Lennox International Inc Q2 2025 results

The earnings release, today's presentation, and the webcast archive link for today's call are available on our Investor Relations website at investor.lennox.com. In the face of a challenging external environment, both segments delivered revenue growth and margin expansion. Our segment margin was a record 23.6%, an increase of 170 basis points. Our team is performing well despite ongoing challenges, including softness in new construction demand, industry refrigerant canister shortages, customer uncertainty, and inflationary pressures.

While residential new construction remains subdued, the HCS segment continues to perform well given the broader market conditions. In addition, growth from our full life cycle strategy has delivered year-over-year revenue growth and margin expansion. We are raising our full-year outlook to reflect our consistent execution in a challenging environment and continued progress on our growth initiatives. We now expect adjusted earnings per share in the range of $23.25-$24.25 and revenue growth of approximately 3%.

These partnerships align with the growth acceleration phase of our transformation strategy and establish the foundation for the expansion phase. We expect Samsung to begin contributing meaningfully to growth in 2026, followed by Ariston in 2027. Despite these dynamics, our team delivered record results with a 3% increase in revenue and 11% growth in segment profit. During the quarter, approximately 90% of our refrigerant-based product sales contained the new R454B refrigerant, driving favorable product mix and contributing meaningfully to both top line and profit growth.