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]

Financial Data and Key Metrics Changes - Lennox achieved record revenue exceeding $5 billion for the first time, with adjusted segment profit surpassing $1 billion [5][6] - Adjusted earnings per share reached $5.60 for Q4 and $22.58 for the full year, with core revenue growing 22% in Q4 and 13% for the full year [6][7] - Adjusted segment margin expanded by 250 basis points in Q4 and 150 basis points for the full year, reaching 19.4% [6][15] Business Line Data and Key Metrics Changes - Home Comfort Solutions segment reported 25% revenue growth and 67% segment profit growth, with sales volume increasing by 21% [12][13] - Building Climate Solutions segment experienced 17% revenue growth, with organic sales volume increasing by 14% [14][15] Market Data and Key Metrics Changes - The company noted a significant impact from the pre-purchase of R-410A equipment, estimated to have positively affected revenue by $125 million [12][30] - The transition to low GWP refrigerants is expected to contribute to future revenue growth, with a projected 4% increase from new product introductions [18][19] Company Strategy and Development Direction - The company is transitioning from a recovery and investment phase to a growth acceleration phase, focusing on disciplined investments while prioritizing growth [21][24] - Strategic investments in digital customer experience and expanded product offerings are aimed at capitalizing on growing demand for energy-efficient solutions [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth, anticipating revenue targets of $5.4 billion to $6 billion by 2026, despite headwinds from the 2024 pre-buy [25][26] - The company is closely monitoring market uncertainties, including interest rates and consumer confidence, which could impact future performance [56][57] Other Important Information - The company reported a free cash flow conversion rate of 97%, with capital expenditures expected to exceed depreciation by approximately $65 million [17][19] - The integration of the AES acquisition is ahead of schedule, contributing positively to the company's strategic M&A pipeline [9][10] Q&A Session Summary Question: Comments on the pre-buy impact and its implications for Q1 - Management acknowledged a $125 million pre-buy impact, which will create a headwind for Q1 revenue [30][31] Question: Flat volume outlook for the Home Comfort Solutions segment - Management cited market uncertainties, including low existing home sales and high mortgage rates, as reasons for a conservative volume outlook [32][34] Question: Guidance on incremental margins and inflation assumptions - Management indicated that inflation is expected to increase costs by approximately 3%, while maintaining a cautious approach to revenue guidance [39][41] Question: Revenue outlook for the Building Climate Solutions segment - Management expressed confidence in the health of the markets served, with expectations for mid-single-digit volume growth [46][48] Question: Insights on the new commercial facility in Mexico - Management indicated that the new facility is expected to contribute to volume growth, particularly in the second half of the year [82][84] Question: Inflationary pressures and their impact on costs - Management noted higher inflation in SG&A costs, particularly in healthcare and wages, while remaining vigilant about potential tariff impacts [91][92] Question: New construction versus replacement demand within Home Comfort Solutions - Management expects new construction to remain flattish, driven primarily by interest rates [108][109] Question: Margin dynamics by segment - Management indicated that margins are expected to be flat overall, with BCS seeing potential expansion in the second half of the year [110][111]

Core Insights - Lennox International (LII) reported quarterly earnings of $5.60 per share, exceeding the Zacks Consensus Estimate of $4.23 per share, and up from $3.63 per share a year ago [1][2] - The company achieved a revenue of $1.35 billion for the quarter, surpassing the Zacks Consensus Estimate by 8.71%, compared to $1.15 billion in the same quarter last year [3] - The stock has gained approximately 8.8% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [4] Earnings Performance - The earnings surprise for the recent quarter was 32.39%, and the company has surpassed consensus EPS estimates in all four quarters over the past year [2] - The current consensus EPS estimate for the upcoming quarter is $3.72, with expected revenues of $1.09 billion, and for the current fiscal year, the estimate is $23.19 on revenues of $5.54 billion [8] Industry Context - Lennox operates within the Zacks Building Products - Air Conditioner and Heating industry, which is currently ranked in the top 23% of over 250 Zacks industries [9] - The industry has shown a strong correlation between near-term stock movements and trends in earnings estimate revisions, indicating potential for future performance [6] Future Outlook - The estimate revisions trend for Lennox is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [7] - The upcoming earnings report from Trane Technologies, a competitor in the same industry, is anticipated to provide further context for the market [10][11]

Exhibit 99.1 Lennox Reports Fourth Quarter and Full Year 2024 Results; Provides Full Year 2025 Guidance ____________________________________________________________________________ Q4 Highlights (All comparisons are year-over-year, unless otherwise noted) (Prior-year adjusted results and core revenue exclude European operations that were divested in the 4Q 2023) 2024 Full Year Highlights (All comparisons are year-over-year, unless otherwise noted) DALLAS, January 29, 2025 – Lennox (NYSE: LII), a leader in e ...

Q4 Highlights(All comparisons are year-over-year, unless otherwise noted)(Prior-year adjusted results and core revenue exclude European operations that were divested in the 4Q 2023) Revenue $1.3 billion – Core revenue up 22%, including 1% growth from acquisitions GAAP diluted EPS $5.52 – Adjusted diluted EPS up 54% to $5.60 Net cash from operations was $332 million – Free cash flow was $273 million, up 50% 2024 Full Year Highlights(All comparisons are year-over-year, unless otherwise noted) Revenue $5.3 ...

RICHARDSON, Texas, Jan. 6, 2025 /PRNewswire/ -- Lennox (NYSE: LII), a leader in energy-efficient climate control solutions, will report fourth quarter and full year 2024 financial results before the market opens on Wednesday, January 29, 2025. The company will also provide guidance for 2025 and updated long-term targets. An earnings conference call and webcast are scheduled for the same day at 8:30 a.m. Central Time. CEO Alok Maskara and CFO Michael Quenzer will provide a summary of the company's financial ...

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Lennox International (LII) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Lennox International is a member of our Construction group, which includes 88 different companies and currently sits at #7 in the ...

Group 1 - Lennox has been included in the S&P 500 Index, recognizing its growth, innovation, and leadership in climate control solutions [1][5] - The S&P 500 Index is a key indicator of the U.S. large-cap market, comprising 500 leading companies across various sectors, with inclusion based on market capitalization and financial performance [2] - The CEO of Lennox, Alok Maskara, emphasized that this achievement reflects the success of the company's growth strategy and the trust of stakeholders, celebrating 130 years of industry leadership [3] Group 2 - Lennox is recognized as a leader in energy-efficient climate-control solutions, focusing on sustainability and creating healthier environments for residential and commercial customers [3][5] - The company is committed to innovation in HVACR products, prioritizing comfort and efficiency in its offerings [5]

Lennox was named to the Wall Street Journal's list of 2024 Best-Managed Companies, highlighting its commitment to business excellence and strategic growth. DALLAS, Dec. 19, 2024 /PRNewswire/ -- Lennox (NYSE: LII), a leading provider of innovative climate control solutions, was selected for the Wall Street Journal's prestigious list of 2024 Best-Managed Companies for the second consecutive year. The Drucker Institute developed the Management Top 250 ranking and measures corporate management by examining cust ...