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Jun 30, 2022

Lennox Q2 2022 Earnings Report

Lennox International reported record revenue and profit.

Key Takeaways

Lennox International reported record revenue of $1.37 billion, up 10%, and a record GAAP EPS of $4.96, up 10% in the second quarter of 2022. The company is raising the low end of its 2022 EPS guidance from $13.50-$14.50 to $13.80-$14.50.

Revenue increased by 10% to a record $1.37 billion.

GAAP EPS increased by 10% to a record $4.96.

Adjusted EPS increased by 9% to a record $5.00.

The company is raising the low end of EPS guidance from $13.50-$14.50 to $13.80-$14.50.

Total Revenue
$1.37B
Previous year: $1.24B
+10.3%
EPS
$5
Previous year: $4.57
+9.4%
Total Segment Margin
16.8%
Previous year: 17.9%
-6.1%
Home Comfort Margin
22.1%
Building Climate Margin
7.8%
Gross Profit
$397M
Previous year: $383M
+3.7%
Cash and Equivalents
$57.4M
Previous year: $44.5M
+29.0%
Free Cash Flow
$76M
Previous year: $171M
-55.6%
Total Assets
$2.66B
Previous year: $2.2B
+20.6%

Lennox

Lennox

Lennox Revenue by Segment

Forward Guidance

The company is adjusting 2022 revenue growth guidance from 7-11% to 10-15% and raising the low end of EPS guidance from $13.50-$14.50 to a range of $13.80-$14.50.

Positive Outlook

  • Customer demand remains strong.
  • Residential business is performing well and capitalizing on growth opportunities.
  • Refrigeration business is performing well and capitalizing on growth opportunities.
  • Commercial segment performance is improving.
  • Reiterating plans for $400 million of total stock repurchases for the full year.

Challenges Ahead

  • The macroeconomic environment is challenging.
  • Commercial segment is constrained by supply chain shortfall.
  • Commercial segment is constrained by factory inefficiencies.
  • Gross margin was impacted by inflationary pressures.
  • Gross margin was impacted by factory inefficiencies and global supply chain disruptions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income