Lennox International Inc. stock research
FY2025 Q3
Lennox International (LII) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin weakened sequentially but improved compared to the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin weakened sequentially but improved compared to the year-ago period.
- The year-over-year increase in gross margin is the most notable change, as it occurred despite lower revenue. This reflects a more favorable relationship between cost of revenue and revenue compared to the same quarter last year.
- Sequentially, gross margin declined as both revenue and gross profit fell, with gross profit decreasing more relative to revenue. Compared to the same quarter last year, gross margin was higher even though revenue and gross profit were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.8%
Gross profit
$468.6M
Revenue
$1.4B
Cost of revenue
$958.2M
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $1.4B | $468.6M | $958.2M | 32.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-1.1 pts
Year-over-year change
Sep 30, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year increase in gross margin is the most notable change, as it occurred despite lower revenue. This reflects a more favorable relationship between cost of revenue and revenue compared to the same quarter last year.
Sequentially, gross margin declined as both revenue and gross profit fell, with gross profit decreasing more relative to revenue. Compared to the same quarter last year, gross margin was higher even though revenue and gross profit were lower.
The balance sheet shows higher inventory compared to the start of the fiscal year, a factor that may influence future working capital and cash flows.