Lennox opened its largest Regional Distribution Center (RDC) in Edgerton, Kansas, covering 763,000 square feet. The new facility expands the company’s ability to ship commercial rooftop units, accessories and VRF equipment, allowing more than 90% of rooftop units and accessories to be delivered within one day.
The company also relaunched its Commercial Quick Quote tool on LennoxPros. The updated platform provides instant quotes, real‑time inventory visibility, side‑by‑side product comparisons and guided match‑up logic for curb adapters and accessories, enabling contractors and dealers to place emergency replacement orders in minutes.
The expansion comes after Lennox reported margin pressure in its Building Climate Solutions segment. In the fourth quarter of 2024, the segment generated $458 million in revenue, up 17% from the prior year, but its profit margin fell 160 basis points to 21.6% as factory ramp‑up costs and supply‑chain inefficiencies weighed. The first quarter of 2025 saw revenue of $1.1 billion and a margin of 14.5%, a 140‑basis‑point decline, while the third quarter of 2025 recorded a 10% revenue increase and a 30‑basis‑point margin improvement, reflecting the impact of operational investments.
CEO Alok Maskara said the new distribution center and digital tools are part of a broader effort to restore margin performance and strengthen dealer relationships. “By improving our logistics footprint and providing a faster, more transparent ordering experience, we expect to reduce lead times, lower inventory carrying costs and enhance dealer confidence in our commercial product line,” Maskara explained.
The investment positions Lennox to capture market share as commercial demand recovers from the regulatory transition to low‑GWP refrigerants. The new RDC reduces shipping lead times, while the Quick Quote platform streamlines the ordering process, both of which are critical in a market where competitors are investing heavily in digital capabilities and supply‑chain resilience.
Industry analysts note that Lennox’s focus on operational efficiency aligns with broader HVAC trends, including the shift to R‑454B refrigerants and increased demand for high‑efficiency rooftop units. The company’s ability to deliver units quickly and provide real‑time inventory data is expected to give it a competitive edge in securing new commercial contracts.
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