Lennox International, Inc.

Please stand by, your program is about to begin. If you need assistance during your conference today, please press star zero. Welcome to the Linux fourth quarter and full year 2024 earnings conference call. All lines are currently in listen-only mode, and there will be a question and answer session at the end of the presentation. You may enter the queue to ask a question by pressing star and one on your phone. To exit the queue, press star and two. As a reminder, this call is being recorded. I would now like to turn the conference over to Chelsea Pulsion from the Linux Investor Relations Team. Chelsea, please go ahead.

Thank you, Angela. Good morning, everyone. Thank you for joining us today as we share our 2024 fourth quarter and full year 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 archive 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. I want to start by expressing my gratitude to our 14,000 employees, our 10,000 plus dealers, and all of our customers for their loyalty and innovation in that enabled us to deliver an exceptionally strong finish to 2024. One of the highlights for 2024 is that for the first time ever, Lenox delivered over $5 billion in revenue and over $1 billion in adjusted segment profit. Another achievement in 2024 is that both our segments delivered double digit revenue growth. In addition to delivering record results, we also made thoughtful investments such as starting a new commercial factory to create growth capacity. Let us turn to slide three for the fourth quarter and full year 2024 overview. Adjusted earnings per share was a record 560 for the quarter and $22.58 for the full year. Core revenue grew 22% in the quarter and 13% for the full year. Our adjusted segment margin expanded 250 basis points in Q4 and 150 basis points for the full year to 19.4%. The team also delivered a record $332 million in operating cash flow in the quarter and $946 million in the full year. Michael will provide more details later in the presentation but I want to highlight how proud we are of the work the team did this year to deliver significant year over year improvement in our cash conversion. Now, please turn to slide four as I review some of the drivers of our 2024 success. In 2024, we successfully completed the initial phase of our self-help transformation plan. The team's effort in 23, including pricing initiatives, portfolio simplification, and strategic acquisitions not only restored margins, but also established a strong foundation for an exceptional 2024. Our strategic initiative enabled us to successfully navigate the construction of a new commercial factory and overcome challenges associated with the refrigerant transition, showcasing our resilience and outstanding execution. In 2024, we continued making strategic investments while delivering impactful results, positioning us to continue our momentum into 2025 and beyond. We successfully navigated the manufacturing transition from our 410A refrigerant, effectively meeting customer needs as investments in sales and distribution channels elevated the customer experience. Our ongoing focus on pricing excellence programs partially offset the investments for improving customer experience. Our new commercial factory is now online and will be key to enhancing output and productivity. The AES integration remains ahead of schedule, exceeding the original value proposition. We maintained our strategic M&A pipeline and our discipline M&A approach. The best deals for Lenox in 2024 were the deals that we decided not to pursue, thus safeguarding long-term shareholder value. Finally, by driving accountability through the Lenox Unified Management System, we ensured consistent performance. Before I hand the call to Michael, I want to extend my heartfelt gratitude to Gary Bedard, president of our HCS segment since 2023, who has announced his decision to retire from Lenox. Gary's 26-year tenure at Lenox will leave a legacy that will continue to shape our future. We have initiated a search process to identify our next HCS president. I'll now hand it over to Michael, who will walk you through how we successfully invested in the business while also delivering strong results.