Lennox International Inc. stock research
FY2024 Q4
Lennox International (LII) Gross Margin — Quarter Ended Dec 31, 2024
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined sequentially and rose year-over-year, resulting in an improved gross margin compared to both periods.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined sequentially and rose year-over-year, resulting in an improved gross margin compared to both periods.
- The gross margin improved sequentially and year-over-year, driven by a more favorable relationship between cost of revenue and revenue. The margin expansion is the strongest observable trend in the quarter.
- Compared to the immediately preceding quarter, revenue was lower but gross margin was higher. Compared to the same quarter one year earlier, both revenue and gross margin were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.3%
Gross profit
$460.9M
Revenue
$1.3B
Cost of revenue
$884.1M
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+3.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $1.0B | $340.0M | $707.1M | 32.5% |
| Jun 30, 2024 | $1.5B | $488.2M | $962.9M | 33.6% |
| Sep 30, 2024 | $1.5B | $488.4M | $1.0B | 32.6% |
| Dec 31, 2024 | $1.3B | $460.9M | $884.1M | 34.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+1.7 pts
Year-over-year change
Dec 31, 2023
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a more favorable relationship between cost of revenue and revenue. The margin expansion is the strongest observable trend in the quarter.
Compared to the immediately preceding quarter, revenue was lower but gross margin was higher. Compared to the same quarter one year earlier, both revenue and gross margin were higher.
Monitor the trend of cost of revenue relative to revenue in future quarters, particularly as the company enters periods of higher working capital needs as noted in the filing.