Overview

• Lennox Q3 revenue down 5%, missing analyst expectations

• Adjusted EPS for Q3 up 4%, beating analyst expectations

• Company updates FY 25 guidance, expects 1% revenue decline

Outlook

• Lennox expects FY 2025 revenue to decline by approximately 1%

• Lennox revises FY 2025 adjusted EPS to $22.75-$23.25

• Lennox anticipates FY 2025 free cash flow of $550 mln

Result Drivers

• HOME COMFORT DECLINE - Home Comfort Solutions segment revenue fell 12% due to channel destocking and weak summer sales, impacted by macroeconomic uncertainty

• BUILDING CLIMATE GROWTH - Building Climate Solutions segment revenue rose 10%, supported by higher manufacturing output and emergency replacement demand

• MARGIN EXPANSION - Segment margins improved due to cost control initiatives and favorable mix/price, offsetting inflationary pressures

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 11 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy."

• Wall Street's median 12-month price target for Lennox International Inc is $603.00, about 9% above its October 21 closing price of $548.99

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPn1tSptxa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)