Lennox International (LII) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April ...

Core Viewpoint - Lennox is set to report its first quarter 2025 financial results on April 23, 2025, before market opening, highlighting its ongoing commitment to transparency and investor engagement [1]. Financial Reporting - The earnings conference call will take place at 8:30 a.m. Central Time on the same day, featuring CEO Alok Maskara and CFO Michael Quenzer discussing the financial results and future outlook [1]. - Participants can join the call by dialing 800-343-4136 (U.S.) or +1 203-518-9843 (international) and must use conference ID LIIQ125 [2]. Conference Call Access - A replay of the conference call will be available until April 30, 2025, through toll-free numbers for U.S. and international callers [3]. - The conference call will also be archived on the company's investor relations website, ensuring accessibility for stakeholders [3]. Company Overview - Lennox is recognized as a leader in energy-efficient climate control solutions, focusing on sustainability and innovation in cooling, heating, indoor air quality, and refrigeration systems [4]. - The company aims to create comfortable and healthier environments for both residential and commercial customers while reducing their carbon footprint [4].

Core Viewpoint - Lennox has appointed Sarah Martin as the new executive vice president and president of Home Comfort Solutions, succeeding Gary Bedard, who will retire after 26 years with the company [1][6]. Group 1: Leadership Transition - Sarah Martin brings over 25 years of global leadership experience in manufacturing and technology, including 13 years at Honeywell International Inc. [2] - Martin's previous roles at Honeywell include president of Honeywell Sensing Solutions and leadership positions in Sensing & Safety Technologies and Advanced Sensing Technologies [2]. - Gary Bedard joined Lennox in 1998 and has significantly contributed to the growth of the Home Comfort Solutions segment [5]. Group 2: Strategic Focus - The CEO of Lennox, Alok Maskara, emphasized Martin's expertise in leading large-scale businesses and driving profitability, which will be crucial for the company's growth in North America [3]. - Martin expressed her commitment to enhancing customer experience and driving sustained results in the HVAC industry [4]. Group 3: Legacy and Contributions - Bedard's leadership has been instrumental in guiding the Home Comfort Solutions segment through significant growth, leaving a lasting legacy for the company [6]. - The company acknowledges Bedard's contributions and wishes him well in his retirement [6].

Core Insights - Lennox Residential HVAC has launched the SL22KLV Cold Climate Heat Pump, which is designed to provide precise comfort and reduce environmental impact with low global warming potential refrigerant [1][6] - The SL22KLV operates efficiently in temperatures as low as -20°F, offering performance that is 150% higher in efficiency at colder temperatures compared to standard heat pumps [1][2] Product Features - The SL22KLV boasts efficiency ratings of up to 21.10 SEER2, 13.2 EER2, and 10.50 HSPF2, contributing to energy savings and year-round comfort [3] - It includes a variable-speed compressor with electronic refrigerant injection technology, which adjusts energy usage based on outdoor temperatures, thereby lowering energy costs [3] - The heat pump features a precision-balanced, direct-drive fan and a sound-dampening system for ultra-quiet operation [3] Technological Integration - The SL22KLV can be paired with the Lennox S40 Smart Thermostat, creating a digital in-home comfort system that optimizes performance and assists with maintenance [4] - Built-in sensors in the system enhance performance and facilitate troubleshooting [4] Company Background - Lennox has been a leader in innovative heating and cooling systems for 130 years and was the first to complete the first phase of the U.S. Department of Energy's Residential Cold Climate Heat Pump Technology Challenge in 2022 [5] - The SL22KLV is an enhancement of the unit developed for the 2022 DOE CCHP Technology Challenge, showcasing the latest technology in efficiency [5] Environmental Commitment - The SL22KLV uses the low global warming potential R-454B refrigerant, aligning with updated EPA refrigerant regulations and reducing environmental impact [6] - The product is eligible for the Energy Efficient Home Improvement Credit, providing potential tax benefits for homeowners [6] Availability - The SL22KLV Cold Climate Heat Pump is now available for order through local Lennox dealers [7]

