| --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | FORWARD-LOOKING STATEMENTS The statements in this presentation that are not historical statements, including statements regarding the 2022 full-year outlook and expected consolidated and segment financial results for 2022, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available as w ...

| --- | --- | --- | --- | --- | |----------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | Second Quarter 2022 Earnings Conference Call | | | | | | July 28, 2022 | | | | | FORWARD-LOOKING STATEMENTS The statements in this presentation that are not historical statements, including statements regarding the 2022 full-year outlook and expected consolidated and segment financial results for 2022, are forward-looking statements within the meaning of the Private Secu ...

Financial Data and Key Metrics Changes - The company reported record revenue of $1.37 billion, up 10% year-over-year, and up 11% at constant currency [20] - GAAP operating income reached a record $227 million, up 5%, while total segment profit rose 4% to a new record of $230 million [21] - Adjusted EPS was a record $5, up 9%, with GAAP EPS at $4.96, also up 10% [21] Business Segment Data and Key Metrics Changes - Residential segment revenue was a record $978 million, up 17%, with price up 13% and volume up 5% [22] - Commercial segment revenue decreased to $220 million, down 13%, with volume down 22% and segment profit down 62% to $17 million [24] - Refrigeration segment revenue was $169 million, up 14%, with profit rising 73% to $23 million [26][27] Market Data and Key Metrics Changes - The company anticipates low-single-digit shipment growth in the North American Residential market and mid-single-digit growth in the North American Commercial unitary and Refrigeration markets [28] - Order rates and backlog in the Refrigeration segment remained strong, particularly in North America, despite geopolitical challenges affecting European operations [27] Company Strategy and Development Direction - The company is focused on innovation and ESG, having completed the Department of Energy's Cold Climate Heat Pump Challenge [13][14] - A disciplined capital allocation strategy was highlighted, with $100 million in stock repurchases and $33 million in dividends paid during the quarter [12] - The company is committed to expanding its manufacturing capabilities and exploring bolt-on opportunities for growth within the HVACR sector [81][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential economic slowdowns but noted strong demand continues to exceed supply capabilities [37][38] - Commodity inflation is easing, and ongoing productivity initiatives are expected to positively impact the business as supply chains normalize [39] - The company is prepared for potential declines in residential new construction but has contingency plans in place [37] Other Important Information - The company raised its full-year revenue growth guidance to 10% to 15% from a prior range of 7% to 11% [28] - The effective tax rate is expected to remain between 18% to 20% for the full year [33] Q&A Session Summary Question: Thoughts on commercial business margin improvement - Management indicated that while they are seeing sequential improvements, it is too early to provide specific margin exit rates for the commercial segment [46][47] Question: Earnings weighting between Q3 and Q4 - Management suggested that pricing and cost dynamics would mirror the earnings split, with a return to more normal seasonality expected [48][50] Question: Supply chain headwinds and labor updates - Management confirmed that labor issues are under control, but component availability remains a significant challenge [56][58] Question: SEER change impact on pricing - Management stated they are fully prepared for the SEER change and expect to capture the full value in pricing, with no significant stock-up anticipated [61][62] Question: Long-term financial guidance - Management affirmed their commitment to mid-single-digit sales growth and 30% incrementals, with no changes expected [68] Question: Commodity cost impacts - Management noted that benefits from easing commodity costs are likely to be realized in 2023 due to existing inventory and hedging strategies [69][70] Question: Share gain strategies - Management emphasized restoring manufacturing capabilities and expanding dealer networks as key strategies for regaining market share [86][88]

