Lennox Q4 2023 Earnings Report
Key Takeaways
Lennox reported a strong fourth quarter with revenue up 6% to $1.2 billion and GAAP diluted EPS up 52% to $4.04. The company's performance was driven by its Lennox transformation strategy, successful implementation of new regulations, improved factory production, and pricing excellence programs.
Revenue increased by 6% to $1.2 billion, with core revenue (excluding European Operations) up 7% to $1.1 billion.
GAAP diluted EPS rose by 52% to $4.04, while adjusted diluted EPS increased by 41% to $3.63.
Operating cash flow surged by 132% to $306 million.
Building Climate Solutions segment revenue increased 19%, driven by both pricing and sales volume gains.
Lennox
Lennox
Lennox Revenue by Segment
Forward Guidance
For full year 2024, core revenue is anticipated to increase by approximately 7% mostly due to price and mix as sales volumes are forecasted to be relatively flat. Adjusted earnings per share is expected to be within the range of $18.50 to $20.00. Capital expenditures are projected to be approximately $175 million, and Free Cash Flow is estimated to fall within the range of $500 million to $600 million.
Positive Outlook
- Core revenue is anticipated to increase by approximately 7%.
- Revenue increase mostly due to price and mix.
- Sales volumes are forecasted to be relatively flat.
- Adjusted earnings per share is expected to be within the range of $18.50 to $20.00.
- Free Cash Flow is estimated to fall within the range of $500 million to $600 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income