Latest news with #AlokMaskara
Yahoo
17-06-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Lennox's Q1 Earnings Call
Lennox's first quarter results were marked by ongoing transitions in its product lineup and significant external cost pressures. While revenue and non-GAAP earnings per share both exceeded Wall Street expectations, the market responded negatively, reflecting concerns over margin compression and supply chain challenges. Management attributed the 140 basis point decline in operating margin primarily to higher input costs from new tariffs and inefficiencies tied to the regulatory shift to low-global warming potential (GWP) refrigerants. CEO Alok Maskara explained, 'BSC margins were impacted due to short-term inefficiencies related to the manufacturing transition and new factory start-up,' highlighting that much of the margin pressure was expected and internal in nature. Is now the time to buy LII? Find out in our full research report (it's free). Revenue: $1.07 billion vs analyst estimates of $1.03 billion (2.4% year-on-year growth, 4.6% beat) Adjusted EPS: $3.37 vs analyst estimates of $3.25 (3.6% beat) Management slightly raised its full-year Adjusted EPS guidance to $22.88 at the midpoint Operating Margin: 14.5%, down from 15.9% in the same quarter last year Organic Revenue rose 2.4% year on year (4.2% in the same quarter last year) Market Capitalization: $19.3 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan Merkel (William Blair) asked about commercial order delays and whether the worst was over. CEO Alok Maskara responded that order rates had improved and most inefficiencies were likely a one-time event, though some challenges may persist into the second quarter. Tommy Moll (Stephens) pressed on the rationale for lowering volume assumptions and the timing of price increases. Maskara clarified that the company had not yet seen a slowdown, but built conservatism into the outlook due to macroeconomic uncertainty and tariff impacts. Joe O'Dea (Wells Fargo) inquired about the inflation guidance increase and how pricing would respond if tariffs changed. CFO Quenzer explained that recent surcharges could be rolled back if tariff rates were reduced, and that much of the inflation was driven by Chinese component costs. Julian Mitchell (Barclays) questioned the operating margin trajectory and how volume and pricing changes would balance out. Management reiterated that margin improvement would be driven by internal operational fixes, and that tariff-related price increases were expected to roughly offset volume declines. Steve Tusa (JPMorgan) sought clarification on the impact of refrigerant shortages and whether recent price hikes from suppliers would affect volumes. Maskara stated Lennox had no supply issues for production, and the shortages were limited to service canisters, not expected to impact overall demand. In the coming quarters, the StockStory team will monitor (1) the effectiveness of tariff mitigation efforts and the potential for any easing in trade policy, (2) the pace at which manufacturing inefficiencies are resolved as new product lines and factories mature, and (3) signs of demand stabilization or recovery in both Home Comfort and Building Climate Solutions segments, particularly as the emergency replacement business expands. The adoption rate of new digital and supply chain initiatives will also be a key area of focus. Lennox currently trades at $543.96, down from $558.85 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Globe and Mail
27-05-2025
- Business
- Globe and Mail
Lennox and Ariston Group Announce Joint Venture to Launch Water Heaters in North America
The partnership combines Lennox's strength in residential distribution and customer relationships with Ariston Group's advanced water heating technology and manufacturing footprint, to launch water heaters that will carry the Lennox brands. DALLAS , May 27, 2025 /CNW/ -- Lennox (NYSE: LII), a leader of innovative climate solutions in the HVACR industry, and Ariston Group (Bloomberg: ARIS IM ), a global leader in sustainable climate and water comfort, have entered into a joint venture that will bring a competitive product portfolio of residential water heaters to homeowners in the United States and Canada . This strategic partnership brings the trusted brands, distribution channels, and expansive customer network of Lennox with Ariston Group's advanced global and regional expertise in water heating technology, R&D, and manufacturing. Together, the two companies aim to strengthen their market presence and drive innovation across the North American residential water heater landscape. "This joint venture aligns with our strategy to deliver accelerated growth by expanding our product offerings within the residential market, further strengthening our customer relationships," said Alok Maskara , Chief Executive Officer of Lennox. "We are excited to work alongside Ariston Group, a renowned global leader in water heating, including heat-pump-based high-efficiency water heating solutions. The new joint venture's offerings, when coupled with