[Part I Financial Information](index=3&type=section&id=Part%20I%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Lennox International Inc.'s unaudited consolidated financial statements, highlighting increased revenue and net income, but a significant decrease in operating cash flow due to working capital changes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$2,659.0 million** by June 30, 2022, driven by receivables and inventories, while liabilities also rose, leading to an increased stockholders' deficit Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2022 (Unaudited) | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $1,629.1 | $1,175.4 | | Accounts and notes receivable, net | $782.6 | $508.3 | | Inventories, net | $692.8 | $510.9 | | **Total Assets** | **$2,659.0** | **$2,171.9** | | **Total Current Liabilities** | $967.7 | $827.1 | | Long-term debt | $1,681.5 | $1,226.5 | | **Total Liabilities** | **$3,060.3** | **$2,440.9** | | **Total Stockholders' Deficit** | **($401.3)** | **($269.0)** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2022, net sales increased to **$1,366.3 million** and net income rose to **$177.2 million**, or **$4.96** per diluted share, compared to the prior-year period Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,366.3 | $1,239.0 | $2,379.7 | $2,169.4 | | **Gross Profit** | $397.1 | $383.2 | $665.3 | $639.7 | | **Operating Income** | $226.9 | $216.0 | $338.8 | $330.0 | | **Net Income** | $177.2 | $170.0 | $260.8 | $254.2 | | **Diluted EPS** | $4.96 | $4.51 | $7.23 | $6.70 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$0.8 million** for H1 2022, a sharp decline from the prior year, mainly due to unfavorable working capital changes Cash Flow Summary - Six Months Ended June 30 (in millions) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(0.8) | $174.5 | | Net cash used in investing activities | $(46.2) | $(42.6) | | Net cash provided by (used in) financing activities | $75.4 | $(210.8) | | **Increase (decrease) in cash** | **$28.4** | **$(78.9)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail segment performance, revenue recognition, stock repurchases, and debt structure, with Residential segment driving growth and increased total debt Segment Performance - Six Months Ended June 30 (in millions) | Segment | Net Sales 2022 | Net Sales 2021 | Segment Profit 2022 | Segment Profit 2021 | | :--- | :--- | :--- | :--- | :--- | | Residential Heating & Cooling | $1,659.6 | $1,444.2 | $324.0 | $286.1 | | Commercial Heating & Cooling | $407.3 | $452.0 | $23.5 | $72.6 | | Refrigeration | $312.8 | $273.2 | $37.5 | $21.4 | - In H1 2022, the company executed two accelerated share repurchase (ASR) transactions: a **$200.0 million** ASR with Wells Fargo completed in April and a **$100.0 million** ASR with Bank of America completed in June[49](index=49&type=chunk)[50](index=50&type=chunk) Total Debt Summary (in millions) | Debt Category | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Asset securitization program | $400.0 | $250.0 | | Credit Agreement | $308.5 | $6.5 | | Senior unsecured notes | $950.0 | $950.0 | | **Total Debt** | **$1,693.3** | **$1,237.8** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2022 financial results, noting a **10.3%** net sales increase driven by pricing, but a **180 bps** gross margin decline due to cost inflation [Consolidated Results of Operations](index=23&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2022 net sales rose **10.3%** to **$1,366.3 million** due to pricing, but gross profit margin contracted **180 basis points** to **29.1%** from rising costs Q2 2022 vs Q2 2021 Consolidated Results (in millions) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,366.3 | $1,239.0 | 10.3% | | Gross Profit | $397.1 | $383.2 | 3.6% | | Gross Margin | 29.1% | 30.9% | -180 bps | | Operating Income | $226.9 | $216.0 | 5.0% | - The decrease in Q2 gross margin was primarily caused by higher costs across commodities (**-250 bps**), other product costs (**-200 bps**), components (**-150 bps**), and freight (**-100 bps**), which were only partially offset by favorable pricing (**+710 bps**)[101](index=101&type=chunk) [Results by Segment](index=25&type=section&id=Results%20by%20Segment) Q2 2022 saw Residential sales grow **16.6%**, Commercial sales fall **13.1%** due to supply constraints, and Refrigeration sales increase **14.2%** with surging profit Q2 2022 Segment Performance (in millions) | Segment | Net Sales | % Change YoY | Profit | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | Residential Heating & Cooling | $977.5 | 16.6% | $216.3 | 14.0% | | Commercial Heating & Cooling | $219.6 | (13.1)% | $17.2 | (62.0)% | | Refrigeration | $169.2 | 14.2% | $23.4 | 73.3% | - The Commercial segment's profit decline was attributed to lower sales volume from supply chain constraints, higher product and component costs, and unfavorable factory productivity[110](index=110&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) H1 2022 operating cash flow turned negative, total debt increased to **$1,693.3 million**, and **$367 million** was returned to shareholders through repurchases and dividends - Net cash used in operating activities was **$(0.8) million** for H1 2022, compared to **$174.5 million** provided in H1 2021, reflecting less favorable changes in working capital[132](index=132&type=chunk) - In the first six months of 2022, the company returned a total of **$367 million** to shareholders through **$300 million** in stock repurchases and **$67 million** in dividend payments[98](index=98&type=chunk)[134](index=134&type=chunk) - The company's