By Rob Curran
Lennox International cut its 2025 adjusted earnings and revenue projections due to struggles with new air-conditioning standards, inflation and weak consumer confidence, despite posting higher third-quarter profit.
The Dallas manufacturer of AC units, furnaces, heat pumps and other climate-control equipment posted earnings of $245.8 million, or $6.98 a share, up from $239 million, or $6.68 a share, a year earlier.
Stripping out certain one-off items, Lennox logged adjusted earnings of $6.98 a share, topping the average analyst target of $6.83 a share.
Revenue fell 5% to $1.43 billion, well shy of the mean analyst estimate of $1.48 billion.
Home comfort solutions unit revenue fell 12%, while revenue at the commercial building climate solutions unit rose 10%.
In the residential AC market served by its home comfort unit, Lennox said new regulations and ongoing macroeconomic uncertainty continued to weigh on consumer and dealer sentiment, and cited a shift toward repair from replacement.
"As anticipated, 2025 is proving to be a transitional year, shaped by the impact of the refrigerant transition and difficult macroeconomic conditions," said Chief Executive Alok Maskara, in a statement.
For 2025, the HVAC maker slashed its adjusted earnings projection to a range between $22.75 and $23.25 a share, down from a previous estimate of a range between $23.25 and $24.25 a share. The company also cut its revenue projection for the year, and now anticipates a 1% decline, down from the July estimate of a 3% increase in annual revenue.
New standards for refrigerants have caused disruptions and led to higher prices for AC machines, according to Lennox's Web site and other sources.
Lennox warned that the company is still making price adjustments to offset pressure from cost inflation.
Lennox's weak sales projection are the latest evidence of a slowdown in the property market.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
October 22, 2025 07:25 ET (11:25 GMT)
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