existing Lennox products and technology applications, will enable a perfect home comfort environment. Our partnership, grounded in shared principles and goals, provides additional value and growth opportunities to our dealers, distributors, and contractors." The joint venture will support the growth of Lennox and Ariston Group water heater sales across their respective channels and customers in the USA and Canada. Beginning in 2026, water heater products carrying the Lennox brands will be sold through Lennox stores, the direct-to-dealer network, and the distributor channel. Through its Ariston USA subsidiary, Ariston Group will continue selling to current customers under its brands. "Ariston Group entered the North American market in 2016, building its presence through three acquisitions, recognizing this region as a strategic priority for profitable growth," said Paolo Merloni , Executive Chairman of Ariston Group. "We are pleased to announce this new chapter with Lennox, an outstanding partner whose market leadership we respect deeply. This joint venture allows us to add to our existing commercial presence and brands an alliance with a strong partner. We are proud to be the technology provider behind high-efficiency solutions that will carry the Lennox brands." The newly established joint venture will be called Ariston Lennox Water Heating North America and will be operational after customary closing conditions are met. Ariston USA will own 50.1% of the joint venture, while Lennox will own the remaining 49.9%. Leadership of the joint venture will be appointed jointly by Ariston Group and Lennox. About Lennox Lennox (NYSE: LII) 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. Additional information is available at For media inquiries, contact PR@ About Ariston Group Ariston Group (Bloomberg: ARIS IM) is a global leader in sustainable climate and water comfort, listed on Euronext Milan. In 2024 the group reported 2.6 billion-euro revenues, with over 10,000 employees, direct presence in 40 countries in 5 continents, 29 production sites and 28 research and development centers. The group demonstrates its commitment to sustainability through renewable and high-efficiency solutions, including heating heat pumps, water heating heat pumps, hybrids, domestic ventilation, air handling, electric components and solar thermal systems, while continuously investing in technological innovation, digitalization and advanced connectivity solutions. Additional information is available at For media inquiries, contact . SOURCE Lennox International Inc.
Yahoo
27-05-2025
- Business
- Yahoo
Lennox and Ariston Group Announce Joint Venture to Launch Water Heaters in North America
The partnership combines Lennox's strength in residential distribution and customer relationships with Ariston Group's advanced water heating technology and manufacturing footprint, to launch water heaters that will carry the Lennox brands. DALLAS, May 27, 2025 /CNW/ -- Lennox (NYSE: LII), a leader of innovative climate solutions in the HVACR industry, and Ariston Group (Bloomberg: ARIS IM), a global leader in sustainable climate and water comfort, have entered into a joint venture that will bring a competitive product portfolio of residential water heaters to homeowners in the United States and Canada. This strategic partnership brings the trusted brands, distribution channels, and expansive customer network of Lennox with Ariston Group's advanced global and regional expertise in water heating technology, R&D, and manufacturing. Together, the two companies aim to strengthen their market presence and drive innovation across the North American residential water heater landscape. "This joint venture aligns with our strategy to deliver accelerated growth by expanding our product offerings within the residential market, further strengthening our customer relationships," said Alok Maskara, Chief Executive Officer of Lennox. "We are excited to work alongside Ariston Group, a renowned global leader in water heating, including heat-pump-based high-efficiency water heating solutions. The new joint venture's offerings, when coupled with existing Lennox products and technology applications, will enable a perfect home comfort environment. Our partnership, grounded in shared principles and goals, provides additional value and growth opportunities to our dealers, distributors, and contractors." The joint venture will support the growth of Lennox and Ariston Group water heater sales across their respective channels and customers in the USA and Canada. Beginning in 2026, water heater products carrying the Lennox brands will be sold through Lennox stores, the direct-to-dealer network, and the distributor channel. Through its Ariston USA subsidiary, Ariston Group will continue selling to current customers under its brands. "Ariston Group entered the North American market in 2016, building its presence through three acquisitions, recognizing this region as a strategic priority for profitable growth," said Paolo Merloni, Executive Chairman of Ariston Group. "We are pleased to announce this new