debt-to-total-capital ratio increased to **131%** at June 30, 2022, from **128%** at December 31, 2021[139](index=139&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposure since the end of fiscal year 2021 - There have been no material changes in the company's market risk exposure since December 31, 2021[145](index=145&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2022, disclosure controls were effective, with no material changes in internal control over financial reporting during the quarter - Management concluded that as of June 30, 2022, the company's disclosure controls and procedures were effective at a reasonable assurance level[147](index=147&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[148](index=148&type=chunk) [Part II Other Information](index=32&type=section&id=Part%20II%20Other%20Information) [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various claims and lawsuits, but management expects no material adverse effect on its financial position or results - Management is of the opinion that ongoing claims and lawsuits will not have a material adverse effect on the company's financial condition or results of operations[149](index=149&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since those disclosed in the 2021 Form 10-K - No material changes to the company's risk factors have occurred since those disclosed in the 2021 Form 10-K[150](index=150&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2022, **622,881** shares were repurchased, leaving **$546.0 million** available for future repurchases under the authorized plan Share Repurchases in Q2 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2022 | 136,728 | $260.17 | | May 2022 | 394,940 | $206.13 | | June 2022 | 91,213 | $206.10 | | **Total Q2** | **622,881** | - | - As of the end of June 2022, approximately **$546.0 million** remained available for repurchase under the company's share repurchase plans[151](index=151&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, debt indentures, and officer certifications - The report includes key exhibits such as corporate governance documents, debt indentures, a list of guarantor subsidiaries, and certifications from the principal executive and financial officers[152](index=152&type=chunk)

Part I [Part I Financial Information](index=3&type=section&id=Part%20I%20Financial%20Information) This section covers the company's financial statements, notes, and management's discussion and analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q1 2022, showing increased net sales and total assets, but higher cash used in operations [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2022 statements show asset growth, increased net sales, but decreased operating income and higher cash used in operations Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $1,437.2 | $1,175.4 | | Inventories, net | $678.9 | $510.9 | | **Total Assets** | **$2,456.9** | **$2,171.9** | | Total Current Liabilities | $859.4 | $827.1 | | Long-term debt | $1,599.5 | $1,226.5 | | **Total Liabilities** | **$2,867.1** | **$2,440.9** | | Total Stockholders' Deficit | ($410.2) | ($269.0) | Consolidated Statement of Operations Highlights (in millions, except per share data) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Sales | $1,013.4 | $930.5 | | Gross Profit | $268.2 | $256.5 | | Operating Income | $111.9 | $114.1 | | Net Income | $83.6 | $84.2 | | Diluted EPS | $2.29 | $2.20 | Consolidated Statement of Cash Flows Highlights (in millions) | Cash Flow Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($97.9) | ($17.5) | | Net cash used in investing activities | ($25.7) | ($23.8) | | Net cash provided by (used in) financing activities | $129.1 | ($45.5) | [Notes to Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail segment performance, increased total debt to **$1.61 billion** for share repurchases, and rising warranty liabilities Segment Performance - Q1 2022 vs Q1 2021 (in millions) | Segment | Net Sales Q1 2022 | Net Sales Q1 2021 | Segment Profit Q1 2022 | Segment Profit Q1 2021 | | :--- | :--- | :--- | :--- | :--- | | Residential Heating & Cooling | $682.2 | $606.3 | $107.6 | $96.4 | | Commercial Heating & Cooling | $187.7 | $199.2 | $6.3 | $27.4 | | Refrigeration | $143.5 | $125.0 | $14.1 | $7.9 | - In February 2022, the company initiated a **$200.0 million** accelerated share repurchase (ASR) agreement[48](index=48&type=chunk)[49](index=49&type=chunk) - As of March 31, 2022, **$646 million** remained available for repurchase under its authorized plans[48](index=48&type=chunk)[49](index=49&type=chunk) Total Debt Obligations (in millions) | Debt Category | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Current maturities of long-term debt | $11.8 | $11.3 | | Long-term debt | $1,599.5 | $1,226.5 | | **Total debt** | **$1,611.3** | **$1,237.8** | - Total product warranty liability increased to **$143.2 million** as of March 31, 2022, up from **$134.2 million** at the end of 2021[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights an **8.9%** net sales increase in Q1 2022, offset by a **1.9%** operating income decrease due to cost pressures [Financial Overview & Consolidated Results](index=22&type=section&id=Financial%20Overview%20%26%20Consolidated%20Results) Consolidated Q1 2022 results show net sales up **8.9%** but operating income down **1.9%**, with gross margin contracting due to higher costs Consolidated Results Summary - Q1 2022 vs Q1 2021 (in millions) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $1,013.4 | $930.5 | 8.9% | | Gross profit | $268.2 | $256.5 | 4.6% | | Operating income | $111.9 | $114.1 | (1.9)% | - Gross profit margin declined by **110 bps**, driven by higher costs for commodities (**300 bps**), components (**190 bps**), and freight (**120 bps**), partially offset by favorable pricing (**600 bps**)[106](index=106&type=chunk) - In Q1 2022, the company returned **$34 million** to shareholders through dividends and repurchased **$200 million** of common stock[103](index=103&type=chunk) [Results by Segment](index=24&type=section&id=Results%20by%20Segment) Q1 2022 segment results show strong growth in Residential and Refrigeration, while Commercial experienced significant sales and profit declines Residential Heating & Cooling Performance (in millions) | Metric | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $682.2 | $606.3 | 12.5% | | Profit | $107.6 | $96.4 | 11.6% | Commercial Heating & Cooling Performance (in millions) | Metric | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $187.7 | $199.2 | (5.8)% | | Profit | $6.3 | $27.4 | (77.0)% | Refrigeration Performance (in millions) | Metric | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $143.5 | $125.0 | 14.8% | | Profit | $14.1 | $7.9 | 78.5% | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity was impacted by increased working capital needs, leading to higher cash used in operations and a rise in total debt to **$1.61 billion** - Net cash used in operating activities increased to **$97.9 million** in Q1 2022 from **$17.5 million** in Q1 2021, reflecting less favorable changes in working capital[122](index=122&type=chunk) - Total debt stood at **$1,611.3 million** as of March 31, 2022, with **$400.5 million** available for future borrowings on the domestic credit facility[125](index=125&type=chunk) - The debt-to-total-capital ratio increased to **134%** at March 31, 2022, from **128%** at December 31, 2021[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk exposure have occurred since the December 31, 2021 Annual Report - There has been no material change in the company's market risk exposure since December 31, 2021[137](index=137&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting - Management concluded that as of March 31, 2022, the company's disclosure controls and procedures were effective in providing reasonable assurance[138](index=138&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[139](index=139&type=chunk) Part II [Part II Other Information](index=28&type=section&id=Part%20II%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material adverse effect on the company's financial position, results, or cash flows - Management is of the opinion that none of the ongoing claims or lawsuits will have a material adverse effect on the company's financial condition, results, or cash flows[140](index=140&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the December 31, 2021 Annual Report on Form 10-K - There have been no material changes to the company's risk factors from those disclosed in the 2021 Annual Report on Form 10-K[141](index=141&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2022, the company repurchased **650,415** shares, including an ASR, with **$646.0 million** remaining for future repurchases Share Repurchases in Q1 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 1 - Jan 31 | 105 | $276.78 | | Feb 1 - Feb 28 | 617,251 | $275.51 | | Mar 1 - Mar 31 | 33,059 | $263.59 | | **Total Q1** | **650,415** | **N/A** | - As of March 31, 2022, approximately **$646.0 million** remained available for purchase under the company's share repurchase plans[142](index=142&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, debt indentures, and officer certifications - The filing includes key exhibits such as debt indentures, an employment agreement for CEO Alok Maskara, and required officer certifications (31.1, 31.2, 32.1)[143](index=143&type=chunk)

