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Mar 31, 2023

Lennox Q1 2023 Earnings Report

Lennox reported record revenue and operating income, with adjusted EPS up 15%.

Key Takeaways

Lennox reported a record first quarter with revenue of $1.05 billion and operating income of $140 million. GAAP diluted EPS was $2.75, and adjusted diluted EPS increased by 15% to $2.83. The company is reiterating its 2023 outlook.

Revenue reached $1.05 billion; core revenue excluding European Operations increased by 3% to $990 million.

Operating Income was $140 million; adjusted segment profit rose by 20% to $142 million.

GAAP diluted EPS was $2.75; adjusted diluted EPS grew by 15% to $2.83.

2023 outlook reiterated: core revenue expected to be flat to up 4%, with EPS between $14.25 and $15.25.

Total Revenue
$1.05B
Previous year: $1.01B
+3.6%
EPS
$2.83
Previous year: $2.36
+19.9%
Gross Profit
$307M
Previous year: $268M
+14.4%
Cash and Equivalents
$40.4M
Previous year: $34.3M
+17.8%
Free Cash Flow
-$114M
Previous year: -$123M
-7.3%
Total Assets
$2.77B
Previous year: $2.46B
+12.8%

Lennox

Lennox

Lennox Revenue by Segment

Forward Guidance

Lennox expects core revenue to be flat to up 4% and earnings per share of $14.25 to $15.25 for the full year of 2023.

Positive Outlook

  • Strong start to the year
  • Confident in full year outlook
  • Support organic growth investments
  • Smaller, bolt-on acquisitions
  • Maintaining a healthy balance sheet

Challenges Ahead

  • Impact of higher raw material prices
  • Availability and timely delivery of raw materials and other components
  • Impact of new or increased trade tariffs
  • LII’s ability to implement price increases for its products and services
  • Economic conditions in our markets

Revenue & Expenses

Visualization of income flow from segment revenue to net income