Lennox shares fall over 3% despite Q4 earnings beat, cautious 2025 outlook

Published 29/01/2025, 13:40
Lennox shares fall over 3% despite Q4 earnings beat, cautious 2025 outlook

DALLAS - Lennox International Inc. (NYSE:LII) reported fourth quarter earnings that surpassed analyst expectations, but shares fell 3.10% as the company provided a cautious outlook for 2025.

The heating, ventilation and air conditioning (HVAC) manufacturer posted adjusted earnings per share of $5.60 for Q4, significantly beating the analyst consensus of $4.15. Revenue came in at $1.3 billion, also topping estimates of $1.23 billion.

Lennox’s core revenue grew 22% year-over-year to $1.3 billion in Q4. The company’s adjusted segment profit rose 41% to $248 million, with adjusted segment margin expanding 250 basis points to a record 18.4%.

"2024 was a remarkable year filled with record achievements, and last quarter continued that momentum as we delivered impressive results across the board," said CEO Alok Maskara. He noted the company’s progress in cash conversion and successful navigation of the complex product transition to new refrigerants.

For the full year 2024, Lennox reported revenue of $5.3 billion, up 13% for core operations. Adjusted earnings per share rose 26% to $22.58.

Looking ahead, Lennox provided a cautious outlook for 2025, forecasting adjusted earnings per share in the range of $22.00 to $23.50. This guidance range straddles the current analyst consensus of $23.21.

The company expects core revenue to increase by approximately 2% in 2025, primarily driven by the mix of new refrigerant products and low single-digit increases in price and volume. Lennox noted that volume expectations were tempered by the effects of pre-buying for legacy refrigerant products in 2024.

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