Financial Data and Key Metrics Changes - Company revenue for Q1 2022 reached a record $1.01 billion, up 9% year-over-year. GAAP operating income was $112 million, down 2%, while GAAP EPS was a record $2.29, up 4%. Total segment profit was $115 million, down 1%, with a total segment margin of 11.3%, down 110 basis points. Adjusted EPS was a record $2.36, up 4% [10][11][22]. Business Line Data and Key Metrics Changes - **Residential Business**: Revenue increased 11% to a record $682 million, with segment profit up 12% to $108 million. Segment margin decreased 10 basis points to 15.8% [11][24]. - **Refrigeration Business**: Revenue grew 15% to $144 million, with segment profit rising 78% to $14 million. Segment margin expanded 350 basis points to 9.8% [12][27]. - **Commercial Business**: Revenue decreased 6%, with segment profit down 77% to $6 million. Segment margin contracted 1040 basis points to 3.4% [13][26]. Market Data and Key Metrics Changes - North American refrigeration revenue grew over 20%, while European refrigeration revenue saw low single-digit growth. European HVAC revenue increased high single digits as reported [12][27]. Company Strategy and Development Direction - The company is focused on driving growth and profitability, with plans for $400 million in stock repurchases in 2022. The new CEO, Alok Maskara, is expected to lead the company in maximizing shareholder value while maintaining the existing performance culture [8][22][71]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the commercial business due to labor constraints and supply chain disruptions. They expect improvements in profitability by the end of Q2 2022 as production increases and labor issues are addressed [42][20]. The company raised its revenue growth guidance for 2022 from 5%-10% to 7%-11% and reiterated EPS guidance of $13.50 to $14.50 [22][31]. Other Important Information - The company captured $85 million in price increases in Q1, with expectations to capture approximately $335 million for the full year, up from prior guidance of $235 million [21][32]. Q&A Session Summary Question: Challenges in Commercial business and margin recovery timeline - Management indicated that recovery in margins will take time, likely improving by the end of Q2 as production increases and labor issues are resolved [41][42]. Question: Sustainability of strong performance in Residential business - Management expressed confidence in continued strength in Residential demand, with strong order rates and backlog [43]. Question: Earnings seasonality and margin expectations - Management expects a closer to 50/50 split in earnings between the first and second halves of the year, with overall margins expected to improve [46][47]. Question: Inventory dynamics in the market - Management noted that distributors are hoarding inventory due to fears of supply shortages, while dealers maintain normal inventory levels [49]. Question: Structural changes in Commercial business - Management is considering a multi-location manufacturing strategy to enhance capacity and flexibility in the Commercial business [57]. Question: Changes under new leadership - Management emphasized that the new CEO will take time to learn the business and will focus on maintaining the existing high-performance culture while exploring opportunities for growth [71][72]. Question: Labor inflation and hiring strategies - Management has raised wages significantly in Arkansas to attract a broader pool of talent, with early signs of success in hiring more experienced workers [114][115]. Question: Pricing contributions by segment - Pricing contributions are expected to be higher in the Residential segment compared to the overall company average, with Commercial expected to be slightly below average due to ongoing challenges [80]. Question: Impact of furnace and heat pump sales on mix - Management confirmed that sales of higher-margin products like furnaces positively impact the mix in Residential [105]. Question: Strategic direction under new CEO - Management indicated that while the new CEO has the freedom to explore strategic changes, any significant shifts will be based on creating shareholder value [119].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to ______ Commission File Number 001-15149 LENNOX INTERNATIONAL INC. (Exact name of Registrant as specified in its charter) Delaware 42-0991521 (State or other jurisdict ...

Lennox International Inc. (NYSE:LII) Q4 2021 Earnings Conference Call February 1, 2022 9:30 AM ET Company Participants Todd Bluedorn - Chairman & Chief Executive Officer Steve Harrison - Vice President of Investor Relations Joseph Reitmeier - Executive Vice President & Chief Financial Officer Conference Call Participants Nicole DeBlase - Deutsche Bank Julian Mitchell - Barclays Jeff Hammond - KeyBanc Capital Markets Ryan Merkel - William Blair Tommy Moll - Stephens Gautam Khanna - Cowen Nigel Coe - Wolfe Re ...

Lennox International (NYSE:LII) Q3 2021 Earnings Conference Call October 25, 2021 9:30 AM ET Company Participants Steve Harrison - Vice President of Investor Relations Todd Bluedorn - Chairman & Chief Executive Officer Joseph Reitmeier - Executive Vice President & Chief Financial Officer Conference Call Participants Julian Mitchell - Barclays Jeff Hammond - KeyBanc Capital Markets Jeff Sprague - Vertical Research Partners Ryan Merkel - William Blair Josh Pokrzywinski - Morgan Stanley Patrick Baumann - JPMor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 _________________________________________________ FORM 10-Q _________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to ______ Commission file number 001-15149 ________________ ...