Overview

* Lennox, which makes climate-control products, reported a 3% rise in Q2 revenue, beating analyst expectations

* Adjusted EPS for Q2 increases 14% to $7.82, beating consensus

* Company raises FY 2025 guidance, reflecting confidence in growth initiatives

Outlook

* Lennox raises FY 2025 EPS guidance to $23.25-$24.25

* Company expects FY 2025 revenue to grow by 3%

* Lennox anticipates pricing to offset inflationary pressures

* Company projects FY 2025 free cash flow between $650 mln and $800 mln

Result Drivers

* MIX/PRICE BENEFITS - Revenue growth driven by favorable mix and pricing benefits, offsetting inflationary pressures

* SEGMENT PROFIT - Increased segment profit attributed to mix/price benefits, despite softer sales volumes

* HOME COMFORT SOLUTIONS - 3% revenue growth supported by favorable mix and growth initiatives

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.50 $1.48

Revenue bln bln (16

Analysts

)

Q2 Beat $7.82 $6.86

Adjusted (17

EPS Analysts

)

Q2 EPS $7.82

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 6 "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 ( LII ) is $591.00, about 4.9% below its July 22 closing price of $619.97

* The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release:

(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.)