Lennox Raises 2025 Outlook After Strong Q2

Lennox International reported strong second quarter 2025 results, with net income rising to $277.6 million ($7.82 per share) from $245.9 million ($6.87 per share) a year ago, and revenue increasing 3.4% to $1.5 billion, both surpassing analyst expectations. The company raised its full-year adjusted EPS guidance to $23.25–$24.25 per share and expects revenue growth of about 3%, citing effective pricing strategies to offset inflation. Operating margin improved to 23.6% from 22.1% the previous year, while free cash flow margin declined. CEO Alok Maskara credited the company's resilient, replacement-driven business model and North American focus for the results. Over the past five years, Lennox achieved an 8.6% compounded annual growth rate in sales, though growth has recently slowed. The company continues to emphasize strategic positioning amid inflationary pressures.