Lennox International Reports Strong Q3 2024 Results and Raises Full-Year Guidance
Lennox International Inc. (NYSE: LII) has announced its financial results for the third quarter of 2024, showcasing robust performance and an optimistic outlook for the remainder of the year.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|
| Total Revenue | $1.5B | $1.366B | +9.7% | N/A | $1.42B |
| GAAP Operating Income | $303M | $186.8M | +62% | N/A | N/A |
| GAAP Diluted EPS | $6.68 | $3.65 | +83% | N/A | $6.00 |
| Free Cash Flow | $412M | $273.6M | +50% | N/A | N/A |
Lennox's financial performance in Q3 2024 exceeded expectations, with significant year-over-year growth in revenue and earnings per share. The company reported a 15% increase in core revenue, driven by strong sales volume and strategic pricing. The adjusted EPS of $6.68 surpassed the consensus estimate of $6.00, reflecting effective cost management and operational efficiency.
Segment Revenue Performance:
| Segment | Q3 2024 Revenue | YoY Change | Previous Guidance |
|---|---|---|---|
| Home Comfort Solutions | $1.0B | +15% | N/A |
| Building Climate Solutions | $465M | +15% | N/A |
Both major segments of Lennox demonstrated impressive growth, with Home Comfort Solutions and Building Climate Solutions each reporting a 15% increase in revenue. The Home Comfort Solutions segment benefited from industry challenges related to R-410A availability, while Building Climate Solutions saw contributions from the successful integration of the AES acquisition.
Operational Highlights:
| Operational Data | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Net Cash from Operations | $452M | $313M | +44% |
| Capital Expenditures | $41M | $40M | +2.5% |
Lennox's operational efficiency is evident in its increased net cash from operations and stable capital expenditures, supporting its strategic investments and growth initiatives.
Management Commentary: CEO Alok Maskara expressed pride in the company's exceptional quarterly performance, highlighting the successful execution of transformation plans, including the Samsung Lennox joint venture and the new Saltillo factory. Maskara also announced the appointment of Monica Brown as the new Chief Legal Officer, effective January 1, 2025, succeeding John Torres.
Dividends and Share Repurchase: Lennox maintained its quarterly dividend of $1.15 per share and repurchased $13 million in shares during the quarter, reflecting its commitment to returning value to shareholders.
Forward Guidance: Lennox raised its full-year 2024 guidance, projecting a 10% revenue growth and EPS in the range of $20.75 to $21.00, up from the previous range of $19.50 to $20.25. The company also increased its free cash flow forecast to between $575 million and $650 million.
Stock Price Movement: Following the earnings release, Lennox shares rose by approximately 2.4% in pre-market trading, reflecting investor confidence in the company's strong performance and positive outlook.
Lennox International's Q3 2024 results underscore its strategic execution and market leadership in energy-efficient climate-control solutions, positioning the company for continued success in the evolving regulatory and environmental landscape.
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