Lennox reported fourth-quarter revenue of $1.3 billion, a 16% year-over-year increase, with core revenue up 22%, including 1% growth from acquisitions. Operating income reached a record $245 million, up 32%, while GAAP diluted earnings per share (EPS) rose to $5.52. Adjusted diluted EPS increased 54% to $5.60.
Net cash from operations totaled $332 million, with free cash flow rising 50% to $273 million.
Segment Performance:
For the full year, Lennox achieved revenue of $5.3 billion, reflecting a 7% increase, with core revenue up 13%, including 2% growth from acquisitions. Operating income reached $1.0 billion, up 31%, while GAAP diluted EPS rose 36% to $22.54. Adjusted EPS increased 26% to $22.58.
The company generated $946 million in operating cash flow, with free cash flow up 61% to $785 million. Capital expenditures were $161 million, down from $248 million in 2023.
CEO Alok Maskara highlighted Lennox’s operational progress:
"2024 was a remarkable year filled with record achievements, and last quarter continued that momentum as we delivered impressive results across the board. Our significant progress in cash conversion reflects a relentless focus on operational excellence. We successfully navigated the complex product transition to the new refrigerant while maintaining a disciplined approach to M&A. These accomplishments not only highlight the strength of our execution but also reinforce our confidence in driving differentiated growth and creating long-term value for our stakeholders."
Lennox expects core revenue growth of approximately 2% in 2025, influenced by the transition to new refrigerants and the impact of pre-buy activity for legacy refrigerant products in 2024. Adjusted EPS is forecasted to be between $22.00 and $23.50.
Capital expenditures are projected at $150 million, with free cash flow expected to range between $650 million and $800 million.
Lennox remains focused on driving long-term growth through product innovation, operational efficiencies, and strategic investments.