Lennox stock drops as guidance disappoints despite Q1 beat

Published 23/04/2025, 12:20
Lennox stock drops as guidance disappoints despite Q1 beat

DALLAS -On Wednesday, Lennox International Inc. (NYSE:LII) reported first quarter earnings that beat analyst expectations, but provided guidance below estimates.

The company’s shares were down -4.82% in premarket trading following the release.

The heating, ventilation and air conditioning (HVAC) company posted adjusted earnings per share of $3.37, surpassing the analyst consensus of $3.20. Revenue rose 2% year-over-year to $1.1 billion, also topping expectations of $1.01 billion.

However, Lennox narrowed its full-year 2025 adjusted EPS guidance to a range of $22.25 to $23.50, compared to the previous analyst consensus of $22.94. The company maintained its revenue growth forecast of approximately 2% for the year.

"Our results this quarter highlight the strength of our replacement-driven business model and the value of our North American-focused strategy," said CEO Alok Maskara. "While the current environment presents uncertainty, we remain focused on being a reliable partner to our customers and making necessary pricing adjustments to maintain supply chain stability."

The Home Comfort Solutions segment saw 7% revenue growth in Q1, driven by favorable product mix and pricing. However, the Building Climate Solutions segment revenue decreased 6% due to customer transitions to new low global warming potential products.

Lennox said it now expects additional pricing gains to overcome tariffs while preserving profit margins and offsetting potential volume declines. The company maintained its free cash flow guidance range of $650 million to $800 million for 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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