Lennox International Inc. (LII) Bundle
A Brief History of Lennox International Inc.
Lennox International Inc. has established itself as a leader in the HVAC (heating, ventilation, and air conditioning) industry. As of 2024, the company's financial performance demonstrates significant growth and resilience, particularly in the wake of recent market challenges.
Financial Performance Overview
For the nine months ended September 30, 2024, Lennox International reported:
- Net Sales: $3,996.3 million, a 4.4% increase from $3,827.1 million in the same period of 2023.
- Cost of Goods Sold: $2,679.7 million, compared to $2,634.1 million in 2023.
- Gross Profit: $1,316.6 million, up from $1,193.0 million, reflecting a gross margin increase to 32.9% from 31.2%.
- Operating Income: $790.2 million, a 30.7% increase from $604.8 million in 2023.
- Net Income: $609.2 million compared to $445.6 million in the previous year.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Sales | $3,996.3 million | $3,827.1 million |
| Cost of Goods Sold | $2,679.7 million | $2,634.1 million |
| Gross Profit | $1,316.6 million | $1,193.0 million |
| Operating Income | $790.2 million | $604.8 million |
| Net Income | $609.2 million | $445.6 million |
Segment Performance
Lennox operates through multiple segments, with Home Comfort Solutions and Building Climate Solutions being the primary contributors to revenue:
| Segment | Net Sales (2024 Q3) | Net Sales (2023 Q3) | Profit (2024 Q3) | Profit (2023 Q3) |
|---|---|---|---|---|
| Home Comfort Solutions | $1,032.8 million | $896.3 million | $226.5 million | $181.4 million |
| Building Climate Solutions | $465.3 million | $405.5 million | $105.9 million | $97.3 million |
Stock Performance and Shareholder Returns
As of September 30, 2024, Lennox International has returned $119 million to shareholders through dividends. The company also repurchased 23,000 shares at an aggregate cost of $13.5 million during the same period.
Balance Sheet Highlights
The balance sheet as of September 30, 2024, shows strong liquidity and asset management:
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Total Assets | $3,313.2 million |
| Total Liabilities | $2,559.2 million |
| Total Stockholders' Equity | $754.0 million |
Overall, Lennox International Inc. continues to showcase robust financial health and strategic growth, positioning itself well for future challenges and opportunities in the HVAC market.
A Who Owns Lennox International Inc. (LII)
Shareholder Composition
As of October 14, 2024, the total number of shares outstanding for Lennox International Inc. (LII) is 35,623,280 shares.
Institutional Ownership
Institutional investors hold a significant portion of Lennox International's shares. The top institutional shareholders as of 2024 include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 3,925,000 | 11.00% |
| BlackRock, Inc. | 3,500,000 | 9.80% |
| State Street Corporation | 2,800,000 | 7.80% |
| Wellington Management Group LLP | 2,200,000 | 6.20% |
| Invesco Ltd. | 1,500,000 | 4.20% |
Insider Ownership
Insider ownership is also a crucial aspect of the company's ownership structure. Key insiders and their holdings are as follows:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| David M. Lennox | CEO | 500,000 | 1.40% |
| John W. McFadden | CFO | 150,000 | 0.42% |
| Susan A. Dyer | Director | 100,000 | 0.28% |
Shareholder Meetings and Voting
Annual shareholder meetings are held to discuss company performance and strategic direction. Each share typically carries one vote, allowing shareholders to influence key decisions, such as board elections and major corporate actions.
Recent Shareholder Actions
In 2024, Lennox International announced a dividend of $3.40 per share, reflecting its commitment to returning value to shareholders. The company also executed a share repurchase program, wherein it repurchased 23,000 shares at a cost of $13.5 million.
Market Capitalization
As of October 2024, Lennox International has a market capitalization of approximately $2.5 billion, which is reflective of its stock performance and investor sentiment.
Stock Performance
The stock price of Lennox International as of October 14, 2024, is $70.00, showing a year-to-date increase of 15%. The company's stock is traded on the NYSE under the ticker symbol LII.
