And then finally, we have been extremely disciplined with a focus on shareholder value and our free cash flow. We think about, one, investing in the business first to doing focused targeted M&A like we did with our Kysor/Warren deal, where we play in the businesses that we or spend in the businesses we know well. We’ll have dividends grow with earnings over time and then we give money back to shareholders with share buyback. Our target debt to EBITDA levels too and over the last five years, we’ve returned over $750 million to shareholders through share buyback.
Let me talk a little bit about the four businesses. This is a breakout in revenue and earnings of our four segments. Maybe let me talk a bit about each of them. First overall, we had a good first half of the year with revenue up 4% at constant FX, earnings up 11%. We also exited the Hearth business, which was a non-core business that we sold to private equity earlier in the year.
Our Residential business, revenue up 10% through the first half of the year, constant FX, earnings up 30%. We’re winning in the marketplace. Market’s not growing as fast as we are. I think that’s a couple things. One is we have more exposure to residential new construction than many of our peers. We have a strong share with the major homebuilders as well as regional homebuilders. And that segment of the market has grown faster than the replacement segment and so that sort of mix shift, if you will, has helped us.
The other is within each segment, both add-on and replacement and new construction, we think we’re winning in the marketplace. We think our investments that I talked about and our physical distribution parts plus, as well as our investments in a fuller product line, most namely a furnace line that we launched last year or finished last year, is helping us.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV