Lennox International Inc. (NYSE:LII) Q1 2025 Earnings Conference Call April 23, 2025 9:30 AM ET Company Participants Chelsey Pulcheon - IR Alok Maskara - CEO Michael Quenzer - CFO Conference Call Participants Ryan Merkel - William Blair Tommy Moll - Stephens Jeff Hammond - KeyBanc Joe O'Dea - Wells Fargo Joe Ritchie - Goldman Sachs Nigel Coe - Wolfe Research Julian Mitchell - Barclays Jeff Sprague - Vertical Research Noah Kaye - Oppenheimer Chris Snyder - Morgan Stanley Brett Linzey - Mizuho Deane Dray - RB ...

Financial Performance - Net sales for the first quarter of 2025 increased by 2% to $1,072.6 million compared to $1,047.1 million in the same period in 2024[91] - Operating income decreased by $11 million to $156 million in the first quarter of 2025, primarily due to higher material costs and lower sales volumes[95] - Gross profit margins decreased by 190 basis points to 30.6% in the first quarter of 2025, impacted by higher product costs and freight costs[93] - Home Comfort Solutions segment net sales increased by 7% to $721.4 million, with segment profit rising by $4.7 million to $116.8 million[100] - Building Climate Solutions segment net sales decreased by 6% to $351.2 million, with segment profit declining by 32% to $53.5 million[103] Cash Flow and Capital Expenditures - Net cash used in operating activities increased to $35.8 million in the first quarter of 2025 from $22.8 million in the same period in 2024[107] - Capital expenditures were $26 million for the first quarter of 2025, down from $30 million in the same period in 2024[108] Debt and Financing - Total debt as of March 31, 2025, was $1,149.4 million, comprising current and long-term debt[110] - The company established a commercial paper program on October 25, 2023, allowing for the issuance of up to $500.0 million in short-term, unsecured notes[111] - As of March 31, 2025, the company had an existing $1.1 billion unsecured revolving credit facility, with $1,098.3 million available for future borrowings[112] - In September 2023, the company issued $500.0 million of senior unsecured notes maturing in September 2028, with an interest rate of 5.50%[113] - The company's debt-to-total-capital ratio remained unchanged at 57% as of March 31, 2025, compared to December 31, 2024[116] - The company had no outstanding borrowings under its commercial paper program as of March 31, 2025[111] - The credit agreement includes a subfacility for swingline loans up to $65.0 million[112] - The company believes it is in compliance with all covenant requirements as of March 31, 2025[115] Tax and Shareholder Returns - The effective tax rate for the first quarter of 2025 was 18.9%, a decrease from 19.4% in the same period in 2024[99] - The company returned $41 million to shareholders through dividend payments in the first quarter of 2025[95] Liquidity and Financial Condition - As of March 31, 2025, the company had cash and cash equivalents of $217.2 million, sufficient to fund operations and obligations, including the maturity of $300.0 million senior unsecured notes on August 1, 2025[118] - The company has no off-balance sheet arrangements that may materially affect its financial condition or results of operations[119] - The company's senior credit ratings were Baa2 with a positive outlook from Moody's and BBB with a stable outlook from S&P as of March 31, 2025[117]

APRIL 23, 2025 FIRST QUARTER 2025 EARNINGS RELEASE INTEGRITY | RESPECT | EXCELLENCE FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES The statements in this presentation that are not historical statements, including statements regarding the 2025 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 statemen ...

For the quarter ended March 2025, Lennox International (LII) reported revenue of $1.07 billion, up 2.4% over the same period last year. EPS came in at $3.37, compared to $3.47 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.03 billion, representing a surprise of +4.19%. The company delivered an EPS surprise of +3.69%, with the consensus EPS estimate being $3.25.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Lennox International (LII) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $3.25 per share. This compares to earnings of $3.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.69%. A quarter ago, it was expected that this manufacturer of furnaces, air conditioners and other products would post earnings of $4.23 per share when it actually produced earnings of $5.60, delivering a sur ...

Q1 Highlights(All comparisons are year-over-year, unless otherwise noted) Revenue $1.1 billion, up 2% GAAP Operating Income $156 million – Segment profit down 7% to $156 million GAAP diluted EPS $3.37 – Adjusted diluted EPS down 3% to $3.37 Maintaining 2% revenue guidance and narrowing the adjusted EPS range to $22.25-$23.50DALLAS, April 23, 2025 /PRNewswire/ -- Lennox (NYSE: LII), a leader in energy-efficient climate-control solutions, today reported first quarter financial results with $1.1 billion of rev ...

The essential investments will expand customer service and training capabilities and enhance distribution infrastructure. DALLAS, April 17, 2025 /PRNewswire/ -- Lennox (NYSE: LII), a leader in the HVAC industry, is making significant investments in its distribution network and customer service and training capabilities in the Dallas—Fort Worth area. This initiative includes expanding training facilities and distribution infrastructure, reinforcing its commitment to customers and growth acceleration. Len ...

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].