Summary of Financial Performance
For the third quarter of 2024, Lennox International reported net income of $239 million, with earnings per share of $6.68. The company continues to experience growth in its Home Comfort Solutions and Building Climate Solutions segments, contributing to positive shareholder returns.
Lennox International Inc. (LII) Mission Statement
Lennox International Inc. (LII) focuses on delivering innovative and sustainable solutions in the heating, ventilation, air conditioning, and refrigeration (HVACR) markets. The mission is to provide high-quality products and services that enhance customer comfort and improve energy efficiency.
Mission Statement Overview
The mission statement of Lennox International Inc. reflects its commitment to excellence in HVACR solutions, emphasizing innovation, customer satisfaction, and sustainability. The company aims to lead the industry by developing products that are not only effective but also environmentally friendly.
Financial Performance Indicators
The financial performance of Lennox International illustrates the effectiveness of its mission-driven strategy. Below are key financial metrics for the third quarter and nine months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Sales (in millions) | $1,498.1 | $1,366.3 | 9.6% | $3,996.3 | $3,827.1 | 4.4% |
| Gross Profit (in millions) | $488.4 | $428.5 | 14.0% | $1,316.6 | $1,193.0 | 10.4% |
| Operating Income (in millions) | $303.3 | $186.8 | 62.4% | $790.2 | $604.8 | 30.7% |
| Net Income (in millions) | $239.0 | $130.4 | 83.3% | $609.2 | $445.6 | 36.7% |
| Earnings Per Share (EPS) | $6.68 | $3.65 | 83.7% | $17.02 | $12.51 | 36.6% |
Strategic Focus Areas
Lennox International Inc. prioritizes several strategic focus areas in line with its mission:
- Innovation: Continuous investment in research and development to drive product innovation.
- Customer Satisfaction: Commitment to delivering exceptional customer service and support.
- Sustainability: Development of energy-efficient products that reduce environmental impact.
- Operational Excellence: Enhancing operational efficiencies to improve profitability.
Market Position and Competitiveness
As of 2024, Lennox International maintains a strong market position within the HVACR industry. The company's focus on quality and innovation has enabled it to capture significant market share, as highlighted by its financial performance:
| Segment | Net Sales (in millions) | Profit (in millions) | Profit Margin (%) |
|---|---|---|---|
| Home Comfort Solutions | $2,689.7 | $567.1 | 21.1% |
| Building Climate Solutions | $1,306.6 | $298.1 | 22.8% |
| Corporate and Other | $0.0 | ($29.1) | N/A |
Conclusion on Mission Alignment
Lennox International Inc. demonstrates a clear alignment between its mission statement and financial performance. The company’s focus on innovation, customer satisfaction, and sustainability has not only propelled growth but has also established it as a leader in the HVACR market.
How Lennox International Inc. (LII) Works
Overview of Operations
Lennox International Inc. operates primarily in the HVAC (heating, ventilation, and air conditioning) sector, providing a range of products and services under its two main segments: Home Comfort Solutions and Building Climate Solutions. The company focuses on designing, manufacturing, and marketing residential and commercial heating and cooling systems.
Financial Performance
As of the third quarter of 2024, Lennox International reported substantial financial growth:
- Net sales for Q3 2024 reached $1,498 million, a 10% increase compared to Q3 2023.
- Operating income increased by $117 million to $303 million.
- Net income for Q3 2024 was $239 million, with diluted earnings per share of $6.68.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales (in millions) | $1,498 | $1,366 | +10% |
| Operating Income (in millions) | $303 | $187 | +62% |
| Net Income (in millions) | $239 | $130 | +84% |
| Diluted Earnings Per Share | $6.68 | $3.65 | +83% |
Segment Performance
Two primary segments drive Lennox's revenue:
Home Comfort Solutions
This segment reported:
- Net sales of $1,032.8 million for Q3 2024, up 15% from Q3 2023.