chapter with Lennox, an outstanding partner whose market leadership we respect deeply. This joint venture allows us to add to our existing commercial presence and brands an alliance with a strong partner. We are proud to be the technology provider behind high-efficiency solutions that will carry the Lennox brands." The newly established joint venture will be called Ariston Lennox Water Heating North America and will be operational after customary closing conditions are met. Ariston USA will own 50.1% of the joint venture, while Lennox will own the remaining 49.9%. Leadership of the joint venture will be appointed jointly by Ariston Group and Lennox. About LennoxLennox (NYSE: LII) 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. Additional information is available at For media inquiries, contact PR@ About Ariston Group Ariston Group (Bloomberg: ARIS IM) is a global leader in sustainable climate and water comfort, listed on Euronext Milan. In 2024 the group reported 2.6 billion-euro revenues, with over 10,000 employees, direct presence in 40 countries in 5 continents, 29 production sites and 28 research and development centers. The group demonstrates its commitment to sustainability through renewable and high-efficiency solutions, including heating heat pumps, water heating heat pumps, hybrids, domestic ventilation, air handling, electric components and solar thermal systems, while continuously investing in technological innovation, digitalization and advanced connectivity solutions. Additional information is available at For media inquiries, contact View original content to download multimedia: SOURCE Lennox International Inc. View original content to download multimedia: Sign in to access your portfolio
Cision Canada
27-05-2025
- Business
- Cision Canada
Lennox and Ariston Group Announce Joint Venture to Launch Water Heaters in North America
The partnership combines Lennox's strength in residential distribution and customer relationships with Ariston Group's advanced water heating technology and manufacturing footprint, to launch water heaters that will carry the Lennox brands. DALLAS, May 27, 2025 /CNW/ -- Lennox (NYSE: LII), a leader of innovative climate solutions in the HVACR industry, and Ariston Group (Bloomberg: ARIS IM), a global leader in sustainable climate and water comfort, have entered into a joint venture that will bring a competitive product portfolio of residential water heaters to homeowners in the United States and Canada. This strategic partnership brings the trusted brands, distribution channels, and expansive customer network of Lennox with Ariston Group's advanced global and regional expertise in water heating technology, R&D, and manufacturing. Together, the two companies aim to strengthen their market presence and drive innovation across the North American residential water heater landscape. "This joint venture aligns with our strategy to deliver accelerated growth by expanding our product offerings within the residential market, further strengthening our customer relationships," said Alok Maskara, Chief Executive Officer of Lennox. "We are excited to work alongside Ariston Group, a renowned global leader in water heating, including heat-pump-based high-efficiency water heating solutions. The new joint venture's offerings, when coupled with existing Lennox products and technology applications, will enable a perfect home comfort environment. Our partnership, grounded in shared principles and goals, provides additional value and growth opportunities to our dealers, distributors, and contractors." The joint venture will support the growth of Lennox and Ariston Group water heater sales across their respective channels and customers in the USA and Canada. Beginning in 2026, water heater products carrying the Lennox brands will be sold through Lennox stores, the direct-to-dealer network, and the distributor channel. Through its Ariston USA subsidiary, Ariston Group will continue selling to current customers under its brands. "Ariston Group entered the North American market in 2016, building its presence through three acquisitions, recognizing this region as a strategic priority for profitable growth," said Paolo Merloni, Executive Chairman of Ariston Group. "We are pleased to announce this new chapter with Lennox, an outstanding partner whose market leadership we respect deeply. This joint venture allows us to add to our existing commercial presence and brands an alliance with a strong partner. We are proud to be the technology provider behind high-efficiency solutions that will carry the Lennox brands." The newly established joint venture will be called Ariston Lennox Water Heating North America and will be operational after customary closing conditions are met. Ariston USA will own 50.1% of the joint venture, while Lennox will own the remaining 49.9%. Leadership of the joint venture will be appointed jointly by Ariston Group and Lennox. About Lennox Lennox (NYSE: LII) 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. Additional information is available at For media inquiries, contact [email protected].
