Lennox International Inc. stock research
FY2025 Q2
Lennox International (LII) Gross Margin — Quarter Ended Jun 30, 2025
Revenue was unchanged from the same quarter last year, while gross profit increased, leading to a higher gross margin. Sequentially, revenue and gross profit both rose, with gross profit growing faster than cost of revenue, resulting in margin improvement.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue was unchanged from the same quarter last year, while gross profit increased, leading to a higher gross margin. Sequentially, revenue and gross profit both rose, with gross profit growing faster than cost of revenue, resulting in margin improvement.
- The gross margin improved compared to both the prior quarter and the same quarter last year. Sequentially, gross profit grew at a faster pace than cost of revenue, while year-over-year gross profit increased despite stable revenue.
- Sequentially, gross margin improved from the prior quarter. Year-over-year, gross margin also improved compared to the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.0%
Gross profit
$510.1M
Revenue
$1.5B
Cost of revenue
$990.8M
Quarter-over-quarter change
+2.2 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $1.5B | $510.1M | $990.8M | 34.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+2.2 pts
Year-over-year change
Jun 30, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved compared to both the prior quarter and the same quarter last year. Sequentially, gross profit grew at a faster pace than cost of revenue, while year-over-year gross profit increased despite stable revenue.
Sequentially, gross margin improved from the prior quarter. Year-over-year, gross margin also improved compared to the same quarter last year.
Monitor inventory levels, which increased significantly from year-end, as the filing notes seasonal working capital needs in the first and second quarters.