LI
LII
Mar 31, 2025
Quarter ended Mar 31, 2025 · FY2025 Q1

Lennox International Inc. stock research

Lennox International (LII) Free Cash Flow — Quarter Ended Mar 31, 2025

Revenue was higher than the same quarter one year earlier but lower than the immediately preceding quarter. Free cash flow was negative and weakened compared to both the prior quarter and the year-ago quarter.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue was higher than the same quarter one year earlier but lower than the immediately preceding quarter. Free cash flow was negative and weakened compared to both the prior quarter and the year-ago quarter.

  • Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. Revenue was positive, but cash conversion was insufficient to cover capital spending.
  • Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin weakened.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$773.1M

Trailing twelve-month free cash flow.

Quarter free cash flow

-$61.3M

Free cash flow in the selected fiscal quarter.

Operating cash flow

-$35.8M

Cash generated by operations before capital spending.

CapEx

$25.5M

Capital spending and related asset purchases.

FCF margin

-5.7%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2024-06-30$1.5B$184.0M$32.7M$151.3M10.4%
2024-09-30$1.5B$452.1M$41.2M$410.9M27.4%
2024-12-31$1.3B$332.4M$60.2M$272.2M20.2%
2025-03-31$1.1B-$35.8M$25.5M-$61.3M-5.7%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income-47.3%Shows whether accounting earnings convert into cash.
CapEx / revenue2.4%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Watch

Working Capital Impact

The filing indicates that the change in net cash used in operating activities compared to the year-ago quarter primarily reflects less favorable changes in working capital. This suggests working capital movements were the strongest observable driver of the cash flow decline.

Less favorable working capital changes contributed to the negative operating cash flow and free cash flow this quarter.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. Revenue was positive, but cash conversion was insufficient to cover capital spending.

Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin weakened.

Monitor the change in working capital, as the filing notes less favorable working capital changes drove the decline in operating cash flow.