Lennnox International Reports Strong Financial Growth in Latest 10-Q Filing

Lennox International Inc. reported significant financial growth in its latest 10-Q filing for the period ending September 30, 2024. Total assets increased to $3,313.2 million, up from $2,798.3 million at the end of 2023. Current assets also rose to $1,831.0 million, compared to $1,433.5 million previously. Notably, cash and cash equivalents surged to $243.1 million from $60.7 million, while accounts and notes receivable climbed to $816.5 million from $594.6 million.

The company’s net sales for the third quarter of 2024 reached $1,498.1 million, a 10% increase from $1,366.3 million in the same quarter of 2023. For the nine-month period, net sales totaled $3,996.3 million, compared to $3,827.1 million in the prior year. Operating income for Q3 2024 was $303.3 million, significantly higher than $186.8 million in Q3 2023, driven by favorable pricing and increased sales volumes. Net income for the third quarter rose to $239.0 million from $130.4 million year-over-year, with diluted earnings per share increasing to $6.68 from $3.65.

The Home Comfort Solutions segment was a key driver of growth, with Q3 2024 net sales of $1,032.8 million, up 15% from $896.3 million in Q3 2023. Segment profit also increased to $226.5 million from $181.4 million. Similarly, the Building Climate Solutions segment reported a 15% increase in net sales to $465.3 million, with profits rising to $105.9 million from $97.3 million. However, the Corporate and Other segment saw a complete decline in net sales, attributed to the divestiture of European operations in late 2023.

On the balance sheet, total current liabilities increased to $1,316.0 million from $1,014.6 million, while long-term debt decreased to $827.6 million from $1,143.1 million. Total stockholders' equity rose significantly to $754.0 million from $285.3 million, reflecting a strong retained earnings position of $3,994.0 million, up from $3,506.2 million.

Strategically, Lennox completed the acquisition of AES in October 2023, enhancing its service and sustainability offerings in the light commercial market. The company has also authorized a total of $4.0 billion for share repurchases, with $532.5 million remaining available as of September 30, 2024. The effective tax rate for the nine months ended September 30, 2024, was 19.3%, down from 21.0% in the same period of 2023, primarily due to adjustments related to the European divestiture.