Yahoo
23-04-2025
- Business
- Yahoo
Lennox (NYSE:LII) Reports Bullish Q1
Climate control solutions innovator Lennox International (NYSE:LII) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 2.4% year on year to $1.07 billion. Its non-GAAP profit of $3.37 per share was 3.6% above analysts' consensus estimates. Is now the time to buy Lennox? Find out in our full research report. Revenue: $1.07 billion vs analyst estimates of $1.03 billion (2.4% year-on-year growth, 4.6% beat) Adjusted EPS: $3.37 vs analyst estimates of $3.25 (3.6% beat) Adjusted EBITDA: $187.5 million vs analyst estimates of $180.4 million (17.5% margin, 3.9% beat) Management slightly raised its full-year Adjusted EPS guidance to $22.88 at the midpoint Operating Margin: 14.5%, down from 15.9% in the same quarter last year Free Cash Flow was -$61.3 million compared to -$51.8 million in the same quarter last year Organic Revenue rose 2% year on year (4.2% in the same quarter last year) Market Capitalization: $19.82 billion "Our results this quarter highlight the strength of our replacement-driven business model and the value of our North American-focused strategy. We are navigating the shifting trade dynamics with flexibility, supported by a more resilient supply chain built through past disruptions," said CEO, Alok Maskara. Based in Texas and founded over a century ago, Lennox (NYSE:LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods. Many HVAC and water systems companies sell essential, non-discretionary infrastructure for buildings. Since the useful lives of these water heaters and vents are fairly standard, these companies have a portion of predictable replacement revenue. In the last decade, trends in energy efficiency and clean water are driving innovation that is leading to incremental demand. On the other hand, new installations for these companies are at the whim of residential and commercial construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Lennox grew its sales at a mediocre 7.5% compounded annual growth rate. This wasn't a great result compared to the rest of the industrials sector, but there are still things to like about Lennox. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Lennox's annualized revenue growth of 8.3% over the last two years aligns with its five-year trend, suggesting its demand was stable. Lennox also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Lennox's organic revenue averaged 8.4% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Lennox reported modest year-on-year revenue growth of 2.4% but beat Wall Street's estimates by 4.6%. Looking ahead, sell-side analysts expect revenue to grow 3.3% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Lennox has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 16.1%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it's a show of well-managed operations if they're high when gross margins are low. Analyzing the trend in its profitability, Lennox's operating margin rose by 4.4 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, Lennox generated an operating profit margin of 14.5%, down 1.4 percentage points year on year. Since Lennox's gross margin decreased more than its operating margin, we can assume its recent inefficiencies were driven more by weaker leverage on its cost of sales rather than increased marketing, R&D, and administrative overhead expenses. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Lennox's EPS grew at a spectacular 17.4% compounded annual growth rate over the last five years, higher than its 7.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Lennox's earnings can give us a better understanding of its performance. As we mentioned earlier, Lennox's operating margin declined this quarter but expanded by 4.4 percentage points over the last five years. Its share count also shrank by 7.8%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Lennox, its two-year annual EPS growth of 24.3% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q1, Lennox reported EPS at $3.37, down from $3.47 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 3.6%. Over the next 12 months, Wall Street expects Lennox's full-year EPS of $22.48 to grow 5.7%. We were impressed by how significantly Lennox blew past analysts' organic revenue and reported revenue expectations this quarter. EPS also beat, and the company raised full-year EPS guidance. Management added that "revenue is still anticipated to increase by approximately 2%. We now expect additional pricing gains to overcome tariffs while preserving profit margins and offsetting the impact of potential volume declines." Despite the good news, shares traded down 4.3% to $534.99 immediately after reporting. Is Lennox an attractive investment opportunity right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
