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INTEGRITY | RESPECT | EXCELLENCE FOURTH QUARTER 2025 EARNINGS RELEASE JANUARY 28, 2026
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Integrity | Respect | Excellence FORWARD -LOOKING STATEMENTS & NON -GAAP FINANCIAL MEASURES 2 The statements in this presentation that are not historical statements, including statements regarding the 2026 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available as well as management’s assumptions and beliefs today. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the statements, and investors should not place undue reliance on them. Risks and uncertainties that could cause actual results to differ materially from such statements include risks that the North American unitary HVAC and refrigeration markets perform worse than current assumptions. Additional risks include but are not limited to competition in the HVACR business; our ability to successfully develop and market new products or execute our business strategy; our ability to meet and anticipate customer demands; our ability to continue to license or enforce our IP rights; our ability to attract, motivate, develop, and retain our employees, as well as labor relations problems; AI technologies; a decline in new construction activity and related demand for our products and services; the impact of weather on our business; the impact of higher raw material prices and significant supply interruptions; product liability, warranty claims, or recalls; changes in environmental and climate-related legislation or government regulations or policies; changes in tax legislation; the impact of new or increased trade tariffs; improper conduct by our employees, agents, or business partners; litigation risks; general economic conditions in the US and abroad; extraordinary events beyond our control; risks associated with our international operations; cyber attacks and other disruptions or misuse of information systems; and our ability to successfully realize, complete and integrate acquisitions, including the acquisition of Duro Dyne and Supco. For information concerning these and other risks and uncertainties, see LII’s publicly available filings with the Securities and Exchange Commission. LII disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. A reconciliation of non-GAAP financial measures appearing in this document to financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) are included in the Annex to this document. This document includes forward-looking statements regarding segment profit, adjusted net income, adjusted earnings per share, free cash flow, ROS, and Debt to EBITDA, which are non-GAAP financial measures. These non-GAAP financial measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts excluded is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period and the high variability of certain amounts, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, changes in environmental liabilities, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. We are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. The unavailable information could have a significant impact on LII’s full year GAAP financial results.
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Integrity | Respect | Excellence 2025 FINANCIAL HIGHLIGHTS 3* See appendix for reconciliation to GAAP performance RECORD FULL YEAR MARGINS: RESILIENT PROFITS IN CHALLENGING MARKETS Q4 2025 Adjusted Earnings Per Share* REVENUE $1.2B (11%) YoY OPERATING CASH FLOW $406M +$74M YoY 17.7% SEGMENT PROFIT MARGIN (110 bps) YoY Q4 Full Year (22%) YoY $4.45 Full Year $23.16 +2% YoY REVENUE $5.2B (3%) YoY OPERATING CASH FLOW $758M ($188M) YoY 20.4% SEGMENT PROFIT MARGIN +90 bps YoY
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Integrity | Respect | Excellence Building Climate Solutions HEADWINDS EASING, OPPORTUNITIES EMERGING Home Comfort Solutions 4 2025 Impact 2026 Outlook Destocking post regulatory transition 1H 2H R454B cannister shortage impact Lower consumer confidence Residential new construction Ductless and parts growth 2025 Impact 2026 Outlook Commercial HVAC industry softness Emergency replacement & national account wins Consumer confidence & retail channel strength Parts and services growth Headwind Transitional / Stabilizing Tailwind Neutral
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Integrity | Respect | Excellence FUELING GROWTH ACCELERATION 5 ~$300M+ Strategic Investments AI tools and e-commerce Automate and upgrade labs Hub and spoke distribution New R&D center, India TC Sales excellence, Revenue Ops Commercial, Heat Pump, A2L Insource certification, testing Front End Excellence Manufacturing & Distribution Development and Testing ~$125M+ Strategic Investments Samsung and Ariston Customer Training and Engagement Digital / AI infrastructure 5+ New training centers Investments made, expected returns in 2026+ Planned investment with attractive returns Commercial engagement hub Technology upgrades
