- Homepros
- Posts
- Carrier, Lennox report Q2 earnings, see residential volume growth ahead
Carrier, Lennox report Q2 earnings, see residential volume growth ahead
Carrier generated $6.7 billion in revenue, and Lennox reeled in $1.45 billion
![Carrier HQ](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/f4d435ac-701e-473a-b7ca-0afbc7d52d65/Week_4__4_.png?t=1721958984)
Image: Carrier
Carrier and Lennox this week reported Q2 earnings — with optimism.
The big picture: After a tough 18 months, both companies finally anticipate growth in residential unit volume during the second half of 2024.
Highlights: In Q2, Carrier generated $6.7 billion in revenue, up 12% year-over-year, and Lennox reeled in $1.45 billion, up 8% year-over-year.
Lennox’s revenue growth was primarily driven by “pricing excellence” — a nod to recent price increases.
It also formed a joint venture with Samsung to sell ductless systems in the U.S. and grow its heat pump sales.
Both CEOs reconfirmed that prices for equipment utilizing A2L refrigerants will increase by about 10% over the next year.
Of note: Analysts on earnings calls questioned both companies about the rollout of A2L equipment. Carrier CEO Dave Gitlin responded, “We thought 454B could be closer to 20% [of this year’s sales]. I think it's going to be less than 10%, maybe closer to 5%.”
“I don't think a lot of our distributors and dealers are in a major rush to put in the 454B. But we think that as you get into next year, it's probably closer to 80%,” he added.
When asked about the recent Johnson Controls deal it lost to Bosch, Lennox CEO Alok Maskara comically said, “I’ll start [by] congratulating the management team at Bosch and the management team at JCI.”
“I’m sure it was hours and hours of hard work, [and] lost sleep on multiple weekends… not that I’m speaking from experience on the same transaction or anything, but I just want to congratulate them.”
Looking ahead: Carrier expects residential unit volume to be “up year-over-year in each of the remaining quarters,” but didn’t disclose specifics.
Meanwhile, Lennox projects volume to grow “low-single-digits” this year.
📫️ To get stories like this delivered to your inbox every week for free, subscribe to our newsletter here.