Who Optimizes SG&A Costs Better? Lennox International Inc. or Graco Inc.

Optimizing SG&A: A Tale of Two Companies

In the competitive landscape of industrial manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Lennox International Inc. and Graco Inc. have demonstrated contrasting strategies in optimizing these costs. From 2014 to 2024, Lennox International Inc. consistently reported higher SG&A expenses, peaking at approximately 7.3 billion in 2024. In contrast, Graco Inc. maintained a more conservative approach, with expenses rising from 3.0 billion in 2014 to 4.7 billion in 2024.

Despite Lennox's higher absolute figures, both companies show a similar upward trend in SG&A costs, with Graco's expenses increasing by about 53% and Lennox's by 27% over the decade. This data suggests that while Lennox operates on a larger scale, Graco's efficiency in managing SG&A costs could offer a competitive edge in the long run.