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Integrity | Respect | Excellence 2024 Volume Mix/Price Other 2025 2024 Volume Mix/Price Product Cost Other 2025 Q4 2025 LENNOX RESULTS 6 * See appendix for reconciliation to GAAP performance REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) (11%) ROS 18.8% ROS 17.7% ($41M) or (16%) ($115) ($31) $21+$84 $253 $212 Broad residential market weakness influenced profit, though indicators point to gradual improvement (22%) to $4.45 Adjusted EPS* $1,195 $1,345 (23%) +9% +3%
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Integrity | Respect | Excellence Q4 2025 HOME COMFORT SOLUTIONS 7 REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $887 $700 2024 2025 $193 $137 2024 2025 (21%) (32%) +9% +2% Volume Mix/Price Other ($56) ($102) +$56 ($29) +$19 Volume Mix/Price Product Cost Other ROS 21.8% ROS 19.6% Volume: Distributor and contractor destocking, weak new construction and more repairs vs. replace Mix/Price: New R-454B product Product Cost: Materials inflation and factory absorption, partially offset by commodities Other Cost: SG&A cost reductions
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Integrity | Respect | Excellence Q4 2025 BUILDING CLIMATE SOLUTIONS 8 REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $458 $495 2024 2025 $104 $115 2024 2025 +8% +$11 (7%) +8% +7% Volume Mix/Price Other ($13) +$27 ($3) ~flat Volume Mix/Price Product Cost Other ROS 22.6% ROS 23.1% Volume: Share gains during challenging light commercial end markets Product Cost: Materials inflation and factory absorption, partially offset by commodities Other: SG&A cost reductions offset inflation
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Integrity | Respect | Excellence 2024 Volume Mix/Price Other 2025 2024 Volume Mix/Price Product Cost Other 2025 FULL YEAR 2025 LENNOX RESULTS 9 * See appendix for reconciliation to GAAP performance REVENUE SEGMENT PROFIT* (US$ MILLIONS) (US$ MILLIONS) (3%) ROS 19.5% ROS 20.4% +$16M or +2% ($255) ($80) ($5) +$356 $1,042 $1,058 Solid results in a challenging market and an industry refrigerant transition +2% to $23.16 Adjusted EPS* $5,195 $5,341 (13%) +9% + 1%
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Integrity | Respect | Excellence CAPEX OPERATING CASH FLOW TTM FCF CONVERSION %* 332 406 97% 95% 81% 62% 78% -20% 0% 20% 40% 60% 80% 100% 120% -100 0 100 200 300 400 500 4Q24 1Q25 2Q25 3Q25 4Q25 0.6x 1.2x 0.0 1.0 2.0 4Q24 1Q25 2Q25 3Q25 4Q25 CASH FLOW AND CAPITAL DEPLOYMENT 10* See appendix for reconciliation to GAAP performance. Net debt is net of cash balances CASH CONVERSION INVESTING FOR GROWTH LEVERAGE Cash Conversion Temporarily Constrained • Inventory expected to normalize by Q2 2026 • Strong collections and payments helped offset Maintain a Strong Balance Sheet • Share repurchases: ~$482M in 2025 • Dividend: Double digit increase, May 2025 • “Bolt-on” M&A execution: ~$545M, Q4 2025 (US$ MILLIONS) NET DEBT TO ADJUSTED EBITDA* (TTM) Focus on Customer Experience and Cost efficiency • Innovation and training centers • Digital tech stack and data platforms • Distribution network expansion & optimization • ERP modernization and AI tools ~250 0.5 0.6 0.7 0.8 0.9 1 1.1 0 100 200 300 2022 2023 2024 2025 2026 (US$ MILLIONS)
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Integrity | Respect | Excellence 2026 FINANCIAL GUIDANCE 11 GROWTH OTHER GUIDANCE ITEMS Revenue ∆ YoY Segment Profit Incremental* Volume (LSD) (~35%) Price | Mix +MSD ~75% M&A +MSD ~30% Total LII 6% - 7% HCS ~2% BCS ~15% *Before the impact of cost: inflation, investments, productivity, and M&A amortization ** Impact on Total Cost COST ∆ YoY Inflation ~+2.5% Investments +$35M M&A Amortization +$15M Productivity ($75M) Interest $65M Tax Rate ~20% Share Count ~35M Adjusted EPS $23.50 – $25.00 Free Cash Flow $750M to $850M
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Integrity | Respect | Excellence SELF-HELP TRANSFORMATION PLAN Recover & Invest Growth Acceleration Expansion 2022 - 2024 2025 - 2026 2026-2030 ON TRACK TO DELIVER ON 2022 COMMITMENTS 1212Integrity | Respect | Excellence ~90% of Net Income Free Cash Flow 19-21% ROS $5.4 - $6.0B REVENUE Updated Long-Term targets will be shared at the 2026 Lennox Investor Day March 2026 2026 set to deliver on all Long-Term targets
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Integrity | Respect | Excellence ATTRACTIVE INVESTMENT OPPORTUNITY 13 Growth End Markets with Strong Replacement Demand Resilient Margin Business Focused on Sustainable HVACR Execution Consistency and Disciplined Capital Deployment Advanced Technology Solutions with Direct-to-Dealer Network Talent & Culture Driven by Core Values, Guiding Behaviors and Pay- for-Performance
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INTEGRITY | RESPECT | EXCELLENCE THANK YOU!
