Lennox International, Inc.

Welcome to the Linux Third Quarter 2024 Earnings Conference. All lines are currently in a listen-only mode, and there will be a question-answer session at the end of the presentation. You may enter the queue to ask a question by pressing star and 1 on your phone. To exit the queue, press star and 2. As a reminder, this call is being recorded. I would now like to turn the conference over to Chelsea Polchain from Linux Investor Relations Team. Chelsea, please go ahead. Thank you.

Thank you, Margo. Good morning, everyone. Thank you for joining us today as we share a remarkable 2024 third quarter results. Joining me is CEO Alok Miskara and CFO Michael Quinzer. Each will share their prepared remarks before we move to the Q&A session. Turning to slide two, a reminder that during today's call, we will be making certain forward-looking statements which are subject to numerous risks and uncertainties as outlined on this page. We may also refer to certain non-GAAP financial measures that management considers relevant indicators of underlying business performance. Please refer to our SEC filings available on our Investor Relations website for additional details, including a reconciliation of all GAAP to non-GAAP measures. The earnings release, today's presentation, and the webcast archived link for today's call are available on our Investor Relations website at investor.linux.com. Now, please turn to slide three as I turn the call over to our CEO, Alok Miskara.

Thank you, Chelsea. Good morning, everyone. Lenox delivered another record quarter highlighted by double-digit revenue growth, operating margin exceeding 20%, and strong free cash flow. We also made solid progress on multiple key initiatives as part of our ongoing transformation plan. I am grateful for our talented team and the growth mindset of our customers who enabled these exceptionally strong results. Let us turn to slide three for the highlights of this quarter. Poor revenue grew 15% and our adjusted segment margin expanded 90 basis points to a Q3 record of 20.2%. Resulting in adjusted earnings per share increase of 24% to $6.68. We generated an impressive $452 million in operating cash flow this quarter, which is $139 million, or approximately 44% increase over the same quarter last year. Our industry-leading ROIC also grew to 47%. Both our segments, HCS and BCS, achieved 15% revenue growth in the quarter, and both continue to deliver strong segment profit. Investments in manufacturing capacity and front-end redesign has enabled us to gain share and meet customer demand for our 410A products. In addition, investments in digital processes and distribution technologies led to improved order fill rates within home comfort solutions. The new commercial factory startup remains on track and the building climate solution segment successfully integrated the AES acquisition ahead of schedule. These results reflect the dedication of our 14,000 employees and the continued support of our dealers and customers. Therefore, I'm confident in raising our 2024 EPS guidance range to $20.75 to $21.00. Now, please turn to slide four for more details on our CLO transition. As announced earlier this morning, John Torres, Lenox's chief legal officer, has elected to retire. I want to take a moment to acknowledge John's outstanding 16 years of leadership and his lasting impact on Lenox. He led multiple acquisitions and divestitures to streamline our portfolio and ensure that we operate with the highest ethical standards by strengthening our ethics and compliance office. As a result of our thoughtful succession planning, we are excited for Monica Brown as she takes on the role of Chief Legal Officer effective January 1st, 2025. Monica has been with Lenox for 12 years with a proven track record across our businesses and legal functions. Before joining Lenox, She spent nearly 13 years with a leading outside law firm. Looking ahead, Monica is well positioned to continue John's legacy of success with a focus on advancing our digital capabilities and accelerating future growth. Now, let me hand the call over to Michael to take us through the details of our Q3 financial performance.