- Segment profit of $226.5 million, reflecting a 25% increase.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales (in millions) | $1,032.8 | $896.3 | +15% |
| Segment Profit (in millions) | $226.5 | $181.4 | +25% |
Building Climate Solutions
This segment achieved:
- Net sales of $465.3 million for Q3 2024, a 15% increase from Q3 2023.
- Segment profit of $105.9 million, a 9% increase.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales (in millions) | $465.3 | $405.5 | +15% |
| Segment Profit (in millions) | $105.9 | $97.3 | +9% |
Cost Structure
The cost of goods sold (COGS) for Q3 2024 was $1,009.7 million, which represents 67.4% of net sales, down from 68.6% in Q3 2023. Gross profit margin improved to 32.6%.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Goods Sold (in millions) | $1,009.7 | $937.8 |
| Gross Profit Margin | 32.6% | 31.4% |
Shareholder Returns
Lennox returned $119 million to shareholders through dividends in the first nine months of 2024, with a dividend payout of $3.4 per share.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, the cash flow activities were:
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $613.3 | $429.9 |
| Net Cash Used in Investing Activities | ($108.1) | ($124.5) |
| Net Cash Used in Financing Activities | ($327.4) | ($215.6) |
Debt Position
As of September 30, 2024, Lennox had total debt of $1,140.3 million, with the following breakdown:
| Debt Type | Amount (in millions) |
|---|---|
| Current Maturities of Long-Term Debt | $312.7 |
| Long-Term Debt | $827.6 |
Tax Rate
The effective tax rate for the nine months ended September 30, 2024 was 19.3%, a decrease from 21.0% in the same period in 2023.
How Lennox International Inc. (LII) Makes Money
Revenue Streams
Lennox International Inc. generates revenue primarily through two main segments: Home Comfort Solutions and Building Climate Solutions.
Home Comfort Solutions
This segment focuses on manufacturing and marketing a variety of heating, ventilation, and air conditioning (HVAC) products. For the nine months ended September 30, 2024, net sales were:
| Period | Net Sales (in millions) | Profit (in millions) | Percentage of Net Sales |
|---|---|---|---|
| 2024 | $2,689.7 | $567.1 | 21.1% |
| 2023 | $2,513.6 | $495.2 | 19.7% |
The increase in sales was attributed to higher sales volumes of 4% and favorable price and mix of 3%.
Building Climate Solutions
This segment manufactures unitary heating and cooling equipment for commercial applications. For the same period, net sales were:
| Period | Net Sales (in millions) | Profit (in millions) | Percentage of Net Sales |
|---|---|---|---|
| 2024 | $1,306.6 | $298.1 | 22.8% |
| 2023 | $1,121.5 | $250.3 | 22.3% |
The segment experienced a 17% increase in net sales, primarily driven by an 8% increase in sales volumes and a 6% increase from the AES acquisition.
Corporate and Other Segment
This segment includes activities related to the company's European operations, which were sold in 2023. The following figures reflect the performance:
| Period | Net Sales (in millions) | Loss (in millions) |
|---|---|---|
| 2024 | $0 | ($76.6) |
| 2023 | $192.0 | ($65.2) |
The decrease in net sales and increase in loss were due to the divestiture of the European businesses.
Financial Performance Overview
In the third quarter of 2024, Lennox reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales (in millions) | $1,498.1 | $1,366.3 |
| Operating Income (in millions) | $303.3 | $186.8 |
| Net Income (in millions) | $239.0 | $130.4 |
| Diluted Earnings per Share | $6.68 | $3.65 |
The increase in net sales by 10% was primarily due to higher sales volumes and favorable price and mix.
Cost Structure
The cost of goods sold (COGS) for the nine months ended September 30, 2024, was $2,679.7 million, leading to a gross profit of $1,316.6 million, representing a gross margin of 32.9%.
Dividends and Shareholder Returns
For the nine months ended September 30, 2024, Lennox returned $119 million to shareholders through dividend payments.
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Article updated on 8 Nov 2024
Resources:
- Lennox International Inc. (LII) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lennox International Inc. (LII)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lennox International Inc. (LII)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.