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Integrity | Respect | Excellence LIFO TO FIFO – ACCOUNTING CONVERSION 15 03 Enhanced Comparability Consistent with peers and accurately represents FIFO inventory movement, aligning accounting with the actual physical flow of goods. Adopting FIFO increased 2024 FY EPS by +$0.12 and Q1-Q3 2025 EPS by +$0.55 Enhanced Comparability 02 Price and Cost Matching FIFO aligns pricing gains with cost increases more effectively, as price improvements typically lag behind LIFO cost changes. 01 Reduced Complexity Eliminates detailed inventory layer tracking and simplifies accounting and audit processes.
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Integrity | Respect | Excellence LIFO TO FIFO ADJUSTED OPERATING PROFIT & NET INCOME 16Note: Totals above may not foot due to rounding 2024 2025 For the Three Months Ended December 31, For the Years Ended December 31, 2024 2024 As Reported Effect of Change As Adjusted As Reported Effect of Change As Adjusted Net sales $ 1,345.0 $ - $ 1,345.0 $ 5,341.3 $ - $ 5,341.3 Cost of goods sold 889.7 (5.6) 884.1 3,569.4 (5.6) 3,563.8 Gross profit 455.3 5.6 460.9 1,771.9 5.6 1,777.5 Operating income 244.6 5.6 250.2 1,034.8 5.6 1,040.4 Income before income taxes 238.7 5.6 244.3 993.8 5.6 999.4 Provision for income taxes 41.0 1.4 42.4 186.9 1.4 188.3 Net income 197.7 4.2 201.9 806.9 4.2 811.1 Earnings per share - Basic $ 5.55 $ 0.11 $ 5.67 $ 22.67 $ 0.11 $ 22.78 Earnings per share - Diluted $ 5.52 $ 0.12 $ 5.64 $ 22.54 $ 0.12 $ 22.66 For the Three Months Ended March 31, 2025(1) For the Three Months Ended June 30, 2025(1) For the Three Months Ended September 30, 2025(1) Three months ended (In millions, except per share data) As Reported Immaterial Error Correction Impact of Change LIFO Adjusted As Reported Immaterial Error Correction Impact of Change LIFO Adjusted As Reported Immaterial Error Correction Impact of Change LIFO Adjusted Net sales $ 1,072.6 $ - $ - $ 1,072.6 $ 1,500.9 $ - $ - $ 1,500.9 $ 1,426.8 $ - $ - $ 1,426.8 Cost of goods sold 744.1 (5.1) (7.3) 731.7 978.4 1.5 3.5 983.4 958.2 (5.4) (13.2) 939.6 Gross profit 328.5 5.1 7.3 340.9 522.5 (1.5) (3.5) 517.5 468.6 5.4 13.2 487.2 Operating income 155.6 5.1 7.3 168.0 354.0 (1.5) (3.5) 349.0 310.2 5.4 13.2 328.8 Income before income taxes 148.4 5.1 7.3 160.8 345.0 (1.5) (3.5) 340.0 298.8 5.4 13.2 317.4 Provision for income taxes 28.1 1.3 1.8 31.2 67.4 (0.4) (0.9) 66.1 53.0 1.3 3.2 57.5 Net income 120.3 3.9 5.5 129.7 277.6 (1.2) (2.7) 273.7 245.8 4.1 10.0 259.9 Earnings per share - Basic $ 3.39 $ 0.11 $ 0.15 $ 3.65 $ 7.86 $ (0.03) $ (0.08) $ 7.75 $ 7.01 $ 0.12 $ 0.28 $ 7.41 Earnings per share - Diluted $ 3.37 $ 0.11 $ 0.15 $ 3.63 $ 7.82 $ (0.03) $ (0.08) $ 7.71 $ 6.98 $ 0.12 $ 0.28 $ 7.38 (1) In the fourth quarter of 2025, we changed the method of accounting for our inventories from LIFO to FIFO, the effects of the change in accounting principle have retroactively applied.
