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Dec 31, 2024
Lennox Q4 2024 Earnings Report
Lennox reported impressive Q4 2024 results, driven by strong core revenue growth and margin expansion.
Key Takeaways
Lennox reported a strong fourth quarter with revenue of $1.3 billion, a 16% increase. GAAP diluted EPS was $5.52, and adjusted diluted EPS increased by 54% to $5.60. The company experienced significant progress in cash conversion and successfully navigated the product transition to the new refrigerant.
Core revenue increased by 22%, reaching $1.3 billion.
GAAP diluted EPS was $5.52, while adjusted diluted EPS rose by 54% to $5.60.
Operating income increased by 32% to $245 million, with an operating profit margin of 18.2%.
Free cash flow was $273 million, up 50% from the prior year.
Lennox
Lennox
Lennox Revenue by Segment
Revenue by Segment
Home Comfort Solutions Revenue
CapyFin.comBuilding Climate Solutions Revenue
CapyFin.com Forward Guidance
For full year 2025, core revenue is anticipated to increase by approximately 2%, primarily driven by the mix of new refrigerant products, along with low single-digit increases in price and volume. Adjusted earnings per share is expected to be within the range of $22.00 to $23.50.
Positive Outlook
- Core revenue is anticipated to increase by approximately 2%.
- Growth is primarily driven by the mix of new refrigerant products.
- Low single-digit increases in price are expected.
- Low single-digit increases in volume are anticipated.
- Capital expenditures are projected to be approximately $150 million.
Challenges Ahead
- Volume expectations were tempered by the effects of the pre-buy for legacy refrigerant products in 2024.
- Adjusted earnings per share is expected to be within the range of $22.00 to $23.50.
- Free Cash Flow is estimated to fall within the range of $650 million to $800 million.
- Unspecified risks that the North American unitary HVAC and refrigeration markets perform worse than current assumptions.
- Unspecified risks related to competition, new product development, and supply interruptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income