Revenue Recognition

9 Months Ended

Sep. 30, 2025

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

6. Revenue Recognition:

The following table disaggregates our revenue by business segment by geography which provides information as to the major source of revenue. See Note 2 for additional information on our reportable business segments and the products and services sold in each segment.

(Amounts in millions)	For the Three Months Ended September 30, 2025
Primary Geographic Markets	Home Comfort Solutions		Building Climate Solutions		Corporate and Other		Consolidated
United States	$	850.1	$	478.3	$	—	$	1,328.4
Canada	62.8		35.6		—		98.4
Total	$	912.9	$	513.9	$	—	$	1,426.8

	For the Three Months Ended September 30, 2024
Primary Geographic Markets	Home Comfort Solutions		Building Climate Solutions		Corporate and Other		Consolidated
United States	$	971.1	$	441.9	$	—	$	1,413.0
Canada	61.7		23.4		—		85.1
Total	$	1,032.8	$	465.3	$	—	$	1,498.1

	For the Nine Months Ended September 30, 2025
Primary Geographic Markets	Home Comfort Solutions		Building Climate Solutions		Corporate and Other		Consolidated
United States	$	2,458.9	$	1,266.6	$	—	$	3,725.5
Canada	184.7		90.1		—		274.8
Total	$	2,643.6	$	1,356.7	$	—	$	4,000.3

	For the Nine Months Ended September 30, 2024
Primary Geographic Markets	Home Comfort Solutions		Building Climate Solutions		Corporate and Other		Consolidated
United States	$	2,520.7	$	1,244.2	$	—	$	3,764.9
Canada	169.0		62.4		—		231.4
Total	$	2,689.7	$	1,306.6	$	—	$	3,996.3

Home Comfort Solutions - We manufacture and market a broad range of furnaces, air conditioners, heat pumps, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America. These products are sold under various brand names and are sold either through direct sales to a network of independent

installing dealers, including through our network of Lennox stores or to independent distributors. For the three months ended September 30, 2025 and 2024, direct sales represented 75% and 73% of revenues, respectively, and sales to independent distributors represented the remainder. For the nine months ended September 30, 2025 and 2024, direct sales represented 74% and 74% of revenues, respectively, and sales to independent distributors represented the remainder. Given the nature of our business, customer product orders are fulfilled at a point in time and not over a period of time.

Building Climate Solutions - In North America, we manufacture and sell unitary heating and cooling equipment used in light commercial applications, such as low-rise office buildings, restaurants, retail centers, churches and schools. These products are distributed primarily through commercial contractors and directly to national account customers in the planned replacement, emergency replacement and new construction markets. We manufacture and market equipment for the commercial refrigeration markets under the Heatcraft Worldwide Refrigeration name. Our products are used in the food retail, food service, cold storage as well as non-food refrigeration markets. We sell these products to distributors, installing contractors, engineering design firms, original equipment manufacturers and end-users. We also provide installation, service and preventive maintenance for HVAC national account customers in the United States and Canada; manufacture curb, curb adapters, drop box diffusers; offer HVAC recycling and salvage services; and focus on multi-family HVAC replacement for expired mechanical assets. Revenue related to service contracts is recognized as the services are performed under the contract based on the relative fair value of the services provided. For the three months ended September 30, 2025 and 2024, equipment sales represented 80% and 80% of revenues and the remainder of our revenue was generated from our service business. For the nine months ended September 30, 2025 and 2024, equipment sales represented 80% and 81% of revenues and the remainder of our revenue was generated from our service business.

Contract Liabilities - Our contract liabilities consist of advance payments and deferred revenue. Net contract liabilities consisted of the following (in millions) as of:

	September 30, 2025		December 31, 2024
Contract assets	$	3.1	$	1.2
Contract liabilities - current	(11.1)		(5.0)
Contract liabilities - noncurrent	(10.1)		(8.4)
Total	$	(18.1)	$	(12.2)

For the three months ended September 30, 2025 and 2024, we recognized revenue of $5.4 million and $0.7 million and for the nine months ended September 30, 2025 and 2024, we recognized revenue of $8.5 million and $6.8 million related to our contract liabilities at January 1, 2025 and 2024, respectively. Impairment losses recognized in our receivables and contract assets were de minimis in 2025 and 2024.