Lennox Q4 2024 Earnings Report
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
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