Lennox International, Inc. · NYSE:LII
Lennox International — Q1 2025 Earnings Presentation
14 slides from Lennox International's earnings presentation, Apr 23, 2025
Slide 1: First Quarter 2025 Earnings Release
INTEGRITY | RESPECT | EXCELLENCE FIRST QUARTER 2025 EARNINGS RELEASE APRIL 23, 2025
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES The statements in this presentation that are not historical statements, including statements regarding the 2025 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forwa
Slide 3: Q1 2025 Financial Highlights
Q1 2025 FINANCIAL HIGHLIGHTS Navigating regulatory transition and mitigating tariff impacts REVENUE SEGMENT SEGMENT PROFIT * PROFIT MARGIN * $1.1B $156 14.5% Narrowing Guidance +2% YoY (7%) YoY (140 bps) YoY Full Year Adjusted ADJUSTED EPS OPERATING Net Debt/ * Earnings Per Share* CASH FLOW Adj. EBI
Slide 4: Economic Outlook
ECONOMIC OUTLOOK Geographic Cost* Profile *Total Cost = COGS + SG&A HOME • Higher costs & inflation driven by tariffs COMFORT China SOLUTIONS • New home construction impacted by China higher mortgage rates X% ~5% United States ~70% • Uncertain consumer confidence • Potential repair vs replace shift
Slide 5: Q1 2025 Lennox Results
Q1 2025 LENNOX RESULTS REVENUE SEGMENT PROFIT* (US$ MILLIONS) (US$ MILLIONS) +2% ($11M) or (7%) 5% 0% $1,073 $1,047 +1% Adjusted (4%) +$40 EPS* $3.37 or (3%) $167 $156 ($29) ($12) ($10) Solid execution despite ROS ROS regulatory transition and 15.9% 14.5% tariff impacts Pricing actions underway to m
Slide 6: Q1 2025 Home Comfort Solutions
Q1 2025 HOME COMFORT SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $721 $675 $112 $117 Volume: Destocking pushing to Q2 ROS ROS 16.6% 16.2% Mix: R-454B transition progressing well Product Cost: Tariff/commodity costs and prior year warranty benefit 2024 2025 2024 2025 Other Cost: Di
Slide 7: Q1 2025 Building Climate Solutions
Q1 2025 BUILDING CLIMATE SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $373 $351 $78 $54 Volume: R-454B transition timing, ROS ROS but good backlog visibility 21.0% 15.2% Product Cost: Factory inefficiencies and tariff/commodity costs 2024 2025 2024 2025 Other: Investments in front-
Slide 8: Cash Flow and Capital Deployment
CASH FLOW AND CAPITAL DEPLOYMENT 500 94% 97% 96% 100% CASH CONVERSION 400 300 81% 90% Free cash conversion above 90% (TTM) Inventory growth to improve fulfillment rates 80% 200 83% • 100 70% OPERATING CASH FLOW 0 • Accounts Payable terms 60% (US$ MILLIONS) Accounts Receivable collections processes -
Slide 9: 2025 Financial Guidance
2025 FINANCIAL GUIDANCE REVENUE OTHER GUIDANCE ITEMS Prior Guide Prebuy Volume Price Mix Total Inflation ~9% ~3% Home Comfort (MSD) (MSD) + HSD + MSD ~ Flat Solutions COST Investments ~$25M ~$25M ∆ YoY Building Climate Productivity/ (LSD) (LSD) + MSD + LSD + ~6% ~($75M) ~($50M) Solutions Cost Action
Slide 10: Attractive Investment Opportunity
ATTRACTIVE INVESTMENT OPPORTUNITY Execution Consistency and Disciplined Capital Deployment Advanced Technology Resilient Margin Solutions with Business Focused on Direct-to-Dealer Network Sustainable HVACR Talent & Culture Driven by Growth End Core Values, Guiding Markets with Strong Behaviors and P
Slide 11: Thank You!
INTEGRITY | RESPECT | EXCELLENCE THANK YOU!
Slide 12: Revenue and Segment Profit
REVENUE AND SEGMENT PROFIT Change Year-over-Year Net Sales Q1 2025 Q1 2024 Volume Price Mix Other Total Home Comfort Solutions $ 721 $ 675 - 2% 5% - 7% Building Climate Solutions 351 373 (9%) 1% 2% - (6%) Net sales, a GAAP measure $ 1,073 $ 1,047 (4%) 1% 5% - 2% Product Segment Profit (1) Q1 2025 Q1
Slide 13: Net Debt to Adjusted EBITDA
NET DEBT TO ADJUSTED EBITDA For the Twelve Months Ended March 31, (Unaudited) 2025 2024 Income before taxes, a GAAP Measure $ 988.0 $ 766.6 Items in losses (gains) and other expenses, net before taxes - 12.6 Restructuring charges, before tax - 3.1 Interest expense, net 33.1 49.3 Pension settlements,
Slide 14: Free Cash Flow & FCF Conversion
FREE CASH FLOW & FCF CONVERSION For the Three Months Ended March 31, For the Twelve Months Ended (Unaudited) (Unaudited) 2025 2024 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Net Cash provided by operating activities, a GAAP measure $ (35.8) $ (22.8) $ 792.2 $ 780.7 $ 919.6 $ 945.7 $ 932.7 Purchases of