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Integrity | Respect | Excellence LIFO TO FIFO ADJUSTED SEGMENT PROFIT 17Note: Totals above may not foot due to rounding 2024 2025 Three Months Ended March 31, 2025 Three Months Ended June 30, 2025 Three Months Ended September 30, 2025 As Reported Effect of Change As Adjusted As Reported Effect of Change As Adjusted As Reported Effect of Change As Adjusted Segment Profit (1) Home Comfort Solutions $116.8 $7.0 $123.8 $255.2 ($3.2) $252.0 $202.9 $12.4 $215.3 Building Climate Solutions 53.5 5.3 58.8 122.5 (1.9) 120.6 134.0 6.2 140.2 Corporate and other (14.7) - (14.7) (23.7) - (23.7) (26.7) - (26.7) Segment profit, a Non-GAAP measure $155.6 $12.3 $167.9 $354.0 ($5.1) $348.9 $310.2 $18.6 $328.8 Three Months Ended December 31, 2024 Twelve Months Ended December 31, 2024 As Reported Effect of Change As Adjusted As Reported Effect of Change As Adjusted Segment Profit (1) Home Comfort Solutions $192.6 $0.8 $193.4 $759.7 $0.8 $760.5 Building Climate Solutions 98.8 4.8 103.6 396.9 4.8 401.7 Corporate and other (43.7) - (43.7) (120.3) - (120.3) Segment profit, a Non-GAAP measure $247.7 $5.6 $253.3 $1,036.3 $5.6 $1,041.9 (1) We define segment profit (loss) as a segment's operating income (loss) included in the accompanying Consolidated Statemen ts of Operations, excluding: • Restructuring charges, • Gain (loss) on sale of previous dispositions, and; • Acquisition costs (1) We define segment profit (loss) as a segment's operating income (loss) included in the accompanying Consolidated Statemen ts of Operations, excluding: • Restructuring charges, • Gain (loss) on sale of previous dispositions, and; • Acquisition costs
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Integrity | Respect | Excellence LIFO TO FIFO ADJUSTED BALANCE SHEET 18Note: Totals above may not foot due to rounding 2024 2025 The effect of the changes made to our Consolidated Balance Sheet was as follows (in millions): As of December 31, 2024 As Reported Effect of Change As Adjusted Inventories, net 704.8 148.2 853.0 Total assets 3,471.8 148.2 3,620.0 Deferred income taxes (Other liabilities) 188.7 36.3 225.0 Retained earnings 4,150.8 111.9 4,262.7 Total liabilities and stockholders' equity 3,471.8 148.2 3,620.0 As of March 31, 2025 As of June 30, 2025 As of September 30, 2025 As Reported Effect of Change As Adjusted As Reported Effect of Change As Adjusted As Reported Effect of Change As Adjusted Inventories, net 902.3 160.5 1,062.8 1,001.9 155.5 1,157.4 991.5 174.1 1,165.6 Total assets 3,455.4 160.5 3,615.9 3,652.7 155.5 3,808.2 3,524.6 174.1 3,698.7 Deferred income taxes (Other liabilities) 190.5 39.3 229.8 191.9 38.1 230.0 191.3 42.7 234.0 Retained earnings 4,230.3 121.2 4,351.5 4,462.1 117.4 4,579.5 4,662.5 131.4 4,793.9 Total liabilities and stockholders' equity 3,455.4 160.5 3,615.9 3,652.7 155.5 3,808.2 3,524.6 174.1 3,698.7
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Integrity | Respect | Excellence For the Three Months Ended December 31, (Unaudited) For the Years Ended December 31, (Unaudited) 2025 2024 2025 2024 After Tax Amount Per Diluted Share After Tax Amount Per Diluted Share After Tax Amount Per Diluted Share After Tax Amount Per Diluted Share Net income, a GAAP measure $ 142.5 $ 4.07 $ 201.9 $ 5.64 $ 805.8 $ 22.79 $ 811.1 $ 22.66 Restructuring charges 5.1 $ 0.15 - - 5.1 $ 0.14 - - Acquisition costs (a) 8.9 $ 0.25 - - 8.9 $ 0.25 - - Loss (gain) on sale from previous dispositions (0.7) $ (0.02) $ 3.1 0.08 (0.7) $ (0.02) $ 1.5 0.04 Adjusted net income, a non-GAAP measure $ 155.8 $ 4.45 $ 205.0 $ 5.72 $ 819.1 $ 23.16 $ 812.6 $ 22.70 (a) Recorded in Losses and other expenses, net in the Consolidated Statements of Operations Note: The 2024 and 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO. ADJUSTED