Lennox Q2 2023 Earnings Report
Key Takeaways
Lennox reported a record second quarter with revenue up 3% to $1.41 billion and operating income up 23% to $279 million. GAAP diluted EPS increased by 23% to $6.10. The company is raising its 2023 outlook with core revenue expected to increase by 2% to 4% and an EPS range of $15.50 to $16.00.
Revenue increased by 3% to $1.41 billion; core revenue excluding European Operations increased by 3% to $1.34 billion.
Operating income increased by 23% to $279 million; adjusted segment profit increased by 22% to $281 million.
GAAP diluted EPS increased by 23% to $6.10; adjusted diluted EPS increased by 22% to $6.15.
Operating cash flow increased by 101% to $196 million.
Lennox
Lennox
Forward Guidance
For the full year 2023, Lennox expects core revenue to be up 2% to 4% and earnings per share of $15.50 to $16.00. The company is updating its free cash flow outlook to include operating cash flow of $550 million to $600 million and capital expenditures of approximately $250 million.
Positive Outlook
- Prioritizing pricing excellence
- Increasing commercial production output
- Normalizing inventory levels to further improve cash flow
- Building on current momentum to meet or exceed long-range targets
- Exceptional progress towards delivering long-term financial targets