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Lennox International Reports Record Revenue and Profit in Second Quarter ● Revenue up 32 % to record $ 1.24 billion on strong growth in all businesses GAAP EPS from continuing operations up 72 % to record $ 4.51 Adjusted EPS from continuing operations up 54 % to record $ 4.57 Repurchased $ 200 million of stock and announced 19 % dividend increase Exhibit - 99.1 As previously announced on July 14 : raising 2021 guidance for revenue growth from 7-11 % to 11-15 % at constant currency , and now 12-16 % at actual currency ; raising 2021 guidance for GAAP EPS from continuing operations from $ 11.33- $ 11.93 to $ 11.97- $ 12.57 ; raising 2021 guidance for adjusted EPS from continuing operations from $ 11.40- $ 12.00 to $ 12.10- $ 12.70 Raising 2021 stock repurchase guidance to a total of $ 600 million after $ 400 million of buyback in the first half of the year DALLAS , July 26 , 2021 – Lennox International Inc. ( NYSE : LII ) , a global leader in energy - efficient climate - control solutions , today reported financial results for the second quarter of 2021. All comparisons are to the prior - year period . Lennox International reported record revenue of $ 1.24 billion in the second quarter , up 32 % . Foreign exchange had a positive 2 % impact on revenue growth . GAAP operating income was a record $ 216 million , up 59 % . GAAP earnings per share from continuing operations was a record $ 4.51 , up 72 % . Total segment profit was a record $ 222 million , up 45 % . Total segment margin expanded 160 basis points to 17.9 % . Adjusted earnings per share from continuing operations was a record $ 4.57 , up 54 % . " Lennox International posted record revenue and profit in the second quarter with strong growth across all three of our businesses , " said Chairman and CEO Todd Bluedorn . “ Our Residential business set new highs for revenue , margin and profit . Revenue rose 30 % on strong growth in both replacement and new construction business . Segment margin expanded 290 basis points to 22.6 % , and profit rose 49 % . " In Commercial , revenue was up 34 % . National Accounts revenue was up more than 50 % , and Regional & Local revenue was up more than 20 % . Segment margin was 17.9 % , down 100 basis points from the prior - year quarter . Commercial profit rose 27 % . In Refrigeration , revenue was up 37 % on strong growth in both North America and Europe . Segment margin expanded 90 basis points to 9.1 % , and profit rose 52 % . " Looking ahead for the company overall , we have raised 2021 guidance for revenue , earnings and free cash flow on strong market growth and company performance . Momentum continues into the second half of the year for Residential , as well as for Commercial and Refrigeration , which continue to rebound and benefit from the pent - up demand created last year . As we look to 2022 and beyond , we see the residential replacement cycle spinning faster and continue to position our business to capitalize on strong market growth and share gains . " FINANCIAL HIGHLIGHTS Revenue : Revenue was a record $ 1.24 billion , up 32 % in the second quarter , with volume , price , and foreign exchange favorable to revenue . Mix was neutral . Gross Profit : Gross profit was $ 383 million , up 39 % , and gross margin was 30.9 % , up 160 basis points . Gross profit was positively impacted by higher volume , favorable price , mix and foreign exchange , factory productivity , and sourcing and engineering - led cost reductions . Partial offsets included higher commodity , distribution , tariffs , warranty , and other product costs . Income from Continuing Operations : On a GAAP basis , income from continuing operations for the second quarter was $ 170.0 million , or $ 4.51 per share , compared to $ 100.6 million , or $ 2.62 per share , in the prior - year quarter . Adjusted income from continuing operations in the second quarter was $ 172.0 million , or $ 4.57 per share , compared to $ 114.0 million , or $ 2.97 per share , in the prior - year quarter . Adjusted income from continuing operations for the second quarter of 2021 excludes net after - tax charges of $ 2.0 million , consisting of : a net charge of $ 3.4 million for items excluded from segment profit , a charge of $ 1.0 million for restructuring activities , and a net benefit of $ 2.4 million for excess tax benefits from share - based compensation and other tax items . Cash from Operations , Free Cash Flow and Total Debt : Net cash from operations in the second quarter was $ 192 million compared to $ 105 million in the prior - year quarter . Capital expenditures were $ 21 million in the second quarter compared to approximately $ 19 million in the prior - year quarter . Free cash flow was $ 171 million compared to approximately $ 87 million in