Core Insights - Lennox's Elite Series EL297V Gas Furnace has received the prestigious GOOD DESIGN® Award, highlighting its innovative design and energy efficiency [2][3] - The furnace boasts a 97% AFUE rating, qualifying for ENERGY STAR® certification and the 25C Tax Credit, indicating its high efficiency [4] - The product features advanced technology such as a two-stage gas valve and a variable-speed blower motor, ensuring consistent performance and quiet operation [4][5] Company Overview - Lennox is a leader in energy-efficient climate-control solutions, focusing on sustainability and reducing carbon footprints for residential and commercial customers [6] - The company has a history of design excellence, with previous GOOD DESIGN® Awards for products like the SL25XPV Heat Pump and S40 Smart Thermostat [5]

Sales Performance - In 2024, net sales increased by 7% to $5,341 million compared to $4,982 million in 2023, driven by higher sales volumes and favorable pricing [145]. - The Home Comfort Solutions segment saw an 11% increase in net sales to $3,577.1 million, with segment profit rising by 25% to $759.7 million [155]. - The Building Climate Solutions segment experienced a 17% increase in net sales to $1,764.2 million, with segment profit increasing by 16% to $396.9 million [157]. - The company completed the sale of its European businesses in Q4 2023, which impacted sales by a 5% reduction in 2024 [145]. - Corporate and Other segment net sales decreased by $248 million in 2024, resulting in a total loss of $120.3 million, an increase of 28% compared to 2023 [159]. - Consolidated net sales increased by 6% in 2023 compared to 2022, driven by a favorable mix of 5% and favorable price of 5, partially offset by a 4% unfavorable sales volume [160]. - Home Comfort Solutions segment net sales increased by 1% in 2023, totaling $3,222.9 million, with a profit of $610.2 million, up 2% from 2022 [171]. - Building Climate Solutions segment net sales increased by 18% in 2023, reaching $1,511.4 million, with a profit of $340.8 million, a 109% increase compared to 2022 [173]. - The company reported net sales of $5,265.6 million for the year ended December 31, 2024, an increase from $4,626.8 million in 2023 [204]. Profitability - Gross profit margin improved by 210 basis points to 33.2% in 2024, up from 31.1% in 2023, primarily due to higher pricing and favorable mix [146]. - Operating income rose to $1,034.8 million in 2024, compared to $790.1 million in 2023, reflecting a significant increase in profitability [144]. - Net income for 2024 increased to $806.9 million, up from $590.1 million in 2023, resulting in diluted earnings per share of $22.54 [145]. - Gross profit for the year ended December 31, 2024, was $1,363.8 million, compared to $1,157.8 million in 2023 [204]. - Net income increased to $1,792.5 million in 2024 from $1,331.1 million in 2023 [204]. - Gross profit margins for 2023 increased by 390 basis points to 31.1% compared to 27.2% in 2022, with contributions from favorable pricing and lower commodity costs [160]. Cash Flow and Capital Management - Cash flow from operating activities was $946 million in 2024, an increase from $736 million in 2023, indicating improved operational efficiency [145]. - Net cash provided by operating activities increased by $210 million to $945.7 million in 2024, primarily due to a $217 million increase in net income [179]. - Capital expenditures were $164 million in 2024, down from $250 million in 2023, primarily related to manufacturing capacity expansion [180]. - The company expects capital expenditures of approximately $150 million in 2025 for general capital improvement projects [194]. - The company returned $160 million to shareholders through dividend payments in 2024 [145]. - Dividend payments increased to $160 million in 2024 from $153 million in 2023, with a 4.5% increase in quarterly dividends approved [192]. - The company repurchased $54 million in shares as part of its Share Repurchase Plans in 2024, compared to no repurchases in 2023 [181]. Debt and Financial Position - Total debt as of December 31, 2024, was $1,147.6 million, with $833.1 million classified as long-term debt [182]. - As of December 31, 2024, the company's debt-to-total-capital ratio decreased to 57% from 82% at December 31, 2023 [189]. - The company reported a decrease in net interest expense to $39 million in 2024 from $52 million in 2023, attributed to reduced borrowings [153]. - The company issued $500 million of senior unsecured notes in September 2023, maturing in September 2028, with a 5.50% interest rate [186]. - As of December 31, 2024, the company had cash and cash equivalents of $415 million, including $14 million held in foreign locations [191]. - The company maintained senior credit ratings of Baa2 with a positive outlook and BBB with a stable outlook from Moody's and S&P, respectively [190]. Accounting and Risk Management - The company has no off-balance sheet arrangements that may materially affect its financial condition [205]. - The company periodically reviews assumptions for product warranties and related contingencies, adjusting based on actual failure rates and cost experiences [220]. - Factors affecting actual failure rates include new product introductions, manufacturing changes, and supplier variations [220]. - The company may need to adjust liabilities and record expenses in future periods if actual costs differ from estimates [220]. - Recent accounting pronouncements may impact the company's financial statements and disclosures [221]. - Market risk disclosures are included under the "Market Risk" section in the financial statements [222]. Expenses - Selling, General and Administrative (SG&A) expenses rose by $78 million in 2023, increasing as a percentage of net sales from 13.3% to 14.2% [161].

