Lennox International (LII) The 44th Annual William Blair Growth Stock Conference summary

Strategic priorities and values

• Focus on integrity, respect, and excellence as core values guiding hiring, evaluation, and strategy.

• Emphasis on improving customer experience and positive engagement with dealers, employees, and investors.

Financial performance and targets

• Achieved 6% revenue growth, 300 bps margin expansion, 27% EPS growth, and $434M cash flow increase in 2023.

• Raised 2026 targets to $5.4B–$6B revenue and 19%–21% return on sales due to faster-than-expected progress.

• Committed to returning cash to shareholders after current investment phase, including a new factory in Mexico.

Distribution and growth initiatives

• Strengthening distribution network by decentralizing operations, upgrading digital/physical infrastructure, and increasing digital sales.

• Targeting higher sales of non-branded products, aiming to double from 15% to 30% over the next few years.

• Announced joint venture with Samsung to expand mini-split VRF and heat pump offerings in the U.S.