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Jun 30, 2021
Lennox Q2 2021 Earnings Report
Lennox International reported record revenue and profit in the second quarter of 2021.
Key Takeaways
Lennox International reported a record revenue of $1.24 billion, up 32% compared to the prior-year period. GAAP EPS from continuing operations increased by 72% to a record $4.51, and adjusted EPS from continuing operations increased by 54% to a record $4.57. The company also raised its full-year guidance for revenue growth and EPS.
Revenue increased by 32% to a record $1.24 billion, driven by strong growth in all businesses.
GAAP EPS from continuing operations rose by 72% to a record $4.51.
Adjusted EPS from continuing operations increased by 54% to a record $4.57.
The company raised its full-year guidance for revenue growth from 7-11% to 12-16% and for GAAP EPS from $11.33-$11.93 to $11.97-$12.57.
Lennox
Lennox
Lennox Revenue by Segment
Revenue by Segment
Home Comfort Solutions Revenue
CapyFin.comBuilding Climate Solutions Revenue
CapyFin.com Forward Guidance
Lennox International raised its 2021 guidance for revenue, earnings, and free cash flow based on strong market growth and company performance.
Positive Outlook
- Raising 2021 guidance for revenue growth from 7-11% to 11-15% at constant currency, and now 12-16% at actual currency.
- Raising 2021 guidance for GAAP EPS from continuing operations from $11.33-$11.93 to $11.97-$12.57.
- Raising 2021 guidance for adjusted EPS from continuing operations from $11.40-$12.00 to $12.10-$12.70.
- Capital expenditures are still planned to be approximately $135 million.
- Raising guidance for free cash flow from approximately $375 million to approximately $400 million for the full year.
Challenges Ahead
- Corporate expense is now expected to be approximately $100 million compared to prior guidance of $95 million.
- The effective tax rate is now expected to be approximately 20% on an adjusted basis for the full year compared to prior guidance of approximately 21%.
- Risks that the North American unitary HVAC and refrigeration markets perform worse than current assumptions.
- The impact of higher raw material prices, availability and timely delivery of raw materials and other components
- Any resurgence of the COVID-19 pandemic and its economic impact on the company and its employees and customers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income