth: Parts & Supplies
ATTACHMENT RATE GROWTH: PARTS & SUPPLIES Leading North American manufacturer and distributor of HVAC parts and accessories Revenue ~40% ~50% In-house ~50% Residential ~60% Manufacturing Sourced ~ $225M Commercial Revenue by Revenue by End Market Product Purchase Price ~ $550M Highlights Sources of S
Slide 5: Q3 2025 Lennox Results
Q3 2025 LENNOX RESULTS REVENUE SEGMENT PROFIT* (US$ MILLIONS) (US$ MILLIONS) +$7M or +2% (5%) $1,498 +11% 0% $1,427 Adjusted +4% to $6.98 +$118 $310 $303 $4 EPS* ($30) (16%) ($85) ROS 20.2% ROS 21.7% Resilient margins and profit growth despite lower volumes 2024 Volume Mix/Price Other 2025 2024 Volu
Slide 6: Q3 2025 Home Comfort Solutions
Q3 2025 HOME COMFORT SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $1,033 $913 $227 $203 Volume: Distributor and contractor destocking, weak new construction ROS ROS and more repairs vs. replace 21.9% 22.2% Mix: R-454B product introduction Product Cost: Inflationary impact 2024 2025
Slide 7: Q3 2025 Building Climate Solutions
Q3 2025 BUILDING CLIMATE SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $514 $465 $134 $106 Volume: Share gains during challenging end markets with solid ROS ROS 22.8% 26.1% growth in refrigeration and service Product Cost: Inflation partially offset with factory productivity 2024 20
Slide 8: Cash Flow and Capital Deployment
CASH FLOW AND CAPITAL DEPLOYMENT 500 452 97% 120% CASH CONVERSION 96% Temporarily elevated inventory levels 400 300 81% 301 100% 80% 94% 60% • Weak 2025 summer selling season 200 63% OPERATING CASH FLOW 100 40% • Preparation for regulatory transition, (US$ MILLIONS) 20% 0 0% emergency replacement &
Slide 9: 2025 Financial Guidance
2025 FINANCIAL GUIDANCE REVENUE OTHER GUIDANCE ITEMS Prior Guide Prebuy Volume Mix/Price M&A Total Inflation ~5% ~6% Home Comfort (HSD) (HSD) + LDD +0.5% (~4%) Solutions COST Investments ~$25M ~$25M ∆ YoY Building Climate Productivity/ (LSD) (LSD) + HSD +1.5% + ~6% ~($90M) ~($75M) Solutions Cost Act
Slide 10: 2026 Early Thinking
2026 EARLY THINKING REVENUE GROWTH End Markets Share Gains Consumer Mix Other • Post ‘25 destock normal • Parts growth accretion • Growth in value tier • Federal heat pump and energy efficiency • Lower interest rates • Emergency replacement • System repair trend incentives New & Existing Home sales
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 Q3 2025 Q3 2024 Volume Mix/Price Other Total Home Comfort Solutions $ 913 $ 1,033 (23%) 11% - (12%) Building Climate Solutions 514 465 0% 10% - 10% Net sales, a GAAP measure $ 1,427 $ 1,498 (16%) 11% - (5%) Product Segment Profit (1) Q3 2025
Slide 14: Net Debt to Adjusted EBITDA
NET DEBT TO ADJUSTED EBITDA For the Twelve Months Ended September 30, (Unaudited) 2025 2024 Income before taxes, a GAAP Measure $ 1,030.9 $ 928.6 Items in losses (gains) and other expenses, net before taxes - 2.7 Restructuring charges, before tax - 2.8 Interest expense, net 30.5 44.5 Pension settlem
Slide 15: Free Cash Flow & FCF Conversion
FREE CASH FLOW & FCF CONVERSION For the Three Months Ended September 30, For the Twelve Months Ended (Unaudited) (Unaudited) 2025 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 Net Cash provided by operating activities, a GAAP measure $ 300.7 $ 452.1 $ 919.6 $ 945.7 $ 932.7 $ 835.5 $ 684.1 Purchases o