Lennox International (LII) shares plummeted 5.05% in Wednesday's trading session following the company's disappointing third-quarter results and lowered full-year guidance. The climate control solutions provider faced headwinds from new refrigerant regulations and challenging macroeconomic conditions, leading to a significant drop in its stock price.

For the third quarter, Lennox reported revenue of $1.43 billion, falling short of Wall Street expectations of $1.49 billion and representing a 4.8% year-over-year decline. Despite the revenue miss, the company managed to post adjusted earnings per share of $6.98, slightly beating analysts' estimates of $6.81. However, investors seemed more concerned with the company's outlook rather than its bottom-line performance.

In response to ongoing challenges, Lennox revised its full-year 2025 guidance downward. The company now anticipates a 1% decrease in annual revenue, a stark contrast to its previous projection of 3% growth. Additionally, Lennox lowered its adjusted earnings per share forecast to a range of $22.75 to $23.25, down from the earlier estimate of $23.25 to $24.25. This reduction in guidance reflects the impact of new refrigerant transition regulations, persistent macroeconomic uncertainties, and weakening consumer confidence, particularly affecting its Home Comfort Solutions segment, which saw a 12% revenue decline in the quarter.