Core Insights - Lennox and Samsung have formed a joint venture, Samsung Lennox HVAC North America, to deliver ductless heating and cooling solutions, launching the Lennox Powered by Samsung mini-split systems and Varix™ VRF lineup [1][6] Product Offerings - The Lennox Powered by Samsung mini-split systems provide energy-efficient, room-to-room comfort and smart control via the Samsung SmartThings app, featuring low global warming potential refrigerant [2][4] - The Varix™ VRF systems offer flexible, high-performance heating and cooling solutions for commercial spaces, enhancing efficiency and control across multiple zones [3][5] Market Positioning - The launch of these products aims to meet the growing demand for ductless HVAC systems, positioning Lennox service providers to deliver exceptional comfort and energy efficiency [6] - The joint venture plans to expand its product offerings in 2025 with new single-zone heat pump models and low GWP VRF products, providing more choices for Lennox Commercial and Residential HVAC customers [6] Company Background - Lennox is recognized as a leader in energy-efficient climate-control solutions, focusing on sustainability and innovation in heating, cooling, indoor air quality, and refrigeration systems [7] - Samsung Lennox HVAC North America was established in 2024, combining Samsung's innovative HVAC technology with Lennox's expertise as an OEM and direct distribution leader in North America [8]

Core Insights - Lennox International Inc. reported strong Q4 and full-year results, but the guidance provided has led to a nearly 9% drop in share price on the announcement day [1]. Financial Performance - The company achieved impressive results for Q4 and the full year, indicating robust operational performance [1]. Market Reaction - Despite the positive financial results, the market reacted negatively to the company's guidance, resulting in a significant decline in share price [1].

INTEGRITY | RESPECT | EXCELLENCE FOURTH QUARTER 2024 EARNINGS RELEASE JANUARY 29, 2025 FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES The statements in this presentation that are not historical statements, including statements regarding the 2024 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking state ...

Core Insights - Lennox International (LII) reported a revenue of $1.35 billion for the quarter ended December 2024, marking a year-over-year increase of 16.5% and exceeding the Zacks Consensus Estimate by 8.71% [1] - The earnings per share (EPS) for the same period was $5.60, a significant increase from $3.63 a year ago, with an EPS surprise of 32.39% over the consensus estimate of $4.23 [1] Financial Performance - Net Sales for Building Climate Solutions reached $457.60 million, surpassing the average estimate of $424.09 million from 14 analysts [4] - Net Sales for Home Comfort Solutions amounted to $887.40 million, exceeding the estimated $806.19 million by analysts [4] - Segment Profit for Corporate and other was reported at -$43.70 million, which was below the average estimate of -$31.94 million [4] - Segment Profit for Building Climate Solutions was $98.80 million, slightly above the estimated $94.07 million [4] - Segment Profit for Home Comfort Solutions was $192.60 million, significantly higher than the average estimate of $140.06 million [4] Stock Performance - Shares of Lennox have returned +8.8% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]