EPS REVENUE AND SEGMENT PROFIT 19Note: Totals above may not foot due to rounding Change Year-over-Year Change Year-over-Year Net Sales Q4 2025 Q4 2024 Volume Mix/Price Other Total FY 2025 FY 2024 Volume Mix/Price Other Total Home Comfort Solutions $ 700 $ 887 (32%) 9% 2% (21%) $ 3,343 $ 3,577 (17%) 10% 0% (7%) Building Climate Solutions 495 458 (7%) 8% 7% 8% 1,852 1,764 (5%) 8% 2% 5% Net sales, a GAAP measure $ 1,195 $ 1,345 (23%) 9% 3% (11%) $ 5,195 $ 5,341 (13%) 9% 1% (3%) Segment Profit (1) Q4 2025 Q4 2024 Volume Mix/Price Product Cost Other Total FY 2025 FY 2024 Volume Mix/Price Product Cost Other Total Home Comfort Solutions $ 137 $ 193 $ (102) $ 56 $ (29) $ 19 $ (56) $ 729 $ 761 $ (224) $ 256 $ (64) $ (0) $ (32) Building Climate Solutions 115 104 (13) 27 (3) $ (0) 11 434 402 (31) 100 (16) (20) 33 Corporate and other (40) (44) - - - $ 4 4 (105) (120) - - - 15 15 Segment profit, a Non-GAAP measure $ 212 $ 253 $ (115) $ 84 $ (31) $ 21 $ (41) $ 1,058 $ 1,042 $ (255) $ 356 $ (80) $ (5) $ 16 Loss (gain) on sale from previous dispositions (1) 3 (1) 2 Acquisition costs(2) 10 - 10 - Restructuring charges 7 - 7 - Operating income $ 196 $ 250 $ 1,042 $ 1,040 (1) We define segment profit (loss) as a segment's operating income (loss) included in the accompanying Consolidated Statemen ts of Operations, excluding: • Restructuring charges, • Gain (loss) on sale of previous dispositions, and; • Acquisition costs (2) Recorded in Losses and other expenses, net in the accompanying Consolidated Statement of Operations. Note: The 2024 and 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO.
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Integrity | Respect | Excellence NET DEBT TO ADJUSTED EBITDA 20Note: Totals above may not foot due to rounding For the Twelve Months Ended December 31, (Unaudited) 2025 2024 Income before taxes, a GAAP Measure $ 996.8 $ 999.4 Restructuring charges, before tax 6.8 - Interest expense, net 40.9 38.7 Pension settlements, before tax 0.4 0.4 Other expense (income), net before tax 3.4 1.9 Loss (gain) on sale from previous dispositions (0.9) 1.5 Depreciation and amortization expense 112.5 95.1 Adjusted EBITDA, a non-GAAP measure $ 1,159.9 $ 1,137.0 As of December 31, (Unaudited) 2025 2024 Total Debt $ 1,388.4 $ 1,147.6 Less Cash 34.2 415.1 Less Short-term investments 0.5 7.2 Net Debt, a non-GAAP measure $ 1,353.7 $ 725.3 Debt to Adjusted EBITDA ratio 1.2 0.6 . Note: The 2024 and 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO.
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Integrity | Respect | Excellence FREE CASH FLOW & FCF CONVERSION Note: Totals above may not foot due to rounding 21 For the Three Months Ended December 31, (Unaudited) For the Twelve Months Ended (Unaudited) 2025 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 Net Cash provided by operating activities, a GAAP measure $ 405.9 $ 332.4 $ 945.7 $ 932.7 $ 835.5 $ 684.1 $ 757.6 Purchases of property, plant and equipment (29.2) (60.2) (163.6) (159.6) (155.4) (149.8) (118.8) Proceeds from the disposal of property, plant and equipment 0.3 0.6 2.5 2.5 2.3 1.7 1.4 Free cash flow, a Non-GAAP measure $ 377.0 $ 272.8 $ 784.6 $ 775.6 $ 682.4 $ 536.0 $ 640.2 After Tax Amount After Tax Amount After Tax Amount After Tax Amount After Tax Amount Net income, a GAAP measure $ 811.1 $ 816.4 $ 844.3 $ 865.1 $ 805.8 Restructuring charges - - - - 5.1 Acquisition costs (a) - - - - 8.9 Loss (gain) on sale from previous dispositions 1.5 1.5 3.1 3.1 (0.7) Adjusted net income, a non-GAAP measure $ 812.6 $ 817.9 $ 847.4 $ 868.2 $ 819.1 FCF Conversion 97% 95% 81% 62% 78% (a) Recorded in Losses and other expenses, net in the Consolidated Statements of Operations Note: The 2024 and 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO.