Lennox International (LII) FY2023 results: revenue $5.0 billion, up 5.6% on the year

Lennox International Inc. (LII) reported revenue of $5.0 billion for fiscal 2023, the year ended 31 December 2023, up 5.6% on the year before. Net income was $590 million, up 18.7%, and diluted earnings per share $16.54. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2024.

Revenue

$5.0 billion

+5.6% on the year

FY2016FY2023

Operating margin

15.9%

13.9% a year earlier

FY2016FY2023

Net income

$590 million

+18.7% on the year

FY2016FY2023

Diluted EPS

$16.54

+19.2% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	4,982	4,718	4,194	+5.6%
Cost of revenue	3,434	3,434	3,006	+0.0%
Gross profit	1,548	1,285	1,188	+20.5%
Gross margin	31.1%	27.2%	28.3%
Research and development	94.0	80.3	76.1	+17.1%
Selling, general and administrative	706	627	599	+12.5%
Operating income	790	656	590	+20.4%
Operating margin	15.9%	13.9%	14.1%
Interest expense	51.7	38.7	25.0	+33.6%
Pre-tax income	738	616	560	+19.8%
Income tax	148	119	96.1	+24.4%
Effective tax rate	20.0%	19.3%	17.2%
Net income	590	497	464	+18.7%
Net margin	11.8%	10.5%	11.1%
Diluted EPS	$16.54	$13.88	$12.39	+19.2%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	736	302	516	+143.5%
Capital expenditure	250	101	107	+147.5%
Free cash flow	486	201	409	+141.6%
Free cash flow margin	9.8%	4.3%	9.7%
Cash from investing	-320	-103	-106
Cash from financing	-406	-174	-499
Depreciation and amortisation	86.0	77.9	72.4	+10.4%
Share-based compensation	30.1	21.8	24.3	+38.1%
Buybacks	0.0	300	600
Dividends paid	153	142	126	+8.0%
Dividend per share	$4.36	$4.10	$3.53	+6.3%
Diluted shares, weighted	36m	36m	38m	-0.3%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	393	-203	-269
Debt	1,143	1,525	1,238	-25.0%
Operating lease liabilities	165	162	145	+1.7%
Finance lease liabilities	32.7	28.3	29.0	+15.5%
Other liabilities	1,208	1,056	1,029	+14.4%
Total liabilities and equity	2,941	2,568	2,172	+14.5%
Fixed assets	720	549	515	+31.2%
Goodwill	222	186	187	+19.2%
Investments	8.4	8.5	5.5	-1.2%
Cash and equivalents	60.7	52.6	31.0	+15.4%
Receivables	595	608	508	-2.3%
Inventory	842	753	511	+11.8%
Other assets	493	410	414	+20.3%
Total assets	2,941	2,568	2,172	+14.5%

10-K for the year ended 31 December 2023, filed 13 February 2024: the filing.