DALLAS, Dec. 14,
2022 /PRNewswire/ -- Lennox International Inc.
(NYSE: LII), a leader in energy-efficient climate-control
solutions, today announced 2023 financial guidance and long-term
financial targets for 2026.
For the full year of 2023, the company expects:
- Core revenue growth of 0-4%, excluding the impact of the
planned divestiture of the European operations
- GAAP and adjusted EPS of $14.25-$15.25
- Corporate expenses of approximately $80
million
- Interest expense of $55-$60
million
- An effective tax rate of 19-21% on an adjusted basis
- Capital expenditures of approximately $250 million, including investments in the new
Commercial manufacturing facility and investments for the upcoming
refrigerant regulatory transition
- Cash from operations of $500-$600 million
and free cash flow of $250-$350
million
- Stock repurchases of $100-$200
million
- A weighted average diluted share count of 35-36 million
shares
The company also introduced its long-term financial targets for
2026:
- Core revenue of $5.0-$5.5 billion
- EBIT return on sales margin of 18-20%
- Free cash flow 90-100% of net income on average for
2023-2026
CEO Alok Maskara said, "For 2023,
Lennox expects residential unit softness to be overcome by the
cumulative impact of price, mix and productivity to deliver growth
in revenue, margin and EPS. The cash flow forecast accounts for
technology investments and additional commercial manufacturing
capacity to deliver on our core value of excellence when serving
our customers during the upcoming A2L refrigerant transition."
Maskara added, "The forecasted lower annual corporate costs
reflect the G&A benefit of consolidating into two operating
segments and the planned divestiture of European operations. For
2026, the forecast margin strength is the result of manufacturing
productivity initiatives, engineering and sourcing-led
cost-reduction efforts to further reduce product costs, and
leveraging SG&A while continuing to offset inflation with
price. The overall outlook reflects the benefit of our sharp focus
on the North American end-market."
LENNOX 2022 INVESTOR DAY
As previously announced, Lennox is hosting its 2022 Investor Day
in New York City today,
December 14, 2022. A live webcast,
starting at 9:00 a.m. Eastern time,
and presentation materials are available on the company's website
at www.lennoxinternational.com. The event also will be archived on
the website and available for replay.
ABOUT LENNOX
Lennox is a leader in energy-efficient climate-control
solutions. Dedicated to sustainability and creating comfortable and
healthier environments for our residential and commercial customers
while reducing their carbon footprint, we lead the field in
innovation with our cooling, heating, indoor air quality, and
refrigeration systems. Lennox stock is listed on the New York Stock
Exchange and traded under the symbol LII. Additional information on
Lennox is available at www.lennoxinternational.com or by
contacting Steve Harrison, Vice
President, Investor Relations, at 972-497-6670 or Mary Ellen Mondi, Vice President, Marketing
& Communication, at 972-497-5410.
FORWARD-LOOKING
STATEMENTS
The statements in this news release that are not historical
statements, including statements regarding the 2023 full-year
outlook and expected consolidated and segment financial results for
2023, as well as financial targets for 2026, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
information currently available as well as management's assumptions
and beliefs today. These statements are subject to numerous risks
and uncertainties that could cause actual results to differ
materially from the results expressed or implied by the statements,
and investors should not place undue reliance on them. Risks and
uncertainties that could cause actual results to differ materially
from such statements include risks that the North American unitary
HVAC and refrigeration markets perform worse than current
assumptions. Additional risks include, but are not limited to: the
impact of higher material prices, availability and timely delivery
of raw materials and other components, the impact of new or
increased trade tariffs, LII's ability to implement price increases
for its products and services, economic conditions in our markets,
regulatory changes, the impact of unfavorable weather, a decline in
new construction activity resulting from increased interest rates
or otherwise and related demand for products and services, and any
resurgence of the Covid-19 pandemic and its economic impact on the
company and its employees and customers. For information concerning
these and other risks and uncertainties, see LII's publicly
available filings with the Securities and Exchange Commission. LII
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
View original
content:https://www.prnewswire.com/news-releases/lennox-announces-2023-financial-guidance-and-long-term-targets-for-2026-301701833.html
SOURCE Lennox International Inc.