Weakening Residential HVAC Sales Could Put 2025 Guidance at Risk

Over the last two decades, Lennox's expanding distribution network and product portfolio have enabled it to gain market share. Meanwhile, low-cost manufacturing, product sourcing, and more cost-efficient product designs have helped reduce its cost base. All the while, Lennox has maintained its premium brand standing that supports pricing power. These initiatives have led to impressive margin expansion, with adjusted operating margin rising from about 8% during the last sales peak in 2007 to over 19% in 2024.