Lennox International Reports 7% Increase in Net Sales to $5.34 Billion for Fiscal Year 2024

Lennox International Inc. reported a 7% increase in net sales for the fiscal year 2024, reaching $5.34 billion compared to $4.98 billion in 2023. The company's operating income rose significantly to $1.03 billion, up from $790 million the previous year, while net income also saw a substantial increase to $807 million from $590 million. This growth translated to diluted earnings per share of $22.54, compared to $16.54 in 2023. The company generated $946 million in cash flow from operating activities, an increase from $736 million in the prior year.

The Home Comfort Solutions segment experienced an 11% increase in net sales, totaling $3.58 billion, driven by favorable pricing and higher sales volumes. The Building Climate Solutions segment reported a 17% increase in net sales to $1.76 billion, benefiting from similar pricing dynamics. Notably, the transition to low global warming potential (GWP) refrigerants led to pre-purchases of R-410A equipment, contributing an estimated $125 million to revenue. The divestiture of European operations in late 2023, previously included in the Corporate and Other segment, resulted in a complete absence of sales from that segment in 2024.

Strategically, Lennox completed the acquisition of AES Industries in October 2023, enhancing its Building Climate Solutions segment. This acquisition is expected to bolster service offerings and sustainability initiatives in the light commercial market. The company continues to focus on expanding its sales force and enhancing customer experience through digital innovations, while also improving fulfillment rates for HVAC equipment and increasing attachment rates for parts and accessories.

Operationally, Lennox employed approximately 14,200 individuals as of December 31, 2024, with a mix of salaried and hourly workers. The company reported a strong focus on employee retention and development, with ongoing efforts to address turnover, particularly in manufacturing and distribution roles. The company’s commitment to sustainability and compliance with evolving environmental regulations remains a priority, as it navigates the complexities of the HVACR market.

Looking ahead, Lennox anticipates continued growth driven by strategic investments and operational efficiencies. The company aims to maintain resilient profit margins through effective pricing strategies and productivity enhancements. However, it acknowledges potential risks, including market competition, supply chain disruptions, and regulatory changes, which could impact future performance.