Lennox International Inc. stock research
FY2025 Q1
Lennox International (LII) Gross Margin — Quarter Ended Mar 31, 2025
Revenue less cost of revenue equals gross profit, and gross profit as a percentage of revenue is gross margin. In the current quarter, gross margin weakened compared to both the preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue less cost of revenue equals gross profit, and gross profit as a percentage of revenue is gross margin. In the current quarter, gross margin weakened compared to both the preceding quarter and the same quarter one year earlier.
- The proportion of revenue consumed by cost of revenue increased relative to both the prior quarter and the year-ago quarter, which directly compressed the gross margin.
- Versus the prior quarter, revenue was lower, gross profit was lower, cost of revenue was lower, and gross margin was lower. Versus the year-ago quarter, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.8%
Gross profit
$340.9M
Revenue
$1.1B
Cost of revenue
$731.7M
Quarter-over-quarter change
-2.5 pts
Year-over-year change
-0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $1.5B | $488.2M | $962.9M | 33.6% |
| Sep 30, 2024 | $1.5B | $488.4M | $1.0B | 32.6% |
| Dec 31, 2024 | $1.3B | $460.9M | $884.1M | 34.3% |
| Mar 31, 2025 | $1.1B | $340.9M | $731.7M | 31.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-2.5 pts
Year-over-year change
Mar 31, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The proportion of revenue consumed by cost of revenue increased relative to both the prior quarter and the year-ago quarter, which directly compressed the gross margin.
Versus the prior quarter, revenue was lower, gross profit was lower, cost of revenue was lower, and gross margin was lower. Versus the year-ago quarter, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin was lower.
Monitor inventory levels, which increased from the prior quarter-end, as the filing notes that working capital needs are seasonally greater in the first and second quarters.