Lennox reported fourth quarter record revenue of $1.09 billion in the quarter, up 13%. GAAP operating income was $132 million, up 35%. GAAP earnings per share from continuing operations was $2.65, up 17%.
Total segment profit rose 30% to $132 million. Total segment margin was 12.1%, up 150 basis points. Adjusted earnings per share from continuing operations rose 12% to $2.63.
In Refrigeration, revenue was up 5% as reported and up 10% at constant currency, led by price in North America. Segment profit rose 42%, and segment margin expanded 330 basis points to 12.5%.
FULL YEAR 2022 FINANCIAL HIGHLIGHTS
Revenue: Revenue for the year was a record $4.72 billion, up 13%. Foreign exchange had a negative 1% impact on revenue.Gross Profit: Gross profit was $1.28 billion, up 8%. Gross margin was 27.2%, down 110 basis points, primarily impacted by residential mix and inefficiencies related to global supply chain disruptions.
Net Income: On a GAAP basis, net income from continuing operations for the year was $497 million, or $13.88 per share, compared to $464 million, or $12.39 per share, in the prior year.
Adjusted net income from continuing operations in 2022 was $504 million, or $14.07 per share, compared to $471 million, or $12.60 per share, in the prior year.
Cash from Operations and Free Cash Flow: Net cash from operations in 2022 was $302 million compared to $516 million in the prior year as the company replenished finished goods inventory ahead of the minimum-efficiency regulatory changes and in raw material to increase supply chain resiliency. Capital expenditures were approximately $101 million in 2022 compared to $107 million in the prior year. Free cash flow was $203 million compared to $410 million a year ago.
Residential: Revenue in the Residential Heating & Cooling business segment was a record $3.20 billion, up 15%. Segment profit was a record $597 million, up 10%. Segment margin was 18.7%, down 80 basis points, impacted by lower mix as manufacturing output of higher-end products remained constrained and supply chain challenges drove manufacturing inefficiencies.
Commercial: Revenue in the Commercial Heating & Cooling business segment was $901 million, up 4%. Segment profit was $81 million, down 27%. Segment margin contracted 380 basis points to 9.0% primarily driven by factory inefficiencies and lower sales volume.
Refrigeration: Revenue in the Refrigeration business segment was $619 million, up 12%. Foreign exchange had a negative 5% impact to revenue growth. Segment profit rose 60% to $79 million. Segment margin expanded 380 basis points to 12.7% primarily driven by price.
As previously announced, beginning in 2023 North American Refrigeration operations will be reported in the Commercial Segment and European operations will be classified as non-core and included in the Corporate and Other Segment until disposition.
